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07-02-2013, 10:50 AM
(This post was last modified: 07-02-2013, 10:52 AM by braces.)
Dividend of 0.5 Singapore cent per ordinary share and a special dividend of 0.3 Singapore cent per ordinary share proposed.
Not a fantastic company but priced cheaply in my opinion. Need to see the innovations by the company to translate into more growth and revenue before the expansion of the P/E.
+ve
1.Below NAV
2.Earnings on the uptrend
3.CEO has significant holdings (roughly 50%)
4.exposure to greater china and india.
-ve
1.illiquid
2.Extremely small cap
Disclaimer: vested. do your own due dilligence as always.
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What's the big deal when a low-margin middleman distribution/trading business which is already quite geared up still chooses to borrow more in order to pay out another nice dividend to shareholders, including the controlling shareholders who also head the management?
Shouldn't it be more rational that Excelpoint should keep a bigger portion of its recurrent profits in order to lower its gearing level and risk profile, and support further business growth and the enlarging B/S?
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07-02-2013, 12:26 PM
(This post was last modified: 07-02-2013, 12:27 PM by braces.)
You're right on them being low-margin. That is why it is not a fantastic business but in my opinion is priced cheap enough to profit from it.
I believe they are scaling back on their borrowings, based on the decrease of 9.7mil of loans in Q4 12. What is note worthy is they turned in a positive free cashflow in this quarter. Could be a great thing if this is sustained going forward.
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Definitely right on the increasingly levered balance sheet. Will keep track of how it turns out in the following quarters.
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Anyone know why it suddenly drop to 0.068?
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