SBB 400 stores in china mens fashion profits and Divs, Escrow dump buy OP?

[Joshuatree]

MKT CAP $35mill s/p 7.4c

F/Y 13 turnover $79.5 mill PBT $19.8 mill

Cash reserves $27.9 mill
net margin 17.5%

Re supplies 400 plus stores with upmarket clothing in 25- 40 year old market. Owns 5 stores. Most Innovation Brand award in 2013

Re 190 mill shares released from 6 month escrow dumped on market s/p pushed down.

Lots of questions lots of CAUTION! here too good to be true? My wild est that maybe half the escrow shares have passed thru the mkt


Questions (compiled by me) price/sales ratio compared with other brands?
Compare inventory and payables with other clothing co's , are suppliers financing inventory
Why have they listed on ASX?
Why when one googles each of Sunbridges customers the only customer that had reference is listed as astons manufacturer
Why were the escrow shares released?
Why are they building such a large 8 storey office building
Any deferred tax?
Is this an elaborate hoax?
2 Aus? directors Andrew Plimpton Director of several Aus and NZX co's, Executive member and director of Aus olympic Committee and commissioner of Aus sports commission and wayne Reid served as Director on 30 plus company boards , O.B.E

CEO has majority holding
A lot of ramping /promoting on another website
Be vey wary / careful here, 3 companies that have conned the mkt before ZHE, OMH,BGG
I took a small holding last week as aspekky short term trade . Have learned a lot more about it since but I'm very wary Watching like a hawk.

[noodles]

MKT CAP $35mill s/p 7.4c

F/Y 13 turnover $79.5 mill PBT $19.8 mill

Cash reserves $27.9 mill
net margin 17.5%

Re supplies 400 plus stores with upmarket clothing in 25- 40 year old market. Owns 5 stores. Most Innovation Brand award in 2013

Re 190 mill shares released from 6 month escrow dumped on market s/p pushed down.

Lots of questions lots of CAUTION! here too good to be true? My wild est that maybe half the escrow shares have passed thru the mkt


Questions (compiled by me) price/sales ratio compared with other brands?
Compare inventory and payables with other clothing co's , are suppliers financing inventory
Why have they listed on ASX?
Why when one googles each of Sunbridges customers the only customer that had reference is listed as astons manufacturer
Why were the escrow shares released?
Why are they building such a large 8 storey office building
Any deferred tax?
Is this an elaborate hoax?
2 Aus? directors Andrew Plimpton Director of several Aus and NZX co's, Executive member and director of Aus olympic Committee and commissioner of Aus sports commission and wayne Reid served as Director on 30 plus company boards , O.B.E

CEO has majority holding
A lot of ramping /promoting on another website
Be vey wary / careful here,

Maybe you could look at it this way....
Downside 7.5c if it turns out to be a dud
Upside 50c+ if the story is true

[noodles]

MKT CAP $35mill s/p 7.4c


Looks like your post put a rocket under the shareprice. Now at 8.5c! 15% return in less than 2 hours! Genius:)

[Joshuatree]

Heading towards 8 million shares traded. Maybe another 80 million (guess)to go if ex escrow are selling out.

[Joshuatree]

up more today 23% to 9.1c:)

[Joshuatree]

Hi moose what does that T/a speak mean in plain englishy ,an upwards thrust tomorrow likelu=y? thanks JT

[Lizard]

This bit from the agm speech cracked me up....

One upcoming promotional event is the 2014 Asian Beach Volleyball competition which we are the sole sponsor of all menswear in the competition.
The fact the CEO gave the agm address in mandarin while in Australia seems a little surprising, but perhaps the major shareholders preferred it that way.

Also, the google translate of the web-site at the link for pandist:

Sorry, the page you requested is currently unavailable!
This may be because:
You have entered an incorrect URL, or Web page you are looking for may have been updated or deleted
Is the record of the websites you visit, the temporary ban on access
According to the Ministry of Power Tube [2010] No. 64, ICP filing or filing incomplete information site for failure to perform, forced to shut down.
CE Dongli as operators of this site have the responsibility and obligation free help site owners to verify relevant information and related formalities.
ICP record information if the site has been approved, the following causes the page to be banned access:
Web services have expired, CE Dongli has ceased operations services for this site.
Site is in maintenance, CE Dongli website owners should request a temporary ban on access.

