South China Resources Share Discussion Threads

[tonystringy] 30/5/2007 20:25

Quite pleased to be able to exit at 3p today. If I'd had the sense to sell at 8AM as planned I could have saved myself £25! -Just had so much on my mind I actually forgot about it till morning break.

Best of luck to those left holding. Suppose I could have done the same with the size of my stake but £300 is still not quite peanuts to me.

I might pop in occasionally......It's at times like these that the worste posters usually turn up so I can use this as a way of detecting those I ought to have on filter. -Most useful!

Bye for now chaps!

[wolstencroft] 30/5/2007 19:22

lob_on: I think its impossible to tell. Fair value for SCR is anything from nothing to circa 5m for the relationships and cash.

[lob_on] 30/5/2007 19:20

imo could sink as low as 1.5-2p , maybe interested at those levels.

but this is only going one way for now!

[wolstencroft] 30/5/2007 19:18

IMHO, based on recent events, I think that you are right!

Having said that I remember buy as many Templeteon Emerging Markets as I would affort at about 67p after the Asian Crisis, OXUS when they failed to get funding, Silvercorp in a May pullback, so you never know. In this case it is not just Danfeng but management who are in question.

Some companies bounce back but many don't really (Minco run by man ousted at OXUS, Cambridge Minerals etc). At the end of the days it is management.

I still hold a few 00k of these - my worst ever investment. But what I have learnt is to manage risk and reduce exposure as risk rises.

[wiganer] 30/5/2007 19:14

I think that it appears to me that anyone still bullish about SCR is a nutter.

[wolstencroft] 30/5/2007 19:12

RA1:Unless you can *prove* what you have stated as fact they IMHO you really are being libellous.

Management may be incompetent, unlucky, greedy, gullible, wishful-thinking etc etc but that does not make them crooks. So even if you think that SCR are the former to simply state as fact that they are crooks is treading very dangerously. Damages in cases like this are normally circa 100k upwards (a year ago my legal advisor said I could probably get 50k from someone publishing that I was dishonest in a situation unrelated to mining / advfn).

SCR have a duty to protect their reputation so even if it does not make financial sense to pay the 50-70k libel cases cost dont be surprised to find that one day you are on the wrong end of a solicitors letter - that notmally costs about £300 and a director can then claim they have done their duty to defend the name of the company.

I have been advised that you can generally avoid exposure to legal action by stating "I think that SCR are" or "It appears to me that, based on XXX, that SCR are YYY" etc but DYOR just to be on the safe side!!!

[simon54] 30/5/2007 17:12

I have reported that sort of libellous filth to the FSA before now, but really it seems a waste of time.

Wendy - agreed above. The particular problem now is that what was once a tough funding requirement, at the time of the original Zhunuo announcement, is now so daunting in the light of the reduced market cap. A vicious circle indeed.

I think the situation is in the hands of whoever might want to take advantage of a cheap way into a Tibetan opportunity, maybe. Speculating on deals behind the scenes is not something I feel much interest in, really.

[kimboy2] 30/5/2007 17:05

If only standards could be enforced on these BB's.

[ra1] 30/5/2007 16:43

DEAD MONEY.

Whoever continues to listen to simon54 desreves to lose their money.

The directors have done very well well out of SCR at you expense.

SCR ARE A BUNCH OF CROOKS!!!!!! Mark my words i have been saying it for 6months, i am waiting for when a formal investigation begins by the FSA.

I really hope it happens, and helps clear out some of the junior mining trash of aim like SCR, and stricter standards are enforced, so ppl dont lose money on fradulent mining companies

This is simply my opinion DYOR

[monis] 30/5/2007 14:51

Thanks nobull and wdurham.

[wdurham] 30/5/2007 09:17

To be perfectly blunt, there is very little reason to buy back into SCR right now.

I have a tiny holding as part of a diversified "minex basket", bought specifically as a bet on Zhunuo, which I will keep. I am surprised they have binned Danfeng completely, as there seemed to be a possibility of a small copper mine which might have kept a bit of cash flowing in. But it would still have had to be built, and it's hard to raise finance for anything marginal these days.

But with so many other good prospects on the market, why buy SCR? Almost any of the nickel plays are a good bet these days, as is copper, and even gold is getting a bit more attention recently.

