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Post by puregold on Oct 28, 2013 8:38:25 GMT 7
Another Asiason lookalike company collapsed today.
Its chart looks exactly like that of Asiasons before and after it collapsed.
I have zero knowledge of what the company is doing.
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Post by puregold on Oct 28, 2013 9:31:04 GMT 7
My goodness, plunged from 0.47 to 0.05 now...  |
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Post by oldman on Oct 28, 2013 9:56:33 GMT 7
Amazing fall of 90% in one morning without any recent news. Likely to be some form of forced selling. Interestingly, the 88 mil shares traded so far is about 27% of the total equity and the 2 substantial shareholders (Dicky Suen Yiu Chung, CEO and Lau Hon Kit, COO) own 13.8% and 11.8% respectively.
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Post by oldman on Oct 28, 2013 10:58:38 GMT 7
Sky One has halted trading. Took a quick look. In Sept 2012, company proposed an acquisition of a coal mining company Energy Prima for at least $400 mil in shares and at the same time proposed that the existing business is sold back to management for $6.9 mil leaving it with a 99% stake in PT Energy Indonesia Resources (which was acquired in Nov 2011 at $1.8 mil). If I did my sums correctly, the value the company put on itself based on the disposal above, is therefore $6.9 mil plus $1.8 mil = $8.7 mil. At the current share price of 4.3cts, its market capitalisation is $13.6 mil... and this is after the fall of 90% of its value from yesterday. Looking at its financials, its revenues from its logistic business is HK$169 mil and it made a loss of HK$57.6 mil after taking into consideration writedowns in goodwill and intangible assets of $45.8 mil. On the balance sheet, the main asset is the HK$155 mil of other intangible assets. Note 12 of the annual report showed that these are coal logistic contracts that came with the $1.8 mil acquisition of PT Energy Indonesia Resources. Those who know me know that I will ignore such "assets". Even though it has fallen over 90%, I will just observe from the sidelines.  www.skyone-china.com/pdf/annualReports/SkyOne_AR2013_Final.pdfwww.skyone-china.com/www.skyone-china.com/pdf/announcement/2012sep28SkyOneSPAAnnt28Sep12.pdfinfopub.sgx.com/FileOpen/AcquisitionAnnouncement091111.ashx?App=Announcement&FileID=86856 |
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Post by me200 on Oct 28, 2013 11:30:57 GMT 7
Something in common .... mining company
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Post by oldman on Oct 28, 2013 11:41:54 GMT 7
Yes, mining is an industry where the "assets" are determined by "professionals" and these professionals are paid by the company. The valuation of such companies are usually based or derived from these "underlying assets". |
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Post by puregold on Oct 28, 2013 14:12:25 GMT 7
Will substantial shareholders' shares be forced sold like the case of Blumont? If so, more weakness lies ahead...
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Post by oldman on Oct 28, 2013 14:18:21 GMT 7
Yes, one has to look at the deemed interests... which in this case is under the name of HSBC. Sometimes, even the direct interests may have been pledged as my understanding is that there can be a document of understanding between the bank and the individual.... I think such practices should not be allowed.  |
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Post by oldman on Oct 28, 2013 14:36:20 GMT 7
Strong rebound to 10cts but the risks to me are too high. My policy has always been to take care of my downside and if I am not able to quantify this, I rather not get involved. I don't gamble with my hard earned money. |
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Post by puregold on Oct 28, 2013 14:58:35 GMT 7
Strong rebound to 10cts but the risks to me are too high. My policy has always been to take care of my downside and if I am not able to quantify this, I rather not get involved. I don't gamble with my hard earned money. Ya man, the short covering is quick. Was very tempting indeed. We are at the mercy of big money, unable to tell the directions of the flow unless we are insiders... |
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Post by oldman on Oct 28, 2013 15:04:17 GMT 7
Strong rebound to 10cts but the risks to me are too high. My policy has always been to take care of my downside and if I am not able to quantify this, I rather not get involved. I don't gamble with my hard earned money. Ya man, the short covering is quick. Was very tempting indeed. We are at the mercy of big money, unable to tell the directions of the flow unless we are insiders... In my younger days, I would have been tempted. However, nowadays, I stay away. Very simply reason. Even in the younger days, I would have just betted a small amount of money and really up or down, it will not make much of a difference. However, if one continues betting purely on luck, then one day, everything may just disappear when that unlucky day came. I know because that unlucky day did come for me and I learnt my lesson the hard way. |
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Post by candy188 on Oct 28, 2013 16:49:09 GMT 7
Strong rebound to 10cts but the risks to me are too high.
My policy has always been to take care of my downside and if I am not able to quantify this, I rather not get involved.
I don't gamble with my hard earned money. Hi oldman, Wise & rational investing philosophy.   Sad but true fact of the fragile human nature who fall prey to excessive greed as stated in the article: "Some people perceive the stock market to be a casino"
" The reason the stock market exists is that it's where companies raise the money they need to grow their business. From the point of view of the economy as a whole, this is very important." The basic function of the market – where investors provide money, for a return, to businesses needing capital – is easily forgotten." www.telegraph.co.uk/finance/personalfinance/investing/10215698/Is-the-stock-market-such-a-gamble.html |
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Post by puregold on Oct 28, 2013 17:01:35 GMT 7
I would see speculators or gamblers alike as providing the necessary liquidity to the listed companies. They are part of the stock market ecosystem.
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Post by oldman on Oct 28, 2013 17:05:36 GMT 7
I would see speculators or gamblers alike as providing the necessary liquidity to the listed companies. They are part of the stock market ecosystem. Agreed. If every investor were to be like me, the market will be a damn boring place and there will be no liquidity! Thank goodness for the gamblers! |
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Post by oldman on Oct 29, 2013 6:00:54 GMT 7
User Collider,
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