Advanced Holdings

Luckily, I disposed off all my Advanced shares after sensing something fishy going on with the MOU last year. It must be painful for those shareholders who clinch on to their shares till now with almost 70% wipe out. Currently, the share price is trading at $0.26 which is equivalent to about $0.08 before the 3 to 1 shares consolidation and this is only miserably 20% compare to what the CEO has sold at $0.42! Like what GFG has shared, it is very hard to tell existing shareholders who are in the red to take the losses. I have lost 5 figures in this particular investment after holding on for many years, and mind you that this is after offsetting all the dividends collected over the years.

Well, I have never regretted to take the losses and move on. At least, the money back into my pocket is better than in someone else pocket, isn't it?

(05-01-2016, 06:27 PM)barrier Wrote: Luckily, I disposed off all my Advanced shares after sensing something fishy going on with the MOU last year. It must be painful for those shareholders who clinch on to their shares till now with almost 70% wipe out. Currently, the share price is trading at $0.26 which is equivalent to about $0.08 before the 3 to 1 shares consolidation and this is only miserably 20% compare to what the CEO has sold at $0.42! Like what GFG has shared, it is very hard to tell existing shareholders who are in the red to take the losses. I have lost 5 figures in this particular investment after holding on for many years, and mind you that this is after offsetting all the dividends collected over the years.

Well, I have never regretted to take the losses and move on. At least, the money back into my pocket is better than in someone else pocket, isn't it

Accidentally deleted my post... and kinda lazy to retype it.
Anyway, After being so critical of the company, I'd just like to state that if one does have shares in the company now, I wouldn't recommend selling at this stage.
That'll really be buying high and selling low.
The share price has been battered real bad and now most of the bad news is reflected in the price.
There are some bright spots in this company now, mainly the high cash holdings after the divestment of the water assets (I'd watch closely how the cash is utilised though. If it's used for management compensation or some way to reward the management, SELL at ANY price!)
and the fact that the company is currently operating in the 0&G sector, and mainly in China.
The worst of the worst scenarios!
If the O&G sector bottoms out or recovers this year, Advanced has a chance to do much better in 2017. Not 2016 though, I'm afraid it'll still be a tough year as even after recovery, it takes some time for orders to trickle in, and for them to collect on receivables.
Currently though, the ongoing operations are still operating at a loss.
I definitely wont be buying, but if you're vested, I wouldn't suggest selling either.
Afterall, every investment is a function of price vs value. At some point, the remaining value would exceed the price if the price keeps falling at this rate.

Also, another point is that one of the main reasons for the share consolidation is because of the MTP of $0.2.
(the other reason given, which is crap, is to "Reduce the fluctuation in the company's share price and market cap" blah blah... you guys can judge whether that's true)
Anyway, the latest share price is now $0.25... not much higher than the MTP.
So what happens if there's a sustained drop below $0.2???
Another share consolidation???

Daily trading volume is almost zero, the CEO might as well delist this stock from SGX listing. I don't see any investor interested to keep this stock in their portfolio, traders are definitely not interested as well. Better to keep your money in FD to earn interest, the returns are better and your capital are assured. My heart goes out to those who held on.

(12-03-2014, 10:48 AM)GFG Wrote: Advanced Holdings Director Dr Wong Kar King, sold 17million shares (personal stake) to BD Corporation in Sept 2013 in a married deal worth $0.42 per share. This is substantially ABOVE the market price then of 20 something cents.

3 months later, Advanced Holdings announce a MOU to wholly acquire BD Cranetech from the same 3 people who bought his personal stake at a high price.

I get very skeptical when I see deals like this.

Of course, it could be that this is just a prudent move to acquire BD Crane business, and get their management team to be aligned to the company interests even after selling out.
But it can also be interpreted as a director getting his personal interests taken care off by selling off a big stake at rich valuations, and then getting the company to pay a high price to take over the business interests of the original buyers.
The business is also unrelated to their core business of manufacturing.

Interesting.   Why did n't share holders do something about it.
Advanced Holding just got some more cash about $19 mil from divestment a china subsidiary. Reading from the announcement i think this cash load will likely suffer the same fate if no actions from minority share holders.

Seriously, what can the minority shareholders do???

From 11 Jan till now, only 3,000 shares traded? The CEO should consider delisting the company from the SGX main board. Such low liquidity not only devalue its market cap, it may also affect its core business when share price is not supported. Some business partners may wonder if the company is still in sound condition before awarding any contracts.

It's selling another subsidiary, trading below net-net but no volume at all, stopped giving dividends as well even though with good cash holdings. Have to consider it as value trap first.

This "value trap" has delivered. Capital reduction of 23.2c per share, a whopping 180%+ over its last traded price!
https://links.sgx.com/1.0.0/corporate-an...57f7f36d62

Interesting case study. STI over past 5 years +21.3% past 7 years from last post in 2016 +45% so depends on timeline

"The purpose of the proposed Capital Reduction is partly to cancel issued and paid-u p share capital of the Company no longer represented by available assets due to the Accumulated Losses. " yet pay out "excess" cash instead of privatising. Major shareholder added stake in 2019

(24-08-2023, 10:48 AM)ghchua Wrote: This "value trap" has delivered. Capital reduction of 23.2c per share, a whopping 180%+ over its last traded price!
https://links.sgx.com/1.0.0/corporate-an...57f7f36d62

Was there any "advanced notice" from Advanced Holdings?