If SCR finalise the Zhunuo deal, that might be a reason, as the project, on the face of it, looks fantastic. However, it is not yet secure.

If I had money looking for a home, I wouldn't choose SCR at this moment. Although things might be different as they make progress on Zhunuo and other deals.

[nobull] 30/5/2007 09:14

Monis, the case to buy back in is that

1. Zhunuo will be brilliant.
2. The institutions will support a £5m equity fund raising (possibly on condition the existing CEO departs).

A bit difficult to believe either of the above two at present!

By the way, this would be the third fundraising (the previous two having helped to generate good relations with the Chinese!)

[monis] 30/5/2007 08:52

happy to be out of these a long time ago. Sympathy for anyone who didn't. However can we now discuss what they actually have as of today, what case is there to buy back in?

[deepeshmodasia] 30/5/2007 08:48

phew, glad i got out at 3p, bloody hekk lost 20% of my funds in 24 hours, desperate to get back to at least break even, looking at rcg, sub 100p, seems like an easy 3 bagger in the medium term, imo, good luck all

[casino royale] 30/5/2007 07:25

glad i got out when i did some time ago, still lost a fortune then so not bragging in anyway shape or form, but if i ever see a mining share go south like this did again I wont think twice about bailing. to be honest i also think that this share has been a sham for a long long time and has dented my trust you just cannot trust what you read from these companys and will wait and hope that maybe ggg will turn into another griffin mining if that ends up the same as this shower of S*it i will gladly retire from buying aim stocks.

[papillon] 29/5/2007 21:38

Spot on drewz. I do hold GGG but only small amount.

[tippingpoint] 29/5/2007 21:31

Yep - it's easy to be wise after the event...

There is the short term danger that this will drop further as disgruntled punters leave. But if the management of the company is shrewd they will try to limit the damage by releasing more positive developments re Zhunuo or Xian asap...

For now its a mining shell probably with £2mn cash, a few contacts and some potentially ground breaking contracts and deals in the wings for development.

The question for me is management strength and capability. Everybody makes mistakes and sometimes companies have had poor projects but still progress onto better things and building strong companies.

I would like to believe that and may buy stock if there are any progressive signs and a more effective to market reporting. But I fear it's catching a falling knife at the moment and I want to see where it bottoms out.

IMHO

[drewz] 29/5/2007 21:25

As long as folk only had 5% - 10% of their portfolio in this stock (which would be prudent for such a high risk speculative share) then they will safely live to fight another day.

If they have 'bet the farm' and lost a packet, then you have to question the judgement, as I do with some of the claims of huge stakes being taken in GGG, which is equally risky and speculative.

That is a very foolish and dangerous style of investing which seems to be more about trying to impress on these gossip boards than making decent returns whilst preserving capital.

[papillon] 29/5/2007 21:09

Picked up on this today as one of the days biggest losers. Sorry to see people losing money on this share. It was only early last year that it a hit high of 28p on a wave of enthusiasm. I originally bought in 2005 and added as it took off but sold not that far off the peak. I did intend to buy back cheaper but never did. With the benefit of hindsight its alway wise to take a profit and to set a stop loss just on case you have the misfortune to buy near the top. I recognise some of the posters who were posting here a year ago. Its likely that some fell in "love" with this share. Dangerous.

[redm1re] 29/5/2007 20:46

Simon, you are guilty as charged of being a highly knowledgeable poster and an excellent debater. Enthusiastic? well maybe but when has than been a crime? Would any of us have been holding if we were not enthusiastic at one time or another.

What is a real shame is that you are being attacked by the worst form of slime, one who glories in other's misfortune. Investing in share like this is always high risk and this one didn't work. Spectacularly as it turns out.

I have held on too long, I admitted that a few weeks ago. This has been a salutory lessone for all of us.

I will hang on, my holding is now so small it is hardly worth bothering about. Good luck all, it's been emotional!

[marmaduke6] 29/5/2007 20:36

what a lot of individuals forget is that thia was a high risk punt albeit based on some possible dodgy chinese data-Should watch the programme Brits in China.There is no doubt money to be made but it is not easy under a rip off climate.The rant about Simon is tatally unjustified . I personally was never confident to place a lot of money here so my current loss is small and I may just stay in forf the fun. This is an interesting post from a lot of good individuals from whom one can learn a lot about how to behave in a hostile environment - And I am not just talking about China!!!