SBB - Sunbridge Group

[craft]

The 4c is largely consistent with the last two updates provided by the company. Now there should be a clean run between now and the actual report date. Let's see if the inside escrow holders would stand back and let the price rise for a change.

Equivolume Chart

The escrow sellers have now had/created decent volume for a while to assist their exit – how much is left?

The 4c confirms that they are on something ridiculous like an OCF/EV of ~ 1.

Chart is likely to pop today into something that looks appealing to trend/momentum followers.

Should be a interesting day – If a good day doesn’t happen here then that would say something significantly negative.

 

[VSntchr]

Steaming ahead....volume looks stronger than the last pump up (and crash).
Latest 4C looks to have provided a sentiment shift. As craft says, a new group of traders will be all over this one now...it's not getting any less emotional yet!

 

[skc]

The escrow sellers have now had/created decent volume for a while to assist their exit – how much is left?

There were 190m shares that came out of escrow. Of the 8 entities that have been selling they held a total of 118.8m shares. As of 16 Jul (minus 3 days) they have sold around 65m shares collectively. I haven't seen an updated share registry since but broker activity suggests that another 11m or so have been sold up until 3 days ago. So if these 8 entities want to reduce their holdings to zero there are ~43m shares left. But if they don't sell to zero, or other entities start to sell, then it's anyone's guess.

Comsec/Etrade have donminated trading in the past 3-4 weeks so the secret of "best value stock on the ASX" is well and truely out. The volume today is massive so plenty of liquidity for the escrow sellers should they chose to take them up... and every indication suggests that they are active today.

Initially the aggressiveness of the escrow sellers made it look like this company was going to blow up straight away. But looking at some of the known frauds on the SGX, they all seem to last quite a few years. So I don't really have a view as to the timing on when things might be clearly revealed one way or another.

Craft, how about a little wager? In 5 years time, say upon the release of FY19 results, if SBB remains listed and everything appears above board, I will find a way to buy you a Pandist leather jacket (I hope they have online sales sorted by then). You'd look really awesome in it I am sure.



If it's the other way round, I will let you figure out what you'd like to offer in return.

 

[craft]

Craft, how about a little wager? In 5 years time, say upon the release of FY19 results, if SBB remains listed and everything appears above board, I will find a way to buy you a Pandist leather jacket (I hope they have online sales sorted by then). You'd look really awesome in it I am sure.

Sorry no bet. Barely got enough visibility to see where to put the next step let alone 5 years, Besides I only wear fur.

 

[Ves]

Lol, SKC great picture.

Is it unusual for 10% of the company to change hands on a day that there was a "positive announcement" released? Looks highly unusual, any other examples in other companies out of curiosity? (Not that it necessarily has to mean anything, just bored on a Friday afternoon).

PS: Assuming that another 12m shares change hands today, which is likely given the trading so far.

 

[craft]

Have sold 230K @ .15 which returns my original capital – This little ‘mental trick’ allows me to more happily hold the remainder and await more information on what is still essentially a two way bet.
Legit or not legit.

 

[McLovin]

Have sold 230K @ .15 which returns my original capital – This little ‘mental trick’ allows me to more happily hold the remainder and await more information on what is still essentially a two way bet.
Legit or not legit.

Well played, sir. That's a tidy profit for a couple of weeks work.

Funnily enough I was at lunch on Friday at the topic of discussion was SBB.

 

[skc]

Sorry no bet. Barely got enough visibility to see where to put the next step let alone 5 years, Besides I only wear fur.

I understand. Wearing that jacket would be more a punishment than a reward anyway.

Have sold 230K @ .15 which returns my original capital – This little ‘mental trick’ allows me to more happily hold the remainder and await more information on what is still essentially a two way bet.
Legit or not legit.

Nice trade. (Your portfolio is a lot bigger than I assumed).

 

[craft]

I understand. Wearing that jacket would be more a punishment than a reward anyway.



Nice trade. (Your portfolio is a lot bigger than I assumed).

The 230K is number of shares not $.

Lucky more then anything else. With the information at hand on entry the outcome could have gone either way. But not much I do is on a time frame conducive to posting about – so it’s nice that this one that fit the time frame for a live show didn’t blow up (so far). To finish this little exercise off I just need to manage complacency with overreaction as I let the story unfold with the remaining lot - Until that lot is sold there is no 'economic' realised profit and SBB is a long way from my type of long term hold company yet.

 

[Paavfc]

Well played, sir. That's a tidy profit for a couple of weeks work.

Funnily enough I was at lunch on Friday at the topic of discussion was SBB.

Please share what was said at this lunch

 

[McLovin]

Please share what was said at this lunch

Nothing too exciting.

