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Re: OSN Suspended = fail
Halted for volatility
Re: OSN
One thing that wasn't clear on the call is that if they are operating at 100% of capacity then it doesn't make sense to discount prices to win new business. Either they should be able to boost revenues (through changes in product mix and de-bottlenecking) or they should be able to charge higher prices.
Re: OSN
The CFO has explained to me that capacity is not a fixed number of tonnes, but varies depending on the exact product specifications of a customer order and the degree of processing required. The 20-F says the company was operating at 100% capacity for 2013, yet 2014 YTD revenues are up 49% over 2013 because they have been selling some lower spec product.
As an example, the plant may apply 10 processes to steel wire. An order might require 100% of capacity at one step, but only 75% of capacity at another. The company should be able to modestly boost overall capacity by focusing on these bottlenecks.
Re: OSN
Earnings play should pay off here. They made EPS of $0.14 in the second half of 2013. Should at least match that in 2014 so full year 2014 EPS of at least $0.24. At a reasonable 8 P/E it's a $2 stock. Based on this trend one could argue for a higher valuation:
2012 $0.12
2013 $0.18
2014E $0.24
Re: ZX
There's a big offer at 1.80. On the last cc they said they expect to declare commercial production for aluminum wheels in 4Q. If volumes, pricing, and margins are in line with original expectations then the company will do very well. But it's possible that the details wont all be spelled out for investors until 4th quarter results are announced in March or April.
Re: CADC
Don't fall in love with it.
2013 Guidance was revenue of $137-$148mm and income of -2.5mm to +2.5mm
2013 Actual was revenue of $75mm and income of -24mm
2014 guidance was revenue of $56-58mm and income of +2.0 to +3.0mm
2014 Actual was revenue of $49mm and income of -17mm
2015 Guidance is revenue of $70-90mm and income of +0.0 to +9.0mm
Re: SCOK
37.5% borrow rate at IB
RE: BABA is a VIE
Good Paul Gillis commentary
http://seekingalpha.com/article/2508575-does-alibaba-change-the-game
"I think all this attention may help to bring a resolution to the VIE situation. I believe that the chance of Chinese regulators banning the VIE structure has fallen below remote."
"Regulatory battles
The difficulties faced by the SEC and PCAOB in enforcing American securities laws on Chinese companies listed in the United States have not been resolved. These issues received far less attention than the VIE structure. The SEC's case against the Big Four accounting firms has not been settled. While an administrative trial judge banned the firms from practice before the SEC, the judgment has been stayed pending appeal before the SEC. If the judgment is ultimately upheld, it could lead to the delisting of all Chinese companies, including Alibaba, from U.S. markets. Similarly, a failure of the PCAOB to obtain the right to inspect auditors could lead to the same result. Such an extreme measure seems far more unlikely after the Alibaba IPO, which has raised the stakes for both US and Chinese regulators to find a compromise."
Re: LTONY
Closed at A$3.40 last night (trading as MIH.AX). A huge premium to the US$2.49 price of LTONY.
Re: WH
Well here's something new. It got delisted. Now trading OTC as WSHLY. Company said last month that it would have 6 months to regain compliance with listing standards. Maybe they forgot to file a form or something.
I don't see an SEC form 25, but the exchange notice is on this page:
https://usequities.nyx.com/nyse-equities-regulation/listed-company-compliance/removals-from-listings
Re: BABA
It may be sucking cash out of every other US listed China stock. Finviz screen shows 40 Chinese stocks down over 5% today.
http://finviz.com/screener.ashx?v=111&f=geo_china,sh_price_o1,ta_change_d5&ft=4
Re: CHOP
There was no Q&A on the call. The only thing I can imagine is that this is essentially money-laundering. Why doesn't the seller just auction the treasures himself? Because he wants to remain anonymous. Like if the collection was acquired with proceeds from official corruption. And the range of counterparties willing to deal with him is limited.
Re: CHOP
I thought you had just made a clever joke, but the antique news seems to be real. I'll have to look up that cc replay.
Maybe this is where CHOP found the collection:
http://www.alibaba.com/porcelaine-antique-suppliers.html
Re: ZX
I think QVT wants more than the IPO price where they bought the first half of their position.