But don't worry, I found the new web-site and seems they just created it mid-June, so maybe google hasn't been inundated with views yet: http://en.pandist.com/news_list/&newsCategoryId=4.html
Don't forget to check out the photos from the beach volleyball comp!

Oddly, registration for the site agueseadan.com appears to have expired on Friday? (possibly registered to a nonagenerian in Arizona)

Andrew Plympton's NZX connection is through Energy Mad. On the ASX, he seems to have been involved with Newsat, Adeffective, Beyond Sportswear International and Entellect.

I am guessing Wayne Reid's OBE may relate more to his varied sports involvement. The most prominent places he lists as having had directorships with are:
• Jarden Morgan Europe SA
• Adriatic Insurance Limited (now part of Tower Life Australia Ltd)
• Nicholas Aspirin & Kiwi Boot Polish Ltd.
• Hudson Place Limited, UK (former owner of Air Europe)
• American Express (complete divisions for the Maldives)
• Nabisco Australia and the Pacific Limited.
• City State Limited.
• Georges of Collins Street Limited

Couldn't find much on "the most innovation brand award", but there seemed to be more than one recipient of the "Most Influential Brand Figure" and you can see a picture here, which seems to show the CEO was actually there: http://www.chinayonggroup.com/Item/Show.asp?m=111&d=78

Cash reserves of $31m might help make a dent in the construction costs of the new office building...while it's not clear that they are definitely paying for the building rather than leasing, there is a column titled "construction in progress" in the annual report, (although the value did not appear to have changed in the 12 month period other than through exchange rate changes).

Also have $9m of overdue receivables, although no suggestion of impairment at the time of last report.

Margins seem high considering they are neither manufacturing nor doing much of the retailing themselves from what I can see. However, maybe okay at gross level, so it is maybe a function of low administrative and operating costs, which I would expect to have risen substantially with full year of exec salaries and store roll-outs.

I find it a little odd that SBB made it into the All Ords index on the last re-balance in March, as did not think it would have had either the market cap or trading history to support a place in there (only listed November).

Overall, I think it is right to be suspicious at this stage. Trade carefully and don't get greedy! The typical pattern for newly listed companies of questionable pedigree would be for some unexpected new costs to appear and impact net profits at the coming half yearly, so, the safest bet is to get out at least a week or two before expected report date.

[NZSilver]

Yeh, looked at this one last week - Alpha investing had mentioned it. Decided to stay away - why? - Lizard summerised it well. - no need to repeat. Looks like its being ramped though on HC, def pump and ump so get out before your get caught!

[Joshuatree]

Hi NZSilver yes thanks for your thoughts I agree : timing is everything with these stocks. cheers JT

[Joshuatree]

Ive escaped SBB today with a 20% gain. Sick of watching the volatility;screen and all the B/S ramps on it and wary re the quality and credibility.

[NZSilver]

Good on ya JT, whats next? Pick up some more CAJ after the excellent result..?

[Entrep]

Yup, massive volume, big spread, close on lows. Smart money bailed today.

[tosspot]

Now really is the time to buy. All of those escrow shares have or will be gobbled up very shortly. and the quarterly just shows how undervalued it is 6 Million profit in one quarter with estimated growth of 15% and trading at a P/E of around 2.8 crazy undervalued. my pick is a run to atleast 25c.

And has 30 million in cash, half its market cap

[Joshuatree]

Cheers seems you're right t/p.The quarterly and half year preview since my last post does give some credential to the quality of SBB ; s/p now up to 13c. I may look at having another bite.

[JBmurc]

Yes heard about these guys today thought I'd have a look ....can't say I invest/trade in the sector much BBG my last trade....but thinking bout getting a few

[Joshuatree]

Glad i bought in for another trade. Half yearly out.After market closed.
REv $A43.8 mill up 31%
NPBT $9.34 mill up 15%
NPAT $6.75 mill up 11%
Cash reserves $A 30.5 mill
MKT CAP$49.53 mill
Cant wait till monday :t_up:

[noodles]

Glad i bought in for another trade. Half yearly out.After market closed.
REv $A43.8 mill up 31%
NPBT $9.34 mill up 15%
NPAT $6.75 mill up 11%
Cash reserves $A 30.5 mill
MKT CAP$49.53 mill
Cant wait till monday :t_up:
But with so much cash, where is the dividend?

