Baker Tech

[BlueKelah]

Depending on what you are looking at, for me cash alone already about 20c which serve as some sort of insurance.

[ remain vested ]

Actually cash level is about 17cents and RNAV should be 23 cents if you factor in the 5 cent dividend just given. This will only show on next quarterly report.

So in fact there is no more MOS and income wise not much coming in so unless some investment is to take place, it will be unable to sustain any sort of decent dividend. And if they do invest in something, the cash level will drop a lot.

good that you are vested before the dividend, your cost of ownership would be much lower, but if management just sit around doing nothing you would be just parking your money in a share that is just doing "capital reduction" and not much else.

I would think its time to take profit for this share. I already sold out even before the dividend was given and wont be touching until it drops below the 23 cent NAV.

But does look like some announcement coming and news has been leaked as the recent run up is highly suspicious. Too specuative for my taste...

[kayhian]

baker tech is an excellent growth stock .... will be a pity if it gets delisted.

[valuebuddies]

It may not be that appropriate to name it excellent growth stock. Sea Deep is highly profitable (in terms of margin) but once had hard time to secure orders. From the past history, I believe the management has the capability to make good use of the excess cash for the ultimate benefits of the shareholders, whether an acquisition or expansion on Sea Deep business, I think it is a positive sign. Even if the board decided to return the cash to shareholders, its price would rise as well (based on how market reacted during the last 2 special dividend).

[smallcaps]

Baker Engineering is recruiting... a hint at wats its going to be about:

http://www.bakertech.com.sg/pdf/ProjectManager.pdf

...
To project manage construction of marine & offshore projects including mobile offshore
units, offshore supply vessels and marine structures from engineering, procurement,
construction, testing, commissioning and delivery.
...

[BeDisciplined]

Could be a replacement headcount. Not necessary is a new headcount which could be construed as business expansion

[smallcaps]

Could be a replacement headcount. Not necessary is a new headcount which could be construed as business expansion

Baker Engineering supposed to be a newly formed subsidiary... the interesting part is how come it involves shipbuilding (like Nam Cheong)? Or maybe is it talking about a small portion of shipbuilding?

[smallcaps]

Could be a replacement headcount. Not necessary is a new headcount which could be construed as business expansion

Baker Engineering supposed to be a newly formed subsidiary... the interesting part is how come it involves shipbuilding (like Nam Cheong)? Or maybe is it talking about a small portion of shipbuilding?

Answered in 1H14 result, Liftboats!
Seems will be good synergy with Sea Deep...

http://infopub.sgx.com/FileOpen/BTLQ214....eID=307422

The Group maintains its optimism on the long-term fundamentals of the oil and gas industry
as it has been receiving good enquiries on offshore components and equipment. Baker
Engineering Pte. Ltd. (“BEPL”), a subsidiary of the Group, has also completed its design for a
state-of-the-art liftboat (a self-propelling multi-purpose jack-up) and will commence the
construction of the liftboat. The Group is also continuing to explore external opportunities
(including strategic alliances) and to provide additional avenue of growth.

[valuebuddies]

Few points noted from the Q2 results:

- Gross margin improved to 23% versus 21% from corresponding period
- Revenue reduced but order book increased to US$61M
- Net profits reduced by 92%. Excluding the extra-ordinary income and exchange gain/loss, the PBT for Q2 should read S$2.1M versus S$2.3M from corresponding period
- Net cash per share reduced to S$0.17129 versus current share price of S$0.265

The company's functional currency should be USD but choose to present in SGD, thus any little change in the exchange rate would resulting in huge exchange gain/loss due to cash mainly denominated in USD. The earnings from the existing business don't seems to enough to maintain the current 1c dividend per year, but given a large amount of cash, I do expect another round of special dividend.

[ vested ]

[smallcaps]

More details from the slides regarding the liftboat:
Looks like its going to be made in Singapore!

http://www.bakertech.com.sg/pdf/Baker%20...Slides.pdf

Construction will be commencing in our Singapore yard for sale
or ownership and charter with or without partners

[valuebuddies]

Triyard is the main player in Singapore, below as quoted from its 10th July announcement:

With the rise of new players in Asia, especially from China, entering into the space TRIYARDS is in, the Group expects the next 12 months to be more competitive and challenging. Demand for liftboats in Asia is expected to remain buoyant, especially with increasing acceptance of their use. The demand for medium to large sized offshore support vessels should also stay healthy. The Group is thus cautiously optimistic that it can lock in a greater share of this segment, barring any unforeseen circumstances which may arise to destabilise the current financial market and global economy.

Ezion and Ezra are the two biggest liftboat owners in Singapore, and been long time customers of Triyard. Ezra unlikely to order from BEL instead from its own Triyard, and Ezion would probably consider BEL only is the price is competitive. It is glad to know that the BOD is trying to maximize the returns by entering new trade/business, but I think it is still too early to count its success. Bear in mind also that the cost of running a yard in Singapore is not cheap.