BRC Asia

[Ray168]

What happen to BRC? Ever since I vested the price drop like no tomorrow

Ex-div and poor 2H results are likely reasons for price tank.

[valuebuddies]

Seems like some sort of insider selling? BRC has drop more than 10% which a close competitor Lee Metal's share price has been stagnant for the similar comparison period.

[ vested and accumulating ]

[Shrivathsa]

NAV is going up, so, likely to be doing okay, now, down to Sep 2012 prices, or Feb 2008 prices, if history is any guide, may fall further, however, likely to be good for accumulation as volumes are low

[Shrivathsa]

This should be interesting, as likely to report a Q2 2016 loss.

The Board of Directors (the “Board”) of BRC Asia Limited (the “Company”, together with its subsidiaries, the “Group”) deems it appropriate to issue this profit guidance as the Group is expected to report a net loss for the quarter ended 31 March 2016 (“2Q16”).
The loss is attributable to foreign exchange losses on currency forward contracts entered into by the Group to hedge purchase commitments for raw materials which are mainly denominated in US dollars. As the Group does not adopt hedge accounting,
changes to the fair values of foreign currency forward contracts are recognised in profit or loss.

This profit guidance is based on the preliminary review of the unaudited 2Q16 financial results for the Group. Further details of the Group’s financial results will be disclosed when the Group announces its unaudited financial results for 2Q16. In the meantime, shareholders and investors are advised to exercise caution when dealing in the shares of the Company.

Last share buy back was on 7th March of 31,500 shares at 0.625-0.635 share price.

[Shrivathsa]

This should be interesting, as likely to report a Q2 2016 loss.

The Board of Directors (the “Board”) of BRC Asia Limited (the “Company”, together with its subsidiaries, the “Group”) deems it appropriate to issue this profit guidance as the Group is expected to report a net loss for the quarter ended 31 March 2016 (“2Q16”).
The loss is attributable to foreign exchange losses on currency forward contracts entered into by the Group to hedge purchase commitments for raw materials which are mainly denominated in US dollars. As the Group does not adopt hedge accounting,
changes to the fair values of foreign currency forward contracts are recognised in profit or loss.

This profit guidance is based on the preliminary review of the unaudited 2Q16 financial results for the Group. Further details of the Group’s financial results will be disclosed when the Group announces its unaudited financial results for 2Q16. In the meantime, shareholders and investors are advised to exercise caution when dealing in the shares of the Company.

Last share buy back was on 7th March of 31,500 shares at 0.625-0.635 share price.

Share buy back executed for 33,500 shares at 0.55 per share on May 27.

Quite a small buy back considering that NAV is much higher.

Will be interesting to see if there is any more buy back

[chew]

Hi Shrivathsa

Wonder if you have taken a look at HG metal? It has a 22.43% stake in BRC Asia worth 21 mio based on current BRC Asia share px of 50.5 c. Cash & equivalent of 58.7 mio, receivables of 20 mio, against total liabilities of 20 mio. HG metal current market cap is 33.8 mio (based on current share px of 26.5 c). I think this is a fairly comfortable margin of safety, and would like to hear your thoughts.












Share buy back executed for 33,500 shares at 0.55 per share on May 27.

Quite a small buy back considering that NAV is much higher.

Will be interesting to see if there is any more buy back

[Shrivathsa]

Hi Shrivathsa

Wonder if you have taken a look at HG metal? It has a 22.43% stake in BRC Asia worth 21 mio based on current BRC Asia share px of 50.5 c. Cash & equivalent of 58.7 mio, receivables of 20 mio, against total liabilities of 20 mio. HG metal current market cap is 33.8 mio (based on current share px of 26.5 c). I think this is a fairly comfortable margin of safety, and would like to hear your thoughts.












Share buy back executed for 33,500 shares at 0.55 per share on May 27.

Quite a small buy back considering that NAV is much higher.

Will be interesting to see if there is any more buy back

Hi Mr.Chew,

My apologies on the delay in getting back.

I took a very brief look at HG Metal.

There were a few red flags i noticed about HG Metal.

Simply put, there seems to be a lot of repeated fund raising from share holders.

They do have a cash hoard.

However, that does not seem to be generating very much.

I look for companies which are seemingly reasonably shareholder friendly. 

HG Metal comes across as a repeated capital raising company for purposes which are not fathomable. 

