Singapore Post

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(22-12-2016, 03:19 PM)Stephen Wrote: Can someone share why alibaba is buying at 1.74 to be issued new shares ( dilution ) when it could just buy from the open market at 1.45 ( no dilution ).

I understand that she can get a large block of shares in this way BUT why pay so high still?

Is it to do with some takeover code or something ? Very puzzling

The placement contract is negotiated why Singpost shares is high. The contract is push back 3 times. When it is negotiated IIRC, Singpost shares is at 1.7-1.8

Of course, that they honoured that contract speaks vol. The contract comes with also strategic alliances including that of Australia quatium, so it's a business agreement rather than purely investment agreement
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance
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Thanks green rookie for the explanation .
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Mr Paul William Coutts appointed as Group Chief Executive Officer and Executive, Non-Independent Director

Age : 60

Working experience :
February 2013 - Present
Toll Global Forwarding
Chief Executive Officer (Based in Singapore)

August 2009 - January 2013
Toll Global Forwarding
Global Products, Marketing and Sales Director (COO) (Based in Singapore)

January 2007 - August 2009
DPWN
Managing Director, Marketing and Sales, Europe, DHL Express (Based in Brussels, Belgium)

April 2006 - December 2006
DPWN
Chief Executive Officer, DHL Global Mail - Europe (Based in Bonn, Germany)
Chief Executive Officer
Specuvestor: Asset - Business - Structure.
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waos, expert lai liao! Big Grin

ex-CEO of DHL leh... where to find?!! Tongue
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR! 
4) In BULL, SELL-SELL-SELL! 
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Why is he coming to signpost though. He not happy working for the Japanese or is signpost over paying for him.

Imho 60yo Liao he should probably be retired lol...

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SPost well-known employing older & veterans one.

Should be lauded in Singapore when many govt offices still shun the older workers. lol.
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Classic case - Company had too much cash, Chairman and senior management bought rubbishes at over inflated prices in the name of transformation.

I am always skeptical with all these ex-Mck and AngMo.  All flash bangs and no results.  


another Global Yellow Page?     

SingPost's head of e-commerce quits

Marcelo Wesseler will help in transition of duties while serving notice until June 5; Paul Demirdjian appointed interim CEO of US businesses

http://www.businesstimes.com.sg/stocks/s...scott-reit
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SGX reprimands Singapore Post Limited

Singapore Exchange reprimands Singapore Post Limited for its breaches of the Listing Rules.

The instances of non-compliance with the Listing Rules are as follows :
a. Listing Rule 703(4)(a) read with Paragraph 25(a) of Appendix 7.1 of the SGX-ST Mainboard Listing Manual, which requires that in complying with the Exchange’s disclosure requirements, the content of each announcement should be factual, clear and succinct.

b. Listing Rule 719(1) requires an issuer to have a robust and effective system of internal controls, addressing financial, operational and compliance risks.

More details in http://infopub.sgx.com/FileOpen/20170504...eID=452042
Specuvestor: Asset - Business - Structure.
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SP will be doing a review of what went wrong on its TradeGlobal purchase, just barely 1.5years after purchasing it in Oct2015. The results of the review would be released before the AGM in July 2017 and it would be interesting to learn together with them.

SingPost revenue rises 17.1 per cent for the full year, net profit falls 86.6 per cent on impairment charges

Following the announcement of the risk of significant impairment in the Q3 quarterly results, the Board formed an independent committee to conduct a thorough review of the circumstances surrounding SingPost’s consideration and approval of the TradeGlobal acquisition. To assure stakeholders of the independence of the review, the committee comprises Ms Elizabeth Kong, Mrs Fang Ai Lian and Mr Bob Tan, independent directors who were all appointed to the Board after the acquisition of TradeGlobal.

F17 results press release: http://infopub.sgx.com/FileOpen/Press%20...eID=453567
TradeGlobal's accqusition in Oct2015: http://www.channelnewsasia.com/news/busi...6m-8247094


Snippets about TradeGlobal in AR16 http://www.singpost.com/sites/default/fi...R15-16.pdf as below:

(pg10) We made good inroads in bringing international brands served by TradeGlobal and Jagged Peak in the US, into Asia Pacific markets.
(pg24) The acquisitions of TradeGlobal Holdings and Jagged Peak have expanded SingPost’s eCommerce logistics footprint in the US, connecting the dots in building a global eCommerce logistics solution with the unique ability to provide access to China and the rest of the Asia Pacific.
(pg25) Our ability to serve US eCommerce customers was strengthened greatly. TradeGlobal offers a full spectrum of eCommerce services that includes website design, content management,
marketing and analytics, fulfilment and logistics.
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greengiraffehttp://www.valuebuddies.com/thread-4576-...l#pid97333

Read the above link and you will have a better understanding of the flushed out that resulted in the recent global volatility.

Sing Post is perceived to be a safe haven counter with BABA growth.

IMHO, I think SingPost share price performance underpinned by e-log will be shaping up for disappointment down the road.

E-fulfillment is a high capex and labour intensive business. Capex to be invested on logistic centres and fleet and the labour involved in delivery is something that BABA as an asset light middleman doesn't have. Hence while BABA thrives on volume, SingPost as a E-fulfillment company will be bogged down by rising A and higher E (ROA, ROE). Conceptually, BABA thrives on asset turn but BABA needs plenty of logistic operators to help them thrive in that role.

Sing Post happened to be that operator. In any event, traditional mails will continue its slow death hence e-fulfillment is an essential business that Sing Post need to transform.

Globally, funds are flushed and hence when everyone buys a certain concept, then a bubble is forming. Note that offshore and marine sector is out liao and can be for quite a while. Hence the amount of $ free up can be mind boggling at least within an illiquid mkt like SGX.

Odd Lots
Cert Vested
GG

GG's post has proven prescient. 

Buying any business from a private equity firm, such as TradeGlobal from Bregal Sagemount is a dangerous path (In this case Bregal bought the business in Sep 2013 and sold it to SingPost in Oct 2015).  Private equity firms are designed to extract maximum value from their investments whether through a sales or an IPO.  In other words, you won't see Warren Buffett buying any business from a private equity firm.  He will go into partnership with them and provides the capital for interest paying convertible bonds while he waits for an exit event. 

Typically, there will be profit and revenue guarantees for the first few years from the prior owners, and additional payouts if the business exceeds those targets.   There is also a retention bonus and equity for existing management in order to ensure continuity after the acquisition.  I really hope SingPost had these provisions in place, but it doesn't sound like it so far.

M&A deals are easy.  Just take any investment banker/ consultant presentation for synergies and added value and you are done. The challenging part is the integrating the acquisitions in terms of sales force, infrastructure, etc that will provide the value for the acquisition.  That is why the people behind 3G Capital are so impressive.  They don't buy and resell companies in 1 to 2 years.  They consolidate operations and produce tangible savings in companies like Kraft Heinz and Anheuser-Busch InBev SA/NV.  The question for SingPost is what were the original projections that were so far off, and how can they realize any value from it now.

I also hope SingPost learns and gains from this experience as I have fond childhood memories despite the long lines then.  There is a reason why Singapore companies have failed in the United States, from Creative to Yeo Hiap Seng.  Taking a hard look at the company's strengths may help.  Being a big fish in a small pond requires different skills from being a small fish in a big pond.
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