P22 of the 2016 annual report states that Frank Wilson has interests in 413 ha of plantations. I doubt he would invest his cash into planatations if it was a Ponzi scheme and he was not confident he could sell the product.
This is the huge difference between the 2008 failed MIS schemes. The CEO of QIN has invested his own cash into the company and into plantations. He would only do so if he was confident the sandalwood oil and heartwood could be sold; and at attractive prices.
Furthermore, he has so much of his own personal wealth at stake he would only resign as CEO of the company if he was confident the takeover would occur, the price would be attractive, and he would be reinstated as CEO.
Of course, the negative view is he will screw the other shareholders. He will ensure he is OK and screw shareholders in the process. This, however, is not in KKK's longer term interest (assuming they are the other party) because in 2-4 years they will want to sell their holding back to shareholders. Screwing current shareholders will make that difficult. Furthermore, Frank Wilson's management over the years has been reasonable and ethical. So I doubt he will suddenly change to be unethical in this situation.
QIN Price at posting:
$1.16 Sentiment: Hold Disclosure: Held
