Asia Enterprise Holdings

[slowandsteady]

kinda of strange to buy-back now, sure there are no better use of the money?

What better use than buying $19.9 in the bank with $17.2? And then take out that money immediately to buy some more 

[brattzz]

sounds like Ponzi leh...

ok lah ok lah, it's a positive sign, hopefully more volume in share-buy-backs!
signal the turn of the tide?!!!

[beau]

Now trading at 0.8x NCAV. Dividend announced 0.3 cents, at a share price of $0.183, that's a 1.6% dividend. 60 million cash hoard. Profit warning announced for Q1.

However, from an asset point of view still trading very cheaply.

[beau]

http://infopub.sgx.com/FileOpen/Asia%20E...eID=452157

"Asia Enterprises Posts Weaker Results in 1Q17 But Remains in a Strong Financial Position"

[TTTI]

Now trading at 0.8x NCAV. Dividend announced 0.3 cents, at a share price of $0.183, that's a 1.6% dividend. 60 million cash hoard. Profit warning announced for Q1.

However, from an asset point of view still trading very cheaply.

"However, from an asset point of view still trading very cheaply."

And THAT, is the problem, isn't it?
There isn't a period in the past decade where it's NOT trading very cheaply relative to its book value

[zz...]

many stockists are trading below book values, it's the norm for this type of business model

[slowandsteady]

Some good news for companies holding steel inventory.

https://www.bloomberg.com/news/articles/...s-to-china

[cyclone]

Asia Enterprises Reports Higher Revenue and Net Profit for FY2018

Highlights :
* Revenue grew 23% to S$37.8 million
* PATMI increased 23% to S$1.7 million
* In FY2018, the Group witnessed a narrowing of its GP margin
* Maintains final dividend at 0.50 cents per share; translates to 100% pay-out ratio
* Sound financial position with cash of S$48.8 million and zero borrowings
* The Group expects the operating environment in the region’s steel distribution segment to remain challenging in the coming year as intense competition will prevail.

More details in :
1. http://infopub.sgx.com/FileOpen/AEH4Q201...eID=542048
2. http://infopub.sgx.com/FileOpen/Asia%20E...eID=542049

[karlmarx]

An interesting development. With the 'flip of a switch,' Director goes from Non-Independent to Independent. That this can be done shows how low the regulatory requirements are for a Director to be considered Independent.

https://links.sgx.com/FileOpen/AEH%20-%2...eID=570242

Not that it should matter for shareholders of AEH anyway. Probably just business as usual.

With regards to its valuation, it actually looks fair rather than cheap, even though it is trading near its net cash level. This is because the company is not generating any returns, and does not appear likely to do so -- given its heavily reduced working capital, and poor O&G outlook -- in the near future.

When business returns, all that cash will be used to purchase inventory, for delivery to customers. Investors may then re-evaluate whether they are making any profits, and what kind of earning multiple to apply to them.