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(31-07-2013, 10:00 AM)KopiKat Wrote: (30-07-2013, 04:36 PM)CityFarmer Wrote: (30-07-2013, 03:52 PM)KopiKat Wrote: Looks kind of complicated to me with their cross holdings if and when completed... From the earlier SGX Annc,
1. UEL is holding 13.18% of Memstar (Group)
2. Now, Memstar (Group) will hold 22.6% of UEL after the 1st Tranche Payment (in shares)
3. Memstar is proposing to either delist or stay listed, in which case, they'll pay out a distribution in Cash + UEL Shares (1-for-10). UEL will have their entitlement set off during the 2nd Tranche payment..
Yes, a complicated deal indeed.
It seems a fair deal IMO. The most important question to me is any room for "tikam" within the deal? Hmm...
(not vested)
At first look, Memstar NTA will be increased from RMB19.08 to RMB53.25 if and when this whole deal goes through. At an exchange rate of 1RMB = S$0.2072 (Yahoo Finance), this translates to S$0.11. Using current Memstar mkt price of $0.09, this translates to a potential 22.5% gain.
BUT (there's always a BUT), the new NTA is based on an UEL inflated share price ($1.10 vs current $0.955 ie. 15% premium). Let's look at the breakdown of this deal ie. what Memstar will get over 2 tranches,
1. Cash = $73.35Mil
2. UEL Shares = 200,055,550
Total Memstar shares in issue = 2,667,407,337
At UEL = $1.10, we get on a per share basis,
(Cash + UEL Shares) / Memstar Shares
= ($73.35M + 200,055,550 * $1.10) / 2,667,407,337
= $0.11 (similar to reappraised NTA)
But at current mkt UEL = $0.955, we get $0.0991 or ~10% premium over current Memstar mkt price of $0.09
So, looking at liquidation value, the key would be to watch both UEL & Memstar share prices.... perhaps clearer when key events like EGMs draws closer..
Yes, thanks for all the numbers.
The key numbers are $1.10 (issued price of UEL's shares) and $0.11 (valuation of MemstarT by UEL). Mr. Market's valuation seems slightly different.
IMO, for "tikam" purposes, MemstarT is the ONE deserving more attention. But for long term holding (if feasible), UEL seems a better candidate.
I agree with you, we should wait till more card unfolded (i.e. key events), or before them to max the gain ...
Omg, it seems I have more investment opportunities than I am able to serve with my time and $...
(not vested in MemstarT and UEL)
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(31-07-2013, 10:38 AM)CityFarmer Wrote: Omg, it seems I have more investment opportunities than I am able to serve with my time and $...
I have the exact same problem... The blame goes to Joel Greenblatt & Seth Klarman for introducing me to the idea of "Special Situations" and "Value Arbitrage"... In comparison, the good old days of cd-xd play seems so unexciting.....
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(31-07-2013, 10:54 AM)KopiKat Wrote: (31-07-2013, 10:38 AM)CityFarmer Wrote: Omg, it seems I have more investment opportunities than I am able to serve with my time and $...
I have the exact same problem... The blame goes to Joel Greenblatt & Seth Klarman for introducing me to the idea of "Special Situations" and "Value Arbitrage"... In comparison, the good old days of cd-xd play seems so unexciting.....
Yes, we should "blame" them for the happy problem(s) we are facing... For me, I started off with Buffett's arbitrage and Peter Lynch's asset play concepts, should I "blame" them too?
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(31-07-2013, 11:19 AM)CityFarmer Wrote: (31-07-2013, 10:54 AM)KopiKat Wrote: (31-07-2013, 10:38 AM)CityFarmer Wrote: Omg, it seems I have more investment opportunities than I am able to serve with my time and $...
I have the exact same problem... The blame goes to Joel Greenblatt & Seth Klarman for introducing me to the idea of "Special Situations" and "Value Arbitrage"... In comparison, the good old days of cd-xd play seems so unexciting.....
Yes, we should "blame" them for the happy problem(s) we are facing... For me, I started off with Buffett's arbitrage and Peter Lynch's asset play concepts, should I "blame" them too?
But every now and then, we hear people saying that the market has been driven up...very high now...nothing's cheap...holding cash...waiting for correction...crash...overpriced...
These guys should learn from you all.
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The recent slump in price of the company, provided an opportunity for those interested.
(vested)
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(23-12-2013, 04:42 PM)CityFarmer Wrote: The recent slump in price of the company, provided an opportunity for those interested.
(vested)
Wonderful! Thanks!
Vested today.
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(24-12-2013, 09:59 AM)orangetea Wrote: (23-12-2013, 04:42 PM)CityFarmer Wrote: The recent slump in price of the company, provided an opportunity for those interested.
(vested)
Wonderful! Thanks!
Vested today.
You missed the "sales" few days ago.
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24-12-2013, 10:56 AM
(This post was last modified: 24-12-2013, 11:43 AM by orangetea.)
(23-12-2013, 04:42 PM)CityFarmer Wrote: The recent slump in price of the company, provided an opportunity for those interested.
(vested)
No problem at all.
This was not in radar/watchlist.
Small qty, not so much difference.
Its arbitrage play since above mentioned
"The key numbers are $1.10 (issued price of UEL's shares) and $0.11 (valuation of MemstarT by UEL)"
Hence memstar at 0.08 is about 25% discount which is still good enough for a tikam
Thanks btw!
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The market price surge to new height, 8.6 cents per share, with volume of close to 9 mil shares.
Mr. Market suddenly waken-up? I am glad that I have done with the accumulation. Its value should be realized within 2014.
(vested)
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The company is my virgin investment on penny stock, i.e. a stock's market price below 10 cents. I always stay away from penny stocks, but my story on the company is more an asset play, rather than a growth stock.
The company market price appreciated more than 35% in the half month...
That reminded me on KopiKat, where are you, my tikam buddy?
(vested)
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