Lantrovision

[Tiggerbee]

Every company has a dividend policy with a certain payout ratio that. Unless they increased the pay out ratio, it's very natural that the dividends will be slashed as earnings decline, like in the case of Lantrovision. The earnings outlook for Singapore listed companies are not good, with many companies reporting significant decline in earnings. There's a reason why the mom and pops prefer blue chip companies that generate consistent earnings and dividends.

And that's why investors should demand more risk premium when investing in small cap dividend stocks.

[Max12345678]

May anybody shade some light on why the company is going to do another share consolidation again??
5 to 1

[HSquare.Cap]

It is a matter of opinion, not fact, that the "cash reserve" of the company can or can't be utilized due to WC, or a confidence booster. It is different from restricted cash, due to pledging, is a legal definition.

The "misleading" is an overstatement, in this case. Both views have value, and will co-exist, and VBs can decide which is more credible.

Let's drop the "misleading" from the discussion, which is an unfair statement.

Thank you

Regards
Moderator

Totally agree.

There is no just science to investing. Opinions/judgement is art on its on right. Humility is central to value investing. Lets respect different opinions.

Have a good day Value Buds!

Hsq.Cap
Twitter: @hsquare_capital
https://hsquarecapblog.wordpress.com

[HSquare.Cap]

A comments on the cash position of Lantrovision:

If i didnt read this wrongly, the question is on whether or not the cash is part of the operating assets? i.e. does the biz need the cash to maintain its current profitability?

From the question, we can logically deduce that for cash to be part of operating asset, it must be used in the operations as opex, deposits or guarantees. Such that without it, the sales cannot be completed.

To put in another perspective, the cash should not be in the bank all the time. It follows therefore that the cash should not be earning the short term cash rate (market rate for cash asset). In this case, lets approximate the ST cash rate as the Singapore treasury bill yield. Over the period Jun 2014 - Jun 2015, the avg yield came up to be abt 0.6%. Current yield is about 0.95%

Some simple calculation:
FY 2015 ('000)

Interest Income: 1,086
Total Cash: 87,484 (note 54,000 are in fixed deposits - we wonder why?)
Cash yield: 1.24%

This is a useful but not a conclusive exercise.

Looking elsewhere:

87,000 worth of cash for 156,000 sales - are they doing retailing?

Positive Op cash for the past 5 years -  tts a cash cow to us.


We'll let you decide on the verdict.

Cheers
Hsq.Cap
Twitter: @hsquare_capital
https://hsquarecapblog.wordpress.com

[dydx]

Without any fanfare or announcement, Lantrovision advanced $0.06 - a solid 15.4%! - today (5Oct15) to close at $0.45, backed by a relatively high volume done of 632 lots. Something positive coming?

[BlueKelah]

Without any fanfare or announcement, Lantrovision retreated $0.045 - a solid -10%! - today (6Oct15) to close at $0.405, backed by a relatively low volume done of 95.2 lots. Something negative coming?

[MOV]

Let's keep to constructive posts shall we and not disparage others.

Number of data centres in Singapore to grow:


http://www.channelnewsasia.com/news/busi...80872.html

Take a drive, from the east to the west, you can see data centres from Citibank to Google.

[dydx]

Singtel is investing $400.0m in a new tier 3-Plus data centre in Jurong to meet growing demand for co-location and cloud services in Singapore. This new data centre shall be Singtel's 9th in Singapore, and 13th worldwide.....
http://info.singtel.com/about-us/news-re...ata-centre
I suppose there should some new business opportunities for Lantrovision from this?

Lantrovision's latest FY15 (ended 30Jun15) AR just out and should make good weekend reading for those who wish to know more about this unique business of a master-builder of communications cabling systems in Asia-Pacific.....
http://infopub.sgx.com/FileOpen/Lantrovi...eID=372692

[MOV]

Lantrovision takeover offer $3.25, fair? Huge cash assets of $ 92m and resilient business.

[memphisb]

Now we know why Lantrovision consolidate their shares even they are not less then $0.20.

As at 26 Jan $2.20. Offer is 47.7 % premium to share price.

Congrats to all who had vested