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China fraud Taihua: where, oh where, oh where, oh where is the share buy-back (and what has happened to the company website)?

By Nigel Somerville, the Deputy Sheriff of AIM | Saturday 26 November 2016


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.


ShareProphets AIM-China Filthy Forty play Taihua (TAIH) has been promising a share buy-back since the launch of an Open Offer back in August which was apparently being conducted to pay for it. The last update from the company - on 30 September (interims, released on deadline day) - told shareholders that the company expected to announce the mechanics of this Godot-esque buy-back “shortly”. That was more than eight weeks ago. We are now heading towards the very end of November. While we are at it, what has happened to the company website?

This is turning into a bit of a farce. The announcement of the mooted buy-back alongside the open Offer which was to pay for it saw the shares race ahead. The Open Offer – underwritten – was priced at a massive 134% premium to the previously prevailing share price of 1.125p and the stock motored all the way up to 3.5p before turning tail to close last week at 2.5p (mid).

One fancies that a statement is long overdue here: is the buy-back really going to happen or not?

How long does one give for something to happen “shortly”? In the case of Daniel Stewart (DAN), the answer to that turned out to be “never”, before the company saw its shares booted off the Casino after even Roland “fatty” Cornish, London’s worst Nomad, lost patience.

Is WH Ireland, Nomad to Taihua, going to show greater fortitude? If so we may have a fair while to go….

Meanwhile I note that the company website, www.taihplc.com appears to be down. I daresay it is just for a spot of weekend routine maintenance, but it hardly confidence-inspiring. No doubt all will be back up and running “shortly”.

Of course Taihua has offered a fair few other Red Flags along the way – such as having its last FY accounts receive an audit qualified opinion in relation to receivables and a Going Concern Emphasis of Matter. With the company having raised £602,567.51 from its Open Offer one would imagine that the coffers were adequately topped up pro tem, but one wonders how long the cash will last.

Meanwhile, is this buy-back is awaiting sign-off from Mr Godot himself?

Still a sell.


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