why not? I've lost over £40,0000 with this bunch of toads. T
hey have never had a credible CFO. Everyone on the Board appears to be called Ng. The company was in my opinion a fraud from start to finish, as are many AIM listed companies. They probably don even have any plantations, have you ever been to check? To join aim you just need to pay a fee. To leave, just stop paying the fee. It's like a golf club. It isn't regulated in any meaningful sense f the word.
This share definitely looks to be heading to a de-listing from AIM. There is only another 4 weeks to go before the automatic de-listing comes into effect, i.e. 6 months after being suspended, and no news has been forthcoming from the Company.
I am expecting a de-listing from the Hong Kong exchange to follow soon after, which will then be followed by a liquidation and "rescue" of the Company that wipes out all existing retail investors.
It seems that the Board has now decided on a new investment, and it moves us away from purely agricultural activities. Let us hope that this venture is more profitable than the plantations that were infected.
There is a RNS available on the potential acquisition, but iii does not appear to have linked it yet.
It appears that "Other public Shareholders" currently hold about 1,070,385,490 shares or 85.66% of the current share capital as at the date of this announcement.
Upon completion of the Placing and the issue of the Consideration Shares these "Other public Shareholders" would still hold about 1,070,385,490 shares but this will only be 43.52% of the enlarged share capital.
It will be interesting to see how the share price reacts over the coming months.
I was looking for what will be happening to the Xinfeng Plantation, and found nothing specifically new. However, I did find this statement "The land currently occupied by the Group is leased from independent third parties, and has no commercial value." There were other statements that imply that investments in building and dedicated machinery related to Xinfeng Plantation had been written down (impairments). I could not find a specific statements that the Xinfeng Plantation lease has been or would be terminated, so the future of the plantation and its associated costs appears unknown.
The Board is looking at new investment opportunities, so we will have to wait a while to see how the Company can compensate for the loss of its major plantation.
The sp reacted nicely early this morning, but we will have to wait to see if it can recover further ground in the coming weeks.
It is only one week until the interim results are to be issued, which will be pretty dire, so I am unsure that now is the time to buy, bearing in mind the last trading update.
Hopefully there will be some information on what they plan to do with the Xinfeng Plantation now orange production has ceased permanently, but I am not that hopeful based on previous experience of their information flow
It would appear that the typical Broker view is "Hold". Recent volume seems to be fairly low (250k/day for past 10 days compared with 650k/day over past year) so it looks as if that is what most investors are doing.
I have been watching the trading since Friday and every single trade has been a sell (based on selling price of 8.5 or so) and yet the price has not really dropped. Strange? Guess it will move tomorrow.
Strange wording. "to verify certain payments made by a subsidiary of the Company to one of its major suppliers, for which goods have been delivered to and received by the Group" seems to imply that an over-payment was made, rather than fraudulent invoicing. It seems what was ordered was delivered, so either it should not have been ordered on behalf of the Company, or their are payment irregularities.
We shall see the impact next Wednesday; only another 2 (working) days to wait.
It appears the delay and the additional uncertainty has scared a few people today judging by the drop, although the volume was not exactly large.
Due today but where are they? If they are being posted late they must be horrendous. On that basis and the niggling feeling that this is another scam like NBU and CAMK, I have sold out at a large loss; just salvaged what I could.
You have the wrong end of the stick. I had no idea about the chops and how they were managed in China. It was something incredibly important for the company to be fully transparent about which they could easily deal with. The key is everyone knowing how that issue is managed and not to get caught out.
In the meantime ACHL has the typhoon blues. August is always a low month. Buy these after mid September when the monsoon and typhoons seasons are coming to a close if you want a punt here. Likely to see another 2p fall off before it bounces back again into a good growing season.
Be careful folks who hold the chops on this one. Gold and Silver posted on Barc Board
Beware Investing in China
Posted by Douglas Lawson on 26/Jun/2015
It's all Wong
"Chop" is a word that I have had little use for until recently. Since entering my lexicon around 12 months ago I have been using it with increasing frequency. In China, "chop" refers to a physical device, containing a company's seal, that is used to transact official business. Each chop must be approved by the Public Security Bureau (a Government office that acts as the provincial police) and a company may have various chops for different purposes, for example opening bank accounts, authorising invoices and paying suppliers. In the UK the signature of a legal representative of a company is normally legally binding but not in China. In China, it is possession of the chops that matter. I was to find this out the hard way.
