if 66c is more than fair value then why, page-13

hotwolf,

what is the reason's you think have caused Dingyi's market cap to massively increase and what evidence do you have to support your opinion?

I disagree with you. The Potash prospects represent huge upside in future value inside a stagnant, currently unprofitable business.

Dingyi's Food and beverage businesses were losing money and Dingyi's market cap and price had not changed materially in the year prior to the commencement of fund raising announcements by Dingyi via convertible notes for the purpose of taking over ELM.

Following is the link to the volumes and price history in October and November last year for Dingyi. The 15th October was when the first convertible note announcement was released by Dingyi. Now have a look at the following link. The 15th of October had the highest volume during that period with volume starting to massively increase with the price increasing from 20 cents to 29 cents within 2 weeks. This was the first of several fund raising announcements by Dingyi which were solely for the intention of taking over ELM and started the commencement of a huge uptrend in price in a weak overall market.
Source: Click here

The link that you have used actually goes against your argument as it shows the following:

1. A loss from the food and beverage businesses for the 6 months ended Sep 2012 and 2011;

2. A 1% decrease in revenue from food and beverage businesses in 2012 compared to 2011;

3. A loss of 6 cents per share for the period Sep 2012;

4. In the Strategy and Outlook section it states: Apart from the existing businesses of food and beverages and securities trading, the Group will continue to explore other potential investment opportunities with reasonable returns that meet the Company’s criteria. This will not only strengthen our core business but also increase the Company’s equity holders’ values. The Group has been exploring a few investment opportunities. Since early 2012, the Company has been negotiating with a mining company with principal place of business in Africa in respect of the possible acquisition of a strategic shareholding interest by stages in this mining company and is actively negotiating the principal terms of the aforesaid possible acquisition.

5. As at 30 September 2012, the Group’s net assets attributable to equity holders of the Company amounted to HK$158 million (31 March 2012: HK$159 million), a decrease of 0.9%. (NO INCREASE IN NET ASSETS)

Also, since mid September 2011 to September 2012, Dingyi's price predominantly hovered around the 20 cent mark.

All material announcements since October 15 2012 have been with regard to this takeover proposal, there has been nothing regarding the food and beverage businesses and as per point 4 above, negotiations have been happening since early 2012 so there would be many people who are privy to the due diligence conducted by Dingyi and who would have seen the hidden gem that ELM is.