PMHL was floated on AIM in January 06 with a market cap about twice that of WCC.
It's figures (go to www.londonstockexchange.com) to December 06 were pretty healthy and they even appear to be paying a divi.
In common with WCC, the shares look pretty illiquid (RNS = 3000 against 2000 for WCC) and volumes light, though significantly greater than for WCC.

Sunday Times brief specific comment of 3rd June 2007 copied below - it was part of a very much longer article about investing in China .....
Prosperity Minerals - China has become the worlds largest cement producer with an output of 1 billion tonnes a year. Domestic demand is expected to reach 1.2 billion tonnes by 2010. Cement is expensive to move around so it needs to be made by local firms such as Prosperity, one of Hargreaves favourite stocks at 153p.

At time of writing I have not yet put in any money.

Chart looks very encouraging insofar as a nice golden cross, albeit only bewtween 25 + 50 dma has now formed.

This has gone down to record lows

Funding of both PMHL and WCC are "strange" imo and could lead to lower lows in the times ahead of us.

Profit warning from Prosperity Minerals - MoneyAM


Prosperity Minerals Holdings, which operates a cement manufacturing business in the People's Republic of China and an iron ore trading business serving the same market, today issued the following trading update.

The Company traded profitably for the six months ended 30th September 2008 with its profits from operations from Yingde Dragon Mountain and iron ore trading slightly lower, but the share of profits from associates was substantially lower than the corresponding period a year ago.

The demand for cement and iron ore is expected to weaken in the second half of the fiscal year due to a marked slowdown in the growth of the Chinese economy.

The export oriented economy of Guangdong Province, the Company's main market for cement, is being adversely affected by the global economic crisis.

Residential and commercial real estate sectors are experiencing widespread deferment and cancellations of projects; on the other hand, infrastructure is holding up well.

Second half cement prices are not expected to benefit from the same seasonal uplift as last year.

A number of the major steel mills in China have recently announced reductions in their production by up to 20% due to the sharp reduction in the demand for steel.

The rate of growth of iron ore import levels are expected to reduce substantially in the coming months and iron ore spot prices have declined significantly.

As a result, it is anticipated that the Company's full year results will be substantially below current market expectations.

Profits from operations at YDM for the six months ended 30th September 2008 was slightly lower than in the prior year, but volumes sold remained broadly the same. Trading conditions deteriorated during the summer due to unusually poor weather conditions and the effects of reduced activity around the Beijing Olympics. The start of the current construction season in September has not been as strong as the previous year and, in addition, margins have continued to come under pressure due to high coal prices.

Similar factors have affected associated companies including a plant upgrade, which required the need for temporary shut downs in April and May. Profits for the first half will therefore be materially below expectations.

The company expects the challenging trading conditions to continue into the second half of the year.

For the six months to 30th September 2008, trading was broadly in line with the prior year. Iron ore shipments amounted to 1.9 million tonnes in the period compared to 1.8 million tonnes in the prior year. The margin achieved was slightly below the same period in the prior year due to the mix of supply being weighted towards South Africa. The Company expects to ship less iron ore in the second half of the fiscal year.

Chairman & CEO David Wong said, 'It is never an easy task to report bad news, but we are all currently living through truly extraordinary economic times. Once the global economy has returned to normal, I am confident about the medium and long term prospects in the PRC both for cement manufacture and iron ore trading. Our cement assets are highly efficient and, even in the current market, continue to operate at or near full capacity. Similarly, Prosperity has an excellent iron ore trading model in which we do not take inventory risk positions. I look forward to being the bearer of better news.'

am glad to say, i never did put any money in ...... yet another spiffing chinese stock!

Good to know you haven't, cynic. All these Chinese companies are unlikely to recover.

my opinion of chinese stocks is well publicised!

This seems to have gone off pepe's radar, Director deals going on. Any ideas anyone.

Good rise today presumably on the back of the sale of their cement business for 300m.

cash on its way, and also still own 33% of another chinese cement co.

Likely SoP about 280p - not sure how much of the cash we're going to see though, worrying comment from management about property investment in china...

cynic started this thread suppose he would take his usual "jaundiced" view of this chinese share.

indeed i would - coloured to match the wily oriental!
tread with care, not only because of the parentage, but also the low trading volumes

cynic the wily orientals as you call them seem to have a much better economic future than we do at present,ours being rather brown like......

You mean brown like s**t.

the chinese economy may have a better outlook, but that does not mean you should not take a pretty jaundiced view of many of their business practices

cynic so you are not "tarring them all with the same brush", or are you? can't understand why you started this thread when you appear to have a rather bigotted view of the chinese.

i posted this for the clearly stated reasons in the header.
my view of chinese business ethics is born of experience ...... i have even had the "treat" of being presented with a set of accounts from a chinese company that was part-owned by the gov't and who wanted to deal with us ..... they were a total joke!

Shares mag says a bargain at current price, target 250p is this the share of the month?

hlyeo98 - 04 Nov 2008 17:48 - 6 of 18
Good to know you haven't, cynic. All these Chinese companies are unlikely to recover.


Seems this one has :-)
(for the time being)

ramper :)

Shares mag seems to have got this one right, roaring ahead on today's RNS.

true, but on totally joke volume - the whole day's trading only amounts to 100k

cynic does your figure include trading in Hongkong?

as this site only shows london trading, and presumably HK has a completely different share listing etc - as does Google and the like between london and NY - then no

if HK is the main hub for this stock, then that is where one should trade this stock and not in london

Volume building today after latest RNS.

nice to see at least one share do well today, even if not mine

cynic but you started this thread?

cynic thanks for this thread wouldn't have noticed this one otherwise, moving towards 200p.

perhaps i should buy the damn thing!

strewth! .... try this for a scary chart over the last few years

cynic decided to take a nice 40% profit as you say nobody lost by taking a profit.

some damn fools listen to me occasionally than!