Best valuation comps are other PRC commercial vehicle wheel makers (002355.SZ, 002593.SZ, 002085.SZ, and 002488.SZ)
LTONY results out
Their top game has passed 100mm downloads
----------------------------------------------
LINK to results announcment
MOBILE GAMES POWER MNC MEDIA INVESTMENT’S TURNOVER SURGE TO
US$27M IN 1H2014
- Mobile games sales in China soared more than four-fold to US$18.3million in
1H2014 from US$4.0 million in 1H2013
- Parenting portal “Fumubang” in China reaches 400,000 targeted users within
first year of launch
- Cash per Chess Depositary Interests (“CDIs”) as at 30 Jun 2014 is US$2.90,
which is close to two times of current valuation
Australia, August 29, 2014 — Within six months of its repositioning, MNC Media
Investment Ltd (ASX: MIH) (“MNCMI” or “the Group”), a provider of media and
entertainment content and services in key strategic markets in Asia, has seen its
sales soar to US$27.0 million in 1H2014.
Hary Tanosoedibjo, Chairman and CEO of the Group said: “The Group’s
repositioning and transformation have borne fruit. Our strategic focus on digital
games – particularly mobile games in China – has given us a shot in the arm –
driving our performance up significantly in the first six months of this year. Compared
to same period last year, we reduced our losses by 63% to US$1.9 million.
“With the positive results garnered from our vigorous efforts in the digital
games/mobile games industry, we believe that our games will continue to build
greater traction in our key market, China - in the coming months.
“We will focus on building a rich portfolio of media assets focusing on mobile games,
social commerce and leisuretainment industries, in populous markets such as China
and South East Asia. With the population of more than 200 million in Indonesia, the
world’s fourth populous country, and 1.3 billion in China, the world’s most populous
country, the opportunities for growth are extensive. We are confident that our
prospects for the full year will be positive.”
Re: SGOC
JD.com has claimed to have 29000 vendors
I guess now it's over 29001
Re: ZX
No idea who the seller is. At this point it's not an easy stock for new buyers. Tiny float. No analyst coverage. No IR effort this year.
Re: OT FABU
Went straight up from 2:30 PM. My guess is that buy-ins were executed when stock could not be delivered for short positions.
Re: SPU
If you heard the cc they refused to explain their $120mm capex plan because they say they don't want to create the possibility of providing guidance and then falling short.
But in the absence of any explanation it's hard to craft any thesis for buying the stock. The company says the Board of Directors reviewed the merits of the capex plan - well they don't seem to be buying the stock themselves.
Super NQ!
They lost their auditor
And they lost their audit committee head
And they lost their CFO
Nothing can hurt this stock.
ACTS Going Private according to EETimes
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Actions to Split in Two, Break Up With Nasdaq
Junko Yoshida
8/11/2014 11:10 AM EDT
3 comments
MADISON, Wis. — EE Times has learned that Actions Semiconductor Co. Ltd., a Zhuhai, China-based fabless chip company, is planning to split in two and delist itself from Nasdaq.
The move illustrates a new phase for the Chinese fabless company, reflecting its growing pains (including internal conflicts among different business units) and management ambitions to qualify for government grants by morphing into two private, domestic entities.
Citing “a scheduling conflict,” Actions issued a press release on July 31 that it would delay its Q2 financial results (ended June 30) until Friday, Aug. 15. EE Times’s investigations, however, reveal that the delay was necessitated by major business reorganizations, requiring negotiations with employees about their stake in the new companies. Actions Semiconductor had not returned a call by press time.
Actions is said to be dividing the company along product lines. One unit will focus on multimedia -- such as MP3 and MP4 players and Bluetooth and WiFi boom-boxes -- the other on media tablets and over-the-top set-top boxes.
Internal conflicts
Since Zhenyu Zhou became the CEO at Actions in 2011, he brought much-needed focus to the company by steering it toward the Android-based tablet market. Meanwhile, Actions’ multimedia business unit has maintained a strong foothold in the traditional consumer market such as MP3 and MP4 players. The split, therefore, conforms roughly to software platforms: Android vs. embedded.
Actions, in pursuit of the non-Apple market like everyone else in China, is caught between a rock and a hard place, however.
Actions had no intention to get stuck in the business of traditional MP3 and MP4 players, but that multimedia business -- although it had little prospect for growth -- proved highly profitable. On the other hand, the Android tablet market represented the company’s future with higher growth. But that business was bleeding cash in a market crowded with other strong fabless chip vendors including China’s Allwinner (also based in Zhuhai, founded by former management of Actions) and Rockchip and Taiwan’s MediaTek.
Actions' employees within these two business units reportedly have often clashed over pay raise and business agendas.
By dividing into two entities, Actions’ hope is to allow each to “focus on its own vision and execution,” according to one industry source based in China. “It will also give incentive to the new management teams (new shares to be issued).”
