Posts: 14
Threads: 0
Joined: Apr 2015
Reputation:
0
06-09-2017, 03:51 PM
(This post was last modified: 06-09-2017, 03:52 PM by coolken163.
Edit Reason: wrong spelling
)
(27-08-2017, 12:36 AM)TTTI Wrote: (25-08-2017, 05:57 PM)mslee888 Wrote: Full Yr results out.
http://infopub.sgx.com/FileOpen/LTC_Full...eID=468475
1ct dividend declared again...same as previous years despite FY profit up more than 100%.
When it comes to dividend, looking at profitability is not that useful, because it is backward looking. You want to know whether the company can support giving out the dividends vs their future obligations/plans for cash.
Looking at the current cash holdings, and their projected future liabilities would be more accurate, as it tells us how able is the company to support an increased dividend.
Having said that, as of FY17, the company holds approximately $48mil of cash and cash equivalents, including fixed deposits.
Previous years track record of cash holdings:
FY16: $34mil
FY15: $44mil
FY14: $39mil
FY13: $28mil
In fact, the cash holdings is at an all time high, and I analyzed going back as far as FY09
On top of that, this all time high cash holdings is at a time when the debt is now zero. ($6k technically)
And there is, as far as I know right now, no use for this excess cash.
The excess cash holdings is a drag on returns.
Which is why, the company's book value is now approaching $1.63, but it trades at around $0.63 (though I believe it'd rise with the release of the latest financials)
Correspondingly, the PE ratio is in the low teens.
So the share price is at a fraction of the NAV of the company, which hints at a low PE, yet the PE is in the low teens, which is not high but not exactly low for a steel middleman.
The reason is because the NAV includes a big chunk of cash which generates next to nothing in terms of returns.
It is a real pity, because as I've mentioned several times before, the company is incredibly cash flow generative.
In a single year, the CF has eliminated debt completely.
Each quarter, the FCF piles up, yet the management has been totally catabolic, destroying value with their every move.
I've railed at their acquisition of Sogo previously.
Right now, it turns out I'm completely right.
We have had 2 years of data, and the ridiculously expensive acquisition has generated:
$506k of profit in FY16
$1.13mil of LOSSES in FY17.
With a better management in place, LTC would've soared.
I am normally not critical of companies who do not give out dividends. If they can utilize the money, by all means keep it and compound it for me. As a shareholder, it belongs to me, whether it's in my bank account or it's in my share of the company's bank account.
But for LTC, I'd agree that they need to give out more dividends, if anything, to protect against the management from doing what they have been doing best: doing all sort of dumb things with it.
Just hope LTC is on radar screen of REITS or Private Equity
Posts: 187
Threads: 3
Joined: May 2015
Reputation:
4
LTC trading halt pending annoucement
Posts: 49
Threads: 1
Joined: Jul 2013
Reputation:
1
09-02-2018, 09:43 AM
(This post was last modified: 09-02-2018, 09:50 AM by zz....)
Posts: 2,743
Threads: 23
Joined: Mar 2013
Reputation:
25
09-02-2018, 10:09 AM
(This post was last modified: 09-02-2018, 10:09 AM by opmi.)
Why now? Industrial property turning? DTL3 catalyst?
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
Posts: 291
Threads: 1
Joined: Apr 2016
Reputation:
7
(09-02-2018, 10:09 AM)opmi Wrote: Why now? Industrial property turning? DTL3 catalyst?
The Chengs will be privatizing at a very attractive price if it goes through. (Just over 50% of NTA)
I'm not complaining either, I'm tap dancing this whole weekend.
win-win
Posts: 187
Threads: 3
Joined: May 2015
Reputation:
4
09-02-2018, 03:13 PM
(This post was last modified: 09-02-2018, 03:14 PM by Scg8866t.)
(09-02-2018, 02:26 PM)TTTI Wrote: (09-02-2018, 10:09 AM)opmi Wrote: Why now? Industrial property turning? DTL3 catalyst?
The Chengs will be privatizing at a very attractive price if it goes through. (Just over 50% of NTA)
I'm not complaining either, I'm tap dancing this whole weekend.
win-win
Congrats bro! A good situation to have for us in this current global market sell down ^^
Posts: 291
Threads: 1
Joined: Apr 2016
Reputation:
7
(09-02-2018, 03:13 PM)Scg8866t Wrote: (09-02-2018, 02:26 PM)TTTI Wrote: (09-02-2018, 10:09 AM)opmi Wrote: Why now? Industrial property turning? DTL3 catalyst?
The Chengs will be privatizing at a very attractive price if it goes through. (Just over 50% of NTA)
I'm not complaining either, I'm tap dancing this whole weekend.
win-win
Congrats bro! A good situation to have for us in this current global market sell down ^^
Yep, good chance to reallocate capital.
On hindsight, in the past month, a lot of my old LTC blog posts got re read with new views for no reason.
I think some insiders already knew whats happening and accumulated
Posts: 49
Threads: 1
Joined: Jul 2013
Reputation:
1
(09-02-2018, 04:45 PM)TTTI Wrote: (09-02-2018, 03:13 PM)Scg8866t Wrote: (09-02-2018, 02:26 PM)TTTI Wrote: (09-02-2018, 10:09 AM)opmi Wrote: Why now? Industrial property turning? DTL3 catalyst?
The Chengs will be privatizing at a very attractive price if it goes through. (Just over 50% of NTA)
I'm not complaining either, I'm tap dancing this whole weekend.
win-win
Congrats bro! A good situation to have for us in this current global market sell down ^^
Yep, good chance to reallocate capital.
On hindsight, in the past month, a lot of my old LTC blog posts got re read with new views for no reason.
I think some insiders already knew whats happening and accumulate This one price didn't move up much prior to the announcement, unlike some other counters with sudden price surge before news
Posts: 291
Threads: 1
Joined: Apr 2016
Reputation:
7
(09-02-2018, 04:56 PM)zz... Wrote: (09-02-2018, 04:45 PM)TTTI Wrote: (09-02-2018, 03:13 PM)Scg8866t Wrote: (09-02-2018, 02:26 PM)TTTI Wrote: (09-02-2018, 10:09 AM)opmi Wrote: Why now? Industrial property turning? DTL3 catalyst?
The Chengs will be privatizing at a very attractive price if it goes through. (Just over 50% of NTA)
I'm not complaining either, I'm tap dancing this whole weekend.
win-win
Congrats bro! A good situation to have for us in this current global market sell down ^^
Yep, good chance to reallocate capital.
On hindsight, in the past month, a lot of my old LTC blog posts got re read with new views for no reason.
I think some insiders already knew whats happening and accumulate This one price didn't move up much prior to the announcement, unlike some other counters with sudden price surge before news
Oh there was certainly some accumulation going on.
If you look at the volumes you'd know.
I sold some of my holdings to these guys so I know.
I still have a sizable position so I'm not complaining, but I'm pretty sure some guys knew what's coming.
Ah well.
I've long figured that this happens in the markets, as we have all evidenced from time to time.
Posts: 3,102
Threads: 122
Joined: Apr 2013
Reputation:
45
this kind of value trap counter need to buy low low and hold long long until they privatise one.
bopian lah, all stock markets have insider trading one.
|
Homepage
PR Newswire
