19-08-2012, 02:09 PM (This post was last modified: 19-08-2012, 02:19 PM by Some-one.)
I don't know how many of you here notice this undervalue stock. The company might be a turnaround play. The FY12 results has just been released last week. At its peak, it has reached 1.12 before adjusting for bonus issue. Due to the huge supply of ships in the last 2 years, the stock price gets beaten down to $0.50 somewhere in January this year.
A short look at it s fundamentals.
NAV=0.84 compare to 0.8 in FY11
EPS= 7.71 cents compare to 7.61 cents in FY11
Net Cash from operation = 75 million as compare to 34 million in FY11
FCF per share = 20 cents as compare to negative in FY11
Net Gearing Ratio is 0.54 as compare to 0.62 in FY11
Dividend is 1.75 cents as compare to 1.5 cents in FY11. At its peak, the company gives 4 cents dividend.
More importantly, let just look at the company's order book till 2Q14
Shipbuilding Order Book $586,000,000.00
ShipChartering $133,000,000.00
Long Term Chartering $59,000,000.00
Total Contract Value $778,000,000.00
Assuming a conservative NPM of 8% and a PE of 8, the fair value should be $1.19. This represents a premium of 88.8% over the last closing price of $0.63.
The company is moving towards the oil & gas industry which is currently buoyant. The problem with the stock is that it is pretty illiquid. However, for long term investor, this might be a gem.
(19-08-2012, 02:09 PM)Some-one Wrote: I don't know how many of you here notice this undervalue stock. The company might be a turnaround play. The FY12 results has just been released last week. At its peak, it has reached 1.12 before adjusting for bonus issue. Due to the huge supply of ships in the last 2 years, the stock price gets beaten down to $0.50 somewhere in January this year.
A short look at it s fundamentals.
NAV=0.84 compare to 0.8 in FY11
EPS= 7.71 cents compare to 7.61 cents in FY11
Net Cash from operation = 75 million as compare to 34 million in FY11
FCF per share = 20 cents as compare to negative in FY11
Net Gearing Ratio is 0.54 as compare to 0.62 in FY11
Dividend is 1.75 cents as compare to 1.5 cents in FY11. At its peak, the company gives 4 cents dividend.
More importantly, let just look at the company's order book till 2Q14
Shipbuilding Order Book $586,000,000.00
ShipChartering $133,000,000.00
Long Term Chartering $59,000,000.00
Total Contract Value $778,000,000.00
Assuming a conservative NPM of 8% and a PE of 8, the fair value should be $1.19. This represents a premium of 88.8% over the last closing price of $0.63.
The company is moving towards the oil & gas industry which is currently buoyant. The problem with the stock is that it is pretty illiquid. However, for long term investor, this might be a gem.
I have been monitoring ASL over the years not so much as in wanting to invest in them but as a peer comparison. I am not comfortable in investing in them for 3 reasons;
1. their gearing level is high
2. how much is their ship building order book is for their own for chartering business.
3. their business model of competing with your customers ; selling ships your customers and also competing with them for the chartering business.
at the right cyclical upturn ASL maybe worth investing but with a softening world economy I am not sure.
30-08-2012, 09:41 PM (This post was last modified: 30-08-2012, 09:42 PM by Some-one.)
(19-08-2012, 03:17 PM)Jacmar Wrote:
(19-08-2012, 02:09 PM)Some-one Wrote: I don't know how many of you here notice this undervalue stock. The company might be a turnaround play. The FY12 results has just been released last week. At its peak, it has reached 1.12 before adjusting for bonus issue. Due to the huge supply of ships in the last 2 years, the stock price gets beaten down to $0.50 somewhere in January this year.
A short look at it s fundamentals.
NAV=0.84 compare to 0.8 in FY11
EPS= 7.71 cents compare to 7.61 cents in FY11
Net Cash from operation = 75 million as compare to 34 million in FY11
FCF per share = 20 cents as compare to negative in FY11
Net Gearing Ratio is 0.54 as compare to 0.62 in FY11
Dividend is 1.75 cents as compare to 1.5 cents in FY11. At its peak, the company gives 4 cents dividend.
More importantly, let just look at the company's order book till 2Q14
Shipbuilding Order Book $586,000,000.00
ShipChartering $133,000,000.00
Long Term Chartering $59,000,000.00
Total Contract Value $778,000,000.00
Assuming a conservative NPM of 8% and a PE of 8, the fair value should be $1.19. This represents a premium of 88.8% over the last closing price of $0.63.
The company is moving towards the oil & gas industry which is currently buoyant. The problem with the stock is that it is pretty illiquid. However, for long term investor, this might be a gem.
I have been monitoring ASL over the years not so much as in wanting to invest in them but as a peer comparison. I am not comfortable in investing in them for 3 reasons;
1. their gearing level is high
2. how much is their ship building order book is for their own for chartering business.
3. their business model of competing with your customers ; selling ships your customers and also competing with them for the chartering business.
at the right cyclical upturn ASL maybe worth investing but with a softening world economy I am not sure.
According to the management, the ship building order book is for external customers and they do not compete with their customers. As for gearing level, they intend to pay back through positive cashflow. More information is available in their answers to shareholders.
1. their gearing level is high
2. how much is their ship building order book is for their own for chartering business.
3. their business model of competing with your customers ; selling ships your customers and also competing with them for the chartering business.
There is n article on ASL marine from theedgesingapore, they have a BTS strategy, Jaya had such a strategy before but didn't do well.
My questions are:
Wouldn't a BTS strategy be highly risky, and required not just reading the market cycles correctly but also the timing of upturn demand correctly.
How would they know the specs required by customers?
If they can pre-guage the demand from customers, aren't they effectively taking the risk for their customers, if the market turn out as planned, they delivered and customers pay a prenium to compensate the risk ASL bored, if the demand is not there, they just laugh and say JTB??
Seem like a desperate attempt than shrew managment.
Or am I missing something??
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
ASL Marine issues $50 million of 5.35% notes due 2018
ASL Marine Holdings says has today issued $50 million in principal amount of 5.35% notes due 2018.
The notes are issued under the company’s $500 million multi-currency debt issuance programme.
Oversea-Chinese Banking Corporation Limited is the sole lead manager and bookrunner for the issue of the notes.
The notes will mature on 1 October 2018 and will bear interest at a fixed rate of 5.35% per annum, payable semi-annually in arrear.
The net proceeds arising from the issue of the notes will be used for general corporate purposes, including the financing of the working capital and capital expenditure requirements of the company and its subsidiaries.
For those who follow the industry, it always happens. Ditto for property assets. Thats why they always set up individual pte ltd to hold the assets
Those who think contracts are more important than character or trust... Think again.
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