Not sure how many people know Daigou well in this forum, count...

Not sure how many people know Daigou well in this forum, count me as 1. I bought AU8's IPO, and I sold them all today. Reasons are,

1. DAIGOU.
Everyone can be a daigou. There are heaps of daigou shops in Burwood road, one road counted 6 or 8. All shops are competing prices, Daigou buy from these shops and sell to China, but these shops have their own sales channel as well with better prices. Why Daigou still survive is because of their friends and families. Too many Chinese are living abroad, any one could have more than 10 friends living in foreign countries, no one lacks of Daigou.

2. COMPETITION.
Chemistwarehouse is in China for 2 years, everyone knows it, very popular. If you have a TAOBAO (Jack Ma's company) account, you can see how sever the competition is. If AU8 wants to beat it, it needs more shops with lower prices than CW.  Rental in China is not cheap, plus raising salaries, and 2 of my friends have built their huge Daigou warehouse couple of years ago now all claim business is too tough. Both of them have offices in Brisbane, Melbourne and China, turn over is almost 100m USD. And they are wholesale and retail to local shops and online shops. Everyone wants a bite in this huge market,

3. OVERSEAS VS AUS.
Daigou is not only buying from AU, they buy from America, Canada, Europe. Let's say baby formula products, Holand and Germany and America are even more popular than AU product in the market. I have spoken to many of my Daigou friends and they told they wouldnt go to Aumake because it's prices are ridiculously high. In this case, uncless Aumake finds a good way to sell in China, either retail or wholesale, or else the rising price in the past few months was just like a burst of nice looking smoke in investor's eyes.

4. SUPPLEMENTARY PROSPECTUS
As a former stock holder, I received more than twice about the second prospectus asking for a price per share at $0.63. I think they felt they were too underestimated the price for IPO, this time they want to raise more money. I am not buying it this time, plus an accountant friend of mine read through their first prospectus and told me something's wrong with the audit company and such. I step back and sell all.


Please don't get me wrong, I am not saying that Aumake is a bad company, it's just too many competitors have better offers, and Aumake doesn't seem to have good strategies to win the game. If they have any further announcement at a good price, I will be in again.