questions on ris, page-2

The chartering department of Richfield Marine Agencies (S) Pte Ltd (Richfield) is one of the most active independent chartering shipbrokers in the handy-size sector.

By means of diversification, specification and active exploitation of its strong position in the Far East, Southeast Asia, West Africa and Australia, Richfield offers worldwide shipowners and charterers integrated transport services with a high degree of flexibility tonnages and cargoes.

This dept. made $1.45M net profit (up from 945k) and it looks very profitable, especially if the containerised shipping sector is abandoned altogether. The results were quite surprising.

The thing that excites me is that Sinotrans control this same niche in China, and do business regularly with Richfield. Sinotrans have perfected the integrated logistics model and have the capital behind them.

Richfield gave them 11 million shares (of 62) for 16 cents a share. The door is ajar for the next 10 weeks if they want to make an offer to Richfield for a new issue that was approved by shareholders last May.

This is from a company that has not issued a share in 7 years. To get shareholder approval, they said it would benefit LTH who have suffered for 7 years while the stock tanked and the cash tap was flowing.

Thats why the cash just sits there in the bank. It is waiting for the proceeds of the share placement and the possible takeover. Then they can grow.

In the meantime, its business as usual, looking at Vietnam as a new market, and letting China wait until they rape the AUD. and make an offer when they are ready.

So yes it is a small company, and small market cap. but it still brings in $20M in receipts and controls a market that would interest its Chinese Big brother. Thats the x factor.

http://www.sinotransone.com/Sinotranslim.html has an interview with a sinotrans board member. He loves his stock listings and I can't help but think he would love a spot on the ASX. Especially now they already own 17%. I mean, whats stopping them? They have everything to gain and nothing to lose.

I must say it has been a prick of a stock to hold, with no liquidity and 7-8 cents bids until recently. There is certainly more interest in the past week after the FY numbers.