lao cai, page-6

Interesting stuff - the impression I get having looked at as much background as I can find suggests that this is a very professional outfit who understand their patch. I was impressed also with the CEO presentation to the ASX in November 2013, clear and precise,  it is referenced in one of the previous posts but in case you haven't seen it.....

http://www.brrmedia.com/asx/DNA/donaco-international-limited/

The operation started 12 years ago, the CEO including family own 60+% of the operation i.e. they have a lot of skin in the game.  I don't know all of the major holders (my login to BRR is stuffed right now but will get that updated info tomorrow). The Vietnamese government own 5% (of a joint company of which Donaco owns 95%), Perpetual 5%,  I assume the other directors have a decent holding. Add the March institutional placement and there isn't too much left  at all for the retail market.

Take out the up to 8% buy-back and ownership gets even more compressed. I would assume that it wouldn't be too difficult for the family owners as a group to take it private again if they wanted to, there is not a lot relatively to mop up to do that. However assuming they have expansion plans then they would need access to capital in future so that going private would seem  unlikely.( I have seen no evidence of any of this it is just kite flying.)

Everything I see suggests that this is a cashed up strategically sound and well run company, experienced in their core business and with strong family background in the business. However the results should provide an answer, one way or another.

Overall it makes it difficult for me to understand the logic behind the recent price behaviour. The crazy sell down very late on Friday afternoon when about 600K shares were dropped on the market in some frenzied selling after there were signs that DNA was stabilising around the 87-88 cent level.

It might be simply that it is just another extension of the short selling that has ramped up each time there has been a bullish break but the shorts pretty much dried up late last week so it was real selling in the main at least until Thursday, the latest short data.

Quite puzzling......