Neratel

(22-07-2013, 11:49 PM)BlueKelah Wrote: as I said since nera was 63 cents and shot to 70 cents on the myanmar news its a pump and dump for this stock. should see it stabilise again around 60 plus cents...

Very unlikely to head towards the low 60s, at least not until the Q2 results are announced. Even then, only if the Q2 results are below market expectations or if mkt is bearish again...

I stand by what I replied to you back then. It's fairly valued and any wild price fluctuations is best for trading, if you have the spare time and cash...I did sell some of mine and I'd be looking to buy back. I do hope you're right tho'...

Finally! Q2 report out 6 Aug after market close. Quite a bit of sell down recently though. Either they know something or collecting....

(22-07-2013, 11:36 PM)KopiKat Wrote:

(22-07-2013, 12:15 PM)ValueBeliever Wrote: Is SA sale a aberration that the Co. fundamental has changed? Day to day events have impact but got to look at the context of the major shldrs NorthStar is buy SA shares and not that he sell outright but is instead exchanging it for partnership stake in ultimate holding probably for tax or incentive purpose.

His selling had caused impact to the market but SA is probably tasked to perform at a higher level now.

So L&T 1 day ago said its +ve on Co. growth and next day without exploring further said its a sell? Flipping here and there later will loose its credibility?

The Lim & Tan report from remisires.org is attached below. There's no mention of what SA did with the sales proceeds, perhaps the analysts missed that in their zest and excitement to produce this report...

 Samuel Ang (SA), the President, and CEO of Nera Tel has sold out of his direct stake (of 1.04mln shares) in Nera Tel at 82.5 cents on 17/18 July’13.

 After the sale, he is left with a deemed interest of 25,000 shares.

 SA’s move is significant as his last purchase was 60,000 shares at 40 cents a share in 2009.

 SA has been heading Nera Tel since its listing in 1999.

 Investors who has been invested in Nera Tel since its IPO has received about 55 cents in dividends (normal + special). And coupled with the stock’s strong share price appreciation, it has been a rewarding investment.

 Notwithstanding the company’s still robust prospects, we are changing our recommendation to “Take Profit”, following SA’s latest complete disposal of his direct stake in the company.

Tsk.. tsk... tsk...

In today's Lim & Tan report from remisiers.org,


We are reinstating a BUY on Nera Tel as we understand that the company’s CEO Samuel Ang (SA) who sold 1,040,000 shares on 17/18 July’13 at 82.5 cents a share (raising proceeds of $857,419) will be re-investing a bigger amount to take up a minority stake in the parent company of Asia Systems (AS) who owns 53.38% of Nera Tel. This is done so as to align SA’s interest together with AS and will enable him to effectively have a bigger effective stake in the company. With the stock having dropped about 8% since our “take profit” recommendation and now yielding 5.3% and with its forward PE of 11x against growth of 30%, we are thus re-instating a BUY on the stock.


Further, when they issued the last report on 22-Jul, Neratel share price was listed as $0.80 on that report. For this report dated 5-Aug, the last close price was on 2-Aug @ $0.765 ie. a drop of only 4.375%.... Their 8% drop must be using the recent low? Aro' $0.735??

Tsk.. tsk.. tsk..

(05-08-2013, 09:54 PM)KopiKat Wrote:

(22-07-2013, 11:36 PM)KopiKat Wrote:

(22-07-2013, 12:15 PM)ValueBeliever Wrote: Is SA sale a aberration that the Co. fundamental has changed? Day to day events have impact but got to look at the context of the major shldrs NorthStar is buy SA shares and not that he sell outright but is instead exchanging it for partnership stake in ultimate holding probably for tax or incentive purpose.

His selling had caused impact to the market but SA is probably tasked to perform at a higher level now.

So L&T 1 day ago said its +ve on Co. growth and next day without exploring further said its a sell? Flipping here and there later will loose its credibility?

The Lim & Tan report from remisires.org is attached below. There's no mention of what SA did with the sales proceeds, perhaps the analysts missed that in their zest and excitement to produce this report...

 Samuel Ang (SA), the President, and CEO of Nera Tel has sold out of his direct stake (of 1.04mln shares) in Nera Tel at 82.5 cents on 17/18 July’13.

 After the sale, he is left with a deemed interest of 25,000 shares.

