Just got back from the Sydney event - It was illuminating in a...

Just got back from the Sydney event - It was illuminating in a lot of ways.

I'd like to make the first point that Mr Xu (CEO) stated that he has been wanting to buy shares on the market for sometime now, however it is a tricky position given he owns a large amount and it could be seen as a takeover attempt. They are discussing the issue with lawyers and brokers at the moment. He has no intention of selling when the escrow period is up, and he has certainly not entertained takeover talks.

Also, investor confidence in dividends, disclosure and trust issues were raised. The points such as getting more information on the company's activities as well as trying to get the board to understand that simple photographs of the stores, product catalogues and website updates are crucial in gaining investor confidence.

I've changed my rating back to a buy after meeting the directors. I think they are genuine, as is the company. They've almost begged us to come to China and have a look. In saying that though, there is a step by step process required to get investors confident about the stock. It will include better Public Relations, more announcements, and perhaps a dividend or a company buy-back. Of course Directors buying stock will also help.