Two good things: 1. Director Stoner buys shares at the time of...

Two good things:

1. Director Stoner buys shares at the time of price dropping, three times. He shows his confidence in its future at least some, he may know inside news/plan better than us, otherwise he can quit not taking this burden.
2. CDC paid a higher dividend and saying a reinvestment plan. They used the issuing price 0.2 as the benchmark I think, so the div is higher can minimise the IPO shareholders' potential loss. By doing this they want to maintain reputations and investors' confidence. I see lots people comments include the word like scammer, rubbish, in my opinion they are not come here just for 20 millions. They do have bigger business run in China and some relations with Mengniu Milk, they wont care much 20 million dollars.

Two not good things:

1. policies, in China politics is the most important thing. The decision maker of this company may come to Australia, but the current policy in China restricting fund go overseas, especially western countries. They wont dare to challenge the emperor's policy, have to wait see changes would come after the 19th Natinal Congress,which will be held in Beijing soon. Also A2 is so strong, at least for now, they have to reconsider that and strategies entering Australia, the big bosses (Liu and Wang) they also like dig ores in Mangolia and Canada, currently no further comment made on this.

2. the brand has no physical prensence shown here, lack of transparency, poor maintained website, local investors are unable to foresee its future plan. the Chinese put more attention on relationships not websites, but locals put more on websites. In recent two months, someone sold a number of shares everyday, that makes the price even lower, it would be the second the third holders' shares just released from the esrow I reckon, this did make the situation worsen.

Bounce?

The price has been dropping for one year, the public investors losing patience on this share, unless a big investor/buy comes in or a super good news release. This is a small volume on market, 2 million may make it back to the issuing price which is at 0.20. The chance something happens this year is low I think, it would come over likely next year after April, at the time most shares will be released from the esrow. Secondly, the company did say a div reinvestment policy, that means they are likely to offer a similiar dividend next time. If not or no big news come up next year, unpredictably this one would become a zombie share.