Asian Pay Television Trust (APTT)

(20-06-2013, 11:11 AM)lonewolf Wrote: Stabilisating Action Day 16 (Jun 19)

7,128,000 units purchased at $0.905 - $0.92

Total units purchased to date: 57,532,000
Total stabilising units left: 14,308,000

On average, JPM has purchased over 3.8 million units a day. If they continue at this rate, they are going to run out of their purchasing mandates.

Woah... Used up their last "bullets" today! Stabilisation ceased....
Tomorrow will be interesting...

14 million units in one day is the most. Frankly while I was not surprised that they would run out, I did not expect them to run out so soon.

TAIWAN BROADBAND COMMUNICATIONS RECEIVES APPROVAL TO EXPAND CABLE NETWORK FRANCHISE

http://info.sgx.com/webcoranncatth.nsf/V...600322E41/$file/26062013APTTTBCRezoning.pdf?openelement [Announcement]

Note that it intends to pay 8.93 cents dividend in FY 2013 (including one-off distributions). The debt facility matures in 7 years time. APTT is currently trading at 85.5 cents or close to 10% yield.

(Not Vested)

So here we are 1 month to the day when this was listed. Look at the performance down 12 cents from ipo price of 97. Not exactly tanked in price but I don't think any punters made any kopi money.

So does it makes sense?

1 underwriter = DIE DIE MUST BUY !!
3 underwriter or more = YOU BUY YOU DIE AH !!

Hi Nick,

My position on APTT has not changed a bit since listing. Don't you think that the current yield is too good to be true?

Vested
Odd Lots With No Cert & No CDP holdings
GG

(28-06-2013, 02:37 PM)Nick Wrote: TAIWAN BROADBAND COMMUNICATIONS RECEIVES APPROVAL TO EXPAND CABLE NETWORK FRANCHISE

http://info.sgx.com/webcoranncatth.nsf/V...600322E41/$file/26062013APTTTBCRezoning.pdf?openelement [Announcement]

Note that it intends to pay 8.93 cents dividend in FY 2013 (including one-off distributions). The debt facility matures in 7 years time. APTT is currently trading at 85.5 cents or close to 10% yield.

(Not Vested)

I have my concerns on whether the Trust can continue to maintain revenue from Cable TV in view of the falling ARPU and younger generation using the Internet to stream movies / tv shows. The broadband segment isn't a large segment in their revenue so they can't benefit from this. I think this has been voiced out in this thread many times. Really a wait and see.

(Not Vested)

Actually I am quite confused with this, I thought someone posted earlier that TBC is in the red for some years, how come it can pay out such generous dividends?

I know others like Starhub or even other trust like Hutchison and K-Green can pay out dividends higher than profits because of the cashflow, but from losing money to paying out 9% dividend is such a huge gap, where does the money really come from?

it is possible that they have high non-cash expenses like depreciation, hence the business is generating positive cash flow after deducting off depreciation and thus are paying dividends out of cashflow.

E.g. Company A: cash revenue (+1000), expenses in 1) labour (-300), 2) Depreciation expense (-800). Reported Loss (-100),
cash flow that is generated minus depreciation (+700)

(01-07-2013, 11:48 AM)CY09 Wrote: it is possible that they have high non-cash expenses like depreciation, hence the business is generating positive cash flow after deducting off depreciation.

E.g. Company A: cash revenue (+250), expenses in 1) labour (-50), 2) Depreciation expense (-300). Reported Loss (-100),
cash flow that is generated minus depreciation (+200)

The problem is in real life even if you are a crazy capex skimmer, at best one can decrease the replenishment ratio to 30-40% of depreciation temporarily. That might help a fair lot, but without looking at the numbers in detail, it still seems unlikely one can turn from red to 9% dividends just by capex skimming.

Even if this can be done, wouldn't such a stunt spell disaster a few years down the road? They will be forced to raise capital at uncompetitive prices by then...

Hi Mobo, that is a good analysis on your part.

One forumer here have pointed out this impending possibility (shanrui if I am right), you could read the threads that VB members has posted here with respect to Asian Pay TV trust to get a better understanding of how their dividends will be funded and the impending risks that this business face in the near future. Start from the first page