CHINA FIBRETECH . A multi-bagger you can't ignore

What are the independent directors who are paid to represent the interest of the minority shareholders do?Are they speaking up for us?

you think so, don't be too naive..

I took a look at this company.
Revenue has decreased from RMB470.3m in 2008 to RMB133.1m in 2011. Similarly, net profit has declined from RMB119.3m in 2008 to a mere RMB7.2m in 2011.
Furthermore, in the most recent quarter, the company is no longer profitable and suffered a loss. Year-on-year revenue decreased by a massive 83%.
Simply put, the business is crap. The right thing for management to do would be to return cash to shareholders.
Where are the independent directors, you ask?
In 2010, there are two independent directors, Ho Yew Mun and Chan Chung Wai. In 2011, Chan Chung Wai is replaced with Low Wai Cheong. And now, in 2012, the remaining independent director, Ho Yew Mun, retired and did not seek for re-election. Not a good sign.
When the independent directors are not happy with management's directions, but that management is the controlling shareholder, there's not a lot they can do other than "resign in protest".
The only hope for the investor is for management to willingly liquidate the company (historically very rare). Given that it is substantially below net cash, there may still be speculative merit, if not investment merit, in purchasing the shares
Caution is advised.
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[Guest 17-06-2012]:
What are the independent directors who are paid to represent the interest of the minority shareholders do?Are they speaking up for us?

If that's the case SGX should be alerted by the independent directors who are not satisfied.Its the duty of SGX to ensure the independent directors do due deligence when investment decisions are made by the company.If the independent directors cannot perform their duty properly then SGX should step in. SGX too earns money from us and its their duty to protect retail investors. The cash in bank vs the price of the share is absurd. Its common sense.The company with so much of cash not doing anything about it like share buy back is absurd too. Does the management want to eat all for themselves at the expense of retail investors as they have the capacity to decide the movement of the share price with so much of money in the bank? Just buying a token 100 lots with a share buyback mandate just before AGM is disgusting. During the AGM they sounded like will buy more after the no buyback period is not fulfilled yet. Has the independent directors reminded or prodded the management to do so in the interest of the retail investors? or they are just interested in collecting directors' fees and sleeping?

There is some movement in this stock lately. Hope the buyers have some good news about the potential of this stock.

This company gets a new Independent Director, who is Pheim Asset Management's CEO.
He can make the Chinamen pay dividend?

ERATAT dividend's coming, CHINA FIBRETECH ges new ID (Pheim CEO)