Actions’ tablet/over-the-top set-top box groups are reportedly keen on taking on new projects including wearables, smart home, and Chromebook. Wearables and smart home will use Android Wear OS, while Chromebook will use Chrome OS, both from Google.
Actions recently licensed the ARM Cortex-A50 processor family to target the 64-bit tablet market. At the time of its licensing announcement in June, Actions said its first SoC is “due to be available in late 2014, making it one of China’s leading technology design companies delivering an ARM-based 64-bit chip for tablet devices.”
Sources pointed out that Actions’ tablet/set-top group is engaged in discussions with Google, hoping to take its ARM 64-bit SoC beyond Android tablets and optimize it to better support Chrome.
In pursuit of China fund
Executives at chip companies in China have been jockeying to grab what appears to be a huge chunk of the money that China’s central and local governments are poised to pump into the domestic chip industry.
According to several different sources in China, rather than expecting the government to dictate which IC industry sectors should get investment money, the idea that has gained consensus among locals today is to "set up a fund" and let professional investors place bets on which Chinese entities -- fabless, foundries, and/or research institutes -- deserve the funding. Moreover, they say, the overseers of such investment would not be the government, but investors, who would demand tangible results and a real return on their investments.
At a time when Chinese companies trading on US exchanges reportedly have grown frustrated with the US investment community, Actions is believed to be one of the many Chinese fabless chip vendors looking for fresh investment
Re: SPU
All the cash is going to be spent. I asked these guys to explain their 2014 capex. Like how much money they need and what was the benefit of each of their projects. They wouldn't give me anything at all.
Re: ALN
Wow, that's a huge package for "Dick Wang".
Former CFO David She was hired for 40000 RMB/month plus a one time grant of 5000 shares of stock.
NQ - ChinaRock raises stake to 16.7% (from 10.9% reported as of 6/2)
http://www.sec.gov/Archives/edgar/data/1412327/000089843214001029/sc13g-a.htm
Re: CCCL
My guess is that it drops.
Business/financial info in the 20F seemed fine. YE Backlog 12/31 was actually higher than a year ago.
But some governance/control issues were revealed. Some investors probably don't want any more of the drama. And with no business update for 2014 there's not much to tempt buyers.
Short interest was not very high (123k shares) so that means there wont be a rush of people covering.
CCCL resumes on NASDAQ tomorrow:
JINJIANG, China, Aug. 6, 2014 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that on August 5, 2014, the NASDAQ Listing Qualifications staff notified the Company that, following the Company's filing of the Annual Report on Form 20-F for the fiscal year ended December 31, 2013, the Company regained compliance with the terms of the NASDAQ's continued listing requirements.
The Company has been informed by the NASDAQ Listing Qualification staff that trading will resume on Thursday, August 7, 2014.
Mr. Jiadong Huang, the Company's Chief Executive Officer, commenting on the notification, said, "Regaining compliance with NASDAQ's continued listing requirements and the resumption of trading in our securities on the Nasdaq Global Market are significant achievements for the Company and our shareholders. With this issue behind us, the Company's management will continue to pursue its objectives of strengthening the Company's core business and maximizing shareholder value."
http://www.prnewswire.com/news-releases/china-ceramics-regains-compliance-with-nasdaq-listing-rules---trading-to-resume-on-the-nasdaq-global-market-on-thursday-august-7-2014-270137661.html
MONT: Montage Announces Shareholder Approval for Acquisition
SHANGHAI, China, Aug. 1, 2014 (GLOBE NEWSWIRE) -- Montage Technology Group Limited (Nasdaq:MONT) ("Montage Technology" or "Montage" or the "Company"), a global fabless provider of analog and mixed-signal semiconductor solutions addressing the home entertainment and cloud computing markets, today announced the results of its extraordinary general meeting of shareholders (the "EGM") held on July 31, 2014 in Shanghai, China. Shareholders voted to approve the Agreement and Plan of Merger, dated June 11, 2014 (the "Merger Agreement"), under which Shanghai Pudong Science and Technology Investment Co. Ltd. ("PDSTI"), a wholly state-owned limited liability company directly under Pudong New Area government of Shanghai, will acquire all of the outstanding ordinary shares of Montage f
Whitney Tilson: Why I Just Made Montage Technology Group My Largest Short Position
Aristedes Capital: China Orders Montage Technology To Cease Production And Sale
Atlanta Equity Professional: 7 Disturbing Facts About Montage Technology
Aristedes again: Montage Technology: The SoC You Can't See
Gravity Research: Is Montage Technology Still 'Fabless' If It Is Fabricating Its Revenue?