TCC approve the deal.

http://www.hkexnews.hk/listedco/listconews/sehk/20100223/LTN20100223208.pdf

PMHL are due to receive circa 234p a share in cash and they plan to do a share buy-back.

PMHL EGM is next Monday, and the fireworks should begin soon.

250p ? 300p ? what target price ?

EGM all resolutions past this morning.

The buy backs can begin and the company will be getting buckets of cash.

Sit back, wait, relax and let the further re-rating come.

Some chunky buys today as well :)

pp can buybacks begin before all conditions have been satisfied, completion date is 31/3/10 and may be extended to 31/5/10 according to RNS?

The main share buyback cannot start as the main lump of cash is not received until the deal is completed, however, the company has an existing buyback regulation in place and is at liberty to buy back an amount of shares under existing authority.

Interest picking up again, news should be soon.

Picked from a comment from another site, but very true.

Anhui Chaodong is now trading over RMB 10.00 valuing PHML's stake at 58p per share, add the 240p cash for the pending sale of the cement business (due before end of May) and add in the iron business, which should be trading very well, and the true value of PHML shares are circa 340p.

Good news !!

RNS Number : 0578L
Prosperity Minerals Holdings Ltd
29 April 2010


Prosperity Minerals Holdings Limited
("Prosperity") or ("the Company")

Shareholder Update
Disposal of Cement Business in the People's Republic of China

Further to the Company's previous announcements in respect of the Disposal of the majority of its cement business, Prosperity Minerals Holdings Limited (AIM: PMHL.L) is pleased to announce that on 29 April 2010, Pro-Rise (a wholly-owned subsidiary of the Company) and the Company received an irrevocable Completion Notice from the Purchaser (TCC International Holdings Limited) to complete the Disposal. The Completion Date for the Disposal is set to be 30 April 2010. A further announcement will be made following the Disposal.

Unless otherwise specified, capitalised terms used in this announcement shall have the same meaning as those defined in the circular of the Company dated 4 February 2010.

Deal done.

Guess the share buy backs can commence anytime they want to.

Cash more than market cap now and they have an Iron business (profitable) and other investments worth many millions.

Crazy undervalued price presently !!


RNS Number : 1553L
Prosperity Minerals Holdings Ltd
30 April 2010

Shareholder Update

Completion of the Disposal of Cement Business in the People's Republic of China


Further to the announcement of 29 April 2010, Prosperity Minerals Holdings Limited (AIM: PMHL.L) today announces further information in relation to the proposed disposal of its cement business. Unless otherwise specified, capitalised terms used in this announcement shall have the same meaning as those defined in the circular of the Company dated 4 February 2010.

The Company is pleased to announce that on 30 April 2010, Pro-Rise (a wholly-owned subsidiary of the Company), the Company and the Purchaser (TCC International Holdings Limited) completed the Disposal. An aggregate amount of HK$3,600 million (approximately 305 million) has been received by the Company. The balance of the Consideration, including HK$200 million (approximately 16.9 million) and the increase in the Shareholder Loan Balance of US$49.3 million (approximately 32.4 million) as at Completion, will be paid to the Company upon finalisation of the Completion Accounts which the Company expects to be around June or July 2010.

There remain some outstanding guarantees given by the Remaining Group for the benefit of the Target Group which could not be novated in time. The parties will deal with these as post-Completion events. In the meantime, in accordance with the terms of the Agreement, the Remaining Group is fully indemnified by the Purchaser against all liabilities arising out of these obligations.

The Company will provide a further update to the market in the near future.

In summary :

305 million pounds banked and another 50 million coming in June.

The shares held by PMHL of another company in Hong Kong are worth 70 million pounds today.

The remaining iron ore business is worth 70 million.

495 million pounds (of which 425m is cash and investments).

Present market cap is 235 million pounds.

Company has in place a "share buy back" scheme which can now start from next week.



Makes this what is called a "no brainer".

Proselenes
I do not own these shares but I much regret following you into WCC. You were talking sense then. It would have been nice to have been in this one at 60p.
What is your projection of the share price in June?
Lets have no waffle. This will be serious money.

I would target in the range of 250p to 300p (but not perhaps by June, maybe later in the year).

Hopefully soon the "share buy back" will commence which will strengthen the price. Obviously with the present market cap below cash in the bank when the company buys back shares they are in fact increasing the cash level per share, so they make money on it.

Everything hinges on demand for shares and the buy back, as is always the case with share price rises, they come with buying.

Thanks for that. I will keep a close eye on it.
RGF looks a winner if you can patientlly follow a rise in the sp.
WCC is too dear for me now. I am searching for low price shares like PMHL at 60 p. Have you an opinion on XEL and STVG ?
Any others that I should seek out ?
Best W

I was into XEL at just over 20p, made lots on it (on paper) and not selling, waiting for more.

Not really looking at new things presently, we are going into the summer lull, so will look around late July for bargains.

a silly question i am sure, but if they no longer have a cement biz, what on earth do they have apart from a stack of cash?

A profitable Iron Ore business (should be an update on that soon) and also around 70M pounds of shares in another company.

:)

As an update I sold out of this one recently. Better to take a small profit here as I was becoming concerned over no buy backs and no support.

The news yesterday also worries me.

They purchased 5M of assets for 10M.... and its a "related party transaction".

If more of these "related party transactions" come along I think there might be a rush for the exit.

As I suspected, lots more "related party" transactions to come.

Also it seems the buyback is in question and also they are committing to "China Property" as the main business.

Think many more people will sell out now perhaps ?

New article and analysis, click HERE