Cheap Stocks Investigation: China Haida

This post is made in reference to an earlier blog post. Basically, it is a list of stocks that has last closed prices at a significant discount to its tangible book value.

The first item on the list is China Haida, which is an S-Chip. Reputation wise, s-chips get a really bad name. But I believe in keeping an open and critical mind when investigating value stocks. Can this s-chip, penny stock be worth the risk?

Apparently SGX has been monitoring and the key concern is Interested Party Transactions. One of the easiest way to move capital out from a company is to write off account receivables, and hence buying a stock like China Haida is a risky venture.

I shall pass.