Posted by Kevin Scully
The chart above of Midas tells an interesting story. The shares have fallen from a high of around the S$1.20 level to the S$0.28. Contributing to this decline were two important macro events:
a) the removal of Liu Zhijun as rail minister in China in Q1-2011 on alleged charges of corruption
b) a high speed train crash in July 2011 which left more than 35 people dead.
These two events led to a freeze in new high speed train contracts which in turn led to a collapse in profits for Midas in 2012. For the half year to June 30, 2012, Midas reported net profit of RMB16.9mn down 86% ...
...
