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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (55347)	5/24/2015 7:55:36 AM
From: Trader2015	Respond to of 78740

Thank you for your feedback. I am considering adding to my position and reading these responses does help a great deal.

To: Paul Senior who wrote (55347)	5/25/2015 12:20:23 PM
From: Graham Osborn	Read Replies (1) \| Respond to of 78740

I just finished reading just about every SA post on this one. Whether it was genuine managerial fraud, market manipulation, or a combination, it's a good illustration that you better plan on visiting the company if you're taking on Chinese small caps. I've set a lower bound of 500M to consider any Chinese co and in practice most are >1B just because I don't hold enough stock personally to justify the expense. That said, almost every co on my DD list is Chinese. Does anyone have significant holdings in China and if so can they comment on the SSE run up the past 18 months and whether they are factoring this into buy timing? My thought has been to wait for the correction but I think on a multiples basis they are still lower than us.

To: Paul Senior who wrote (55347)	5/26/2015 6:39:42 AM
From: MNTNH	Respond to of 78740

hi all, happy to see all of you again. For GURE, certain items stand out that clearly is at odds. Happy to share to avoid pitfalls. * Shouguang City Haoyuan Chemical Company Limited ("SCHC") Firm is $114m cap, with $146m cash, apparently only minimal lease borrowings. Owner owns c.30+% Firm bought $80m antibiotics co transaction from 4 individual shareholders of Shouguang City Rongyuan Chemical Co., Ltd. (“SCRC”) (said a leading player in antibiotics)? Consideration = $66.2m cash + issuance of 7.27m shares @$2.00/share, a 73% premium over the previous 10 day closing price, total $80.8m. The deal has a minimum profit level of $11.4m, if not deal price apportioned accordingly. Spent $488k on bromine exploration and found natural gas well in Sichuan China (area isnt known for gas production)? Also said spending $10m if its commercially viable after 3rd party checks. Im from Asia but didnt know budgeting is done this way lol. They produced about 21k tons of Bromine in 2014 at about $2,600 per ton. In 2007, China had 556kt mined worth $2.5b or $4496/ ton. China alone mined 110kt in 2014. So this guy is 25% of production in China hmm. Other major producers are US, Israel and Jordan. Wrote off of $673k in 2014, from impairment of protective shells on pipes? Pretty pricey stuff huh.. Gained $2.5m on relocation of factories in 2013 Firm makes 20% on net margins and 25% on operating margins - wow? and bought a company with minimum guaranteed 11.4/80 =13% net margins - double wow? Anyway Im sure more exciting things happened during the RTO; a quick search and someone wrote more extensively some years back: prnewswire.com