[tosspot]

But with so much cash, where is the dividend?
dont tell me your another one of those that think this business is a scam, like those clowns on Hotcopper

[noodles]

dont tell me your another one of those that think this business is a scam, like those clowns on Hotcopper
I've been a clown many times in my investing career. So nothing new there.

[Joshuatree]

Good question though.

[soulman]

Good question though.

According to the prospectus, dividend payout ratio of 25% on the NPAT for the year to September?. At directors discretion.

CEO and founder holds plenty of shares in escrowed for another 12 months. Maybe shares in escrowed are not entitled to dividends? Can someone here elaborate on that?

Red flags are as follows:

1) Released their report on the last day, at the last minute after the market closed. Accountants and auditors scramble to finish on time. Otherwise, suspension come Monday.

2) Insiders selling heaps after their escrowed shares were released. Why would you do that? Selling heaps in an uptrend is one thing, selling heaps in a downtrend is another. Selling their shares to realized cash at low share price and pushed down the share more than 50% down is blatantly dodgy and does not make sense if SBB is a solid company.

3) CFO resign just after the FY. Andrew Fastow from the Worldcom accounting scandal in 2002 brings to mind.

[Joshuatree]

Im after another 20% plus trade and i think my odds are good.

[dingoNZ]

Will be buying a few come Monday. See what happens :)

[Joshuatree]

MKT CAP $35mill s/p 7.4c

F/Y 13 turnover $79.5 mill PBT $19.8 mill

Cash reserves $27.9 mill
net margin 17.5%

Re supplies 400 plus stores with upmarket clothing in 25- 40 year old market. Owns 5 stores. Most Innovation Brand award in 2013

Re 190 mill shares released from 6 month escrow dumped on market s/p pushed down.

Lots of questions lots of CAUTION! here too good to be true? My wild est that maybe half the escrow shares have passed thru the mkt


Questions (compiled by me) price/sales ratio compared with other brands?
Compare inventory and payables with other clothing co's , are suppliers financing inventory
Why have they listed on ASX?
Why when one googles each of Sunbridges customers the only customer that had reference is listed as astons manufacturer
Why were the escrow shares released?
Why are they building such a large 8 storey office building
Any deferred tax?
Is this an elaborate hoax?
2 Aus? directors Andrew Plimpton Director of several Aus and NZX co's, Executive member and director of Aus olympic Committee and commissioner of Aus sports commission and wayne Reid served as Director on 30 plus company boards , O.B.E

CEO has majority holding
A lot of ramping /promoting on another website
Be vey wary / careful here, 3 companies that have conned the mkt before ZHE, OMH,BGG
I took a small holding last week as aspekky short term trade . Have learned a lot more about it since but I'm very wary Watching like a hawk.

Im in for hopefully one more quick trade @ 10.5c, Don't rate it as investment grade as my first post points out. DYOR

[Joshuatree]

Im sitting waiting for the wash out and gains ahead. Will man up if it doesn't ,but feel the risk reward is with me in the next few weeks. DYOR

[tosspot]

bizarre trading. its almost as thought someone with deep pockets is trying to scare traders away.

[soulman]

Just as I thought. Sitting now at 8 cents. Don't hold and don't think I ever will.

[VL SNTCHR]

According to the prospectus, dividend payout ratio of 25% on the NPAT for the year to September?. At directors discretion.

CEO and founder holds plenty of shares in escrowed for another 12 months. Maybe shares in escrowed are not entitled to dividends? Can someone here elaborate on that?

Red flags are as follows:

1) Released their report on the last day, at the last minute after the market closed. Accountants and auditors scramble to finish on time. Otherwise, suspension come Monday.

2) Insiders selling heaps after their escrowed shares were released. Why would you do that? Selling heaps in an uptrend is one thing, selling heaps in a downtrend is another. Selling their shares to realized cash at low share price and pushed down the share more than 50% down is blatantly dodgy and does not make sense if SBB is a solid company.

3) CFO resign just after the FY. Andrew Fastow from the Worldcom accounting scandal in 2002 brings to mind.


4) considering the cash balance - the interest earned does not match up....

