Excelpoint

[beau]

Hi CY09,

Not sure how exactly you got 0.52. Like I said based on Current Assets less Total Liabilities alone, the figure is roughly 72m, while market cap is now about 32m. That's about a 56% discount to NCAV.

I mentioned NNWC because the way you arbitrarily discounted each component of Current Assets resembled to NNWC. I don't think Benjamin Graham ever gave any other guideline for discounting besides the one for NNWC. However, some would argue that using NNWC would be overly conservative in this era, which is why most value investors stick to 2/3s of NCAV.

[TUBInvesting]

Although I like the business, but regardless, the leverage is too high for my liking especially in this kind of environment. and I think the liquidity will be an issue here too.

<not vested>


http://tubinvesting.blogspot.sg/

[CityFarmer]

Hi CY09,

Not sure how exactly you got 0.5. Like I said based on Current Assets less Total Liabilities alone, the figure is roughly 72m, while market cap is now about 32m. That's about a 56% discount to NCAV.

I mentioned NNWC because the way you arbitrarily discounted each component of Current Assets resembled to NNWC. I don't think Benjamin Graham ever gave any other guideline for discounting besides the one for NNWC. However, some would argue that using NNWC would be overly conservative in this era, which is why most value investors stick to 2/3s of NCAV.

I am using the same, as alternative reference to valuation. I am more on valuation with earning.

IMO, we shouldn't use a generic discount rate for all industries, unless for general benchmaking. We should understand the nature of biz model, and apply the discount appropriately, e.g. the highly liquid inventory in commodities trading companies, should have a lower discount, or even no discount.

(sharing generic view, not on the company)

[beau]

CityFarmer, that's a good point.

Does anyone else have any insight on Excelpoint? Surprisingly they're up 15% today since my posting last night.

[TTTI]

CityFarmer, that's a good point.

Does anyone else have any insight on Excelpoint? Surprisingly they're up 15% today since my posting last night.

I am not vested, neither have I really analyzed Excelpoint.
For what it's worth, I'd share that I personally know their senior management, and some of their executives, and their senior management are reliable, honest folks.
AP built the company from scratch, and continues to be a hardworking, honest and nice guy.
Just sharing.

[specuvestor]

^^ I don't know Excelpoint well but I have some knowledge on distribution business

“With few exceptions, when a manager with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact.”

[beau]

The Company wishes to announce that it had on 2 September 2016 entered into a conditional subscription agreement (the “Subscription Agreement”) with Alonim Investments Inc. (the “Placee”) to allot and issue 15,000,000 new ordinary shares in the Company (the “Subscription Shares”), which upon issue will represent approximately 12.8% of the enlarged issued share capital of the Company (excluding treasury shares) as at the date of this announcement, to the Placee at an issue price of S$0.525 (the “Issue Price”) for each Subscription Share (the “Proposed Subscription”).

Each Subscription Share will be issued at a price of S$0.525. As the volume weighted average trading price (“VWAP”) of the shares of the Company on the SGX-ST on 26 August 2016 being the last market day on which shares were traded up to the time the Subscription Agreement was signed is S$0.390, the Subscription Shares will be issued at a premium of 34.6% to the aforementioned VWAP.

Seems like there are people who believe that Excelpoint is undervalued. Excelpoint is still trading below 2/3 liquidation value with a dividend yield of almost 6%.

http://infopub.sgx.com/FileOpen/EP_Place...eID=420101

[beau]

The Company wishes to announce that the Subscription Shares have, on 5 October 2016, been allotted and issued to the Placee at a price of S$0.525 per Subscription Share and the Proposed Subscription has been completed.

Current share price is at $0.355.


http://infopub.sgx.com/FileOpen/ETL_Comp...eID=423714

[BlueKelah]

The Company wishes to announce that the Subscription Shares have, on 5 October 2016, been allotted and issued to the Placee at a price of S$0.525 per Subscription Share and the Proposed Subscription has been completed.

Current share price is at $0.355.


http://infopub.sgx.com/FileOpen/ETL_Comp...eID=423714

LOL everytime i see private placement i will find that it is very fishy

Before you look at NNWC or NCAV calculations, look at the historical earnings and dividend payout first. Then look at the debt. Then look at the private placements, warrants, rights issues done in the past 10 years. You will get a good idea how "GOOD" the management is.

[brattzz]

??? pte placement paid 52.5cts, when u can get from market at 35.5cts??? :O :O :O

why would anyone do such a deal???!!!