Asia Enterprise Holdings

(12-05-2016, 09:31 AM)CityFarmer Wrote: [quote pid='129307' dateline='1462981271']
Hmm, a case of confirmation bias? 

[/quote]

Nah, but it's purely laziness carelessness. But System1 is at work here and so both are grounded in the same roots.

http://infopub.sgx.com/FileOpen/Asia%20E...eID=415330

Seems to be able to turn a profit, two quarters profitable now after losses for all quarters last year. Same old story, loads of cash. Trading below cash value, boring, no one cares.

Slowly accumulate while waiting.

(02-08-2016, 08:57 PM)slowandsteady Wrote: http://infopub.sgx.com/FileOpen/Asia%20E...eID=415330

Seems to be able to turn a profit, two quarters profitable now after losses for all quarters last year. Same old story, loads of cash. Trading below cash value, boring, no one cares.

Slowly accumulate while waiting.

That coincides with the rebound in steel prices this year.
This is basically a proxy for steel prices, if the overcapacity does not correct, or if demand disappears further, it can be a long wait.

China Said to Mull Mergers to Create Two State Steel Giants
China is considering a sweeping overhaul of its steel industry that would consolidate major producers into two giants, with one located in the north and another in the south, according to people familiar with the plan.

http://www.bloomberg.com/news/articles/2...s-irbltcmf

(03-08-2016, 09:37 AM)TTTI Wrote:

(02-08-2016, 08:57 PM)slowandsteady Wrote: http://infopub.sgx.com/FileOpen/Asia%20E...eID=415330

Seems to be able to turn a profit, two quarters profitable now after losses for all quarters last year. Same old story, loads of cash. Trading below cash value, boring, no one cares.

Slowly accumulate while waiting.

That coincides with the rebound in steel prices this year.
This is basically a proxy for steel prices, if the overcapacity does not correct, or if demand disappears further, it can be a long wait.

IMHO more of a proxy for shipping and construction sectors in ASEAN country. Mgt has said in the past downturn in shipping affected their orders from Indonesia and locally quite significantly.

Will have to watch those sectors for recovery before getting more of this counter.

Sent from my MotoG3 using Tapatalk

(03-08-2016, 11:33 AM)BlueKelah Wrote: IMHO more of a proxy for shipping and construction sectors in ASEAN country. Mgt has said in the past downturn in shipping affected their orders from Indonesia and locally quite significantly.

Will have to watch those sectors for recovery before getting more of this counter.

Sent from my MotoG3 using Tapatalk

I understand that everyone has their way of investing, but what ever happened to the bottoms up approach of investing? After all, valuebuddies is a value investor's forum for value investing. I feel that as value investors we should be less focused on the macroeconomics of a sector and more on the individual stock first.

This is one of the very few home grown companies on the SGX trading below net cash, they have been recently profitable for two quarters and have consistently given out a dividend every year. I think waiting for any sectors to recover will only lead to decision paralysis and one not doing anything, whereas this is a very investible company following most tenets of Graham's teachings.

My only concern is the liquidity of this company and exiting big positions. Does anyone know if there's a general guideline as to how much one could invest in this 60m market cap without getting stuck by liquidity? Will a 6 digit amount be difficult to accumulate/exit?

(09-08-2016, 12:13 PM)beau Wrote:

(03-08-2016, 11:33 AM)BlueKelah Wrote: IMHO more of a proxy for shipping and construction sectors in ASEAN country. Mgt has said in the past downturn in shipping affected their orders from Indonesia and locally quite significantly.

Will have to watch those sectors for recovery before getting more of this counter.

Sent from my MotoG3 using Tapatalk

I understand that everyone has their way of investing, but what ever happened to the bottoms up approach of investing? After all, valuebuddies is a value investor's forum for value investing. I feel that as value investors we should be less focused on the macroeconomics of a sector and more on the individual stock first.

This is one of the very few home grown companies on the SGX trading below net cash, they have been recently profitable for two quarters and have consistently given out a dividend every year. I think waiting for any sectors to recover will only lead to decision paralysis and one not doing anything, whereas this is a very investible company following most tenets of Graham's teachings.

My only concern is the liquidity of this company and exiting big positions. Does anyone know if there's a general guideline as to how much one could invest in this 60m market cap without getting stuck by liquidity? Will a 6 digit amount be difficult to accumulate/exit?

IMHO, it'd be a mistake to simply look at the BS and think it's cheap just because it's below net cash.
Graham has been over quoted and I believe his teachings have been brought to extremes over the years. If one reads his original lectures, he actually has a deep understanding of global macro events, and a bird's eye view of industries as well.
AEH may be cheap when looking at the BS, but these assets are generating a miserable return.
The company is effectively a proxy for global steel prices and not paying attention to it would be a mistake.
For eg. of the 12mil in losses in FY15, almost 10mil comes from write downs of inventory. The inventory is carried in the books via a weighted average method, so in times of huge movements in global steel prices, that is pretty much the only thing that matters for the company.
The good news is, when steel prices are on the rise, you'd expect gains to be booked for the inventory as well, providing a nice boost.
It's just the nature of the business.

