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13-03-2015, 06:22 PM
(This post was last modified: 13-03-2015, 06:23 PM by specuvestor.)
Tulip... VB has actually tried doing that before on one of the deep value stocks. I forgot which one. It's not easy unless aggregate ownership is >10% which includes EGM requisition which is what is happening to Huan Hsin. If you read through this thread you will see the footsteps of many disappointed VBs
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
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No one knows when is the next cycle coming, and the steel demand situation is not showing signs of improvements. Despite seeing the value of this stock, I'll pass on this. I'd rather put my money into businesses that already show some signs of turnaround.
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13-03-2015, 07:23 PM
(This post was last modified: 13-03-2015, 07:24 PM by CY09.)
Hi Tulip,
Specuvestor is referring to a company called Sing Holdings. It was a painful lesson where one learnt that sometimes we should not focus only on the balance sheet but also the shareholdings and the control the mgmt has. If they are shareholder unfriendly and hold tremendous control over the company because they are part of the mgmt and have a large % of shareholdings, it is difficult to extract value or call them to do a share buyback. You have to be prepared to be an OPMI for a long time.
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(13-03-2015, 07:23 PM)CY09 Wrote: Hi Tulip,
Specuvestor is referring to a company called Sing Holdings. It was a painful lesson where one learnt that sometimes we should not focus only on the balance sheet but also the shareholdings and the control the mgmt has. If they are shareholder unfriendly and hold tremendous control over the company because they are part of the mgmt and have a large % of shareholdings, it is difficult to extract value or call them to do a share buyback. You have to be prepared to be an OPMI for a long time.
I had a previous lesson on ITG (Internet Tech Group). The free-float gave an illusion, that "cheap" GO can be prevented. I failed, admitted and submitted my acceptance to an offer price which was lower than cash reserve in balance sheet then.
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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I have no complains abt this co. I expected them to cut dividends last FY but was presently surprised they didnt. The steel industry is facing strong headwinds. There is a chance it might report negative earnings few more quarters down the road.
If u are the management of the co and not a minority shareholder what will you do, assuming you are one with integrity? Will you repurchase back shares to make those so call long term minority shareholders happy? My guess is majority of minority holders will throw in the towel once the share price reaches 25c. Or will you conserve $$ till you can see some light at the end of the tunnel?
Its not as if they are not doing anything. They refurbished the industrial properties and i think by this year it sh complete and ready to be rented out. Hopefully the rental income will prevent the earnings from going into negative.
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Free Float: still glad that company has 40+% free float, which will cost the majority shareholders $50m to buy back the company.
Steel industry: Steel industry is not expected to do well. So I am pretty glad that their inventory has been reducing to minimize the exposure of a poor steel industry/ price risk.
Dividend: With limited profitability and 50+% shareholding, dividend out isn't that bad idea. If the company continues with 1 cents dividend, it is still a good 5%, which is better than FD rate.
Property redevelopment: Just hope that Hupsteel can registered the new property at current valuation, which will be good for boosting fair value gain profitability this year.
Value Trap: So I guess quite a few of the VBs are of view that this share is potentially a value trap?
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“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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(06-08-2015, 09:45 PM)Bibi Wrote: No more dividends i guess 
.
don't think so,
heehee, let's see how it go.. it's a family biz..
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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