CCCL 20-F addresses the issues that led to Grant Thornton's resignation
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With respect to the specific items raised by GT, we believe each item has been addressed as follows:
(i) Bank Confirmation Received from Pingan Bank. GT informed us that it received a bank confirmation from Pingan Bank, and that the bank’s teller at Pingan Bank made a notation on the confirmation stating that we also had a RMB30 million bank acceptance note issued by us (similar to a post-dated check) outstanding as of December 31, 2013. We responded to GT that this was a clerical error committed by the bank. In turn, GT asked us to request that the bank provide an explanation for the erroneous confirmation and that the bank send that explanation directly to GT. We made a written request that the bank provide an explanation directly to GT, and understand that approximately one week later, GT received a letter from the bank explaining that the previous confirmation was a mistake and that there was no outstanding bank acceptance note. GT has never provided a copy of that correspondence to us, but we understand that the correspondence was duly “chopped” and that it was issued by a different department at the bank. GT questioned the validity of the bank’s correction of its initial confirmation, and informed us that a bank teller at Pingan Bank told a GT representative that she would have been the person at the bank responsible for issuing any such follow-on correspondence and that she did not generate the correspondence that explained that the initial confirmation contained an erroneous reference to an outstanding bank acceptance note.
(ii) Taxation Information from Local Government Website. GT notified us that it had noticed a posting on a local district government website that indicated that we are is one of the top taxpayers in that district and that we had paid RMB10-20 million in taxes (income tax and VAT) for 2012. However, GT raised the concern that our records and financial statements reflect that we paid in excess of RMB100 million in taxes in 2012. We cautioned GT that the local government’s calculation is different from the tax bureau’s calculation, and also shared our belief that the local government website might only reflect the tax paid to the domestic tax bureau and not the tax paid to the national tax bureau. We thereafter sought and received a certification from the tax bureau that all taxes due and owing by us for the subject periods have been paid.
(iii) Similar Hand Writing on Three Accounts Receivable Confirmation Envelopes. GT informed us that it noticed that there were accounts receivable confirmations sent to GT from three customers that appeared to have “very similar hand writing” on their envelopes. According to GT, the three confirmations are from three different companies in three different locations in China. When so informed by GT, we checked with our distributors and customers and confirmed that each sent out its own confirmation to GT. We offered to assist GT in obtaining additional comfort regarding the status of the amounts confirmed. We are aware that certain of our employees did assist their customers with the process to assure that the confirmations were received by GT in a timely fashion. That assistance involved the preparation of the return envelopes in which certain customer confirmations were deposited and transmitted. Said employees did not complete the confirmations, and there has been no indication that the confirmations were anything but accurate.
(iv) Customer Closed Its Business. GT informed us that it noticed in March 2014 that one of our distributors is listed as “de-registered” on the government website. That particular distributor purchased RMB23 million in product from us in 2013 and had a RMB13 million accounts receivable balance at the end of the year. We notified GT that the distributor informed us of its intent to close its business and paid its outstanding balance with us before the distributor closed.
In addition to the foregoing explanations provided by our management, the Audit Committee discussed with GT implementing additional special procedures or conducting an internal investigation in order to address GT’s concerns. GT rejected these suggestions and, instead, insisted that we conduct an independent investigation of the concerns outline above, which, in turn, would have rendered the timely completion of the 2013 audit and timely filing of the 2013 Annual Report all but impossible. The Audit Committee and the Company also believe that GT’s request for an independent investigation was premature and disproportionate given the nature of the concerns raised. In addition, a majority of the Audit Committee believed that communications between GT and our management and the Audit Committee had become significantly impaired. In light of the foregoing, the Audit Committee and the Board voted to dismiss GT and to engage Crowe HK to implement additional procedures in the audit of the Company’s financial statements for the fiscal year ended December 31, 2013 and to re-audit of the prior fiscal years ended December 31, 2012 and 2011 to address the questions raised by GT.
CCCL Shocker
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During the year ended December 31, 2013 we entered into foreign currency transaction agreements that resulted in significant losses to us in 2014.
During 2013, we entered into certain foreign currency transaction agreements with a financial institution related to the movement of the Renminbi against the U.S. dollar. We recorded realized and unrealized fair value gains on these agreements totaling RMB3,346,000 for the year ended December 31, 2013. In 2014, as the Renminbi depreciated against the U.S. dollar, we incurred realized and unrealized losses totaling RMB70,312,000 ($11,615,000) for the six months ended June 30, 2014 in connection with these agreements. In July 2014, Sound Treasure Limited, our largest shareholder and an affiliate of our Chief Executive Officer, agreed to assume these agreements. As a result, we will not be required to fund any losses related to these agreements, and will neither suffer any future liabilities arising under those agreements nor enjoy any benefits arising under those agreements.
