forgotten stock, page-2

re: rightly forgotten stock It appears that what the announcement says is that SCE has plucked a number out of the air to value their HongKong business and that the SEHK has not disagreed with it (which doesn't neccesarily mean that that is what it is worth....)

Then on the basis of this valuation shares will be issued and a third will be showered around to SCE shareholders in lieu of cash to make you feel like you got a dividend.

Nice work if you can do it. Invent a number for an asset that the market doesn't value anywhere near what you want it valued at, split it up into shares and then pass them around, then hold onto the majority to either sell later or claim as a book asset at the (hopefully) higher value.

This has been brought to you by the company that last year claimed to have 'sophisticated investors' beating a path to its door to buy shares at 18c (?) when the then shares were trading for 4 or 5c

Mysteriously the investors never turned up but the share price surged on the basis of the releases.

Verdict - Incredibly suspect company.

Here is the release.

SUNTECH ENVIRONMENTAL GROUP LIMITED 2003-02-05 ASX-SIGNAL-G

HOMEX - Melbourne

+++++++++++++++++++++++++
The Board of Directors of SunTech Environmental Group Limited ("SCE")
is pleased to report that its subsidiary, Edison Advanced Electrical
Holdings Limited ("Edison") has formally lodged its application for
admission for quotation of its shares on The Stock Exchange of Hong
Kong Limited ("SEHK"). It is anticipated that the result of the
application would be known within two months.

The quotation of the shares of Edison on SEHK should better reflect
the value of SCE's investment in Edison. Based on the application
submitted to SEHK, SCE's shareholding in Edison would have a market
value of approximately A$42 million.

Furthermore to give shareholders the benefit of such listing, the
directors are pleased to report that an interim dividend to be
satisfied by an in specie distribution of Edison shares representing
32.3% of SCE's shareholding in Edison with a value of approximately
A$13.6 million would be made to all SCE shareholders on a pro rata
basis to their shareholding in SCE on the record date to be announced
by SCE once the application for the admission for quotation on SEHK
of Edison shares is approved. Details of the dividend distribution
shall be announced once the listing in Hong Kong is approved. Also
arrangements will be made for those shareholders who wish to dispose
of their Edison shares distributed to them.

The above listing in Hong Kong of Edison would not affect the status
of SCE as a member of Australian Stock Exchange in Australia.

Should you have any queries, please do not hesitate to contact the
undersigned or our Assistant Company Secretary, Ms Lacony Yue, at tel
no (852) 2867 1780 during office hours or by email address of
[email protected].


V Choi
EXECUTIVE DIRECTOR