Some time ago, I wrote about a failed investment I made – Flyke International:
Lessons from a failed investment – Flyke International Holdings
Do read the previous post for some context. This particular example is a great example for typical value investors to learn from.
Flyke (HK listed) was trading at crazy low valuations, backed by cash and there just doesn’t seem to be any way else for the share price to go except up, or trend sideways.
I wasn’t counting on fraud management to abscond with the company’s money though. The company’s stock was suspended from trading for some years now, whilst they tried to work through their financials. Being prudent, I wrote off the value of my investment in Flyke completely in 2013, although I still hold 300,000 shares currently.
Recently, the company finally published all their past financials, and met one of the key criteria to resume ...
...