February 17, 2012 at 3:50 pm #17585
I have been watching the OTC shares of Chaoda (CMGHF) over the last few months. They are still trading despite the halt on the Hong Kong market. There is pretty good volume but significant volatility. In fact, CMGHF went down to around 0.025 per share only to rocket up to 0.087 in the last couple days. This appears to be related to the repayment to the bond holders going through. Also, the investigation into the chairman is ongoing which can be googled. It appears the OTC shares are acting as a option on whether the Hong Kong shares resume trading or is delisted. It seems an answer to this question souuld be resolved soon. Just thought I would bring this to the attention of the members.April 29, 2012 at 4:43 am #27212
It looks like the Chairman of Chaoda is cleared from the accusation of insider dealings (pg 126. line 309).May 7, 2012 at 8:43 pm #27217
Thanks for that article Fred. I have found it frustrating to find any real information about Chaoda.
IanMay 10, 2012 at 12:53 pm #27221
Looks like Chaoda’s auditor has resigned. Not a good sign.September 28, 2012 at 1:48 pm #27267
We continue to wait. Now over a year since trading suspended on HK exchange.November 15, 2012 at 2:24 pm #27284
Chaoda may have found an auditor. Hopefully the shares will trade again on the HK exchange.November 20, 2012 at 5:34 pm #27285
First : Why was it so difficult for Chaoda to find an auditor? – Second : I ubderstand that Anonymous activist indent and report are open to self interests, nevertheless their allegations seems quite plausible. – Third : With the massive level of fraud rumors running over very powerful Chineese leaders it is difficult to assume Chaoda’s chairman Kwok Ho and CFO Andy Chan are necessarily innocent of wrong doings. On the orher hand Rob’s update of September 30 – 2011 convinced me of holding on my Chaoda’s shares.November 21, 2012 at 3:22 pm #27286
I sure hope any political connections Chairman Kwok had, which has shielded him so far, or maybe provided his company with some cover has he got his ducks in order, is still in tact with the recent change in leadership over there. I own the stock as well. Absolutely no reason to sell here. This has been a good reminder as to why some emerging markets/stocks trade at such low valuations, when considering the risk inherent in those markets.November 21, 2012 at 5:06 pm #27287
Hi Gerald, Jim,
the Chaoda story is a sad story full of unknowns.
What we do know is that when we bought Chaoda shares we had a long term view and our aim was to have a legacy investment.
For those of us who bought in HK there is not much we can do. Shares are suspended so we are “forced” veeery long term investors. We should be patient, put shares in a drawer with lock and throw the key down the dwell.
That’s fine with me. But I have a problem with Chaoda, the real problem I have is that I can buy 2 Chaodas for one nickel in the pinksheets market. Oh boy! It is like buying way OTM calls, chances are slim but we may hit the jackpot!
Martingale?, double or nothing?, you name it. I´ll give you no further details… you may end up thinking I am a compulsive gambler.November 21, 2012 at 6:53 pm #27288
Like you i felt like buying 100,000 shares at $0.02, That’s only $2,000. – What is holding me back is how ridiculous I would feel if I loose that amount too. – GeraldJanuary 7, 2013 at 6:30 pm #27009
Updates I found on investor hub for Chaoda. Any partners considering buying more as an “option” play?
See below for link to Annual meeting board votes…Chaoda authorized buying back unlimited shares
Their Chairman was elected to a government post for agriculture…would this happen is the company was still in a “state of disgrace?”
The Chairman Kwok Ho has been Elected as the First Vice President of China’s Agriculture Industrialization Leading Enterprises Association
On 27th November, China’s Association of Leading Enterprises in Agricultural Industrialization held its founding conference in the Great Hall of the People, with Vice Premier Hui Liangyu, Minister of Ministry of Agriculture Han Changfu and other leaders in attendance. Mr. Kwok Ho, chairman of Chaoda Modern Agriculture, was elected as the first vice president of China’s Association of Leading Enterprises in Agricultural Industrialization.
In Chaoda’s greentimes blog World brands give a surprising enterprise value for Chaoda:
Greentimes Vol. 50:
World Brand Labs values Chaoda’s brand at RMB 16.9 Billion up $1.18 Billion from 2011
Stephen FraserJanuary 8, 2013 at 2:54 pm #27011
I’d certainly consider buying more. Cheap option. Where are they available?January 8, 2013 at 3:26 pm #27012
Pinksheets. OOTC .
Bloomberg Code: CMGHF US
ISIN: KYG204Q1073February 1, 2013 at 1:40 pm #27020
It looks like Chaoda now officially has a new auditor. Hopefully it will start trading again on the HK exchange again someday.July 19, 2013 at 1:31 pm #27072
Looks like a step in the right direction and the company provides a tentative time schedule:
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