Ever watch the show “Kids Say The Darnest Things”? The idea is about the same but to be on the safe side, let me present to you “The Funny Things S-Chips Say”! I hope this short compilation would give you something to LOL about and get you through your day 😀
All the following were legit excerpts from the various S-chips’ SGX announcements!
Since we have been discussing on this S-Chip previously, let’s start with none other than, well you guessed it! It’s…
ERATAT LIFESTYLE LTD – SUSPENDED (SGX:FO8)
29 JAN 2014: Show me the money! With allegedly RMB640mil in cash balances, Eratat defaulted on a bond payment of just RMB4.2mil!
30 MAY 2014: Eratat could not even confirm the cash they had in their accounts! They could only confirm the existence of RMB73,321.63 out of the stated RMB577mil available! That’s just 0.01% of it!
30 May 2014: The Company did not have enough money to pay for a special audit to verify if they had money! The irony is making my head hurt LOL
CHINA GAOXIAN FIBRE FABRIC HOLDINGS LTD (SGX:I4U)
30 JUN 2011: Only RMB93mil out of RMB1.1bil could be verified! That’s just 8% of it 😮
1 JUL 2011: How can RMB1bil just vanish? Well apparently it did “It would appear that part of the RMB1132mil proceeds…has been utilized”. Wait. Say what now?
SINO TECHFIBRE LTD – SUSPENDED (SGX:AD8)
21 APR 2011: Just one week after the independent auditors flagged discrepancies in their invoices, the office and administrative premises caught fire destroying all the financial records. Coincidence?
21 NOV 2011: In the results of a special audit, the auditors were refused access to certain resources in order to conduct their audit. Check out the national security reasons given!
Value In Action
S-Chips have a reputation that preceded them but not all are value traps!
Of course there are the good ones, but on a per-effort-basis it might be easier for us to search for other opportunities!
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All views and opinions articulated in the article were expressed in Mun Hong’s personal capacity and do not in any way represent those of his employer and other related entities. Mun Hong does not own any shares in the companies mentioned above.