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Author: MazonCreekRich Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1656  
Subject: Yikes! CMGHF Traded at $0.02 Today! Date: 12/6/2011 4:20 PM
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CMGHF traded at $0.02 for a while today and closed at $0.05. This seems to be bankruptcy/total fraud pricing.

Reviewing this board, it appears that there are many problems with Chaoda, but also it appears that those problems do not amount, even in the aggregate, to a bankruptcy/zero value scenario.

Maybe the very low price includes a large effect due to the halting of trading in Hong Kong, leaving only the small reservoir of pink sheet shares to absorb panicked selling?

Or maybe this is an "avoid-at-all-costs" scenario?

Anyway, I am thinking of seeing if I can buy a little bit at these low prices, but wondered if anyone else has any thoughts.

I.e., is this stock potentially "pay dirt," or is it just "night soil?"

MCRich
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Author: chiclimber One star, 50 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1644 of 1656
Subject: Re: Yikes! CMGHF Traded at $0.02 Today! Date: 12/6/2011 4:54 PM
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Yeah, I've been watching that too Rich. Could double my shares for a couple hundred bucks now. Maybe put in a .02 bid and see what happens. Intriguing since the annual meeting is scheduled for Dec 30. But without any more info, this is really a casino bet...

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Author: TMFTheSnake Big red star, 1000 posts Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1645 of 1656
Subject: Re: Yikes! CMGHF Traded at $0.02 Today! Date: 12/7/2011 6:50 AM
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I'd be careful here, Rich. As kidchicago pointed out, Chaoda has $200m in bonds that can be called because of their halted trading.

Their last report shows them holding plenty of cash ($600m), but the question is whether or not they can move the money out of China and into dollars to satisfy the claims.

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Author: kidchicago2 Big red star, 1000 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1646 of 1656
Subject: Re: Yikes! CMGHF Traded at $0.02 Today! Date: 12/7/2011 9:36 AM
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At some point I saw the price at 5 cents and thought it was a disaster, then realized that only $6,000 in shares had traded hands. It's a small number of shareholders selling at any price. But yes, the price keeps dropping and dropping.

December 8 is the next key date. If the company has audited financials by then, they will be considered and presumably approved at the next annual meeting on December 30. If not, then who know when, or if, we will get results.

The trading halt was supposedly due to the insider trading allegations, but it seemed obvious at the time, and is crystal clear now, that the company's shares won't trade again in HK until the fraud allegations are cleared up.

Bottom line: we have zero visibility into what's happening with this company. For $1,000, you can place what could be a very profitable bet. Or just lose another $1,000. There's no way to predict which it will be.

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Author: vs101 Big red star, 1000 posts Old School Fool Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1647 of 1656
Subject: Re: Yikes! CMGHF Traded at $0.02 Today! Date: 12/27/2011 9:54 AM
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Thanks to Nate, I got out of this one at a 71% gain in 3 weeks. I bought at 0.19, then it fell to 0.135, but held on. Then it went up to 0.32 and when Nate posted that he does not see much upside, I dumped at 0.32 or 0.31.

I am glad, I resisted the temptation of buying again on dips.

Thanks Nate...

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