 SA’s move is significant as his last purchase was 60,000 shares at 40 cents a share in 2009.

 SA has been heading Nera Tel since its listing in 1999.

 Investors who has been invested in Nera Tel since its IPO has received about 55 cents in dividends (normal + special). And coupled with the stock’s strong share price appreciation, it has been a rewarding investment.

 Notwithstanding the company’s still robust prospects, we are changing our recommendation to “Take Profit”, following SA’s latest complete disposal of his direct stake in the company.

Tsk.. tsk... tsk...

In today's Lim & Tan report from remisiers.org,


We are reinstating a BUY on Nera Tel as we understand that the company’s CEO Samuel Ang (SA) who sold 1,040,000 shares on 17/18 July’13 at 82.5 cents a share (raising proceeds of $857,419) will be re-investing a bigger amount to take up a minority stake in the parent company of Asia Systems (AS) who owns 53.38% of Nera Tel. This is done so as to align SA’s interest together with AS and will enable him to effectively have a bigger effective stake in the company. With the stock having dropped about 8% since our “take profit” recommendation and now yielding 5.3% and with its forward PE of 11x against growth of 30%, we are thus re-instating a BUY on the stock.


Further, when they issued the last report on 22-Jul, Neratel share price was listed as $0.80 on that report. For this report dated 5-Aug, the last close price was on 2-Aug @ $0.765 ie. a drop of only 4.375%.... Their 8% drop must be using the recent low? Aro' $0.735??

Tsk.. tsk.. tsk..

I thought this is old news? Now then they find out? Sibei rubbish!

(18-07-2013, 10:02 AM)KopiKat Wrote: If I were to use Q1 Proforma EPS provided during Nera Malaysia acquisition SGX Annc, that means an additional 1.93ct. Also, assuming Lim & Tan analyst got the right suggestion from their conversation with Neratel mgmt about spillover of delayed orders, I suppose it does suggest an EPS that's higher than last year's Q212 = 0.92ct. Add that up, we ought to see Q213 EPS of at least 3ct. Further Lim & Tan analysts got a one-time negative goodwill figure of $7Mil+ from their conversation, which is higher than the $6.61Mil figure from the SGX Annc for Proforma Q113. Perhaps an EPS closer to 3.5ct (depending on the spillover quantum)??

Results out,

Financials
Presentations


EPS = 2.9ct, lower than my estimate of 3-3.5ct
Negative Goodwill = $7,051,000. Lim & Tan got it right!
Interim Div = 2ct, IIRC, close to one of the analysts' estimates.

I am surprised by the 2cts dividend!
This Asia system really milking its cow very well indeed.

Most parents are milking their cows. SIA doing that, SembCorp doing that. Best of all, ThaiBev just bought a cow and going to chop it up and sell each part separately, no need to wait for milk production.

(06-08-2013, 09:30 PM)NTL Wrote: ThaiBev just bought a cow and going to chop it up and sell each part separately, no need to wait for milk production.

This is a great analogy! Hahaha...

They haven't paid interim dividend for quite some years. The interim dividend last year should be viewed as a delayed paid-out for FY2011. With the dividend paid-out for last FY, cash per share (CPS) is now 7cts. With the interim 2cts div, next quarter CPS will be 5cts + net change in cash.

Without the neg good will, performance wise similar to last 1H.

(06-08-2013, 09:10 PM)WolfT Wrote: I am surprised by the 2cts dividend!

IIRC, one of the analysts got it right, must have been from the horse's mouth... Net Cash Inflow on Acquisition (Nera Malaysia) = $5,335,000 (pg6) vs ~$5Mil in that report. This translates to ~1.5ct and was the justification for a Special interim Dividend of 2ct in that report... From now, must really pay special attention to the contents of analysts' reports / news interview, if those were written after co. meetings/briefing....

Quote:This Asia system really milking its cow very well indeed.

Don't forget we were worried that we may be the cow.... Stay alert, they may have just decided to split the usual 4ct dividend into 2 payout periods...

GPD Wrote:Without the neg good will, performance wise similar to last 1H.

EPS would have been ~4.8% lower for 1H, due to the drag down by Q1. The spillover delay from Q1 to Q2 which was mentioned in the Edge article seems to be mainly for Revenue...