I see they found a CFO, just in the nick of time too! They're quite vague about her experience. But from LinkedIn, it appears this is her...

http://au.linkedin.com/pub/susan-zhang/25/788/390

 

[ROE]

just read this thread and see all the value investors on this forum pile in
so I take a peek and see what is all the commotion

Good luck and nice to see you guys making profit, not enough to tempt me

 

[goccipgp]

The company says it received $1,000 in interest during the quarter, on an average cash balance of over $30 million. That equates to an interest rate of 0.006%. The technical chart (at au stoxline) shows support between 0.06-0.05 with the next serious resistance at 0.159-0.22.

 

[skc]

Looks like the fool is having a bit of crusade against SBB.

http://www.fool.com.au/tickers/asx-sbb/

Interesting to see the latest registry on the other site.

- Citi now holds ~80m shares, which are transferred to them from the "seed investors". How are they going to dump this lot?
- How come Grace Trend Management (5%+) transferring its share to Citi doesn't require a change in substantial holder notice?
- Even Ms Shan Shan Hong has sold down 4m shares. She's NOT a pre-IPO investor. She "paid" 20c a pop in the IPO.

There's not much to say about the new CFO, except that she seems equally underqualified to be a CFO, if she's indeed the person in the LinkedIn profile found by McLovin.

And I love this...

The Board and Management look forward to working with Susan to further Sunbridge's solid financial position

Seriously?! Sunbridge's balance sheet needs strengthening? It has $30m in the bank and made $10m cash in the half year. Which planet's CFO would come into this job with the emphasis on strengthening the balance sheet?

 

[McLovin]

There's not much to say about the new CFO, except that she seems equally underqualified to be a CFO, if she's indeed the person in the LinkedIn profile found by McLovin.

I'm pretty sure it's her. Masters of Accounting from Monash and then the job titles match pretty closely with what press release says her experience is. Accounting, bank, global investment manager.

Completely underqualified to be a CFO.

Seriously?! Sunbridge's balance sheet needs strengthening? It has $30m in the bank and made $10m cash in the half year. Which planet's CFO would come into this job with the emphasis on strengthening the balance sheet?

This is funnier I thought...

Sunbridge Managing Director Mr Xu Jia Yin commented: “We are very pleased to be appointing someone with Susan’s qualifications and experience to the role of Chief Financial Officer.”

 

[Miner]

I'm pretty sure it's her. Masters of Accounting from Monash and then the job titles match pretty closely with what press release says her experience is. Accounting, bank, global investment manager.

Completely underqualified to be a CFO.


This is funnier I thought...

I think we are missing the point.
A smart CEO needs a scape goat. So hire an incompetent subordinate to take the blame.
It does not matter what others think but CEO needs to run own show. Often a very clever CFO could be a threat. So in that his choice was good

 

[craft]

One upside to doing a little research on a Chinese company.

The ASF adds I'm now matched too have improved.

 

[Ves]

One upside to doing a little research on a Chinese company.

The ASF adds I'm now matched too have improved.

Yeah, I'm getting them on blogs / other forums, anything with advertising. Probably not a good look in the office...

 

[skc]

SBB trading strongly today, up 28% on 41m shares on the back of a major announcement.

Actually, it's not a major announcement. It simply showed the numbers from the half-year again, and a photo of the Aussie directors and Chinese CEO in front of the "new" office building.

There are a few gems in the announcement that was just simply delightful.

...is pleased to confirm the strong trading performance for the half year period ended 30 June 2014

Confirm the HY numbers? Really? They were reported. Why do they need to be confirmed?

With a strong balance sheet and solid cash reserves, Sunbridge is well placed to pursue further growth for our shareholders in the second half of 2014, while maintaining our conservative approach to gearing levels.

Gearing levels? SBB supposed to have $30m cash in the bank. You can't be geared more conservatively than that!

The Directors are pleased to confirm that the offices are in the final stages of fitout and construction of the new warehousing facility is well advanced. The cost of this construction has been expensed in the first half.

Cost of construction expensed? Really? Who on earth expense construction cost of the building? And if that's the case, why did they not explain that in the HY report?

Sales for the second half are expected to remain stable with margin and sales growth expected.

So is the second half stable? Or growing?



Are those two Chinese executives wearing their own brand?

Lastly, there's an interesting news last week of a German-listed Chinese footwear company boss apparently running away with the company's cash, only to resurface a few days later to say he just lost his phone while on holiday! He also said he will pay back the cash (so he did take it?!).

http://www.shanghaidaily.com/national/I-lost-my-phone-says-missing-CEO/shdaily.shtml

https://au.news.yahoo.com/world/a/2...urt-exchanges-china-dream-turns-to-nightmare/

 

[VSntchr]

So is the second half stable? Or growing?

Yeah exactly!
For a statement that was obviously delivered to try and calm down the anxious investors (HC still going nuts over this) who have no doubt been firing a million emails to the company...could it have been any more unclear!!