I find that any company which seems too hard to understand is better to pass over.

Therefore, HG Metal went into my too hard to understand pile.

Regards

V

[chew]

Hi Shrivathsa

Wonder if you have taken a look at HG metal? It has a 22.43% stake in BRC Asia worth 21 mio based on current BRC Asia share px of 50.5 c. Cash & equivalent of 58.7 mio, receivables of 20 mio, against total liabilities of 20 mio. HG metal current market cap is 33.8 mio (based on current share px of 26.5 c). I think this is a fairly comfortable margin of safety, and would like to hear your thoughts.












Share buy back executed for 33,500 shares at 0.55 per share on May 27.

Quite a small buy back considering that NAV is much higher.

Will be interesting to see if there is any more buy back

Hi Mr.Chew,

My apologies on the delay in getting back.

I took a very brief look at HG Metal.

There were a few red flags i noticed about HG Metal.

Simply put, there seems to be a lot of repeated fund raising from share holders.

They do have a cash hoard.

However, that does not seem to be generating very much.

I look for companies which are seemingly reasonably shareholder friendly. 

HG Metal comes across as a repeated capital raising company for purposes which are not fathomable. 

I find that any company which seems too hard to understand is better to pass over.

Therefore, HG Metal went into my too hard to understand pile.

Regards

V

Thanks for sharing Shrivastha

They've had a chequered history..... on parole now subject to good behaviour.

A larger discount is required until they have fully reformed

[vingaard]

Hi Shrivathsa

Wonder if you have taken a look at HG metal? It has a 22.43% stake in BRC Asia worth 21 mio based on current BRC Asia share px of 50.5 c. Cash & equivalent of 58.7 mio, receivables of 20 mio, against total liabilities of 20 mio. HG metal current market cap is 33.8 mio (based on current share px of 26.5 c). I think this is a fairly comfortable margin of safety, and would like to hear your thoughts.












Share buy back executed for 33,500 shares at 0.55 per share on May 27.

Quite a small buy back considering that NAV is much higher.

Will be interesting to see if there is any more buy back

Hi Mr.Chew,

My apologies on the delay in getting back.

I took a very brief look at HG Metal.

There were a few red flags i noticed about HG Metal.

Simply put, there seems to be a lot of repeated fund raising from share holders.

They do have a cash hoard.

However, that does not seem to be generating very much.

I look for companies which are seemingly reasonably shareholder friendly. 

HG Metal comes across as a repeated capital raising company for purposes which are not fathomable. 

I find that any company which seems too hard to understand is better to pass over.

Therefore, HG Metal went into my too hard to understand pile.

Regards

V

Thanks for sharing Shrivastha

They've had a chequered history..... on parole now subject to good behaviour.

A larger discount is required until they have fully reformed

This business require lots of working capital and have low barriers to entry. In addition, it suffers from cut throat price competition. Personally, I avoid them.




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[Shrivathsa]

This should be interesting, as likely to report a Q2 2016 loss.

The Board of Directors (the “Board”) of BRC Asia Limited (the “Company”, together with its subsidiaries, the “Group”) deems it appropriate to issue this profit guidance as the Group is expected to report a net loss for the quarter ended 31 March 2016 (“2Q16”).
The loss is attributable to foreign exchange losses on currency forward contracts entered into by the Group to hedge purchase commitments for raw materials which are mainly denominated in US dollars. As the Group does not adopt hedge accounting,
changes to the fair values of foreign currency forward contracts are recognised in profit or loss.

This profit guidance is based on the preliminary review of the unaudited 2Q16 financial results for the Group. Further details of the Group’s financial results will be disclosed when the Group announces its unaudited financial results for 2Q16. In the meantime, shareholders and investors are advised to exercise caution when dealing in the shares of the Company.

Last share buy back was on 7th March of 31,500 shares at 0.625-0.635 share price.

Share buy back executed for 33,500 shares at 0.55 per share on May 27.

Quite a small buy back considering that NAV is much higher.

Will be interesting to see if there is any more buy back

The share price has crept up and is today at 0.865. Anybody who bought at 0.55 is sitting on a nice gain.

That is roughly a gain of 57% before trading costs.

A nice gain, for a year-long holding period.

Now, of course for the big question, move on and book the gain, or let the winner run.

Full Disclosure : I own this share