Cheung Woh Technologies

[dydx]

announced today Nexsuss Holdings Pte Ltd purchased 5,591,040 shares from DBS Bank Ltd pursuant to the Sale and Purchase Agreement dated 19 July 2012.

Who is the seller of the 5,591,040 shares, or a 1.83% stake in Cheung Woh?

With this latest purchase, the Law Family's total interest in Cheung Woh has gone up to approx. 72.32%.

[pianist]

Who is the seller of the 5,591,040 shares, or a 1.83% stake in Cheung Woh?
With this latest purchase, the Law Family's total interest in Cheung Woh has gone up to approx. 72.32%.

I have no idea - it just says DBS Bank Ltd.
I am puzzled why SGX doesn't require the seller to disclose themselves? instead allow them to 'hide' behind an executor?

[freedom]

the seller is DBS Bank Ltd. isn't it clear enough?

[RBM]

Someone lobbed in a bid for 300,000 shares of Cheung Woh at a price of S$ 0.17 earlier this afternoon. So far (17.00 hrs) only 24,000 shares have been sold into this bid amount. Total volume so far today is a typically modest 58,000 shares, all done at either S$ 0.170 or S$ 0.171 per share.

Could it be that Cheung Woh's share buy-back programme has been re-initiated by the BoD? Or perhaps this is just without-grounds-wishfull-thinking on my part? This counter is rather unloved these days and, apart from the Law's purchase of shares from a DBS entity announced at end July, there hasn't been any any news lately.

We'll find out where things stand vis-a-vis today's trading in the coming few days.

Addition to my posting of 17.00 hrs today: Sorry, I omitted to attach the following excerpt from Lim & Tan's Daily Review today.......... this excerpt is taken from a piece on the Global PC Business, where Dell's sober forecast for the remainder of 2012 and HP's miserable results announcement were discussed. Discouraging.
+++++++++++++++++++++++++++++++++++++++++
QUOTE: Locally, companies with exposure to the PC market such as Broadway (35 cents, down 1 cent), Armstrong (26.5 cents, unchanged) and Cheung Woh (16.8 cents, down 0.2 cents) have similarly warned about the tough operating conditions and we believe its still too early for investors looking to bottom-fish the sector UNQUOTE
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Vested

[RBM]

Pleasing to see that Cheung Woh is again buying its own shares - the last time share buy-backs were seen was in late January, almost eight (8) months ago. Today some 76,000 CWT shares were bought at the "same old" S$ 0.18/share price.

http://info.sgx.com/webcorannc.nsf/Annou...rQhc.email

I think it is fair to say that this should serve to re-inforce the S$ 0.18 floor under CWT's share price. Personally speaking, I'm pleased with the confidence Cheung Woh's Board of Directors is (again) showing in the company.

Vested

[psolhawk]

Puzzling why they did not purchase more when it was wading around 17 cents. Maybe they were too busy at work to monitor their market cap? Seriously, I was thinking if they had run into cashflow problem.

[RBM]

Puzzling why they did not purchase more when it was wading around 17 cents. Maybe they were too busy at work to monitor their market cap? Seriously, I was thinking if they had run into cashflow problem.

You make a fair challenge psolhawk - one that I felt the need to look into................

Since Cheung Woh's "share buy-back" mandate was renewed at their 25th June AGM.....................

a) there have been a total of 16 (sixteen) SGX trading days where Cheung Woh shares changed hands at a share price less than S$ 0.18/share (24 & 31 July; 1, 3, 8, 10, 15, 16, 21, 22, 23, 24, 27, 29 & 31 August; and 17 September). For a ~ 9 week period Cheung Woh's shares traded for the most part at a price below S$ 0.18.

b) a total of 1,107,000 Cheung Woh shares were traded at prices below S$ 0.180 since the AGM - this corresponds to only ~ 0.36% of the total shares in the company - I submit that this is a miniscule proportion.

c) the lowest Cheung Woh closing price since the end June AGM was S$ 0.167, on 15th August.

During Cheung Woh's extensive and sustained share buy-back programme during the course of the previous financial year, purchases were made at a share price of S$ 0.18.

I conclude, based on the three above share price realities, that Cheung Woh's leadership probably did not feel the need to intervene. Rightly so in my view. Cheung Woh's BoD has a history of being cold-bloodedly transparent and open in disclosing bad news so if there were critical cash or financial issues, personally speaking I believe these would have been made public.

I would appreciate the views of other forummers on this. May be I see things through overly-rose-tinted-spectacles.

Vested.

[dydx]

What's the main motivation behind Cheung Woh buying back its own shares? To support the share price at the $0.18 level, or to return excess cash/capital in the company to minority shareholders who choose to sell their Cheung Woh shares, or to reduce the number of outstanding issued shares so as to enhance the (intrinsic) value of the remaining shares?

Or may be the main motivation is to reduce the number of outstanding issued shares so that it will be easier for the Law family to privatize Cheung Woh in the future via a GO, or for a suitor to do so when the Law family decides to sell their controlling majority interest eventually?

[RBM]

............... and a further 233,000 Cheung Woh shares were "bought back" during todays, 21 September 2012, SGX trading session at the "usual" S$ 0.18 share price. This volume represents more than three times yesterday's buy-back effort ........ and the buy back volumes constituted ~ 61% of the 383,000 Cheung Woh shares which changed hands today.

http://info.sgx.com/webcorannc.nsf/Annou...HmsQ.email

Today witnessed the highest trading volumes of Cheung Woh shares since 27th January 2012 ............ which also happened to be the last day Cheung Woh's management bought back shares before yesterday's pleasing re-initiation of the buy-back programme. It is good to see some liquidity return to the counter - and existing shareholders have the buy-back programme to thank for that.

Whatever the rationale for re-initiating the buy-back programme, and dydx outlines some of the possible motivations........ as an existing shareholder, I feel somewhat more optimistic regarding the prospects for Cheung Woh's share price than I did until about 24 hours ago.

Vested,

What's the main motivation behind Cheung Woh buying back its own shares? To support the share price at the $0.18 level, or to return excess cash/capital in the company to minority shareholders who choose to sell their Cheung Woh shares, or to reduce the number of outstanding issued shares so as to enhance the (intrinsic) value of the remaining shares?

Or may be the main motivation is to reduce the number of outstanding issued shares so that it will be easier for the Law family to privatize Cheung Woh in the future via a GO, or for a suitor to do so when the Law family decides to sell their controlling majority interest eventually?

[memphisb]

http://info.sgx.com/webcoranncatth.nsf/V...2002C222B/$file/CheungWoh_2QFY13.pdf?openelement