HupSteel

[karlmarx]

Nope, just sitting on the sidelines collecting dividends and occasionally profit taking from those counter that have hit my target. 

Now mainly waiting for the market to correct/crash, before I allocate more into stocks.  

I thought so as well. Everything has become more expensive, not much discounts to be found.

[bargainhunter]

Good move by management! Now to wait for some dividends...

"The property does not form an integral part of the Group’s trading operations, occupancy rate
and rental yield from this property has also been below expectation. It hopes not to commit
more resources to enhance its rental attractiveness on top of meeting more stringent
conservation requirements imposed on the property."

There are quite a number of its investment properties meeting this description. Does that mean we can look forward to more disposal of such properties?

Embedded in the same announcement....not exactly optimistic there will be more dividends as a result of below action.

http://infopub.sgx.com/FileOpen/Disposal...eID=459370

Uses of Proceeds Pending the deployment of funds, the net proceeds may be used to repay existing bank borrowings, deposited with banks and financial institutions and used as working capital.

I think the Uses of Proceeds statement is just a formality.

They have cash overflowing from their mouth.  the amount of net proceeds received is a dwarf relative to the total amount of cash.  The sales proceeds is >$5m.  The company's total liabilities is < $4.3m.

Alas, the effects of confirmation bias.....

If the sales amount is insignificant to its existing cash, and most probably its existing cash needs to be used as working capital for its steel business - and is not been distributed to shareholders, why would this "small 5mil" be distributed? Distributions generally only happen because there are excesses. If a huge amount is required for working capital, it is hard to imagine the "small 5mil" will become an excess.

Take note that we are only discussing whether this sales will be distributed in the form of more dividends or not. No one is disputing the cash it has on its BS or its conservative reporting of its investment properties. I think the odds are stacked against an increased dividend due to this sale - i could be totally wrong but i notice Hupsteel closes in June for its fiscal year, and so we will know in another few months down the road.

the company did deploy cash to do share buyback  last aug and again in may/june.  they are trying to show that they are not cash hoarders.  traditionally, they had paid more dividend than the 1c they paid last year.  they only cut the dividend when the entire business was hit in the past 2 or 3 years.  now that they have stabilised things, i think there is a chance that they may pay more than the 1c they paid last year, that's all.

[bargainhunter]

http://infopub.sgx.com/FileOpen/Hupsteel...eID=468369

there was a 1c special dividend in addition to 1c normal dividend even though the property sale was yet to be accounted for.

[weijian]

http://infopub.sgx.com/FileOpen/Hupsteel...eID=468369

there was a 1c special dividend in addition to 1c normal dividend even though the property sale was yet to be accounted for.

Doubling of dividends and an additional cool "0.6mil". It seems like i am wrong on this!

[karlmarx]

It is not much. But not bad, increase dividend, translating to 2.5% dividend yield.

It also looks like the impairments have stopped. Perhaps, recovery in the next year or two.

The wait continues for the value from more/larger properties to be realised...

[chinmaya]

They're moving at a snail's pace in realising value for shareholders

Sent from my SM-G920I using Tapatalk

[bargainhunter]

At least its a slow pace in the right direction.

The good thing is that the sold property which has an EPS of >$0.03 is only recognized in the next financial year. This may lend some support to earnings and dividends.

Their final statement of the commentary was " Going forward, the Group will continue
to review its strategy for the remaining properties in its portfolio and will provide relevant
announcement on any development to be undertaken. "

This may also hint at further property disposals.

[bargainhunter]

http://repository.shareinvestor.com/rpt_...pe/si_news

under section 2.0 Rationale for the Project:

On completion, subject to the prevailing market
conditions at that time, the Group may decide to rent out or sell the individual strata units.

does anyone know why 2 years after completion, they have not tried to sell the units at 6 kim chuan drive individually yet?

[bargainhunter]

http://infopub.sgx.com/Apps?A=COW_CorpAn...8317db57b5

Hupsteel has resumed its share buyback programme. It is 100% of the volume today buying all the 210,900 shares available for sale at 0.78, 0.785 and 0.79.

[bargainhunter]

http://infopub.sgx.com/Apps?A=COW_CorpAn...474d481bbc

Hupsteel bought back another 44,200 shares at $0.79 today, again making up 100% of the volume traded today.