Glg Life Tech Corp V.GLG.H

RE: RE: RE: RE: RE: RE: A word of caution...

[bendergarden]

Well I am comparing Sino to other TSX listings that would be in the same category:  West Fraser Timber, Plum Creek  (not actually a TSX listing), Canfor, Timberwest etc   Sino traded at a much cheaper trailing and forward multiple.  


And now, it's just as cheap as it gets!!!

Domtar is pulp and paper with no timber holdings that I know of.  They will trade at a cheaper multiple, like every company in the paper and print related universe, because of declining print levels every year in every category:  forms, newspapers, advertising etc.

As for GLG, they will get caught up in whatever the prevailing trend is.  If I were them, as a protective measure, I would start providing verification of assets, verification of customers, verification of contracts etc.

It is my belief that soon, full validation of all assets and operations will be the norm for Chinese companies, for them to be able to tap the equity markets.  They will have little other choice in the short term.

I expect the Chinese stance regarding allowing western auditors into  China to verify and audit on site may be forced to change.   The fact that it currently is not allowed is the key enabler for this type of systemic scamming.   Western investors will not tolerate the current zero transparency modus operandi.