Featuring Midas

Midas has been a shock for many today especially to my fellow friend, Neo, who is heavily vested on it! Its prices kept free falling from the open price 1.84 till 1.30(beyond 200MA) where the company request a trading halt at 10.30a.m for investigation.

Midas is a aluminium leader in China's market with serveral hugh contracts under its wing!!! With such a high book order value, I believe many value investors were trying to get at a discount as it was extremely undervalued (OCBC give a target of 2.19 earlier on this year) in today's meltdown. I would also have enter positions if my poems trading platform didn't hang. Luckily, I was not able to place order.

The Meltdown is puzzling and everyone is desperate for news. A piece of news then come out from an article in China Cai Jing (now removed from Cai Jing web, content can be found here) that the director, Chen Wei Ping (rumoured to have stakes in Raffles Education and Sitra Holdings) was involve in a big bribery and that Midas is an empty shell.

Whew!! Thank God that I did not manage to get into any positions.

Neo was panic and lost when i reveal the news to him. He was in immerse thoughts thinking about ways to protect his capital but never took actions. Seeing his tension, I tried to clam him down.

After investigation, the company denies the allegations amde to the director and resume trading at 3.45p.m after lifting the trading halt. Prices soared to ard 1.73 and retrance back finding support at 1.43. With serveral uncertainties and fast price actions during the last hour, I could imagine the tension Neo was facing and he did not made ay actions

Reaching home, he did more research and discovered the article I give him was removed! Hmm, seem that it could be an unethical report/allegations (content of the report can be found here) made on the director.
To further confirm, he manage to find,
1. Its board of director consists of Chan Soo Sen, one of the MPs. Our MPs could not be investing in a shell company.
2. Another important evidence that has also recently declared it dividend, something that a shell company will not be able to do!

With this, he managed to develop his plans to execute tomorrow. Hope that he can ride through the storm.

Another China Company Allegations: Delong
All these alleagations has made me worried as I have 4 China counter. Hope that they are fine...