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Highly regulated industry - got insurance issues on cabs?
What does it mean for the implication on hirers, passengers and other road users?
How did whoever approve the listing even though its caveat emptor must be accountable - MAS, SGX and DBS?
How can a simple local hero been stalled in the tracks...
If one read his profiling, he is one rare role model that Singaporeans are looking for that is missing in a long time...
Sigh
Social Utility KIV
GG
(17-11-2014, 07:57 PM)kelvesy Wrote: IPO called off.
http://www.straitstimes.com/news/singapo...ter-its-an
http://www.channelnewsasia.com/news/sing...l?cid=FBSG
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Wah lao, like that also blame SGX/MAS/DBS... 
FYI, the company suddenly realize that additional insurance premium in the FUTURE.
SGX/MAS/DBS must be real "good" to disapprove the listing, even before the owner realize it. 
(17-11-2014, 08:45 PM)greengiraffe Wrote: Highly regulated industry - got insurance issues on cabs?
What does it mean for the implication on hirers, passengers and other road users?
How did whoever approve the listing even though its caveat emptor must be accountable - MAS, SGX and DBS?
How can a simple local hero been stalled in the tracks...
If one read his profiling, he is one rare role model that Singaporeans are looking for that is missing in a long time...
Sigh
Social Utility KIV
GG
(17-11-2014, 07:57 PM)kelvesy Wrote: IPO called off.
http://www.straitstimes.com/news/singapo...ter-its-an
http://www.channelnewsasia.com/news/sing...l?cid=FBSG
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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17-11-2014, 09:04 PM
(This post was last modified: 17-11-2014, 09:04 PM by investor101.)
$1.83 million on insurance hikes can sink their IPO, even though they had a PAT of $36.3M??
Doesn't seem right. More than meets the eye.
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After reading the news from channel news asia link, it gives me an impression that they scrap it, reconsider, then price the IPO higher.
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(17-11-2014, 09:14 PM)Bibi Wrote: After reading the news from channel news asia link, it gives me an impression that they scrap it, reconsider, then price the IPO higher. Ha! Ha!
So now IPO = It's not properly over-priced? That's why scrap? Need more equity to cover the Extra Million dollar insurance before feasible IPO? 0.68cent too low? First time after 27 years in the market. Anything can happen in life lol!
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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That really too much, I do agree that MAS and SGX should take some action on this. It's seems obvious that the owner is testing the market now and readjust its IPO price to for launching at later stage. If every company do like that then semua kisiao liao. Here is Singapore not a third world country, promises made has to be fulfilled. By the way are they going to return the IPO amount together with the 2 dollar ATM money and interests?
X@%&+% luckily, I haven't go press at ATM
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(17-11-2014, 09:47 PM)valuebuddies Wrote: That really too much, I do agree that MAS and SGX should take some action on this. It's seems obvious that the owner is testing the market now and readjust its IPO price to for launching at later stage. If every company do like that then semua kisiao liao. Here is Singapore not a third world country, promises made has to be fulfilled. By the way are they going to return the IPO amount together with the 2 dollar ATM money and interests?
X@%&+% luckily, I haven't go press at ATM
Ya lol! If you pay $2 to DBS at the ATM is still nothing but if you tekan for one million lots what happens then? Who is going to pay you for the interest lost especially if you have broken your FD placement before maturity?
SGX or MAS going to pay you? Or Transcap?
Ha! Ha!
Sorry lah! It is really no laughing matter. Like that anyone can test the market for IPO. Who's next?
Let see what's going to happen next?
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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SGX / MAS needs to step up and be more stringent afte this episode.
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To be objective, let's take a step back and observe the facts.
Transcab Vs Japfa
Under a caveat emptor regime, Transcab could have gone ahead with the IPO and proclaim innocence that unexpected event arises post IPO date. It, however, chose to scrap the IPO.
In the case of Japfa, nothing was mentioned and one month post IPO, analysts came out of the blackout period writing nice and fanciful report and target prices on Japfa only for the stock to tank post bad results. As if that was not enough, there was malicious rumours that Japfa's livestock got hit by diseases.
Frankly, between the 2, I will go with Transcab. Maybe this down to earth Towkay decided that the best approach is to go with integrity due to his involvement with grassroots, his visibility as his red cabs are plying the streets 24X7, his need to stand alongside with his hardworking cabbies.
On this count, I like him - at least he didn't risk his reputation of being labelled a "con". He will come back just that he has done previously. I am pretty sure Transcab will be better priced in view of this unexpected event in the future.
Like they always say - there is always another day, another chance and the there is always sunshine after the rain.
GG
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I was going to go through the prospectus this evening when I saw the cna news.
Anyway, late on the draw, my perspective of Singapore taxi industry is that it is a regulated financing industry. Big fish get capital, buys a bunch of cars and accreditations, gets in taxi drivers and rents out the cabs. Generally, all petrol, Coe and other pricing mechanisms are mitigated through a periodic review by the government body. The system will be good if the company can minimize costs of leasing, maintenance and manage cash flow well.
I looked through some of the key things I had pondered upon.
Current ratio is not as good as CD, there may be a risk involved in cashflow.
I'm surprised they still intend to spend money to upgrade their call system. Imo in view of apps like grabtaxi and uber, a wait and see is more prudent.
As noted, the profit growth is mostly flat after stripping out special items.
Fleet Growth is limited up to 2% based on quality standards set out by lta. So far transcab has only met 1% for coming year.
I suppose the growth story will not be in the taxi business. More likely, Ceo is gathering funding to target the upcoming bus tenders, which can potentially be quite lucrative.
Since the ipo is cancelled, any relisting in view of the negative news will likely push down the ipo price. Imo, Interested parties should be considering transcab based on their potential value on new business rather than their existing taxi business.
Will stay out of this ipo. There is still other counters I am more keen to park my funds long term in.
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