CCCL files 20-F with clean audit opinion from Crowe Horwath
Haven't had time to read it yet
http://www.sec.gov/Archives/edgar/data/1470683/000114420414046064/v385163_20f.htm
Re: NQ
Sounds like the same animal.
I don't think this NQ offer can really progress without audited financials. Directors need to assess whether the offer is a fair price and that's impossible without numbers. So I expect NQ to trade at a substantial discount to the non-binding offer price.
Shorts will probably continue insisting it's a fraud up to and beyond the time when a buyout closes.
NQ Buyout Offer $9.80
BEIJING and DALLAS, July 30, 2014 /PRNewswire/ -- NQ Mobile Inc. ("NQ" or the "Company") (NYSE: NQ), a leading global provider of mobile Internet services, today announced that its board of directors (the "Board") has received a non-binding proposal from Bison Capital Holding Company Limited ("Bison") to acquire all of NQ's outstanding ordinary shares and American Depositary Shares ("ADSs," each representing five ordinary shares of NQ). Bison has proposed a fixed cash consideration of US$9.80 per ADS.
The Board is reviewing the proposed transaction, and may retain independent advisors, including an independent financial advisor, to assist it in its work. No decisions have been made by the Board with respect to its response to Bison's proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will receive necessary approvals or be consummated.
Goldman Sachs China Commentary
------------------------------
Jul 21- 25: Market rallied on macro and policy stance
China equities performed strongly this week in both offshore and onshore markets (MXCN +3.5%, CSI300 +4.5%, MXAPJ +1.8%).
Sentiment was significantly boosted by dovish newsflow during the week, including MBS issuance, PSL lending to CDB and property
purchase restriction relaxation in more cities. The State Council’s intention to reduce funding cost of the real economy further
strengthened investors’ confidence. At the same time, Jul flash HSBC PMI came in at 52, indicating that the macro recovery is on
track. Global factors were mixed amid mixed DM macro data and geopolitical tensions.
This week’s performance summary
Sector performance clearly skewed to high beta
names this week. Commodities (metals/mining,
building materials steel/aluminum) all
outperformed in both markets thanks to ASP
recovery of certain metals, which is partly
attributable to higher demand expectations on
stabilizing China economy. Property rallied too in
both markets thanks to favorable policies relaxing
restrictions and newsflow about falling mortgage
rates in certain cities. Financials also fared well
thanks to higher sensitivity to macro trends and
exposure to equity market. Weaker than expected
1H earnings of Citic Securities did not impact
sentiment. Autos outperformed in A-share after
Great Wall’s better than expected results but the
sector still lagged offshore. On the flip side,
defensives such as healthcare, telecom and
staples broadly underperformed in both markets
admist the risk-on mode market.
GS Research views
We expect strong performance from the equity
market on both an easing policy stance and growth
recovery. Looking ahead, we remain near term
tactically positive although the road may be bumpy
entering earnings season. From a medium term
perspective, only structural reforms can uplift
equity valuation, in our view.
XIN NY sales are going great ... according to the sales agent
-------------------------------------------------------------
Multiple contracts are out for signature with buyers from the United States and China, Black said.
In South Williamsburg, there's substantial interest from prospective purchasers. The activity at the sales office at 53 Broadway is one indication.
“Appointments are booked solid all day, every day,” Black said. “Offers are at full ask.”
http://www.brooklyneagle.com/articles/pool-decoration-only-williamsburg-luxury-condos-roof-2014-07-23-160000
AMCF Investor Presentation
http://www.sec.gov/Archives/edgar/data/1469606/000114420414043838/v384267_ex99-1.htm
Heavily promoting their recent $75000 (seventy five thousand dollars) acquisition of a new energy business.
My guess is they are looking to raise money.
Re: ZA
They are quite late reporting 1Q results. I checked with the company and they said they expected to report later this month.
Re: NQ
Aside from the good and the bad in the press release, I think one problem may be that it could take three months or longer for a new auditor to step in and do a complete audit.
RE: CXDC Bond Quotes
See if this link works:(LINK)
Bond holders seem to have a completely different perspective on the company from stock investors.
Re: EV Cars
Average electric car contains 20% more plastic than a comparable conventional vehicle.