E2-Capital Holdings Limited (formerly: Westminster Travel Limited)

[pianist]

Hi dydx were U one of the buyers for 277 yesterday? I bought mine last year below .12. Not gg to sell any at the moment.

[dydx]

Mr Market is mindful of breaching the 'cap' of under $0.17 because that is exactly what is left in the company after paying out the dividend. I wouldnt say that those who are buying now are 'nuts' but they obviously are not giving themselves a fair margin of safety at the point of purchase. I reckon that those who purchased their shares after the dividend announcement merely look at the NAV of $0.19 and did not peruse the balance sheet carefully to identify the intangibles accounting for 34% of their net assets (or approximately 6.5 cents per share). Will a value investor pay for the intangibles by offering more than $0.12 before the dividend announcement? Few may, with deep convictions about the business perhaps. I will guesstimate that most in this forum won't.

and I guess you should concur that past issue price at IPO has no bearing on their current value or worth now.

Conceivably the IPO price of $0.235/share in Jan2009 was based on professional valuation of Westminister Travel's business then by PrimePartners Corporate Finance and other financial advisors/intermediaries (e.g. underwriting brokers and/or institutional investors), and PrimePartners Corporate Finance is a decent house with a certain good reputation for professional work. So I believe the IPO price of $0.235/share still has some bearing on investors' psyche.

We should also bear in mind that since IPO, Westminister Travel's business has growth in scale and profits over the last few years, and the company has not raised any new capital since.

While valuing a business is both an art and science - plus a valuer's own experience - and in Westminister Travel's case, I suppose most rational investors would value it based on applying a reasonable multiple on its recurrent NP or FCF, plus adding to it the adjusted net cash reserve in the latest B/S. Based on this simple method, my own conservative FV estimate for the share is $0.26. Based on this, Westminister Travel at the pre-result announcement share price level of $0.12 or below was a great buying oppportunity for me.

For the sake of discussion, for investors who believe in a FV of say $0.26/share for Westminister Travel, at yesterday's (6Feb13) closing share price of $0.165, there still existed a 37% discount. I suppose that's why many of them have decided to buy up the shares in volume this morning all the way to $0.185 now.

I suppose the trick lies in first recognizing Westminister Travel as a good-quality stock and being able to arrive at a good-enough FV estimate that comforms with average investors' market norm. As for the appropriate margin-of-safety to apply, it is really a matter of individual investors' own decisions.

[dydx]

FY13 (ended 30Jun13) full-year results just out.....
http://infopub.sgx.com/FileOpen/WTG-FY20...eID=254289
Both business volume/Revenue and profits/PBT continue to grow steadily. 30Jun13 Group B/S remained rock-solid and debt-free, and with a large cash reserve of HKD208.4m - equivalent to approx. $0.123/share!

A Final dividend of HKD0.054/share (approx. $0.009/share) declared, making it a total of 3 dividends (including a HKD0.0928/share Interim and a HKD0.05/share Special already paid) amounting to HKD0.1968/share (approx. $0.0325/share) in total for FY13. Super nice!!

[pianist]

that an incredible 18%...
floating...

[ngcheeki]

Congrats to those vested. Selling off their businesses to 2 parties at a total of S$56,951,385 + S$18,882,683 and made a gain of HK$243.27 million


http://infopub.sgx.com/FileOpen/Sling_An...eID=265109

Not vested

[pianist]

I also just finished reading the announcement...
seems like a datuk wong is throwing his towel and taking the golden goose by himself now..
should we accept his offer? if so, this would be another early Christmas present for those vested
vested

[dydx]

It is quite amazing how Datuk Wong and the management have managed to negotiate such a good price for the proposed trade sale of Westminster's entire business. Based on info in p7 of today's announcement.....
http://infopub.sgx.com/FileOpen/Sling_An...eID=265109
, Westminster's NTA/share after the proposed disposal will rise to a whopping HKD2.03 (equivalent to approx. $0.325) - all in cash.

Unless a new business is found in a timely manner, I guess Westminster's BOD will have accede to shareholders' request and interest to pay out a big portion of the cash from the business disposal to shareholders.

[dydx]

Westminster has completed the sale of its entire business on 29Jan14 and is now an all-cash company - with a total of HKD551.77m (equivalent to approx. $90.7m) sitting in its bank accounts! - and has changed its name to E2-Capital Holdings Ltd…..
http://infopub.sgx.com/FileOpen/Project_...eID=272971
Based on its existing 280.0m issued shares, NAV/share and Cash/share now stand at approx. $0.324.

Shareholders should also note the following para extracted from the announcement….
"The Company is currently considering various new business options available and will be actively pursuing the acquisition of new operating business(es) and assets with proven track record and/or good growth potential. The Company will update Shareholders on material developments as and when appropriate in relation to the acquisition of business(es) for a new listing."

It will be really nice if Dato’ Wong Sin Just, Non-Executive Chairman - and a maverick and smart investor with a proven track record - can again deliver another nice business acquisition to the company. Otherwise, the BOD should seriously consider returning most of the company's capital to the shareholders.

[pianist]

Dato' Wong is my lucky star this year. gg to hug him if i ever see him.

[cyclone]

Dato' Wong is my lucky star this year. gg to hug him if i ever see him.

Ha ha ha. Yes, we should thank Dato' Wong for the excellent job.