[cloggs]

And back up to 9.1 with a high of 9.7 yesterday. A wild ride, with pretty decent volumes as well. I have to admit I'm watching it like a hawk after reading all the comments. Read through their 6 month report again. Couldn't find interest income derived from the 30 million cash balance as VL SNTCHR pointed out and can't make sense of the 8 floor building.

[duncan22]

Heres the risk factor for this sort of company: http://www.businessinsider.com.au/shoe-company-ceo-coo-go-missing-2014-9

[okay]

Heres the risk factor for this sort of company: http://www.businessinsider.com.au/shoe-company-ceo-coo-go-missing-2014-9

I wonder if the CEO had a pair of his own "ultrasonic" brand running shoes on to help with his speedy getaway:p

[Joshuatree]

Operation updates (http://hotcopper.com.au/threads/2364501/) Back up to 10c after announcement. Not a lot of new detail but the mkt is reassured with MD etc trip to china.

[okay]

Following up on the Ultrasonics story and the mysterious Mr Wu.

Ultrasonics CEO Mr Wu has resurfaced. Saying, "rumors say that I took more than a billion (yuan). This is pure rumor. No such thing has happened. The company's financial situation remains normal," Wu said.
About his disappearance, it was all a misunderstanding, he had been travelling and lost his phone. :p
http://www.cnbc.com/id/102021437

[Joshuatree]

Touched 11c yest before settling at 10c. Im sitting atp.

[tosspot]

http://www.asx.com.au/asxpdf/20141013/pdf/42sv2wrvvskyl8.pdf

A partnership with BBY, the largest independent broker in Australia/New Zealand
This should help quell all those crazy naysayers and put this stock on its way to a respectable level.

[Joshuatree]

Thanks for the headsup tosspot;just what we needed.An announcement from an insto or similar building a stake is what i would like to see next.Then its chocks away.

[Joshuatree]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645573) Operation updates Rev up 14.4% on pref qtr to$20.45 mill

cash on hand $29.7 mill
Cashflow $2.14 mill
$6. 9 mill in renovations
New corp headquarters complete and warehouse and showcase retail outlet
Doing well in the slowdown
A DIV maybe the only thing that causes arerate unfort.

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645576) Quarterly

[percy]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645573) Operation updates Rev up 14.4% on pref qtr to$20.45 mill

cash on hand $29.7 mill
Cashflow $2.14 mill
$6. 9 mill in renovations
New corp headquarters complete and warehouse and showcase retail outlet
Doing well in the slowdown
A DIV maybe the only thing that causes arerate unfort.

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01645576) Quarterly

Thanks JT.
Bit of a naughty announcement.
They are up 14.4% on previous qtr.
However comparing the June ending qtr with the same qtr last year they are down 12.5%.
Clothing industry being seasonal,comparison, must be with the same qtr.
So they are not doing well.
I recently [with your help] had another look at this company.My conclusion is they face challenges.

[Joshuatree]

They are quite transparent there" While this figure represents a decrease on the previous corresponding period $AUD23.42 million, the result is a solid increase of 14.4% on March qtr rev of $AUD17.88 million." Think they are doing well considering what the China mkt is going through atm. Don't forget mkt cap only $23.5 million! and cash on hand $29.75 mill an increase of $700,000 .Bring on the div!.Still a small hold for me.

[Joshuatree]

Release of escrow shares 259,200,000 on 27th nov. What will the CEO do ?

Operation updates (http://hotcopper.com.au/threads/2646920/) looks good. Holding small bunch still:( but wouldn't recommend till the above escrow intent is known and a div is released.

[Joshuatree]

Im sitting waiting for the wash out and gains ahead. Will man up if it doesn't ,but feel the risk reward is with me in the next few weeks. DYOR

Those on here who were suss about this . i salute you.
So i made 20% on my first trade but was errant enough to have another go, what a Dill!.. S/P is re 2.4c now and still sucking in new investors.IF there is say $30 mill cash it will never leave China; highly unlikely of a div ever coming our way imo.One scenario is that there is a slush fund pooled which a bunch of chinese companies use to "authenticate" themselves to their overseas sucker/investors with the cash carrot/divi.Another is when the s/p gets so low the CEO will make a "generous" takeover and hoover up the company for nix from stale exhausted, capitulating holders. He will need to make some sort of announcement that drives off the fresh meat,newbies.