Penguin International

[CityFarmer]

Penguin has no debt, but there is a "Other Payables and Accruals" of $36M which is about equivalent to the total cash. Anyone knows what is this accrual? Thanks.

Base on the AR, the "Other Payables and Accruals" is mainly accrued expenses, advance payment and deposit. The accrued expenses are likely material costs for boat-building. The advance payment and deposit may be for boat orders.

By right, a longer payable will reduce the working cap needed, which may not be a bad things, IMO

(vested)

[touzi]

Base on the AR, the "Other Payables and Accruals" is mainly accrued expenses, advance payment and deposit. The accrued expenses are likely material costs for boat-building. The advance payment and deposit may be for boat orders.

By right, a longer payable will reduce the working cap needed, which may not be a bad things, IMO

(vested)

Why would they accrue expenses for material? Unless they have an agreement with supplier to pay only after the vessel is completed. Don't think that is common. Perhaps it is for some components that can only fully tested when vessel is launched?

[dydx]

Now that the FY14 AR is out, and many shareholders/investors have gone through this important document, and the coming AGM scheduled for 8Apr15 should be an important meeting for Penguin's BOD and management to meet the shareholders, and the total $0.01/share in final & special dividends will be paid on 28May15 (with the XD date fixed for the 12May15), perhaps it is timely for all to think about and discuss what should be the fair value estimate for this well-managed and promising business, and for each unit Penguin share.

Just from the much longer queues of buyers queuing at close-range prices from the last done share price of $0.215 - vs. the much shorter queues of sellers at close-range prices - we can reasonably guess that there are now more people out there who hold the belief that the Penguin shares should be worth quite a lot more. No?

[Stephentoh]

Now that the FY14 AR is out, and many shareholders/investors have gone through this important document, and the coming AGM scheduled for 8Apr15 should be an important meeting for Penguin's BOD and management to meet the shareholders, and the total $0.01/share in final & special dividends will be paid on 28May15 (with the XD date fixed for the 12May15), perhaps it is timely for all to think about and discuss what should be the fair value estimate for this well-managed and promising business, and for each unit Penguin share.

Just from the much longer queues of buyers queuing at close-range prices from the last done share price of $0.215 - vs. the much shorter queues of sellers at close-range prices - we can reasonably guess that there are now more people out there who hold the belief that the Penguin shares should be worth quite a lot more. No?

I suppose you mean AGM on 28 April 2015, a minor typo haha. I reckon some buyers are attracted partially to the dividend payout too.

[dydx]

Ya, the AGM is on 28Apr15, at 11:00am, to be held at Penguin's HQ located at 18 Tuas Basin Link, Singapore 638784.

[kikababoo]

http://infopub.sgx.com/FileOpen/PIL%20-%...eID=343618



UPDATE ON LEGAL PROCEEDINGS
The Board of Directors (the “Board” or the “Directors”) of Penguin International Limited (the “Company”, and together with its subsidiaries, the “Group”) refers to the announcements released on 28 June 2010, 11 August 2010 and 28 November 2011, and wishes to announce that Penguin Shipyard International Pte Ltd (“PSI”), a wholly-owned subsidiary of the Company, has
reached an out-of-court settlement on 13 April 2015 with Wartsila Ship Design Norway AS, a company incorporated in Norway (“Wartsila”), the terms of which are confidential (the “Settlement”).

By way of background, PSI had filed a Writ of Summons and Amended Statement of Claim in the High Court of Singapore against Wartsila in connection with the termination of shipbuilding contracts for the construction of two Safety Standby Rescue Vessels (the “Suit”). In the Suit, PSI had claimed against Wartsila for loss and damage suffered by PSI on the contract termination.

The Directors believe that the Settlement is in the best interest of the Group.

BY ORDER OF THE BOARD
James Tham
Managing Director
13 April 2015

[bear]

(Note that I am not discussing about any TA stuff)

I was wondering if the rise in Penguin's price today a result of the increase in confidence after Friday's AR release or in response to this news?

[kelvesy]

hi bear, this annoucement was released after market hours.

I remain enthusiastic about Penguin's business model and its forward looking and dynamic management. I believe shareholders or prospective shareholders are starting to see Penguin isn't just like any ordinary shipbuilders. It is run differently and it is conservative. During a market downturn, it is less adversely affected. On the broader picture, I believe the stock market in the long-term is a weighing machine. Penguin is an exceptional business. I have not sold any stocks, and continue to add. Keep calm and love Penguins. Just look at the future profits coming in, and the current P/E. Although Ben Graham liked to talk about margin of safety in asset value, I prefer combining Philip Fisher's looking for growth stocks.

I somehow feel that Penguin's investor relation have been reading our posts and replying to our concerns about order book.

[Stephentoh]

I would say possibly concern shareholders have been reflecting this to their IR or fellow buddies have written in to clarify some doubts. If you notice not only concerns regarding order book but also the concerns on "surprising" announcement with regards to quarterly results, the legal proceedings on psi contract termination , the lack of analyst coverage, all these concerns were addressed recently via the AR , chairman statement, public sgx announcement . But for sure this keeps things clearer for fellow shareholders , would definitely be great if the IR would to address all the possible concerns in future too.


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[jjlim84]

(Note that I am not discussing about any TA stuff)

I was wondering if the rise in Penguin's price today a result of the increase in confidence after Friday's AR release or in response to this news?

IMHO, it is due to oil price sentiment