Asian Pay Television Trust (APTT)

[KopiKat]

Stabilisating Action Day 16 (Jun 19)

7,128,000 units purchased at $0.905 - $0.92

Total units purchased to date: 57,532,000
Total stabilising units left: 14,308,000

On average, JPM has purchased over 3.8 million units a day. If they continue at this rate, they are going to run out of their purchasing mandates.

Woah... Used up their last "bullets" today! Stabilisation ceased....
Tomorrow will be interesting...

[lonewolf]

14 million units in one day is the most. Frankly while I was not surprised that they would run out, I did not expect them to run out so soon.

[Nick]

TAIWAN BROADBAND COMMUNICATIONS RECEIVES APPROVAL TO EXPAND CABLE NETWORK FRANCHISE

http://info.sgx.com/webcoranncatth.nsf/V...600322E41/$file/26062013APTTTBCRezoning.pdf?openelement [Announcement]

Note that it intends to pay 8.93 cents dividend in FY 2013 (including one-off distributions). The debt facility matures in 7 years time. APTT is currently trading at 85.5 cents or close to 10% yield.

(Not Vested)

[sgd]

So here we are 1 month to the day when this was listed. Look at the performance down 12 cents from ipo price of 97. Not exactly tanked in price but I don't think any punters made any kopi money.

So does it makes sense?

1 underwriter = DIE DIE MUST BUY !!
3 underwriter or more = YOU BUY YOU DIE AH !!

[greengiraffe]

Hi Nick,

My position on APTT has not changed a bit since listing. Don't you think that the current yield is too good to be true?

Vested
Odd Lots With No Cert & No CDP holdings
GG

TAIWAN BROADBAND COMMUNICATIONS RECEIVES APPROVAL TO EXPAND CABLE NETWORK FRANCHISE

http://info.sgx.com/webcoranncatth.nsf/V...600322E41/$file/26062013APTTTBCRezoning.pdf?openelement [Announcement]

Note that it intends to pay 8.93 cents dividend in FY 2013 (including one-off distributions). The debt facility matures in 7 years time. APTT is currently trading at 85.5 cents or close to 10% yield.

(Not Vested)

[Nick]

I have my concerns on whether the Trust can continue to maintain revenue from Cable TV in view of the falling ARPU and younger generation using the Internet to stream movies / tv shows. The broadband segment isn't a large segment in their revenue so they can't benefit from this. I think this has been voiced out in this thread many times. Really a wait and see.

(Not Vested)

[mobo]

Actually I am quite confused with this, I thought someone posted earlier that TBC is in the red for some years, how come it can pay out such generous dividends?

I know others like Starhub or even other trust like Hutchison and K-Green can pay out dividends higher than profits because of the cashflow, but from losing money to paying out 9% dividend is such a huge gap, where does the money really come from?

[CY09]

it is possible that they have high non-cash expenses like depreciation, hence the business is generating positive cash flow after deducting off depreciation and thus are paying dividends out of cashflow.

E.g. Company A: cash revenue (+1000), expenses in 1) labour (-300), 2) Depreciation expense (-800). Reported Loss (-100),
cash flow that is generated minus depreciation (+700)

[mobo]

it is possible that they have high non-cash expenses like depreciation, hence the business is generating positive cash flow after deducting off depreciation.

E.g. Company A: cash revenue (+250), expenses in 1) labour (-50), 2) Depreciation expense (-300). Reported Loss (-100),
cash flow that is generated minus depreciation (+200)

The problem is in real life even if you are a crazy capex skimmer, at best one can decrease the replenishment ratio to 30-40% of depreciation temporarily. That might help a fair lot, but without looking at the numbers in detail, it still seems unlikely one can turn from red to 9% dividends just by capex skimming.

Even if this can be done, wouldn't such a stunt spell disaster a few years down the road? They will be forced to raise capital at uncompetitive prices by then...

[CY09]

Hi Mobo, that is a good analysis on your part.

One forumer here have pointed out this impending possibility (shanrui if I am right), you could read the threads that VB members has posted here with respect to Asian Pay TV trust to get a better understanding of how their dividends will be funded and the impending risks that this business face in the near future. Start from the first page