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26-11-2013, 01:33 PM
(This post was last modified: 26-11-2013, 02:11 PM by FatBoi.)
(18-11-2013, 09:01 PM)pianist Wrote: Tot they said wanna focus on core areas including chemicals. Isn't this chemical?
Chemicals too broad. BST specifically produces Butadiene. The other entities within NSL Chemical Segments do not overlap into Butadiene.
You can see the rest here:
http://www.nsl.com.sg/chemicals.html
NSL mgmt must have taken the view that the Butadiene market is unattractive. If we dig a bit further, indeed the Butadiene market in Asia is terrible, in a perfect storm scenario.
Grim demand due to sluggish global automotive market coupled with regional oversupply with competition coming from Taiwan, China, Indonesia.
http://www.globalintelligence.com/insigh...market-as/
Selling price seems fair for a business facing headwinds.
Accounting gain of S$119.8 m adds 32 cents to the books which is 28% based on NAV of $1.51.
BST's annualised FY13 profit contribution is ~$15 mil which is 4 cents per share. Gain approx 8 times earnings. If the direction of BST's earnings is going to further down, the 8 times may turn out to be a bargain.
Maybe mgmt did not communicate more clearly on their selling rationale, but I doubt they have not done their sums.
A stock well bought is half sold - Ben Graham
Price is the most important factor to use in relation to value - Walter Schloss
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in 3Q results, NSL did mention BST not doing too well ...
BST
Performance of BST in 3Q-2013 was adversely affected by weak product prices and low production volume due to a temporary curtailment of feedstock (C4) from one of its key supplier. Our share of BST loss in the quarter was S$2.3 mil, S$4.5 mil lower compared to 3Q-2012. Our share of result in 3Q-2012 included S$5.4 mil of impairment charges relating to the fire incident at its plant in May 2012.
For 9M-2013, our share of BST result of S$11.5 mil included an exceptional income of S$8.9mil from insurance compensation received as compared to fire-related impairment charges totaling SS$9.1 mil in 9M-2012. Excluding these one-off fire-related income/expenses, our share of BST operating result fell sharply to S$2.6 mil from S$22.2 mil previously mainly as a result of significantly lower product prices. Average prices of butadiene (“BD”) and styrene butadiene rubber (“SBR”), the two key products of BST, fell by about 57% and 43% respectively in 9M-2013 compared to the average prices in 9M-2012 as a result of weak demand.
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03-12-2013, 09:36 PM
(This post was last modified: 03-12-2013, 09:38 PM by dahuai84.)
As mutually agreed between NSC and the Purchaser, the Purchaser has today paid to NSC
approximately S$311,216,966.31*, being the Upfront Consideration Amount in Singapore
dollars.
*The Upfront Consideration Amount in Singapore dollars is calculated based on an agreed exchange rate of S$1.00: Bt25.795.
Makes my blood boil... They should have keep the money in Thai Baht.
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do u mean the exchange rate is unfavourable? i.e. thai baht appreciated?
seems like Thailand is booming
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