Cheapest China Stock in the World

M

mingsphinx

United Food Holdings Limited
Yahoo Ticker: U01.SI

The stock trades near cash and below net working capital. It has not debt and has been cash flow positive. You will not find a cheaper stock.
 
Their turnover has increased 10% since 2003, but their net result dropped 60% in the same period. Year after year the trend is getting clearer and clearer. In 2005 they restructured their activity, cut down on their usual businesses and bet the ranch on soybean processing.

They're dying. That's why they look cheap.
 
There are people here who are in the know huh? :D You got some of your numbers right but not all of it. Although it must be admitted that United Food is trading at this price for a reason, it would be of interest to some people here to understand why a company that is debt free and cash flow positive would trade below net working capital and near cash.

I ought to disclose that I am "actively involved" in helping to turn things around at United Food. For instance, recently the company put a stock buyback mandate to vote at a Special General Meeting which was approved. I helped encourage the company to draft the circular. The proposal to buyback stock had been mooted three years earlier but never put to vote. As you can see, I am persuasive.

For people seeking more information here is another link:

http://info.sgx.com/webcorannc.nsf/...mpany?OpenView&RestrictToCategory=U&Count=100

Singapore has a system that is similar to the 10-K and 10-Q system in the States. Except that the quarterly reports are called announcements instead. Unlike the Hong Kong system or the ADR reporting requirements in the United States, companies listed in Singapore file a complete set of summary financials including the income statement, balance sheet, statement of changes to equity and most importantly of all, the cash flow statement. Scroll down to look for United Food.

The website is shit compared to what the SEC offers but unfortunately as persuasive as I am, I was unable to prevail on the schmucks at the SGX (Singapore Exchange) to improve on it.

Knock yourself out.

Quote from jrkob:

Their turnover has increased 10% since 2003, but their net result dropped 60% in the same period. Year after year the trend is getting clearer and clearer. In 2005 they restructured their activity, cut down on their usual businesses and bet the ranch on soybean processing.

They're dying. That's why they look cheap.
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