Good morning! In case you missed it, I published another audiocast interview this weekend with renowned investor @WShak1 - click here to listen, sorry for the sound quality not being great, I have a cunning plan to fix that issue next time.

I am flying to Las Vegas in the morning, for a short holiday, so I apologise that there will inevitably be some disruption to these reports this week, mainly due to the time difference, as I will be 8 hours behind. Therefore my plan is to write tomorrow's report as usual from the departure lounge at Gatwick, then Wed-Fri reports this week will be published in the evening UK time.


Naibu Global International Co (LON:NBU)

Profit warning - this Chinese maker of sports shoes warns on profit today, blaming a sales slowdown leading to overstocking by distributors. So margins will be hit in Q4 of 2014, and Q1 of 2015 as stock is cleared by discounting.

Dividends - this company has paid dividends before, but from memory I think they had stopped. However, it says today;

Naibu has substantial cash balances (RMB 315 million as at 31 October 2014) and the Directors are confident that the Company has sufficient resources to implement the programme referred to above.

There seems to be a technical glitch stopping me from copying any more of this accouncement, but there is another section saying that Naibu, "intend to resume the payment of dividends in 2015, once the overstocking issues referred to have been resolved".

My opinion - personally I wouldn't put any reliance at all on any stated intentions, nor the accounts, from Chinese companies on AIM. I remain of the view that the inevitable end game here is likely to be a de-listing, probably in 2015.

Of course, if the numbers were real, then insiders would be massive buyers of these shares, given that the forecast dividend yield is about 50%, and the PER is 0.35! Funnily enough though, they are not buying. What does that tell you?!


Avingtrans (LON:AVG)

Share price: 104p (down 24% today)
No. shares: 27.6m
Market Cap: £28.7m

Profit warning - there seem to be so many profit warnings happening at the moment - which is the main reason that I don't like over-paying for any small cap, as you can end up…

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