Lantrovision

[Kelvin]

Thanks dydx for highlighting this counter

[Some-one]

I do agree that Lantrovision is profitable but I just do not understand why it does not give regular dividends even though it is profitable. I think that is a minus point.

[ken]

Impressive !
Just by declaring 1 ct dividends and rights issue.
Share price : $0.038.
Up 18.75%.

[dydx]

With the full-subscription and listing of the new shares under the massive 12-for-1 rights issue at $0.09/share on 16Oct12, Lantrovision has finally and successfully completed the complicated corporate excercise, and the counter - last traded at $0.245 on 25Oct12 - has been traded within a narrow range of $0.225/$0.25 in the last 8 market-days.

For learning purposes, I thought it is most interesting to take a good look into Lantrovision's massive share price evolution throughout this corporate exercise. From the share price chart, we could see that from the closing price at $0.035 on 3Sep12, Lantrovision shot up to $3.40 momentarily on 4Sep, and fell back down to $2.29 on 5Sep and then traded within a narrow range between $2.22 to $2.39 till 14Sep. And on 17Sep, the counter fell to $0.28, and then went as high as $0.32 intra-day momentarily on 18Sep, and after that traded downwards to close at $0.25 on 15Oct, before the new rights shares were listed on 16Oct12. What a roller-coaster ride! I have never seen a similar price movement before! Of course, we have to interpret it by following the steps and specified dates in the entire corporate exercise.

For those who have not learned about Lantrovision, I think the latest FY12 (ended 30Jun12) AR is worth reading....
http://info.sgx.com/listprosp.nsf/07aed3...20025b0fc/$FILE/Lantro%20AR12_FA_LOW.pdf

[dydx]

1Q (ended 30Sep12) result just out.....
http://info.sgx.com/webcoranncatth.nsf/V...0002F4446/$file/LanTroVision_Q1_FY2013.pdf?openelement

Even after accounting for the $0.01/share Special dividend paid on 17Sep12, Lantrovision's 30Sep12 B/S remained full of cash, but I thought it is a little 'deceptive' for those who are looking for the latest position.

[CY09]

Hi dydx,

Interesting turns of corp actions by the company. I did the calculations and assuming we started at a price of 0.032 before consolidating 100 for 1. The maths are:

Consolidation of shares after paying dividend : 3.2-1=$2.2
Rights issue: 12 for 1 @ 9 cents: Total price $1.08
Add 1.08 with 2.2 and Divide by 13 shares= (2.2+1.08)/13

We have $0.252 value per share
Hope my maths is right and this is quite close to where the share price is of now

[dydx]

Since the completion of the massive 12-for-1 rights issue and the listing of the new rights shares on 16Oct12 and for one-month now, Lantrovision's share price - last done at $0.255 (16Nov12) - has shown great resilience. With 248.99m new shares from the rights issue, I actually had expected the share price to fall - but it didn't! Quite obviously, there are many serious investors involved here, and they probably think Mr Market is under-pricing this counter.

[cif5000]

Since the completion of the massive 12-for-1 rights issue and the listing of the new rights shares on 16Oct12 and for one-month now, Lantrovision's share price - last done at $0.255 (16Nov12) - has shown great resilience. With 248.99m new shares from the rights issue, I actually had expected the share price to fall - but it didn't! Quite obviously, there are many serious investors involved here, and they probably think Mr Market is under-pricing this counter.

It's not obvious to me how one can come to a conclusion that many serious investors are involved. I remember the counter traded as high as $0.30 XR. The current price is significantly below that. Won't call it resilient either. Not to forget that after the whole exercise, the company actually sucked in cash from investors despite paying a pretty looking dividend of $1 per share ex-consolidation.

[dydx]

I have noticed that from the closing price of $0.25 on 31Dec12, Lantrovision at yesterday's (9Jan13) closing price of $0.29 has advanced $0.04 - or a cool 16.0%! - in the first 6 market-days in this new year of 2013. Impressive!

Would there be more to come? I certainly hope so, and also hoping that Lantrovision would declare a decent Interim dividend when the company releases its 2Q result next month.

With the latest position of 269.742m outstanding issued shares after the capital restructuring exercise (including a massive 12-for-1 rights issue priced at $0.09/new rights share) completed after 30Sep12, Lantrovision's latest NAV position now stands at $96.4m (inclusive $22.4m raised from the rights issue) or $0.3574/share, together with a huge nett cash reserve.

While Lantrovision is no longer a 'penny stock', a relevant question remains: Why should a supposedly rational Mr Market choose to still price such a well-established and steadily profitable business below its NAV/share?

[dydx]

2Q/1H results should be due within days. Bearing in mind Lantrovision has a huge and growing nett cash reserve, I wonder whether its BOD would reward shareholders by paying out a nice Interim or Special dividend any soon?