Lion Asiapac

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#11
Surged almost 50% today alone. Anyone has any idea why? I believe Lion Asiapac is still a net-net trading below liquidation value despite the surge.
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#11
Surged almost 50% today alone. Anyone has any idea why? I believe Lion Asiapac is still a net-net trading below liquidation value despite the surge.
Reply
#12
(29-08-2016, 05:29 PM)beau Wrote: Surged almost 50% today alone. Anyone has any idea why? I believe Lion Asiapac is still a net-net trading below liquidation value despite the surge.


They found a buyer for their china property albeit at a loss (from purchase px but a book gain as the property has already been provisioned for). Yeah their nav is 87 mio versus 28 mio market cap, discounting their lousy lime business there's still a hefty buffer. But value may be stuck for a while by management that's slowly value destroying imo.

Vested small
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#12
(29-08-2016, 05:29 PM)beau Wrote: Surged almost 50% today alone. Anyone has any idea why? I believe Lion Asiapac is still a net-net trading below liquidation value despite the surge.


They found a buyer for their china property albeit at a loss (from purchase px but a book gain as the property has already been provisioned for). Yeah their nav is 87 mio versus 28 mio market cap, discounting their lousy lime business there's still a hefty buffer. But value may be stuck for a while by management that's slowly value destroying imo.

Vested small
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#13
(29-08-2016, 05:58 PM)chew Wrote:
(29-08-2016, 05:29 PM)beau Wrote: Surged almost 50% today alone. Anyone has any idea why? I believe Lion Asiapac is still a net-net trading below liquidation value despite the surge.


They found a buyer for their china property albeit at a loss (from purchase px but a book gain as the property has already been provisioned for). Yeah their nav is 87 mio versus 28 mio market cap, discounting their lousy lime business there's still a hefty buffer. But value may be stuck for a while by management that's slowly value destroying imo.

Vested small

Why do you say they are value destroying? From a NAV point of view, it seems that NAV has been relatively stable over the past 2 fiscal years.
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#13
(29-08-2016, 05:58 PM)chew Wrote:
(29-08-2016, 05:29 PM)beau Wrote: Surged almost 50% today alone. Anyone has any idea why? I believe Lion Asiapac is still a net-net trading below liquidation value despite the surge.


They found a buyer for their china property albeit at a loss (from purchase px but a book gain as the property has already been provisioned for). Yeah their nav is 87 mio versus 28 mio market cap, discounting their lousy lime business there's still a hefty buffer. But value may be stuck for a while by management that's slowly value destroying imo.

Vested small

Why do you say they are value destroying? From a NAV point of view, it seems that NAV has been relatively stable over the past 2 fiscal years.
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#14
If I remember correctly, they use up their good cash pile to purchase some not so good assets. This is probably a value trap company.

When I bought in in early 2015, I bought purely on its balance sheet which I computed a liquidation value of greater than $0.60 per share. Now fast forward to today, it liquidation value has shrinked to $0.40 per share.

(vested)
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#14
If I remember correctly, they use up their good cash pile to purchase some not so good assets. This is probably a value trap company.

When I bought in in early 2015, I bought purely on its balance sheet which I computed a liquidation value of greater than $0.60 per share. Now fast forward to today, it liquidation value has shrinked to $0.40 per share.

(vested)
Reply
#15
(30-08-2016, 08:26 AM)ValueMushroom Wrote: If I remember correctly, they use up their good cash pile to purchase some not so good assets. This is probably a value trap company.

When I bought in in early 2015, I bought purely on its balance sheet which I computed a liquidation value of greater than $0.60 per share. Now fast forward to today, it liquidation value has shrinked to $0.40 per share.

(vested)

I have a more sanguine liquidation value. If I write off its inventories and PPE (the rest of its assets mainly liquid), I get a residual book value of approx 72 mio, so the liquidation value should be closer to that than implied by your 40 cent which translates to about 32 mio. But I am not optimistic the value will get unlocked leaving a rather large range of possible valuation interpretations by market.

Vested small
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#15
(30-08-2016, 08:26 AM)ValueMushroom Wrote: If I remember correctly, they use up their good cash pile to purchase some not so good assets. This is probably a value trap company.

When I bought in in early 2015, I bought purely on its balance sheet which I computed a liquidation value of greater than $0.60 per share. Now fast forward to today, it liquidation value has shrinked to $0.40 per share.

(vested)

I have a more sanguine liquidation value. If I write off its inventories and PPE (the rest of its assets mainly liquid), I get a residual book value of approx 72 mio, so the liquidation value should be closer to that than implied by your 40 cent which translates to about 32 mio. But I am not optimistic the value will get unlocked leaving a rather large range of possible valuation interpretations by market.

Vested small
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#16
Hi Chew,

I'm more conservative in my approach. I apply a discount of 50% to non-cash items like investments/properties/receivables and totally discount away PPE/intangibles/inventories. I place the highest value to cash with no discount applied.

(vested, waiting to cut loss)
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#16
Hi Chew,

I'm more conservative in my approach. I apply a discount of 50% to non-cash items like investments/properties/receivables and totally discount away PPE/intangibles/inventories. I place the highest value to cash with no discount applied.

(vested, waiting to cut loss)
Reply
#17
(30-08-2016, 10:47 AM)ValueMushroom Wrote: Hi Chew,

I'm more conservative in my approach. I apply a discount of 50% to non-cash items like investments/properties/receivables and totally discount away PPE/intangibles/inventories. I place the highest value to cash with no discount applied.

(vested, waiting to cut loss)

From a book value of 88 mio post china disposal and receipt of the 20 mio from disposal, from what I see there only 19 mio non cash assets held at group level, hence my value of approx. 72 (more like 71) mio.
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#17
(30-08-2016, 10:47 AM)ValueMushroom Wrote: Hi Chew,

I'm more conservative in my approach. I apply a discount of 50% to non-cash items like investments/properties/receivables and totally discount away PPE/intangibles/inventories. I place the highest value to cash with no discount applied.

(vested, waiting to cut loss)

From a book value of 88 mio post china disposal and receipt of the 20 mio from disposal, from what I see there only 19 mio non cash assets held at group level, hence my value of approx. 72 (more like 71) mio.
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#18
Profit Guidance for the Full Year Ended 30 June 2019

The Board of Directors of Lion Asiapac Limited wishes to issue a profit guidance regarding the unaudited financial results of the Group for the full year ended 30 June 2019.

A loss for the full year ended 30 June 2019 is expected to be reported by the Group. This is primarily owing to an impairment provision made to the Group’s property, plant and equipment.

This profit guidance is based on a preliminary review of the Full Year Results. Further details of the Group’s performance will be disclosed when the Company announces its Full Year Results on 23 August 2019.
Specuvestor: Asset - Business - Structure.
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#18
Profit Guidance for the Full Year Ended 30 June 2019

The Board of Directors of Lion Asiapac Limited wishes to issue a profit guidance regarding the unaudited financial results of the Group for the full year ended 30 June 2019.

A loss for the full year ended 30 June 2019 is expected to be reported by the Group. This is primarily owing to an impairment provision made to the Group’s property, plant and equipment.

This profit guidance is based on a preliminary review of the Full Year Results. Further details of the Group’s performance will be disclosed when the Company announces its Full Year Results on 23 August 2019.
Specuvestor: Asset - Business - Structure.
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