Jasper Investments

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Zero revenue for 9 months ?!? Surely a test of shareholders' patience...while the rig gets repaired.

http://info.sgx.com/webcoranncatth.nsf/V...5001A50F2/$file/ResultsAnnouncement_3QFY2013.pdf?openelement

[ValueBeliever]

As oil company tightens, rig re-hire gets more competitive and attrition will most likely to happen to those aspiring to be in deeper waters to take on higher risk for higher return end up defaulting on loan.

Jasper impact on Keppel will be small change but it may sent shock wave if you go check all the rig majors are trading below their 50days MA and 100days MA is hovering near.

An over extended 20year cycle just ended. With so much uncertainty in Middle East and sanction in Russia, yet oil is going down.

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No matter the prospects, buy only companies that are able to prosper while maintaining unassailable balance sheets.

[ValueBeliever]

Be very careful on revenue and cost structure when industry cycle turn. Very often structural problem takes longer time and deeper cuts but before any Co. can make meaningful adjustment to a lack of revenue flow while fixed operation cost is saddled in a state resistance to change. They got used to revenue flow and had pile on too much cost.

The domino effect is taking hold on wall st. and it will take months for the fund to par down their holdings. Balance sheet cannot make a difference between good and bad Co. when the industry impact all, it only a matter of time that the good will also fall, when the worst got dump months back.

[specuvestor]

I think smallcaps is talking about biz valuebeliever is talking about share price

[lonewolf]

Will this be the final nail in Jasper's coffin?? The announcement makes for some scary reading for those vested but I suppose the writings were on the wall for quite some time now.

POTENTIAL BREACH OF FINANCIAL OBLIGATIONS

It amazed me that companies in the same industry can be having so different results. Its kinda hard to wrap your head around it. If its not the industry, then it must be the management and execution of the business plan.

[opmi]

The first nail is when they refurbish the ship into a drillship at
peak of the boom.

Another lesson here is to avoid companies run by fund managers. In this case, Ashmore.

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I think smallcaps is talking about biz valuebeliever is talking about share price

Ya, can only speak for myself, definitely not talking about price.

Just my opinion that for those companies that keeps a superb balance sheet over time, generally they wouldn't get themselves into such situations, since the balance sheet could be liken to be an extension of the controlling shareholder/management's character. That is, relatively conservative and careful.

[ValueBeliever]

The fact that this Co. has veteran management from Maersk and Ensco did not help. So much for European/American expertise in Singapore Inc.

The Co. had their time when oil price was high and can masquerade its debt and rusty drillship asset injection.

Looks like Singaporean are getting tired of financing this false oil rig sector economy. The day of reckoning is near. Who is going to pump Jasper back to life - definite not Singaporean.

[CityFarmer]

The company has a negative equity, and the last closed price was 0.5 cents per share. The offer price is 0.04 cent per share. The IFA recommendation sounds right to me.

(not vested)

Reject unfair takeover offer for Jasper Investments, says adviser
19 Oct 2015 10:00
By Melissa Tan

AN independent financial adviser (IFA) to the board of offshore company Jasper Investments has recommended that shareholders reject a $0.0004 per share takeover offer for the firm, calling it reasonable but "not fair".

The unfairness was due to the offer price's huge discount to historical trading prices for Jasper shares, it said in a circular that Jasper Investments filed on the Singapore Exchange on Monday morning.

"The independent directors may wish to consider advising shareholders who are not prepared to accept the uncertainties facing the future prospects of the group and who wish to realise their investment in the company to sell their shares in the open market if they can obtain a price higher than the offer price."

Jasper's independent directors also said in the circular that they agreed with the advice from the IFA, Tata Capital Markets.
...
Source: Business Times Breaking News