I remember the good old days - I've been invested in them since 2011 when the share price was nearing 100p.
They are not the company they were back then having divested part of their business off - including the loss-making refining side - to become Haike & Spring Chemical.
A shadow of their former self or a minnow as you say !
Haike is a minnow. At 6.5p they had a mcap of abt £2.5m and likely sales this years of upwards of £75m. Look at the longer past history of their sp., to times when things were more favourable for Haike, than of late.
Sadly the chart shows HAIK going down and down. What had been an apparent golden opportunity is translating to a failed venture that borrowed hugely with great aspirations. They are now a shadow of their former self. I hasten to add that I have not held HAIK for several years now.
Pleased to hear that investors have had a rebound. I was concerned that the fall in the price of oil might have caused a few losses. On the face of things, the company is doing better, but I am always a bit wary when the borrowings go up significantly.
.. but does your machine factor in the effects of the falling price of oil on HAIKE's products. Agreed they might have been moving away from producing bulk oil products, but it is an uncertainty, especially if they have to shift stock made with oil based feedstock items bought when the price of oil was higher.
They are out. If you carefully read the statement there is a small bit of positive news about recent trading in one ogf their divisions. However the main message sems to be that they have had a difficult first half with over-supply in certain areas, plus their borrowings have gone up quite considerably. I am unconvinced that it is worth investing in HAIKE again at the moment.
* Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
Deramping SHORTERS !
Shorting a rising stock....is much worse when it is done by your resident posters that seemingly are your buddies and convince 'long' holders to give up!
What many pi's fail to grasp is the extent that shorting is taking place. Often we tend to think that the 'shorter' is gone, 'he' is out of the way? You'd be wrong in most cases, for ( he ), the shorter, is often joined by others that keep the stock down !
Some stocks fall after GOOD NEWS!
Shorting or normal profit taking?
The main reason for many pi's selling, is they are afraid they'll be left in losses AND because of the fear of shorters !
Consolidating shares often sees the sp fall as the multi-bagger potential is greatly reduced. Shorters know this and 'get their digs in' with a distinct advantage
Quindell has consolidated 15 for 1 and guess what? The shares are tanking! Probably being shorted again and not just by the professionals. Ordinary investors are having a go as well (if you can't beat 'em....?).
BUT, where does that leave the genuine investor that has put stocks like QPP into their pension funds?...holding losses again!
* Once pi's know the stock is being shorted...they'll SELL UP IN THEIR DROVES !
We can't both WIN !
The 'shorts' therefore 'win' their bets, whereas the 'longs' lose the best part of their investment, possibly for some time to come......and just when you thought this couldn't go any lower, THEY'LL SHORT THE STOCK AGAIN !
* Thanks for all your support. We are now heading towards 5,000 votes!
* Investors are saying something? They are voting in their hundreds !
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
'Catch 22' .... No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
* When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more).
# The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated shorting !
The results will be reviewed by Govt legislators for further action! The FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either ban short selling, or to be better regulated !
From reading the literature on their website, it seems they have disposed of the heavy loss-making refinery part of their business. I see this as good news as it was only financed by debt at any rate. I just hope they haven't thrown the baby out with the bath water !
Moving on, I will read with interest what the company plan to do to in the future.
I guess that this was inevitable. Huge loans and low margins - they say that the regulations are easing up, but they said the same thing 2 years ago. Eliminating the debt deleverages the company - they drone on about Spring Chemical's valuable products, but the recent profits have been very low. I did not spot any mention of a write-down of assets on completion of sale of the refining business. The main thing is that the company is still hanging on and de-leveraging themselves out of a risky market. Today's rise is probably a sigh of relief. The real question is what profits will the company produce in the future, and will they be able to keep up with he interest payments. I am changing my recommendation from "sell" to "hold" as the risk is now much lower, but with no obvious reason to buy in.
I noticed that HAIKE's share price has been slipping recently, but no obvious explanation. I can conjecture that the bad Chinese trading figures for last month did not help and would have raised concerns about the economy rapidly slowing down. There is also the tightening of the screws on the banks - this has been suggested as on of the reasons for the recent drop in iron ore prices. However, I fear that the tightening of the banks lending could impact on HAIKE should it need yet more cash. Certainly not an environment that I would feel comfortable with, despite HAIKE's enormous turnover and the possibility that one day the profit margins might finally start to come good.
Yes, the turnover for the year has gone up in the first 11months to CNY37b - but the losses have widened from CNY187m to CNY360m. They just do not seem to be able to improve their profitability - over the years they have borrowed more, increased production, but have just given a succession of bad news and excuses. The debt has also increased from CNY6.2b to CNY7.4b. There does not seem to be much prospect in the trading statement for a radical inprovement in the profitability - it has all the halllmarks that the debt is spiralling out of control.
... and yet - if only they could turn the -1% profit margin to just a 5% profit margin they would make big strides in paying off the debt. I keep asking myself if I should buy HAIK again, but every time I come up with the same answer - they are still in a terminal dive and just cannot find the right control to pull up. I will keep on watching just in case there is a glimmer of hope, but the share weakness today probably reflects an increasing belief that there is still no light at the end of the tunnel.
Turnover up but loses widen. Hopes that new products will improve matters in the third quarter - but it could just be wishful thinking. High feedstock prices and over-supply of their products does not bode well.Once again there is the attraction of a huge turnover and low company valuation - but with its debt mountain it might just be chasing "Fools Gold" by buying at the moment.
I could not find much positive news in today's trading statement. I found the increase in borrowings and poor trading conditions particularly worrying. Once again there is talk about a better regulatory environment - but they have mumbled similar things in the past. A long time ago I held HAIK, but gave up as I could not see them trading out of difficulties and nothing seems to have changed much other than production has increased and borrowings have continued to mushroom - with making a good return still proving to be elusive. As far as I can make out the company is only being held afloat by the generosity of their lenders who presumably hope that HAIK can trade out of its problems and so that the lenders can get their money back.
My take is that there is still excess capacity in their market (why else are they having to spend so much on marketing?), probably as a result of the economy not growing so fast now, whilst new capacity is brought online (cf the steel industry); couple this with a more stringent banking regeme making things very tough. Yes, the company is valued at peanuts for its turnover, but so was British Leyland before it went bust. I am stearing clear.
Hmm, A big loss, under-utilised plant, poor market conditions, feed stock prices still an issue (yet again!)_...
The loans, as expected, have mushroomed - but expanding production capacity when demand is not there could mean that it will be difficult to service the increased debt. Yes the turnover is huge compared to the share valuation, but is there a profit and a dividend ever going to arrive?? I used to hold HAIK, but I sold as I could not see a chance to return to profitability for some time to come. I get the same message now. I also read on Saturday that the Chinese banking system is in a bad way as well, so I also cautious about future financing.
Sorry, but I do not feel that the results justify buying back I yet.
The only divvy (the definition of that word according to the Urban Dictionary is incorrect, by the way) round here is me for selling my holding prematurely a couple of years or so back - just before the SP 5-bagged!
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