This good post deserves a new thread......thoughts? I am new to...

This good post deserves a new thread......thoughts?



I am new to researching this co as I was initially very interested looking at the crazy low PE. However upon doing some reading I have decided to exercise caution for now and feel I should share some of my reasoning. This is not advice, it’s just some things I’ve personally found a bit disconcerting: 1/ I don’t personally think it’s safe to assume that ESCROW selling is over or close to being exhausted. The volume since the plummet from 21c doesn't even total the 190 mill that came out of ESCROW, let alone account for a degree of churning (same shares being traded). Also, I googled the companies holding the 190 million odd shares (you see them on page 87 of the Prospectus, announced 7/8/2013). I found (through www.offshoreleaks.icii.org) that "Excellent Plastic Limited" and "Grace Trend Management Limited” (who held 20,250,000 and 38,250,000 shares respectively) are based in the British Virgin Islands. Both were incorporated in June 2008 (18 days apart), and share the same selected entity: Porticullis Trustnet Chambers P.O. Box 3444 Road Town, Tortola BRITISH VIRGIN ISLANDS. This may not mean anything sinister- I’m not an expert on these things- but it stood out to me in a negative way because a) the ASX float offered a tiny proportion of shares (max 10% of co) having the effect of concentrating mass shares in the hands of entities like the above and b) the dumping we have all seen post ESCROW release. 2/ When reading over the SBB prospectus, two names leapt out at me. The first is the Chief Financial Officer, Mr.Yee Shyang Wong. His profile on page 24 states he “was acting as the financial consultant to the listing of Shenglong International Investments Limited, where he was involved in all aspect of the preparation work and was instrumental in guiding the company to a successful listing on the Australian Stock Exchange.” His LinkedIn profile shows he still works for Shenglong (and interestingly used to work at Grant Thornton too). Now… Shenglong never listed on the ASX. If you check the ASX website it says “application withdrawn” (why I don’t know). There’s actually a hotcopper thread on them with the ticker it would have had had they listed- SLI. Looking into Shenglong raised some flags to say the least… a 95% individual owned Chinese miner with exploration permits in Congo! If you check out this Shenglong prospectus http://www.shenglonginternational.com/download/20139315946856.pdf you’ll also see Shenglong’s Company Secretary, Chow Yee Koh, is also SBB’s Company Secretary (the second name that jumped out). Again, this may not mean anything sinister, but the links with Shenglong and the similarities (Shenglong aimed to raise up to $12 million at 0.20 per share, SBB aimed for $10 million at 0.20 as well) just does not sit well with me. I’m not saying SBB doesn’t run a reputable business, none of my research focused on the actual clothing side of things and they could well end up a Steve Madden type success story if they’re legit, but it just doesn’t look right to me. Again, this is not advice or a downramp, just some research I felt like sharing. Best of luck to anyone that has or will take the punt.