I first heard of Sorbic International plc ("Sorbic") in May 2010 when John McLean, the Chairman, came into our office in Edinburgh. We knew John through an investment in China Food Company plc, a manufacturer of animal feeds, soya sauce and other condiments. Five years ago, the UK, like much of the western world, was in the depths of the biggest recession since the Great Depression of the 1930s and the prognosis was bleak. On the contrary, China was continuing its breakneck rate of growth and overtaking Japan as the world's second largest economy. Consumer spending was soaring and Sorbic offered us a means of exposing our funds to this trend. Sorbic's business is the manufacture of sorbates, namely sorbic acid and potassium sorbate which are used as food preservatives. Sorbic had listed on AIM in September 2008, raising £6 million through Finncap, the small cap London broker. Sorbic operated through a wholly-owned subsidiary called Linyi Van Science and Technique Company Limited ("LVST"), based in Linyi, Shangdong Province.
Increasing demand for sorbates led the company to look for a new factory site where new capacity could be installed. This search led to Ulanqab in Inner Mongolia, over 1,000 miles from Linyi, where LVST would have better access to export markets and could take advantage of cheap land and financial incentives to build a factory that would double the existing capacity and feed burgeoning global demand. This new factory would be funded by the combination of a loan from Mr Wang Yan Ting ("Wang", pronounced 'Wong'), the CEO of Sorbic and founder of LVST, and a £3.5m placing of convertible loan notes (the "Loan Note(s)"). The Loan Notes would pay a coupon of 10% and would convert (at the option of the Loan Note holder) at 32p, a modest premium to the share price at the time. As an investor, this opportunity ticked lots of boxes. Here was a chance to access the fast growing, Far Eastern consumer economy in a protected instrument that was secured on hard assets and paid a generous coupon. What's more, if Sorbic delivered on its plans, we could convert into equity and benefit from capital upside. If not, we would be repaid at maturity by a company with solid fundamentals - in 2010, Sorbic reported EBITDA in excess of £1 million after sales growth of 10%. With the only constraint on growth (apparently) capital, profits and operating cashflows looked set for very strong progess and the covenant looked strong. We completed our Loan Note investment on 25 August 2010. What wasn't to like?
Quite a lot, as it turns out. But not initially. Initially, everything was very encouraging. In February 2011, Sorbic announced to the market that the new factory building in Inner Mongolia was "largely complete and construction remains on track in terms of timeline". Then, in September 2011, Sorbic announced the completion of construction work and expected commissioning of production in November 2011. The market could barely contain its excitement and the shares, which had steadily declined since the convertible issue in May 2010, soared
Hopefully the shares being dumped by stale bulls are being bought up by fresh bulls. Those fresh bulls may be institutional investors who are looking 2 to 3 years out and can see that production can at least double in that time and that the juicing business should also return to normal capacity and margins.
I think youre right re lambrini always extreme views but regardless another draconian press release (is that the right expression)?! 18% infected with loveyoulongtime disease.........which was probably expected from previous communication; SP had held up fairly well considering but its an interesting share to watch I have to say.
Lambrini girl?? Omg I've got that spammer blocked...let me guess it was a very detailed analysis about the current situation with a good reason for it's rating??!!
If you look at last week's price action it found a floor even after the negative news.
There may be another drop when they give the exact extend of the infection, but last week's support should limit any drop and fundamentally let's not forget that we have more than just oranges in the portfolio as well as a juice business and distribution.
Uncertain in the short term, long term still a buy for me.
promise promise promise by some complete fluke I got out at 8.2p yesterday, I was making a grand on £2.5k purchase and thought the market may try and have that back as although tiny in percentage terms was whopping!
Will look to go in again (as ever) but this problem seems difficult to fully analyse the impact so I think it could lurch for a while.........?!
Well it looks as if the timeline for a decent improvement in the SP has just got considerably longer.
The presence of Huanglongbing in 18% of the Xinfeng Plantation means that there will probably be virtually no profitable crop this year (any money made from the residual crop being eaten up by increased treatment costs). I suspect we may be looking at a replanting scenario of probably 50% of the trees, and costly chemical treatments may be needed to prevent further infection/re-infection.
Fundamentals don't matter in these situations its all sentiment and the management painting a bleak black picture..........this could go lower and stay there.........not great position to be in 'im sure its worth 20p' but its been 5p for years!
I may dip in when it drops to 4.75-5.00 as you may see some bottom fishing activity........oooh matron.
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