Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

China AIM Not quite a Fraud Asian Citrus Interims – plague upon all its houses

By Nigel Somerville, the Deputy Sheriff of AIM

28 February 2016 06:06

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ShareProphets AIM-China Filthy Forty company Asian Citrus Holdings (ACHL) released its interims to Dec 2015 on Friday. They made grim reading as the effects of Huanglongbing disease, bad weather as well as frogs, locusts, Martians and any other plagues one might care to think of all took their toll. This must be the unluckiest company in orange growing history.

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Comments

Connor

29 February 2016, 16:41

I agree with most of what you’ve written and you are absolutely right that the company should be avoided like the plague.

However, I personally think that the company is worse than you do. If you haven’t already read it I wrote a massive article on here a while back about this company http://www.shareprophets.com/views/12692/a-detailed-look-at-why-asian-citrus-is-univestable. Look at the insanity of their last acquisition. Note that they are not processing very much in the way of oranges at their super expensive magical synergy plants. Also consider the insanity of the fertiliser deals (we know the auditor looked into certain supply agreements pre-resignation). Bad luck might not be the only thing that is sucking cash out of this POS. It’s a red flag bonanza in the accounts. I’m sticking with my 0p target price. Unless the company starts returning significant amounts of cash to shareholders (not likely given that its running out of it rapidly having destroyed an insane amount of shareholder value) the company should not be taken seriously.