Pierpont did a column on SBB on Friday.
Full article here...
http://www.afr.com/p/business/companies/sunbridge_group_investors_are_owed_GSwn9lyw0gUXWrh6dE7kZI
But I am sure the supporters will think he's just downramping to secure some cheap share himself.
On HC there's a thread called Sunbridge Shareholders. Post #259 on 6 Feb 2015 at 8:36am might give you a more elongated version of the article.LOL! Thats gold! I enjoyed the excerpt from the article, i dont subscribe to AFR so I couldnt see the whole article but at least i gor the flavour from McLovin's post.
On HC there's a thread called Sunbridge Shareholders. Post #259 on 6 Feb 2015 at 8:36am might give you a more elongated version of the article.
Broker BBY has started marketing a $15 million initial public offering for Chinese sportswear company XPD Soccer Gear Group Limited.
XPD is seeking to raise up to $15 million at 20 ¢ a share, which would see it list on the Australian Securities Exchange with a $75 million to $85 million market capitalisation on May 12.
Chairman Shui-Chiao Chang told potential investors that XPD was the fastest growing sportswear business operating in China. The company designs, develops, manufactures, markets and distributes products under the XPD brand, with a focus on soccer gear.
XPD is raising capital to expand its distribution networks in China, increase production capacity and boost its brand image and awareness.
The company has a registered office in Melbourne but its principal place of business is in China’s Fujian Province.
Its Australian non-executive directors include Andrew Smith, who was formerly managing director at broker Intersuisse, BBY’s Ben Meikle and former St Kilda Football Club president and Australian Olympic Committee director Andrew Plympton.
BBY is lead manager.
The broker was due to open the offer on March 16 and close it on May 1, according to a prospectus lodged with the Australian Securities and Investments Commission.
Let me guess, they have a heap of cash, and they will (nope) might (nope) probably won't (nope) will not (yep) pay a big dividend to all their Aussie friends?Oh, hello there...
http://www.afr.com/p/opinion/xpd_soccer_gear_group_in_ipo_66UxyWqG1b7MRbls13sgkN
Now, who was Andrew Plympton also a director of? I can't wait to read this prospectus.
I also note they're from the same province in China as SBB.
Oh, hello there...
http://www.afr.com/p/opinion/xpd_soccer_gear_group_in_ipo_66UxyWqG1b7MRbls13sgkN
Now, who was Andrew Plympton also a director of?
Oh, hello there...
http://www.afr.com/p/opinion/xpd_soccer_gear_group_in_ipo_66UxyWqG1b7MRbls13sgkN
Now, who was Andrew Plympton also a director of?
I also note they're from the same province in China as SBB.
ETA: Website is here...
http://chinaxpd.com/en/content/?233.html
Awesome sleuthing McLovin! Perhaps Hempton may be your man to let know? He has made a career out of shorting China frauds after all..
This deal is so good, the number is very sweat and the lead manager DON'T want to underwrite
that said it all
http://www.afr.com/business/manufac...-taking-a-kick-at-asx-listing-20150315-142abv
Note 20 – Subsequent Events
Subsequent to 30 June 2014, an additional investment of RMB29.8 million to Henan Yuanlong has been made and the investment has been recorded as a long-term investment by the Company. Total investment is approximately AUD$14.9 million as at 31 December 2014.
The financials look more believable than SBB's... XPD doesn't have a huge amount of cash sitting on the balance sheet for a start.
The increase in overall sales from 2011 to 2013 is the result of continuous expansion of distribution network, effective distribution
management, increased market recognition of the XPD brand as a result of XPD’s brand promotion and marketing activities and the
broadening of the XPD brand footwear and apparel product offerings. Sales from January to June 2014 (based on annualised sales
compared to 2013) have remained relatively consistent with 2013 sales.
Had a look at XPD recently, great story and all...
They sure know how to bait it right!
I think the key here is Mr Jiang Ting who has served with:
XXL AU
SBB AU
PEZ AU
CHI NSX
and now XPB AU
All of them had some very nice looking IPOs with many similarities
- Tiny raising, founders holding 70%+ with escrow
- Very profitable businesses requiring funding to expand to meet demand and growth
- With the exception of XXL, an incredibly wide raising range (eg. 5-15m) in an effort to take all comers with open arms
- Got oodles of cash, the aus raising is for 'prestige' and 'trustworthiness' since ASX is 'well regulated'
- Outrageously handsome fees to advisers
- Grant Thornton auditing with a blindfold on (http://rogermontgomery.com/no-more-chinese-junk/)
XXL announcements/share price makes for a fine drama imo
The "prestige" of an ASX listing that allows Chinese business owners to win key contracts is the official reason why they are paying exorbitant brokerage costs and accepting valuations that don't reflect their cash balances to raise capital from Australian investors though a stock exchange listing.
Market watchers and regulators are more sceptical. Several Chinese floats in Canada, the US and Singapore have turned out badly for investors. Auditors tasked with verifying financial information have limited access to China. Meanwhile, the hundreds of billions of dollars flowing out of China have led many to believe foreign listings are a way of getting considerable amounts of money out of the mainland.
This is just part of the mystery of the ghost-like companies that linger on the local bourse, trading at prices that do not appear to reflect the million of dollars of cash in their bank accounts. Like much about China, the truth is hard to establish while the reality is impossible to ignore.
This group of 41 companies based in mainland China have cash to market capitalisations in the range of 67 per cent, much higher than the market average which is 12 per cent for the All Ordinaries Index. Trading volumes in this group are also much lower than average with about two-thirds recording barely any trading volume in the last three months.
The average return for listings of Chinese companies since 2012 has been negative 25 per cent with just under half declining by more than 50 per cent.
Interesting article on AFR about Chinese companies looking to list in ASX.
http://www.afr.com/markets/equity-m...-for-asx-listings-at-any-cost-20160224-gn32nh
One investor believes that the motivation for the listing may be to use their shares as collateral to fund other business ventures
One investor believes that the motivation for the listing may be to use their shares as collateral to fund other business ventures
Your turn, ASIC.
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