Monday, 1 August 2011

CHINA FISHERY GROUP (Lim&Tan)

S$1.45-CFG.SI

• The company announced this morning that in light of the prevailing market conditions, plans for its proposed dual listing on the Hong Kong Stock Exchange would be delayed.

• The Board would review the matter before the end of the year and would make further announcements to update shareholders.

• While not positive, fortunately, when the company first made known its dual listing plan on 17 Dec’2010, its share price was $2.16, and have since declined 33% and is retesting its June 2011 and Jan 2010 lows.

• The very weak share price performance was attributable to its key fishing grounds being located not too far away from the Japanese earthquake zone. However, despite management’s reassurances that their operations, its share price continues to remain weak (remaining in an entrenched downtrend channel established since Jan 2011).

• The stock is also down from the $1.85 level that The Carlyle Group purchased 11.32% of the company at during end June’2010.

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