Seeking Alpha

chensanford's  Instablog

chensanford
Send Message
Ex-Banker
  • Questioning About China Ceramics (CCCL) 5 comments
    Mar 14, 2013 4:43 AM | about stocks: CCCL

    I had not hold any position of the stocks mentioned in this article. I've no plan to do so in the next week.

    On 12 Mar 2013, I raised 7 questions in imeigu.com, which is the top and the most influential Chinese website focusing on US-listed Chinese companies. They were sent to CCCL's CFO, copying to all the website's users. So far, the company had no response. The questions are listed here : xueqiu.com/6977823556/23257456. Below is a simple translation into English.

    QUOTE

    To CCCL

    1. Income tax. 2011 20-K indicated income tax is RMB100m+, but Quanzhou City Tax Bureau's official website only shows RMB20m+. Why? Can the company provide all the income tax receipt s for both 2011 and 2012?

    2. Buyback and additional issue. The company's stock price has been steadily dropping and it should have bought back, but on the contrary, it had additional issue of 4m stocks, from 16m to 20m. Its management team only bought back less than 20k stocks in total, not even close to 0.1%! If the comany believes it's deeply undervalued, why still additional issue?

    3.Privatization. Why the company rejected the privatization proposal @ such a high price as $7.5 while its current price is only $2.8? Any reasons too embarassed to disclose?

    4.CPA's qualification. Audit fee in 2011 is RMB3.5m. With this big fee and the small auditing workload, the company could have used a big 4 CPA, why still used Grant Thorton, a nobody from nowhere?

    5.Net margin & growth. Net margin & CAGR all above 20% from 2008-2012, while only one of its 5 A-share listed domestic peers net margin made 5%, the rest all suffered loss. If the 5 peers were oysters, then lets look at the apples (the company's 4 direct competitors in the same city). I inquired and found none of them confirmed they could make 20%, in fact, far below that. So tell us what's & where's on earth the company's big ACE?

    6.Environmental protection. Has the company already replaced or when will it replace fire coal with natural gas?

    7.Management's integrity. As per the link here (in Chinese, apparently provided by Su Weifeng's ex-wife.http://bbs.eoof.net/dispbbs.asp?BoardID=4&ID=553325), Mr. Su Weifeng had a secret mistress, and together with his father, Mr Su Peizhi, treated the ex-wife very badly and unfairly. Are they true?

    UNQUOTE

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To chensanford's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (5)
Track new comments
  • sizeman
    , contributor
    Comments (3) | Send Message
     
    Glad I got out of this one. Sounds like there are some books being cooked here, and I'd bet the big dividend is a scam just to sucker in more investors. Stock is down to 2.13. If it keeps dropping at this pace, they will be delisted soon. Thanks for this article!
    22 Mar 2013, 01:10 PM Reply Like
  • gsime
    , contributor
    Comments (23) | Send Message
     
    I have been looking for ages for some earnest discussion about this company and a credible reason for the ridiculous valuation...now finally stumbled onto this article...thanks!
    I wonder if this is a short? Or just stay away?
    13 Apr 2013, 10:35 AM Reply Like
  • chensanford
    , contributor
    Comments (4) | Send Message
     
    Author’s reply » stay away.
    26 Apr 2013, 02:59 PM Reply Like
  • gsime
    , contributor
    Comments (23) | Send Message
     
    btw I have also tried to contact investor relations and never received any reply
    13 Apr 2013, 10:36 AM Reply Like
  • David Des
    , contributor
    Comment (1) | Send Message
     
    Why the SAIC documents has exaclty the same number that the SEC documents ??

     

    I analyzed a lot of chineese compagnies and often, the fraudulus one don't give the SAIC documents or it does'nt match with the SEC documents....

     

    And if the money doesn't exist, why a 10% dividend ?
    22 Apr 2013, 09:12 PM Reply Like
Full index of posts »
Latest Followers

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.