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Either case, that sounds like very good news to investors.
To the company and us investors, what's important is dollar volume not merely volume of number of shares, so I doubt less number of shares traded' is a problem for AEH. Buying back shares to prop up the price to >20 cents just to meet a listing criteria does not seem very sustainable for any company. What happens when the price dips below 20 cents again? A share consolidation would have been a cheaper and more realistic method if that is indeed their intention.
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(22-04-2016, 05:39 PM)beau Wrote: Either case, that sounds like very good news to investors.
To the company and us investors, what's important is dollar volume not merely volume of number of shares, so I doubt less number of shares traded' is a problem for AEH. Buying back shares to prop up the price to >20 cents just to meet a listing criteria does not seem very sustainable for any company. What happens when the price dips below 20 cents again? A share consolidation would have been a cheaper and more realistic method if that is indeed their intention.
How long do companies have to meet the 20 cents requirement?
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24-04-2016, 05:48 PM
(This post was last modified: 24-04-2016, 08:16 PM by BlueKelah.)
Supposed to be deadline one year starting 2nd march 2015 till 1st March 2016 to make sure six month average above 20cents.
If not then kena watchlist for three years CPF cannot be used to buy that stock until 2019. Then delisted or go to catalist board.
It's just to save face coz ppl calling sgx penny share market lol. They might as well make minimum one dollar and lot size become ten shares.
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(24-04-2016, 05:48 PM)BlueKelah Wrote: Supposed to be deadline one year starting 2nd march 2015 till 1st March 2016 to make sure six month average above 20cents.
If not then kena watchlist for three years CPF cannot be used to buy that stock until 2019. Then delisted or go to catalist board.
It's just to save face coz ppl calling sgx penny share market lol. They might as well make minimum one dollar and lot size become ten shares.
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Looks likely to slip into watchlist soon, considering the low price recently. Maybe will prompt more sellers to emerge 
Q1 results should be out within a couple of weeks, which means they can't buy back shares in the meantime. Taking the chance to accumulate some more, below net cash is quite rare (excluding those RTO or S-chips).
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AEH swings back to profit in Q1, will it last?
- Net profit of S$0.8 million in 1Q16, reversing a net loss of S$0.6 million in 1Q15
- Revenue dipped by 2% to S$9.7 million in 1Q16 due to lower average selling prices
- Maintained sound financial position with cash per share of 19.86 cents and zero borrowings
http://infopub.sgx.com/FileOpen/AEH1Q201...eID=402974
(Vested)
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05-05-2016, 08:51 AM
(This post was last modified: 05-05-2016, 09:50 AM by BlueKelah.)
(04-05-2016, 08:53 PM)desmondxyz Wrote: AEH swings back to profit in Q1, will it last?
- Net profit of S$0.8 million in 1Q16, reversing a net loss of S$0.6 million in 1Q15
- Revenue dipped by 2% to S$9.7 million in 1Q16 due to lower average selling prices
- Maintained sound financial position with cash per share of 19.86 cents and zero borrowings
http://infopub.sgx.com/FileOpen/AEH1Q201...eID=402974
(Vested)
nothing to get excited about, its just a slight rebound in revenue this quarter that is seasonal and probably was enough to cover their admin cost so they are not making a loss.
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(04-05-2016, 08:53 PM)desmondxyz Wrote: AEH swings back to profit in Q1, will it last?
- Net profit of S$0.8 million in 1Q16, reversing a net loss of S$0.6 million in 1Q15
- Revenue dipped by 2% to S$9.7 million in 1Q16 due to lower average selling prices
- Maintained sound financial position with cash per share of 19.86 cents and zero borrowings
http://infopub.sgx.com/FileOpen/AEH1Q201...eID=402974
(Vested)
Right now, with such depressed steel prices, the downside is limited, considering it's trading at less than net cash sometimes.
Very low liquidity too, and it also runs to risk of not meeting the minimum share price requirement.
Will likely need consolidation, and with consolidation, the price usually falls below the consolidated price.
Conservative company, built to last. Been through many cycles before and will get through this as well.
Real question is, when does this downturn end?
It may still be a long way before we return to an upturn in the commodity cycle, and unless steel prices improve dramatically from here, it is hard to see AEH doing well.
I used to have a stake in AEH and has sold out sometime ago.
Right now, it seems its future is tagged closely to steel prices.
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TTTI, no one knows when the downturn will end, but it looks like the steel prices have been surging recently.
http://www.reuters.com/article/us-china-...SKCN0XW082
https://agmetalminer.com/2016/05/05/stee...etalminer/
Given that AEH is very much pegged to steel prices, it seems like there's a lag between the share price of AEH and steel prices in general. Perhaps it will take another quarterly result for investors to be in the know and realise AEH's value. Or maybe a quicker analyst report.
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(05-05-2016, 11:29 PM)beau Wrote: TTTI, no one knows when the downturn will end, but it looks like the steel prices have been surging recently.
http://www.reuters.com/article/us-china-...SKCN0XW082
https://agmetalminer.com/2016/05/05/stee...etalminer/
Given that AEH is very much pegged to steel prices, it seems like there's a lag between the share price of AEH and steel prices in general. Perhaps it will take another quarterly result for investors to be in the know and realise AEH's value. Or maybe a quicker analyst report.
If I remember correctly, AEH (and other steel stockists) carry their steel inventory by marking to market every quarter at an average weighted price.
This means every quarter if the steel prices rise, the existing inventory would "increase in value" in a weighted manner.
The reverse is true when it falls.
Pls correct me if I'm wrong on this.
Admittedly, I haven't really looked at AEH latest results, but if I'm a shareholder, I'll be looking out for how much, if any, of the profitability is due to a recognition of this increase in value of inventory.
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06-05-2016, 07:00 PM
(This post was last modified: 06-05-2016, 07:03 PM by Pursuitofknowledge.)
AEH did an impairment of the inventory during the last quarter, the lower cost of goods sold probably contributed to higher gross profit margin. It is either steel price have increased or AEH took the more prudent approach of revaluing its inventory to a much lower cost which imo, the latter is more likely.
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