interesting interpretations, page-20

Giddy,

You say that I avoided your main points in your post. I will make it clearer fro you then.

1. Your point on $3.80.
If OW were happy with $3.80, the placement would have been done 6 weeks ago rather than pass the Oct 6th approval deadline without completion. In addition
"the Company has been dealing with a request from
Oceanwide in light of the circumstances existing, to reconsider the agreed price of the placement." Clearly OW wants a lower price as CDU have shown in their announcement.

2. CDUs stance on completing the placement.
Its clear from the 6 weeks taken so far, that CDU and potential investors have differing views on the placement price. No doubt a deal could have been done inside the 6 weeks if CDU dropped its current price target. A dropping of its price would be the admission thats needed to get it over the line. On August 23rd CDU said
"The company is in the final stages of completing a placement to a number of investors". Not one of those has managed to complete in 6 weeks. CDU needs to admit to itself that its pricing is wrong. Only then will they complete.

3. My "cash is KING" statement has been made every time that CDU went into its buybacks. Most posters here know its not a new idea from me. Most laughed back when I first made that statement as they said raising new funds was so easy that spending money on buybacks wasnt an issue. Well the "cash is King" philosophy was the one that should have been employed. Its good to see that you now also subscribe to that.

4.You say the new investors from 6 weeks ago are still there.
The announcement tells us otherwise. As per the above quote, those guys that were around 6 weeks ago and supposedly were close to completion clearly did not complete. If they did, we would have had an announcement.
The current announcement says
"the Company has commenced dialogue with other Hong Kong based groups and is close to finalising an agreement on a placement of shares and short dated options. " The word commenced here tells us that they are again a new bunch of potential investors ( not those old ones).

The words "the company feels that it is in the best interest of all shareholders that we continue the discussions with the third party" suggests that there is one other party in active discussions and not multiples.

The words "The discussions with the new group having commenced in the past 7 days are ongoing." Again confirms that it is one other party only and its a new one where discussions started in the last 7 days. Its therefore not one of those from 6 weeks ago.

The words "Presently the progress of those discussions is affected by the holiday period in China between 1-7 October"
again confirms the one party but drops your expectations by telling us that basically the day after discussions started, they stopped again.

5. relationship between asking price and sale time.

CDU has now spent 6 weeks trying to finalize a placement. Most companies complete their placements overnight. OW has asked for a lower price as per the announcement. When an investor asks for a lower price, it means that they dont like the current asking price. None of the potential investors from 6 weeks ago stepped up to the plate. Clearly they didnt like the $3.80 price along with OW.
A lower issue price would have closed out the deal on day one. If CDU stick with the $3.80 price they may well still be waiting without a taker in 12 months. the further you are from the market on your asking price, the less likely you are to complete a sale. Its true for shares and houses.