CSE Global

[egghead]

Looks like you have divested your CSE

[Nick]

Looks like you have divested your CSE

Divested a few months ago.

But it is getting attractive again. I noticed Amundi reduced their stake today so that would explain the sell-down ?

[egghead]

Yes, it is rather attractive now...but then many stocks are also attractive. The announcement today for Amundi showed the transaction was done on 5-Aug. Perhaps Amundi sold more today.

[egghead]

Company recorded a loss for 2Q11 of about $7m due to provision of about $21.7m for project overrun. A quarterly loss is rather rare in the company's history. Why didn't company provide earning guidance in this situation?

[Musicwhiz]

Company recorded a loss for 2Q11 of about $7m due to provision of about $21.7m for project overrun. A quarterly loss is rather rare in the company's history. Why didn't company provide earning guidance in this situation?

What was the nature of the project overrun? Just curious.

(Not Vested)

[Nick]

Company recorded a loss for 2Q11 of about $7m due to provision of about $21.7m for project overrun. A quarterly loss is rather rare in the company's history. Why didn't company provide earning guidance in this situation?

What was the nature of the project overrun? Just curious.

(Not Vested)

CSE:

CSE recorded quarter loss after tax of S$7.0 million in 2Q11 after accounting for S$21.7 million provision for project cost overruns in four Telecommunications projects in the Middle East, two projects in Saudi Arabia and two projects in the UAE. The Managing Director for our Telecommunications business units has resigned and Mr Tan Mok Koon, the Group Executive Deputy Chairman, has taken over as the Interim Managing Director for the business unit and a new Managing Director will start on 26 September. The Group has reorganised its business Telecommunications units, reviewed all current projects it has on hand and is confident that it has put in the necessary systems to allow the business unit return to profitability in the future............The Group believes that it had provided sufficiently for the project cost overruns for the four problematic Telecommunications projects in the Middle East. The Group received two large Middle East Telecommunications orders in 3Q11 amounting to approximately S$83 million (announced 8 August) and has reorganised its Telecommunication business to return it to profitability in 2012.

Seems someone in that division has mis-managed it in the current year. The higher ups are stepping in till they hire a new guy.

(Not Vested)

[Nick]

CSE Global share price dived 13.9% to close at $0.930 today in light of the unexpected quarterly result released yesterday. The Group released its 1H 2011 presentation slides which contains a good deal of information on their outlook for the various division in each geographical region - http://info.sgx.com/webcoranncatth.nsf/V...A0031D213/$file/CSE-2Q2011_Results_Presentation.pdf?openelement

(Not Vested)

[dzwm87]

Chartered Asset Management increased stake for CSE.. from August 2011..

based on normal earnings (FY2010), CSE is valued at 7x P/E at last done 72c

no doubt CSE is a good business with excellent management.. but at 7x P/E is still expensive for me.. could it be the good brand of CSE will never allow a drop in P/E to below 6?

should I stretch my hurdle rate of 6x P/E? >.<

[freedom]

the earning in 2010 is not normal. even excluding effect of project cost over-run, profitability of 2011 has been worse than 2010 so far.

[dzwm87]

didnt know about that, my valuation was quick calculation after reading the announcements..

worth further digging after my China Minzhong study