Neratel

(14-07-2012, 10:58 PM)yeokiwi Wrote: This kind of event is rather high probability due to past pattern and so is easy to get it right.

You mean this?

[Image: 2aaee52.jpg]

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Just started studying History (fm IPO Prospectus),

[Image: 2u5t4kk.jpg]

Note : Nera Electronics no longer part of their biz ie. no more CEM biz segment

There is still dividend this year!!!

Great for everyone. Didn't expect that they would give dividends so fast. I thought they would need time to stabilise after the failed attempt of the takeover by ST Engineering. Just finished my analysis on Friday evening and they release the results on a Sat. Have to wait for xD before considering again as I expect it would be a gap up tomorrow.

(15-07-2012, 03:46 PM)Some-one Wrote: Great for everyone. Didn't expect that they would give dividends so fast. I thought they would need time to stabilise after the failed attempt of the takeover by ST Engineering. Just finished my analysis on Friday evening and they release the results on a Sat. Have to wait for xD before considering again as I expect it would be a gap up tomorrow.

wonder how much it will gap up to? last close 0.41 + 4c divy = 0.45?
congrats to those quick hand quick leg on last Monday!

L&T report on Nera Tel this morning, 16 July 2012:

Nera’s 2Q ’12 profit rose 33% to $3.34mln, bringing
1H ’12 profit up 105% to $9.84mln, underpinned by
45% rise in the Telecommunication division as new
markets in the Middle East and North Africa made
robust contributions (tripling to $6mln) while sales
in the Infocomm division rose 9.3% as consumers
turn to cash-less payment systems resulting in higher
point of sales terminals sold.
 Working capital management remains robust with
$7.6mln worth of free cash flow generated for
1H2012, bringing net cash holdings up from
$46.5mln to $54.3mln, representing 36.5% of its
current market cap.
 As the company did not pay their usual final dividend
last year due to the then pending takeover offer from
ST Engineering, the company has made up for it by
declaring its first ever interim dividend of 4 cents a
share, giving an attractive yield of 9.8%.
 Looking ahead, prospects seems reasonably bright
despite the uncertain global macro environment due
to their new entry into the Middle East and North
Africa, allowing them to increase their order books from
the Telecom division by 78.4% in 1H 2012 to $38.9mln,
while the continued demand for cash-less payment
systems have seen their Infocomm division’s order
books grow by 8% to $60.9mln.
 We believe the 4 cents a year dividend is sustainable
going forward, giving an attractive yield of 9.8%. This
should provide good support for the stock.
 Our only concern is that the 44.5-45 cents level
represents formidable resistance, being the level that
the stock has been stuck at since the beginning of this
year as investors supported the stock at that level in
anticipation of the successful takeover bid by ST
Engineering.
 We are happy to continue to HOLD on to the stock
for the attractive yield

Not vested.

Sold my 4 lots of neratel for 3 cents gain at 0.43

(16-07-2012, 09:49 AM)CY09 Wrote: Sold my 4 lots of neratel for 3 cents gain at 0.43

But Not much gain if u included brokerage fees.

(vested)

Some segmental data for the past 5 years (didn't go beyond that as 2006 backwards includes CEM biz from Nera Electronics),

[wrap]
[table=REVENUE]
Singapore
Indonesia
Thailand
Philippines
Malaysia
Morocco
Europe
Middle East
Vietnam
Other Asian Countries
Others
Total
[/table]
[table=2011]
$62,802
$25,975
$15,287
$14,739
$9,993
$8,666
$5,615
$5,547
$3,171
$4,125
$318
$156,238
[/table]
[table=2010]
$57,310
$30,794
$27,366
$14,331
$7,937
–
–
–
$12,663
$4,677
$186
$155,264
[/table]
[table=2009]
$37,273
$36,612
$33,916
$23,265
$17,967
–
–
–
$13,660
$7,761
$1,287
$171,741
[/table]
[table=2008]
$55,297
$30,420
$28,118
$18,464
$16,324
–
–
–
$1,951
$7,961
$1,782
$160,317
[/table]
[table=2007]
$46,771
$46,132
?
$19,735
?
–
–
–
?
$43,482
$10,249
$166,369
[/table][/wrap]

Note : For 2007, ? means unknown as it's likely lumped into 'Other Asian Countries'

Comments : Although Revenue for the past 2 years looks flat, after hitting a high, it may be a concern as FY11 starts to include MENA.

[wrap]
[table=REVENUE]
TeleCom
InfoCom
Total
[/table]
[table=2011]
$55,749
$100,489
$156,238
[/table]
[table=2010]
$48,048
$107,763
$155,811
[/table]
[table=2009]
$92,468
$79,273
$171,741
[/table]
[table=2008]
$83,275
$77,042
$160,317
[/table]
[table=2007]
$100,239
$66,130
$166,369
[/table][/wrap]

Comments : InfoCom Revenue is growing but TeleCom Revenue is Declining. MENA contribution in FY11 is in TeleCom and will likely help to reverse the trend.


[wrap]
[table=Operating Profit]
TeleCom
InfoCom
Total
[/table]
[table=2011]
$6,259
$9,523
$15,782
[/table]
[table=2010]
$3,872
$9,970
$13,842
[/table]
[table=2009]
$5,603
$6,806
$12,409
[/table]
[table=2008]
$5,042
$6,799
$11,841
[/table]
[table=2007]
$8,112
$5,205
$13,317
[/table][/wrap]

Comments : Looks like MENA may be responsible for the growth in profitability, perhaps the 'ME' part.

My Conclusion : Looks like a tough biz to be in and they don't appear to have any new ideas to expand or increase their biz.

Viewed pessimistically, they are at best a distributor and confined to certain territories by their principle and forever at their mercy that distribution agreement may not be renewed.

Viewed optimistically, they are SI (System Integrators) that provides expert technical knowledge and service support to their customers and this may not be easily replaced. I guess the key differentiator would be the quality of their service and support that'll keep them going...that'll give shareholders one last, long,.. 'puff' to the high dividend yield!

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A quick look at their biz segment, taken from AR2011,

[Image: 25uk1za.jpg]

[Image: 2gxjqxe.jpg]

(16-07-2012, 09:55 AM)Gregg Wrote:

(16-07-2012, 09:49 AM)CY09 Wrote: Sold my 4 lots of neratel for 3 cents gain at 0.43

But Not much gain if u included brokerage fees.

(vested)

Yup unfortunately (I am using SCB). still in Uni, so not much capital to speculate (i try to allocate 10% of my savings into short term gains)

But as mentioned by many ppl on these thread, the dividends of (9-10%)had a high degree of certainity and to top it off, ppl in the market took the ST engg failed takeover negatively and resulted in a sell off. Effectively I was trading on news and anticipation of future announcements (Not advisable if you intend to invest a huge proportion of your capital based on security's news unless you have understand yourself well)

CY09,

Good swing trade

Your 6% quick gain is the equivalent to someone patiently holding a 6% dividend yield stock for 12 months... LOL!

Plus its a lot more "meat" than those buying at 0.445 today to arbitrage on the dividend

With practice, you will learn not to leave too much money on the table on your next adventure. Leave 2% as incentive to arbitrageur is more than enough