S-Chips and Abterra

Base on my scanning results , i realized that S-chips are coming under fire. Buying S-Chips are dangerous as what they reported in their reports are not be reflecting the their real situation.

 Example is Ferrochina and Chinamilk , where they got delisted and all investors lost their investment. One of the stock that investors got to beware is ABTERRA. If you see the latest quarter report of it , it had earn no sales at all. The reason it stated is as followed from report .

There was no revenue recorded for 1Q 2011, compared to S$14.8 million posted for 1Q 2010, This is mainly attributable to the disruption of supplies for the various products that the Group trades in during the quarter. The iron ore supply was restricted due to a ban of iron ore export from some Indian states. The supply of coking coal was severely disrupted by the floods in Australia, which cut output from the coking producers there. Trading activities have already picked-up in 2Q 2011 when the Group negotiates alternative supply sources from Africa and Indonesia.

But....

Cash and bank balances of the Group increased from S$8.9 million at 31 December 2010 to S$14.1
million at 31 March 2011. See Review of Statement of Cash Flows.

Because...

Cash inflows from operating activities were S$40.0 million for the period ended 31 March 2011
compared to cash outflow of S$6,000 in the corresponding period of prior year. Cash inflow from
operating activities was mainly due to the repayment of trade receivables from a major debtor and the
refund of prepayment from a metallurgical coke supplier as mentioned above.
Increase in cash used in investing activities was due to the deposit paid for the acquisition of 54.42%
of equity interest in Xinrui.
Cash from financing activities shows an inflow of S$19.7 million mainly due to proceeds from
borrowings amounting to S$2.2 million and the proceeds from share issuance amounting to S$17.5
million.

It looks very suspicious too me and they did not issue any disclosure about the impact of Australia flood but insider are selling the stocks. Therefore , Abterra investor , please be careful......... hope i am wrong....

However...

有危才有机 !!! [opportunity in dander]
Value had arises from some of the S-chips that i think are creditable as listed:
1) Midas ==> see the y-o-y growth and you will know what i meant. However , the risk is the new railway minister might not push on the railway project and the expansion will slow down.
2) Pacific Andes ==> Like the kind of work it is doing. Financial are "sounds"
3) Sound Global ==> Water and waste treatment infrastructure are very important in china. Just need a minister to push on it and it will go up up up.