Elite KSB Holdings

[CityFarmer]

The company has de-registered a subsidiary, Elite Asset Management Pte. Ltd. This company was incorporated just before the disposal, around mid of 2012. Initial purpose was for investment holding.

http://info.sgx.com/webcoranncatth.nsf/V...20036EAE5/$file/EliteKSB-Deregistration_of_subsidiary.pdf?openelement

(not vested)

[vader1671]

I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

[CityFarmer]

I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

Yes, you are right. The company is a cash company now, and becoming a new company via either M&A or RTO...

The financial report for April 2013 is out today

Summary:
- Dividend from China investment still "stuck" in receivable? It is definitely not a norm IMO.
- The China investment, the "cash cow" continue to generate cash, another 350K in April. From Jan-April, the cash generated is close to 1 mil.
- NAV attributable is approx $28.3 mil, or 21 cents per share.

(not vested)

[pianist]

I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

welcome to the party though not sure if u r a little bit late..hmm..why were u interested in a skeleton company?

[vader1671]

I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

welcome to the party though not sure if u r a little bit late..hmm..why were u interested in a skeleton company?

I'm probably very late. Oops. Not entirely interested in skeletons.

[Matt88]

Hey All,

I m still new to value investing and i m still learning.
i have been looking into this company off late but i m currently lost on the jargons for this thread.
what do you mean by skeleton company/M&A/RTO?

Do give me some tips.

thanks.

[CityFarmer]

Hey All,

I m still new to value investing and i m still learning.
i have been looking into this company off late but i m currently lost on the jargons for this thread.
what do you mean by skeleton company/M&A/RTO?

Do give me some tips.

thanks.

Skeleton company is not a jargon. The equivalent jargon is cash company. You can read through SGX Rule 1017, under chapter 10 for a detail description, with link below

http://rulebook.sgx.com/en/display/en/di...pany#r7792

M&A = Mergers and Acquisitions (in layman term, buying other companies)
RTO = Reverse Take Over (in layman term, bought by other company)

Hope it helps...

[CityFarmer]

Mr. Chew Ghim Bok proposed to take over the KSB China, the cash cow of the company, for $10.57 million. Is this a good buy for Mr. Chew?

http://info.sgx.com/webcoranncatth.nsf/V...E003B27E5/$file/EliteKSB_Annt_Disposal-CapReduction.pdf?openelement

Preliminary view on the disposal.

The sale price of the share is $10.57 million, which is also the book value. The earning of the share is $2.1 million (FY12). So the deal is priced at PB 1 and PE of 5

IMO, a good deal for Mr. Chew...

[pianist]

is it true that most buyers of RTO would want a totally clean empty shell?

[chew]

The market cap is already over book value. Any thoughts on how much a RTO is worth?