Some of the crap that has been posted on this forum in the past...

Some of the crap that has been posted on this forum in the past couple of days is absolutely unbelievable.

People arguing about the pay rates of CFO's. One individual claiming he pays his Chinese staff 20% less than what he pays here. Note: this guy is getting royally screwed but that doesn't matter.

Discussions about shadow banking with links to all sorts of related articles.

This is all bullshit and none of this matters. What matters is, is the Chinese economy growing yes. Is the clothing industry growing, yes. It so happens that the clothing industry is growing faster than GDP is growing, excellent. Is Sunbridge in excellent financial health, yes.

Sunbridge ticks all the boxes in terms of the conditions it is operating in and its potential to leverage on its position to increase revenues and profits. It does not matter how much Sunbridge pays their staff and it does not matter that there are not more Australian management personnel and the neither does the shadow banking sector.

Fact of the matter is Sunbridge is not an Australian company. It will never operate in the exact same way that an Australian company would. This is a fact of life and holders or potential investors should research everything thoroughly to ensure they are within their comfort zone. The facts are that Sunbridge issues loan guarantees, mainly to suppliers of its garments. Loan guarantees are only bad in the event of a default and when we look through every single year of financial records there has not been $1 worth of defaults. So in reality during half a decade of issuing loan guarantees it has not cost the company $1. This does not mean a default cannot happen but it shows that Sunbridge is prudent with whom and why it issues these guarantees for.

Anyone with China based experience will know that small firms can often struggle with securing bank loans and they often can carry high interest. Companies will sometimes get help from some of their large customers otherwise they would not have the working capital needed to complete large orders. These are often relationships that have been formed over many years before such loan guarantees are given out. They are not given out to every Jack and his dog.

So to sum it all up
Pay rates do not matter
Shadow banking does not matter
Loan guarantees have to date not cost Sunbridge a cent
Loan guarantees currently only at $900,000

What people should really be worried about is can Sunbridge maintain its edge in a highly competitive market. A default on a $900,000 loan guarantee is nothing compared to the havoc that would be caused if revenues fell from 88 million to 60 million.People should be concerned about whether Sunbridge can maintain its position and grow it. Currently the evidence says yes it can. However the risk of the groups products falling out of favor with consumers is IMO the biggest risk in this investment. Moreso than any loan guarantee or investment the group can make.

Additionally if holders are uncomfortable or unknowledgeable about any of the business the company engages in they should pick up the phone and contact the company directly and make some esquires. See what you come up with.