<not vested - used to own the company some yrs ago>

(09-08-2016, 12:13 PM)beau Wrote:

(03-08-2016, 11:33 AM)BlueKelah Wrote: IMHO more of a proxy for shipping and construction sectors in ASEAN country. Mgt has said in the past downturn in shipping affected their orders from Indonesia and locally quite significantly.

Will have to watch those sectors for recovery before getting more of this counter.

Sent from my MotoG3 using Tapatalk

I understand that everyone has their way of investing, but what ever happened to the bottoms up approach of investing? After all, valuebuddies is a value investor's forum for value investing. I feel that as value investors we should be less focused on the macroeconomics of a sector and more on the individual stock first.

This is one of the very few home grown companies on the SGX trading below net cash, they have been recently profitable for two quarters and have consistently given out a dividend every year. I think waiting for any sectors to recover will only lead to decision paralysis and one not doing anything, whereas this is a very investible company following most tenets of Graham's teachings.

My only concern is the liquidity of this company and exiting big positions. Does anyone know if there's a general guideline as to how much one could invest in this 60m market cap without getting stuck by liquidity? Will a 6 digit amount be difficult to accumulate/exit?

6 digits in dollars or shares? Average volume for the past year has been around 300 lots per day, for a dollar value of around $50k a day.So either way it should be fine. You'll realise volume has boosted up significantly since March, when Winstedt Chong started liquidating his stake on the open market. He should be nearly done now, assuming he continued to offload at around 80% of total traded volume after dipping below 5%. Get a feeling liquidity will dry up once he's done, and go back to the old sleepy ways.

(09-08-2016, 06:51 PM)slowandsteady Wrote:

(09-08-2016, 12:13 PM)beau Wrote:

(03-08-2016, 11:33 AM)BlueKelah Wrote: IMHO more of a proxy for shipping and construction sectors in ASEAN country. Mgt has said in the past downturn in shipping affected their orders from Indonesia and locally quite significantly.

Will have to watch those sectors for recovery before getting more of this counter.

Sent from my MotoG3 using Tapatalk

I understand that everyone has their way of investing, but what ever happened to the bottoms up approach of investing? After all, valuebuddies is a value investor's forum for value investing. I feel that as value investors we should be less focused on the macroeconomics of a sector and more on the individual stock first.

This is one of the very few home grown companies on the SGX trading below net cash, they have been recently profitable for two quarters and have consistently given out a dividend every year. I think waiting for any sectors to recover will only lead to decision paralysis and one not doing anything, whereas this is a very investible company following most tenets of Graham's teachings.

My only concern is the liquidity of this company and exiting big positions. Does anyone know if there's a general guideline as to how much one could invest in this 60m market cap without getting stuck by liquidity? Will a 6 digit amount be difficult to accumulate/exit?

6 digits in dollars or shares? Average volume for the past year has been around 300 lots per day, for a dollar value of around $50k a day.So either way it should be fine. You'll realise volume has boosted up significantly since March, when Winstedt Chong started liquidating his stake on the open market. He should be nearly done now, assuming he continued to offload at around 80% of total traded volume after dipping below 5%. Get a feeling liquidity will dry up once he's done, and go back to the old sleepy ways.

6 digits in dollars. How do you get 80% or is it arbitrary? And what do you mean by 'dipping below 5%'?

(09-08-2016, 10:37 PM)beau Wrote:

(09-08-2016, 06:51 PM)slowandsteady Wrote:

(09-08-2016, 12:13 PM)beau Wrote:

(03-08-2016, 11:33 AM)BlueKelah Wrote: IMHO more of a proxy for shipping and construction sectors in ASEAN country. Mgt has said in the past downturn in shipping affected their orders from Indonesia and locally quite significantly.

Will have to watch those sectors for recovery before getting more of this counter.

Sent from my MotoG3 using Tapatalk

I understand that everyone has their way of investing, but what ever happened to the bottoms up approach of investing? After all, valuebuddies is a value investor's forum for value investing. I feel that as value investors we should be less focused on the macroeconomics of a sector and more on the individual stock first.

This is one of the very few home grown companies on the SGX trading below net cash, they have been recently profitable for two quarters and have consistently given out a dividend every year. I think waiting for any sectors to recover will only lead to decision paralysis and one not doing anything, whereas this is a very investible company following most tenets of Graham's teachings.

My only concern is the liquidity of this company and exiting big positions. Does anyone know if there's a general guideline as to how much one could invest in this 60m market cap without getting stuck by liquidity? Will a 6 digit amount be difficult to accumulate/exit?

6 digits in dollars or shares? Average volume for the past year has been around 300 lots per day, for a dollar value of around $50k a day.So either way it should be fine. You'll realise volume has boosted up significantly since March, when Winstedt Chong started liquidating his stake on the open market. He should be nearly done now, assuming he continued to offload at around 80% of total traded volume after dipping below 5%. Get a feeling liquidity will dry up once he's done, and go back to the old sleepy ways.

6 digits in dollars. How do you get 80% or is it arbitrary? And what do you mean by 'dipping below 5%'?

Based on the percentage of total volume he was selling when he was still above 5% substantial shareholding and had to declare his dealings. Between March 4 and May 10 he accounted for 84% of all traded shares. After falling below 5% holding of the company, he did not need to declare transactions anymore, so I assumed he continued at a similar pace.