Livas, I subscribe to 3 textiles reports. I use an average...

Livas, I subscribe to 3 textiles reports. I use an average across the prices of various textiles and yarns. This is absent specific guidance from Mesbon (which historically is very infrequent - particularly in the last part of the year) which I would prefer to use, but part of the reason you get to buy small companies like this cheaply is due to such factors.
Good quality materials (such as Phase 4 will produce) were selling throughout October 2011 at between RMB32,000 & RMB37,500/t. Those same products were in October 2010 selling at a midpoint more like RMB29,000/t (about 20% less).
I do agree that the CPL price is about RMB28,000.
So it seems our discrepancy must be in the measurement points, I was simply putting Oct 2011 prices over Oct 2010. If we use an average throughout the year, WTI oil prices have averaged US$94.37 (daily ave) for 2011 and US$79.48 for 2010, prices are only up 18.7% (it was 30% Oct to Oct). Whereas monthly average CPL prices have been about RMB27,220 in 2011 and were about RMB24,730 in 2010 for about 10.1%. Please bear in mind these are simple straight-line averages and make no allowance for seasonal fluctuations.
Basically my point was that nylon prices have kept pace sufficiently with oil prices that there should not have been any margin erosion due to that factor. There has however been some significant wage inflation in China, so there are other areas where cost pressures could erode margins, I was simply pointing out nylon prices aren't among them.
In any case, the key takeout of my previous post was that the underlying story has not changed, all that has happened is an offer has been made and then withdrawn.
To demonstrate, we imagine we had bought 12 months ago, lived in the jungle for 12 months and emerged just now, never knowing the developments between, we would own a company which is performing well operationally and has appreciated in price from about 13 cents to 17 cents, or about 31%. If it continues at that rate, and with phase 4 augmenting profits, I think it's entirely likely, then it will take only a couple of years and this offer falling over will be a distant memory and we'll own a cash generating machine worth a great deal more than the 35c offer that fell through - Eternalgrowth