HG Metal

[Edit - This was originally a reply to the Swing Media post which noted massive and recurring equity fund rising. I guess Admin decide to hive it off in a separate thread on its own. I'm providing the original link to Swing Media to give this post some prospective on the content]

Off hand I can think of one other company with massive equity fund raising/bonus issue/rights issue/convertible bonds/placement for a good number of yrs - HG Metal.

FY 2003 * 8 mil placement @ 0.20; 6,000,000l placement @0.2905 Share capital=91,330,000
FY 2004 * 22,832,495 bonus (1-for-4); 18,000,000l placement @0.3633 Share capital=132,162,000
FY 2005 * 44,053,665 bonus (1-for-3) ; Share capital=176,216,000
FY 2007 * 31,171,147 Convertible Bonds; 956,499 warrants exercise; 74,039,747 2-for-5 rights issue@$0.20; 37,000,000 placement shares@0.52 Share capital=318,532,000
FY 2008 * 13,500 exercise of warrants; 106,177,458 bonus (1-for-3); Share capital=424,532,000
FY 2009 * 125,957,401 1-for-2 rights issue; 225,000,000 placement @0.10; Share capital=775,672,000

I'm actually impressed that management can continue to engage 'long-term strategic investor' to keep taking stake in the company.

(Vested in HG Metal )

A stock currently under my watchlist. I believe most of the bad stuff for HG Metal is well over & the involvement of OCS will be strong catalyst for a turnaround growth - evident by the strong commitment of CEO Goh.

Attached is my research on HG Metal. Please feel free to pick out any spot which I might have missed.

Cheers!

*not vested in HG Metal*

Anybody going for the EGM on 12 Jan 2012?

potential buy out of company by new investor - buyout of major stakeholder's shares will trigger the 30%

Litigation seems getting more common among O&G, and Steel related companies...

(not vested)
 
ANNOUNCEMENT OF LITIGATION
The Board of Directors of HG Metal Manufacturing Limited (the “Company", and together with its
subsidiaries, the “Group”) wishes to announce that the Company had instituted legal proceedings
against Gayathri Steels Pte. Ltd. and its shareholders (“Defendants”) to claim for, inter alia, an
aggregate amount of approximately S$1.81 million, being the outstanding amounts owed by the
Defendants for non-payment of supplies of steel materials provided by the Company pursuant to
certain contracts of sale, including interest.
...
http://infopub.sgx.com/FileOpen/Litigati...eID=368955

I think this co is worth revisiting....

It has a 22.43% stake in BRC Asia worth 22 mio based on current BRC Asia share px of 53 c. Cash & equivalent of 52.5 mio, receivables of 33 mio, against total liabilities of 37 mio (mainly current trade payables). HG metal current market cap is 35 mio (based on last traded px of 27.5 c). Book value 129 mio.

Eked out small profit last quarter, but outlook still uncertain.

http://infopub.sgx.com/FileOpen/2Q2016_R...eID=416467

(11-08-2016, 10:16 AM)chew Wrote: I think this co is worth revisiting....

It has a 22.43% stake in BRC Asia worth 22 mio based on current BRC Asia share px of 53 c. Cash & equivalent of 52.5 mio, receivables of 33 mio, against total liabilities of 37 mio (mainly current trade payables). HG metal current market cap is 35 mio (based on last traded px of 27.5 c). Book value 129 mio.

Eked out small profit last quarter, but outlook still uncertain.

http://infopub.sgx.com/FileOpen/2Q2016_R...eID=416467

With so much cash, the dividend yield (one of my stock screen criteria) is dismally low. I think this will remain a value trap as long as they don't return value to minority shareholders. Nobel Design is another such example that I made a mistake with earlier.

Buyback by director Teo Yi-dar. http://infopub.sgx.com/Apps?A=COW_CorpAn...d4cba0714a

This comes after he leaves has his position as the portfolio manager for SEAVI Advent Investments Ltd, a substantial shareholder. Guess he's now free from conflict of interest and can buy shares in HG directly for own account.

Fall into my deep value radar, buying

net cash = 28ct per share = 77% of market cap @ 36ct current share price