Asia Enterprise Holdings

wow what a big writedown, i wonder if hupsteel will face a similar fate. not vested in both

(07-08-2015, 01:49 PM)GFG Wrote:

(07-08-2015, 12:39 PM)BlueKelah Wrote: 4th August 2Q results -

0.031c loss for 1H
Cash eq. increased to 64.97 (92.69% Mcap) no debt, almost trading at cash value.
NAV 0.3033 / share

Share price still stuck around 20c with not much volume

when will shipping steel sector pick up?

-v accumulating more soon-

As I mentioned in my post last yr, this is unfortunately a dead end business.
To make it worse, it is commodity related and steel stockists are likely to be screwed even more. Steel demand across the board has tanked, and is not likely to recover much in 2015 and even 2016.
Buy only with a very large MOS

Again, like I mentioned in my earlier posts, there is unlikely to be any recovery anytime soon.
Unfortunately steel stockists do not have any competitive edges, its just the nature of the business.
The inventory are all recorded at using a weighted average method. When the steel prices drops rapidly, and the demand is not there, its a double whammy because the prices of the inventory they hold keeps dropping, while they are unable to turnover the inventory fast enough (as demand isnt there)
So there'll be constant writedowns.
The converse is true in a rapidly rising market.
Management is fairly conservative, and has a long track record of maintaining dividends through all the ups and downs.
Unfortunately, like i mentioned, it is a dead end business and there's little prospect for growth.

How did you know they posted their Financial results? Is there a way you can setup alerts?
Thanks

(03-02-2016, 01:49 AM)thinleyw Wrote: How did you know they posted their Financial results?  Is there a way you can setup alerts?
Thanks

I used "stock alert" app from Apple Store.

It's not immediate, but within the few hours an announcement is made for a counter on your watchlist, it will send an alert. It sent alert for your target buy sell price too and show dividend history and yield based on current price.

Helpful for me

(03-02-2016, 01:34 AM)GFG Wrote:

(07-08-2015, 01:49 PM)GFG Wrote:

(07-08-2015, 12:39 PM)BlueKelah Wrote: 4th August 2Q results -

0.031c loss for 1H
Cash eq. increased to 64.97 (92.69% Mcap) no debt, almost trading at cash value.
NAV 0.3033 / share

Share price still stuck around 20c with not much volume

when will shipping steel sector pick up?

-v accumulating more soon-

As I mentioned in my post last yr, this is unfortunately a dead end business.
To make it worse, it is commodity related and steel stockists are likely to be screwed even more. Steel demand across the board has tanked, and is not likely to recover much in 2015 and even 2016.
Buy only with a very large MOS

Again, like I mentioned in my earlier posts, there is unlikely to be any recovery anytime soon.
Unfortunately steel stockists do not have any competitive edges, its just the nature of the business.
The inventory are all recorded at using a weighted average method. When the steel prices drops rapidly, and the demand is not there, its a double whammy because the prices of the inventory they hold keeps dropping, while they are unable to turnover the inventory fast enough (as demand isnt there)
So there'll be constant writedowns.
The converse is true in a rapidly rising market.
Management is fairly conservative, and has a long track record of maintaining dividends through all the ups and downs.
Unfortunately, like i mentioned, it is a dead end business and there's little prospect for growth.

(03-02-2016, 06:04 AM)Greenrookie Wrote:

(03-02-2016, 01:49 AM)thinleyw Wrote: How did you know they posted their Financial results?  Is there a way you can setup alerts?
Thanks

I used "stock alert" app from Apple Store.

It's not immediate, but within the few hours an announcement is made for a counter on your watchlist, it will send an alert. It sent alert for your target buy sell price too and show dividend history and yield based on current price.

Helpful for me

Thanks!

Asia Enterprise has big exposure to O and G.

3 steel stockists that are doing "well" in the past 2-3 years despite turmoil and BRC Asia, lee metal and sing ghee huat.

When these 3 falters, then perhaps it mean the industry is so challenging that no "managing" can help. Meantime, I reserve my comments

Oh nam lee is doing fine too. Read deeper and all 4 businesses cannot be easily describe as steel
Stockists. Although I would
Not be complacent about their "write off" neither would I "write them off"

A sudden surge in liquidity last few days, and significant price drop as well, now trading below net cash value. Guess someone needed to raise money quickly?

At the current price of 17 cents, they are trading at 0.88x net cash. This is a business that has 55 years of longevity in Singapore. I'm surprised they're not yet doing any buybacks at the current price.

(17-03-2016, 08:05 PM)beau Wrote: At the current price of 17 cents, they are trading at 0.88x net cash. This is a business that has 55 years of longevity in Singapore. I'm surprised they're not yet doing any buybacks at the current price.

During GFC 2009 the share price went as low as 11cents. Management if they are interested would probably start buying back shares only around that level if they wanted since today's closing at 0.165 is not that low yet. Besides only 200 lots done today that push the price down so its pretty easy for them to push price up if they want anytime.

If anything, the share price could be telling us something about the our economy...