Vard (formerly: STX OSV)

their auditors are PwC one of the big four which have good credentials
these construction related companies, once costs overrun and cant pass on these costs will turn company into loss making

Third Ave and Value Partners have taken a position last year.

Excerpts from Third Avenue's 3Q report:

we believe we are paying a very modest midsingle digit multiple of normalized operating cashflow for Vard and that the development of the company’sorder book is both supportive of our sense of the quality of the business and its ability to generate attractive shareholder returns. The combination of the quality of the business and the inexpensive price make for quite an appealing opportunity. During the last couple of years, more muted order flows and accounting writedowns resulting from the restructuring of its troubled Brazilian yard had served to mask a very healthy business.

(08-02-2015, 06:48 PM)touzi Wrote: Third Ave and Value Partners have taken a position last year.

Excerpts from Third Avenue's 3Q report:

we believe we are paying a very modest midsingle digit multiple of normalized operating cashflow for Vard and that the development of the company’sorder book is both supportive of our sense of the quality of the business and its ability to generate attractive shareholder returns. The combination of the quality of the business and the inexpensive price make for quite an appealing opportunity. During the last couple of years, more muted order flows and accounting writedowns resulting from the restructuring of its troubled Brazilian yard had served to mask a very healthy business.

Looks like they have taken big losses if indeed taken position last year.

(03-07-2013, 09:19 PM)BlueKelah Wrote:

(03-07-2013, 06:16 PM)KopiKat Wrote: I must admit it's darn scary to see the huge volume (aro' 10% from shortists?) and ~20% drop in share price since this Profit Guidance (not Profit Warning).... Still, I couldn't stop my itchy fingers from doing some small buy backs... Let's see how bad it's going to be on 11-Jul when they announce their Q2 results... Dare I even hope for a small Interim Div of 1-1.5ct...? Perhaps not, if Brazil yard is going to continue to bleed badly till year end??...

Downturn in shipping + overcapacity in china, you will need to have balls of steel to accumulate this counter..

Clement 1) high inflation just causes lower margins as materials and labor will increase, 2) global shipping downturn, even with good rep, do you think they will get more orders than usual?

YZJ is already trading below NAV. Vard now still trading above NAV ~1.46 times. Probably the slowdown has not hit the OSV market as hard yet.

Blast from the past.

Vard's valuation 1.5 years ago @90cents was excessive. Without MOS this stock has crumpled to 55cent probably due to oil crash having some impact on business.

This is an example of thinking there is "value" without considering the larger economic picture of the sector a company does business in.

Another profit warning in SGX...

Vard Holdings issues profit warning for 3Q and FY2015

SINGAPORE (Oct 15): Shipbuilder Vard Holdings says the financial results for 3Q and the full year ending December may be “materially negatively” affected.

It issued the profit warning in reference to the disclosures given during 1Q and 2Q regarding the operational challenges at the Brazilian shipyards of the group, combined with the negative trend in the Brazilian economic and political environment.

The group’s unaudited financial results for 3Q will be announced on Nov 11.

Its shares closed at 48 cents on October 14.
http://www.theedgemarkets.com/sg/article...and-fy2015

Updating the thread.

Vard Holdings Limited ("VARD"), one of the major global designers and shipbuilders of offshore and specialized vessels, is pleased to announce that contracts for four luxury expedition cruise vessels with French cruise company PONANT have been confirmed.

The ice-class expedition cruise vessels will be approximately 10,000 gross tons, about 131 metres long, 18 metres wide and will have a cruise speed of 15 knots. Each vessel can accommodate 180 passengers (92 cabins) and a crew of 110. The vessels will be arranged with high class of luxury facilities on board, fulfilling the highest demands for environmentally friendly and safe operations.

The hulls will be built at Vard Tulcea in Romania. Delivery is scheduled from Vard Søviknes in Norway in the period summer 2018 to summer 2019.

PONANT, a subsidiary of ARTEMIS Group and headquartered in Marseille, France, was founded in 1988 by Jean-Emmanuel Sauvée and a dozen Merchant Navy officers. Today the company is a reference for a new style of high-end cruises, a unique concept for sea travel that combines exceptional itineraries with five-star amenities on small capacity luxury ships. Currently they operate a fleet of five vessels. PONANT is the only French-flag cruise line, and world number one for polar cruises.

Voluntary offer 24cts. No wonder prices have been trending upwards for past few weeks despite still making losses. I quite like its ship design look though.

Not vested.

http://infopub.sgx.com/FileOpen/Fincanti...eID=429194

(14-11-2016, 06:41 AM)Bibi Wrote: Voluntary offer 24cts. No wonder prices have been trending upwards for past few weeks despite still making losses. I quite like its ship design look though.

Not vested.

http://infopub.sgx.com/FileOpen/Fincanti...eID=429194

With lots of sellers at 24 cents, it appears that shareholders will accept the offer of 24 cents.

If i can recall correctly, its IPO started at $1.50 plus? Now delist at 24 cts. Pity those who held on when bought at IPO prices.

(19-11-2016, 09:31 AM)Bibi Wrote: If i can recall correctly, its IPO started at $1.50 plus? Now delist at 24 cts. Pity those who held on when bought at IPO prices.

My bad. IPO price 66cts in 2010.