Sorbic Share Discussion Threads

[azalea] 27/10/2011 17:39

For once, I think I have stolen a march on the MM who kindly sold me 20k @ 12p, despite the tiny NMS. When I phoned and asked for 20k @ 12p, the dealer laughed. Nevertheless, to his credit, he said I will give it a try if you want, the rest is history.

[azalea] 27/10/2011 11:19

The update shows significant promise for 2012 and beyond. Given a fall in the share price of circa 50% over the last 6 mnths, the very large combined percentage of major holders( small free float), only four MM and only one on 12p, I have concluded they are worth a punt: in for 20k.

[jonny flame] 24/6/2011 11:51

Margins are squeezed due to higher input costs, and due to selling prices being locked in. However long term the company will be in a much better position once they start production in inner mongolia, labour and all costs are cheaper there, plus from memory I recall that they have a more benefical tax rate there as this is part of the incentive to move factories to inner mongolia. Once they are up and running they will be in a much stronger position and should be much more competitive - we will not see this until 2012, which is far to long for most PI's to wait! :)

My main beef is that the opening of the factory has now been delayed twice.

Back to sleep on this one until 2012.

[serratia] 24/6/2011 09:43

Results don't look good.Sales/tons increase and profits fall.GP % has fallen each year,it was 37.5% in 08 now 10.7%.They haven't got to grips with raw material prices or selling prices.I think they might be stuck in long term contract prices for their soric.
Distribution as a % up from 1.2% to 1.6% but admin costs down.Operating profit has declined from 29.1% in 08 to 1.2% today.
The new plant is 'on track for the end of the year'.From memory I think this is a delay.
There is a business here.End product in demand and not likely to be substituted,low cost labour but this has the look of poor management.

[serratia] 24/6/2011 09:22

Results out.

[mafia music] 13/5/2011 09:24

2011-05-13



China raises bank reserve requirement for 5th time this year amid mounting inflation pressure

The raise will become effective on May 18,

[morgannn] 12/5/2011 20:44

Arn't there rules about the amount of shares in freefloat?Will have to check with my broker tomorrow.

[mafia music] 12/5/2011 14:56

anyone watching cfc closely down to 49pence. sorry about going off topic

[morgannn] 12/5/2011 14:37

Have I missed something or is it true 97.5% of the shares are held by 4 entities?

[serratia] 11/5/2011 13:53

Yes they got a convertible loan away.Construction to be completed late summer/early autumn.I'm more of a cautious investor so I'd like to see the margins improve in the interims.Probably late June.

[morgannn] 11/5/2011 12:26

I believe the finance is now sorted out and the building is well ahead.It's also next door to a power station so would assume power supply is not an issue anymore.

[serratia] 11/5/2011 10:32

mafia music,

Sorbic has potential.It used to make good margins but was held back by output constraints due to an unreliable power supply and capacity issues.In addition raw material costs rose which didn't pass through in price increases.All this hit the share price.
The plan is to build a new plant in Mongolia which has a number of cost benefits,this is underway.They had some financing problems which are in the process of being resolved.
With finance in place and the new plant up and running they should be in a much better position.You can either buy in now on the assumption that the plant is going to be fine and margins return in which case it's cheap or wait for the above issues to be resolved at which time the price will reflect the progress.It all depends on your attitude to risk.

[mafia music] 04/5/2011 00:44

anyone got much to report here.

what target prices do you chaps see here. with the extra production lines what market cap do you feel is reasonable.

current P.E is 23 which is pretty poor.

[jonny flame] 14/4/2011 10:40

azalea - what you say is true, the shares are very tightly held and even a small amount of buying or selling can rapidily push the share price up or down. When I picked up my holding and was consistently buying I pushed the price up!

[jhan66] 14/4/2011 07:40

Morning Azalea, I got the info from a broker site. They normally highlight duplicate holdings but couldn't see any on this occasion.

The info is repeated on JF's link, pasted below-
Major Shareholders
Shareholders who hold more than 3% Amount % Holding
Prime Mega International Limited 20,160,000 54.54
John Nigel McLean 6,877,678 18.61
Albany Capital PLC 6,810,975 18.43
Hermes Financial Group 2,222,222 6.01

[azalea] 13/4/2011 17:02

JF
I cannot see anything there. I have my own source and just want to check it against another,if there is one.

[jonny flame] 13/4/2011 16:32

Try the company website;

[azalea] 13/4/2011 16:26

jhan66
From where did you get your data? The total holding seems extremely high!

[jhan66] 13/4/2011 12:28

Sorbic International PLC
Major ShareholdersShares in issue:38.6m6p Ords Name Amount % Holding
Prime Mega International Limited 20,160,000 54.54
John Nigel McLean 6,877,678 18.61
Albany Capital PLC 6,810,975 18.43
Hermes Financial Group 2,222,222 6.01

= Director

[azalea] 13/4/2011 09:49

Does anyone have an up todate list of major shareholders?

[jonny flame] 13/4/2011 08:19

..Finally a post :)

[mafia music] 13/4/2011 00:00

not much activity here

[jonny flame] 01/3/2011 08:01

Moathunter - thanks for that, but surely worth factoring in the below (14th Jan RNS); Also they do have a profitable business that's cash generative, and they have now secured the funding to complete the building of the additional production facility in Ulanqab City which will double production. Additionally this new facility will benefit from significantly lower input costs, plus reduced tax's (from memory). So they have invested heavily now, for the future growth to come.

This is a long term hold, no two ways about it. It has significant growth potential, whether this will be acheived remains to be seen, IMHO.

Although I still do not understand, why if they had GBP5.7 million in cash they needed to do a fund raising??? Can someone please explain this to me? I think I am missing something!

14 January 2011 - "At 30 September 2010 the Company had net assets of approximately GBP14 million of which GBP5.7 million was cash. The Company remains profitable and last year achieved revenues of GBP12 million at its existing factory in Linyi City, PRC".