HupSteel

ok, guess we got to be patient with hupsteel and management!

Judging from Asia Enterprise 1Q resuts released last nite. Looks like the demand for steel is still poor. Compared to Q4 last year, the demand seems to have worsen according to the much lower revenue from AE latest result.

Poor core business + slow industrial land redevelopment = ??

(06-05-2014, 04:41 PM)Curiousparty Wrote: Poor core business + slow industrial land redevelopment = ??

in the hope that steel is a cyclical industry, so some day in the future, there will be a turnaround... when will that take place, really hard to say

when managment fail to declare 1cent/dividend per year, i cant imagine how shareholders will still have the courage and stamina to hold onto their shares

(06-05-2014, 04:41 PM)Curiousparty Wrote: Poor core business + slow industrial land redevelopment = ??

Yes sir, at the moment, it looks like this... :O

The shipping industry is one sector deemed to be very cyclical.
Many people have tried to fish at the bottom to wait for the recovery, and it has been a painful waiting experience for many.

The wait for property redevelopment will even be more painful. For Hupstell, its core business does not bring in the needed cashflow to keep company afloat. Very bad indeed....

(06-05-2014, 06:10 PM)safetyfirst Wrote:

(06-05-2014, 04:41 PM)Curiousparty Wrote: Poor core business + slow industrial land redevelopment = ??

in the hope that steel is a cyclical industry, so some day in the future, there will be a turnaround... when will that take place, really hard to say

when managment fail to declare 1cent/dividend per year, i cant imagine how shareholders will still have the courage and stamina to hold onto their shares

No more interim dividend, no more stock buyback, is it going to be a good long wait?

It is not just the long wait. It is the opportunity cost of parking money in a counter which might never see the daylight...

(09-05-2014, 08:58 PM)safetyfirst Wrote: No more interim dividend, no more stock buyback, is it going to be a good long wait?

"10. A commentary at the date of the announcement of the competitive conditions of the
industry in which the group operates and any known factors or events that may affect the group
in the next reporting period and the next 12 months
Market demand for structural steel products is not expected to improve in the short term as shipbuilding
and construction activities remain sluggish. Mill prices for steel plates are still expected to face
downward pressure in the near term due to excess production capacity.
Demand for pipes & fittings is likely to remain stable in the coming quarters but these products will
continue to face pricing pressure arising from stiff competition in the market.
The redevelopment of 6 Kim Chuan Drive is progressing according to schedule and the property is
expected to complete in 2015.
The Group will continue to exercise prudence in its purchases so that it will not be affected by large
fluctuations in prices. This will allow the Group to be more responsive to its customers’ requirement while
maintaining a sustainable margin for its operation."

alamak, price drop monday for sure!

(09-05-2014, 09:27 PM)brattzz Wrote: alamak, price drop monday for sure!

Price drop good ah. Looks like i guess correctly. It was never sustainable to give 1 ct dividend. And since its share price is stable, the management decided not to do any more share buybacks or issue 0.5ct dividend. NOw if price drop drastic, who knows, they might resume buybacks and issue a full 1 ct dividend in the full year results. .