OSIM International

[Contrarian]

Company has >$250M cash. And with definite plans to list TWG, will be flushed with cash if the IPO goes ahead. Still need future funding? I don't buy this reasoning. But it is his decision :-)

In filings to the Singapore Exchange, the firm said that the stock loan was issued to HSBC by Mr Sim "in support of (the) proposed issuance of convertible corporate bonds by OSIM International Ltd on 26th August 2014".

1. I wonder why OSIM is not using the pure bond or perpetual bonds, instead use a convertible bond

I reckon OSIM prefer equity-like funding, rather than pure debts. That consistent with all the previous right issues of warrant. That makes the growth story very important to Mr. Sim.

2. What does this mean for if someone lends a bank 20M shares? Is similar to SGX stock share for someone to borrow to short?

I am confused on Mr. Sim/HSBC agreement is for borrowing or lending by Mr. Sim? It is non issue for lending, but very strange indeed for borrowing, IMO

BTW, I didn't manage to find the disclosure. Any hint?

(not vested)

I got the posting from this source. A reader posted this... Is it not on BT by the reporter?

http://forum.shareinvestor.com/forum/ind.../422-osim/

This posting I got from some posting on shareinvestor.com.

[roxhockey]

Convertible arbitrage hedge funds will want to short the common stock when they buy the convertible. If the borrow is expensive or unreliable then the hedge funds will be less inclined to buy the convertible. It sounds from the above like Mr Sims has agreed to loan his shares to HSBC so they can be lent on to the funds. As long as he maintains the beneficial ownership it's nothing too untoward, he'd just be picking up a couple % of the value of his shares as a borrow revenue.

[Contrarian]

thanks bro for explanation. the hedge funds must have made quite a bit in this correction.

[roxhockey]

They are long the convertible which should have fallen in value given the ordinary equity fell, but would have come out ahead of the common equity holders for sure!

[CityFarmer]

OSIM 3Q result today...

(not vested)

OSIM’s 3Q earnings sink 28% to $16 million

SINGAPORE (Oct 28): OSIM International ( Financial Dashboard) saw a 28% fall in earnings for the 3Q ended Sept to $16 million from $23 million a year ago.

Basic earnings per share fell from 3.14 cents to 2.11 cents correspondingly.

Revenue grew 3% to $158 million from $153 million a year ago.

OSIM says the overall weaker economic environment, including the loss of sales to Brookstone, slowed sales growth this quarter.

The increase in operating expenses due to startup and legal costs at TWG Tea as well as increases in wages and rental also resulted in lower profit.

Other income also fell mainly due to higher foreign exchange losses.

During the quarter, OSIM invested $4.5 million to open new outlets, upgrade existing outlets and expand development of TWG Tea outlets in North Asia. It also invested $5 million in office and warehouse space for own use in Taiwan. It also opened its first TWG Tea in China at Grand Gateway Shanghai. Today OSIM operates in 29 countries around the world.

As at end Sept, cash and cash equivalents of the group stood at $427 million.

OSIM is recommending an interim dividend of 1 cent per share.

OSIM closed 3% lower at $2.25 today.
http://www.theedgemarkets.com/sg/article...16-million

[BlueKelah]

for a company making that much money and with that much spare cash lying around, that is a rather puny interim dividend.

investing 4.5 million for upgrading the shops and opening new ones??
So some of the monies they raise from the CBs will be used to pay this interim dividend???

The REAL Cash flow in the company must be really tight now that they can only afford such puny dividend. Why not just leave it till full year results before declaring any dividend?

It will be interesting to see when another market correction comes around what will happen to this stock.

[Tiggerbee]

OSIM 3Q result today...

(not vested)

OSIM’s 3Q earnings sink 28% to $16 million

SINGAPORE (Oct 28): OSIM International ( Financial Dashboard) saw a 28% fall in earnings for the 3Q ended Sept to $16 million from $23 million a year ago.

Basic earnings per share fell from 3.14 cents to 2.11 cents correspondingly.

Revenue grew 3% to $158 million from $153 million a year ago.

OSIM says the overall weaker economic environment, including the loss of sales to Brookstone, slowed sales growth this quarter.

The increase in operating expenses due to startup and legal costs at TWG Tea as well as increases in wages and rental also resulted in lower profit.

Other income also fell mainly due to higher foreign exchange losses.

During the quarter, OSIM invested $4.5 million to open new outlets, upgrade existing outlets and expand development of TWG Tea outlets in North Asia. It also invested $5 million in office and warehouse space for own use in Taiwan. It also opened its first TWG Tea in China at Grand Gateway Shanghai. Today OSIM operates in 29 countries around the world.

As at end Sept, cash and cash equivalents of the group stood at $427 million.

OSIM is recommending an interim dividend of 1 cent per share.

OSIM closed 3% lower at $2.25 today.
http://www.theedgemarkets.com/sg/article...16-million

Revenue growth in North Asia declined from 81M to 80M year on year. If I'm not wrong, this should be the first decline in 13 quarters. Looks like the curb on lavish spending and the economy and property market slow down in China has started to bite. Perhaps that's the reason why Osim is looking into other emerging markets like Turkey and Russia as its main growth engine had stalled.

[BlueKelah]

As I mentioned before,

Turkey is just next to the "Islamic State of Iraq and Syria" conflict region.

Russia is being sanctioned by Europe and USA.

What will they come up with next?? Maybe Africa is an untapped market or bankrupt Argentina is excellent growth market in South America?

Potential growth markets? I think not, more like financial suicide. Maybe its time to seriously consider shorting this stock.

[sgpunter]

I guess we now kinda know why the price started plunging not too long ago. News of the drop in profits probably leaked out. And guess what, in all likelihood, nobody is going to get caught.

This begs the question of whether we are really playing on a level field when there are insiders who always get away scot free. Not the first time this phenomenon has been observed and certainly not the last.

In my view, some enforcement action needs to be taken and broadcasted so that a message is sent that if you insider trade, you run the risk of running afoul of the law. Sending those useless queries to the companies or advising people to trade with caution is ineffective to say the least.

But sadly, in my view, seems like those who insider trade are outsmarting SGX.

[yenyenpark]

n 2011, a lawsuit against TWG Tea was filed by tea retailer Tsit Wing International and its parent company Tsit Wing, for incorporating the abbreviation TWG in its name, which was trademarked by Tsit Wing. The latter company, which is based in Hong Kong, was founded in 1932.[13]

A judge handling the lawsuit noted in July 2013 that the use of the "existence of the date 1837 in TWG Tea's sign has led people to believe that the company was established at that time", while in actuality it was founded much later, in 2008. In justification, the firm's spokespeople claimed that it was instead a tribute to the "year when the Chamber of Commerce was founded in Singapore".[13] The case was ruled in Tsit Wing's favour, with damages payable yet to be decided. Shortly after the ruling, TWG Tea filed for appeal.[14]