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CSE Global
23-07-2017, 01:27 PM,
Post: #221
RE: CSE Global
Settlement Agreement

CSE Global Limited ("CSE") announced that CSE and its wholly-owned Singapore subsidiary, CSE-Transtel Pte. Ltd. ("CSE Transtel"), have entered into a settlement agreement with the U.S. Department of the Treasury’s Office of Foreign Assets Control ("OFAC"). Under the terms of the settlement agreement, CSE and CSE Transtel agreed to pay US$12,027,066 to settle its potential civil liability for alleged violations of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560 (ITSR).
...
CSE is expected to recognise a one-time exceptional charge of US$12.0 million (approximately S$16.6 million). Although this is a non-operational item, this one-time charge is likely to result in a net loss for 2Q17 and a drag on the full year 2017 performance, notwithstanding that the core business is likely to remain profitable.

More details in http://infopub.sgx.com/FileOpen/Settleme...eID=462519
Specuvestor: Asset - Business - Structure.

http://www.valuebuddies.com
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07-09-2017, 06:35 PM,
Post: #222
RE: CSE Global
Trade receivables increased from $88m to $102m, while Gross amount due from customers for contract work in-progress increased from $41m to $48m. This brings the total receivables to $150m. CSE's 2016 annual report shows its past due receivables at $51m (out of $88m), with $15m that is past due more than 90 days. More of its receivables could now be past due more than 90 days.

Allowance for doubtful debt was $1.8m in 2015 and $1.1m in 2016. For HY17, there is a writeback of $58k. Is the doubtful debt allowance sufficient given the poor O&G outlook?

Adjusting for its $58m goodwill, NTA: $166m
Assuming a $15m default on its receivables, NTA: $151m

Current market cap, based on $0.345 per share: $178m

HY17 results:

http://infopub.sgx.com/FileOpen/CSESGXne...eID=466359

AR16:

http://infopub.sgx.com/FileOpen/CSE_GLOB...eID=446078

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08-09-2017, 11:22 PM,
Post: #223
CSE Global
CSE management had in past years stressed their focus on cash generation. It seems either that has changed or they are not in a position to do much about it. I expect dividends will be reduced accordingly. Unfortunately, I had increased my holdings before the results announcement, mistakenly thinking that the valuation was low relative to its dividends.

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13-09-2017, 10:15 PM,
Post: #224
RE: CSE Global
On my radar, this q one off loss is a very good chance to start collecting once price bottom out, maybe 30cents on a bad day. Order book still stable around 90m so next q likely profitable. Depending on oil and other commodity prices, imho good tech company with stellar team previously from keppel knows what they are doing.

Risk is we get low oil prices for next decade as shale limits price gains for oil and EV limits oil demand.

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"I love Taiwan"

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