I just doubled my holding. Thank ETrade for slow settlement, missed the $0.36 yesterday.
Let's see what happend in the past 2 months.
1. Glaucus released a nagtive report.
2. CEO resigned to work on a takeover bid.
3. A Chinese company was caught for smuggling $33m worth sandalwood in Xia Men.
4. No new order coming from Chinese buyer Shanghai Richer Link.
5. Board said they are not aware that Nestle terminated the contract.
The only one upset me is 5, but I don't think it's a hundred million mistake.
Below is my reply for each point.
1. I replied it earlier:
https://hotcopper.com.au/threads/sh...246566/page-150?post_id=23589087#.WRT0XNwlFaQ
2. He was a wealthy lawer before TFS, he quited his shiny job and spent 1/3 of his life on this company, and he is the largest shareholder. I don't know his next plan, so let's see what he is gonna do.
3. This case is more clear now. The smuggling company name is "厦门佛权进出口有限公司"
http://company.gongchang.com/p-350000/1033874_8c12/ The legal representative is 邱文峰. In the old news, it said Lady邱 was arrested, I think they are from the same family.
Anyway, under-claim sandalwood value is normal in China, because the tax is too high. Here is the wood related tax data:
http://www.qgtong.com/hgsz/ShowArticle.asp?ArticleID=32111&Keyword=&page=19
There are 600 categories on this page, I couldn't find sandalwood on the list, however the last categories is "others", if sandalwood belongs to this category, then the tax rate is 90% base rate, plus 17% extra on certain condition.
4. Once in a while, Chinese government lauches "YanDa" Campaign. If case you don't know what "YanDa" is.
http://www.china.org.cn/china/2010-06/15/content_20267402.htm
I guess 2017 is the YanDa period for wood smuggling in Xiamen, I think they smuggled too much wood, crossed the red line.. During this period, these companies will reduce or stop the importing activities, or buy illegal source. No one wants to pay 100%+ tax.
5. This is the only one upset me. It's one of the reason why Qin Market Cap is only $180m now.
Let's see what Qin has left at the moment.
1. Land: 12,182 hectares. Base on Realestate valuation, Western Australia farmland middle price is $2000. Total is $25m.
2. Trees: own 1,146,656 trees. For the sake of argument. Let's say each tree only worth $50, it's $60m in total
3. Cash: $90m in last half year result.
That's $175m already.
Let's forget about the pharmaceutical business, inventory, essential oils, IP etc.
TFS bought Mt Romance for $29m in 2008, in that time, Mt Romance sales was $13.9m.
In 2016, the Mt Romance EBITDA was $11m. How much is this business worth now?
It's the end of financial year. I was thinking about cut loss and claim tax reduction.
Then I was like * IT, I am not going to do everyone else does. Let's see what I get.
