Fujian Zhenyun

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#15
(04-10-2014, 11:26 PM)touzi Wrote:
(04-10-2014, 05:33 PM)CY09 Wrote: I am bit skeptical of FJZY's financial and worried when i saw the news. ...

On the balance sheet it has 437m RMB or s$91.3M of cash with about 29.5m RMB or s$6.2M of ST-debts; and FJZY market cap is s$15.5M. Even the company's level of cash & equivalent is higher than current mkt cap.

High level of cash by itself does not indicate that there is fraud. Is there any signs that hint of fraud?

-Was there any rights issue? (no)
-Is there high level of debt? (the loan amount is small which makes the usual explanation that it is to maintain relationship with bank more believable)
-Is the interest earned from the cash particularly low? (not sure. need to verify)
-Has the company been giving dividend? (yes)

Anybody can add to the checklist ?

At the moment I am more concerned with mismanagement of the business than fraud. Quality issues indicate serious operational weakness and to lose a customer that is big enough to carry out a project in Iraq must be very damaging to its reputation.

Are you saying the market has seriously mis-priced this stock?

I agree that having high level of cash by itself does not indicate that there is fraud. But however, almost all the S-chip that imploded earlier on exhibited the same characteristics - having lots of cash and the share px is languishing at a level lower than the cash backing per share.

This is not a phenomenon only found in Singapore. Go check out the S-chips listed in Malaysia.

Since they have so much cash and if you are a shareholder, can you get them to do either of the following?

- Give a yearly bonus dividend payout
- Start a share buyback program
- Get the management themselves to start buying shares
- Take the company private since the px is so low now
There are no good stocks. Stocks are only good when they go up after you bought them.
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Messages In This Thread
Fujian Zhenyun - by touzi - 17-05-2014, 02:58 PM
RE: Fujian Zhenyun - by valuebuddies - 17-05-2014, 04:06 PM
RE: Fujian Zhenyun - by ghchua - 17-05-2014, 05:49 PM
RE: Fujian Zhenyun - by touzi - 17-05-2014, 06:15 PM
RE: Fujian Zhenyun - by weijian - 11-08-2014, 07:33 PM
RE: Fujian Zhenyun - by touzi - 17-08-2014, 05:09 PM
RE: Fujian Zhenyun - by CY09 - 17-05-2014, 08:52 PM
RE: Fujian Zhenyun - by touzi - 10-08-2014, 11:30 PM
RE: Fujian Zhenyun - by touzi - 17-08-2014, 05:21 PM
RE: Fujian Zhenyun - by butcher - 04-12-2014, 12:36 AM
RE: Fujian Zhenyun - by touzi - 04-10-2014, 04:37 PM
RE: Fujian Zhenyun - by CY09 - 04-10-2014, 05:33 PM
RE: Fujian Zhenyun - by CityFarmer - 04-10-2014, 09:50 PM
RE: Fujian Zhenyun - by touzi - 04-10-2014, 11:26 PM
RE: Fujian Zhenyun - by level13 - 04-10-2014, 11:53 PM
RE: Fujian Zhenyun - by Curiousparty - 23-05-2015, 08:38 PM
RE: Fujian Zhenyun - by brattzz - 04-10-2014, 10:38 PM
RE: Fujian Zhenyun - by roxhockey - 05-10-2014, 12:40 AM
RE: Fujian Zhenyun - by touzi - 05-10-2014, 02:22 PM
RE: Fujian Zhenyun - by CY09 - 05-10-2014, 02:34 PM
RE: Fujian Zhenyun - by touzi - 05-10-2014, 04:04 PM
RE: Fujian Zhenyun - by butcher - 04-12-2014, 12:47 AM
RE: Fujian Zhenyun - by CityFarmer - 04-12-2014, 10:30 AM
RE: Fujian Zhenyun - by valuebuddies - 04-12-2014, 03:17 AM
RE: Fujian Zhenyun - by butcher - 04-12-2014, 03:30 PM
RE: Fujian Zhenyun - by touzi - 27-12-2014, 12:40 AM
RE: Fujian Zhenyun - by desmondxyz - 27-12-2014, 11:24 AM
RE: Fujian Zhenyun - by yewkim - 27-12-2014, 01:09 PM
RE: Fujian Zhenyun - by desmondxyz - 27-12-2014, 01:38 PM
RE: Fujian Zhenyun - by butcher - 28-12-2014, 05:23 PM
RE: Fujian Zhenyun - by Volmax - 27-12-2014, 01:33 PM
RE: Fujian Zhenyun - by Behappyalways - 18-02-2015, 01:08 PM
RE: Fujian Zhenyun - by touzi - 18-02-2015, 02:40 PM
RE: Fujian Zhenyun - by level13 - 18-02-2015, 03:03 PM
RE: Fujian Zhenyun - by Behappyalways - 18-04-2015, 02:00 PM
RE: Fujian Zhenyun - by butcher - 23-05-2015, 04:46 PM

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