Articles: Enigma Network

HK Education (1082): directors disappointed
Company announcement, 3-Nov-2017
The company says the purported board meeting to appoint Kevin Ng King Wai and Chan Kwan Yiu was invalid for failure to give proper notice to all members of the Board. Happiness breaks out at a member of the "Engima Network".
'Enigma Network' crash spurs HK's largest financial raidThe Enigma Network
Bloomberg, 13-Oct-2017
SFC directs suspension of New Ray Medicine (6108)Enigma Network
Company announcement, 6-Oct-2017
This was one of the 50 stocks not to own in our "Enigma Network" published on 15-May-2017.
Criticism of CEEI (0986), Chen Tong (Chairman & CEO) and Xiang Liang (ED)
SEHK, 29-Sep-2017
CEEI is in what we call the "Enigma Network". When the investment in Luen Wong (8217) was announced, Webb-site called it a bubble stock trading on a P/B of 321 and a P/E of 861. CEEI said the deal was "fair and reasonable", "a good investment opportunity" and "an attractive investment which will provide satisfactory return". It subsequently crashed, of course. We pointed out the breach of the Listing Rules, for which the company and its directors have now been criticised by the Listing Committee. There was no criticism of the bullish statements made by the CEEI board about Luen Wong.
China Jicheng (1027) Chairman cuts stake after Enigma Network meltdown
Company announcement, 3-Jul-2017
Huang Wenji cut his stake from 74.48% to 66.25%, selling 8.23% at an average $0.0115 per share, a loss of 95.9% since last Monday (26-Jun-2017), but still almost double the net assets per share of $0.0064. No word on whether any of his shares were pledged. The announcement contains a probable error - if he sold 4.01% on Friday, that is about 3,008m shares, not 30,008m shares. Total proceeds for the 2 days were about HK$71m
WLS (8021) dumps QPL (0243) after Enigma Network meltdownCCASS changes
Company announcement, 3-Jul-2017
The 3.92% holding in QPL had not previously been disclosed. The average sale price was $0.2068.
Jia Meng (8101) sells Luen Wong (8217) after Enigma meltdown
Company announcement, 30-Jun-2017
The average sale price was $0.97. The shares represented 36.9% of JM's net assets at 31-Mar-2017, when the market price was $19.00.
Illegal short sales under scrutiny in HK's 'Enigma' Crash
Bloomberg, 30-Jun-2017
If Charles Li has any evidence of this, he should produce it. To us, this looks like an attempt to deflect the blame from the systemic failure of the for-profit regulator, HKEX, to produce and enforce adequate governance provisions in the Listing Rules. HKEX should no longer be a regulator.
CEEI (0986) dumps Luen Wong (8217) on day 2 of Enigma Network meltdown
Company announcement, 29-Jun-2017
Proceeds were $18.66m, or $1.046 per share. CEEI bought the shares on 20-Jul-2016 at an average $6.977 per share. At the time, CEEI said that Luen Wong was "a good investment opportunity" and "an attractive investment which will provide satisfactory return". As we said at the time, the Price/Book ratio was 321 and the P/E was 861. How could any reasonable board make such statements?
HK small cap stocks and the 'Enigma Network'
CNBC, 29-Jun-2017
Lerado (1225) dumps China Jicheng (1027)
Company announcement, 28-Jun-2017
The average sale price of $0.0169 is less than the market average of $0.0188 in yesterday's collapse of the Enigma Network.
CNC (0745) dumps China Jicheng (1027) in Enigma Network meltdown
Company announcement, 28-Jun-2017
The sale was at an average price of $0.0214, better than Lerado's $0.0169 and better than the market average $0.0188.
‘Enigma Network’ rocks Hong Kong markets with sudden 90% losses
Bloomberg, 28-Jun-2017
QPL (0243) dumps 3 stocks in Enigma Network meltdown
Company announcement, 27-Jun-2017
We knew they had shares in GCPS (8193), but this announcement also reveals holdings in Major (1389) and China Jicheng (1027). The CJ shares were sold at an average $0.0275, better than Lerado's $0.0169 and CNC's $0.0214.
Lerado (1225): SFC minded to suspend stock from 6-Jun-2017
Company announcement, 5-Jun-2017
At last, some action from the SFC. Nearly 2 years after Lerado hit the market with a highly dilutive deep-discount open offer (followed by a deep-discount rights issue 10 months later), it appears to the SFC that the circular dated 26-Oct-2015 included "materially false, incomplete or misleading information". Since the open offer was announced, the total return on the stock has been -90.77%. The SFC is presumably planning further action. Lerado is a member of what Webb-site calls the "Enigma Network".
Hanison (0896) may buy 21/F of Kings Wing Plaza, Shatin
Company announcement, 1-Jun-2017
The vendors and their owners are unnamed, but we can tell you that they are HKEI (1082), which owns 60%, and Finsoft (8018) which owns 40%. 2 weeks ago, Hanison signed MoUs to buy 20/F from Convoy (1019) and 22/F from Town Health (3886), so this completes the penthouse triplex. All 4 vendors are in what we call the "Enigma Network".
Hanison (0896) may buy 20/F, 22/F of Kings Wing Plaza, Shatin
Company announcement, 17-May-2017
The vendors are not identified, but we'll tell you that 20/F is owned by Convoy (1019) which bought it for HK$107.4m in Jan-2015, and 22/F (top floor) is owned by Town Health (3886) which acquired Faithful Sun Ltd in 2016. Both vendors are in what we call the "Enigma Network". The price is about HK$10k per gross sq ft, and quite sensibly, Hanison is buying companies which own the properties to legally avoid 8.5% double stamp duty. The 21/F in the sandwich is owned by Ultimate Elite Investments Ltd, which is 60% owned by HKEI (1082) and 40% by Finsoft (8018), two other members of the Enigma Network.
The Enigma Network: 50 stocks not to own
Sometimes, all you need to tell a story is a picture. (15-May-2017)

Sign up for our free newsletter

Recommend Webb-site to a friend

Copyright & disclaimer, Privacy policy

Back to top