Longcheer Holdings

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#51
(03-06-2014, 10:41 AM)valuebuddies Wrote: Though nothing concluded at the moment, market seems to reacted positively as the price surge to 31c in early trades. My personal view is that the prospects of smartphone ODM business in China is quite positive. Following the success of XiaoMi, many other smartphones brands like Acer, Asus and HTC are now look to ODM instead of manufacturing themselves. (source)

The surge seems like sell on news....now 28.....
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#52
(03-06-2014, 11:04 AM)desmondxyz Wrote:
(03-06-2014, 10:41 AM)valuebuddies Wrote: Though nothing concluded at the moment, market seems to reacted positively as the price surge to 31c in early trades. My personal view is that the prospects of smartphone ODM business in China is quite positive. Following the success of XiaoMi, many other smartphones brands like Acer, Asus and HTC are now look to ODM instead of manufacturing themselves. (source)

The surge seems like sell on news....now 28.....

Yesterday announced proposed sale of subsidiary and subsequent distribution of special dividend payments totalling 25 cents per share. The NTA after the sale and special payment still amounts to 11.6 cents per share according to DMG. However market price only goes up by 2 cents today, not many investor aware of the good deal?SmileSmile
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#53
Wooohoo, big cheers for longcheer!
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#54
The main question is, after selling & exiting from this OED business, what biz will LH be looking at?

NTA may be 11ct after distribution but market dislikes uncertainty.
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#55
After disposal, the EPS left is 0.6 Sg cent. Take current price 32cents, minus the proposed dividends 25 per share, the PE after disposal will be more than 10. Is the remaining business worth this?
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#56
When there is an IPT involving the major shareholders, i think very unlikely that it is a good deal for the minorities. The good thing at least is that it unlocks the value of the company, so is a win win situation for both the buyer and seller.
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#57
(25-06-2014, 01:10 PM)kyle Wrote: After disposal, the EPS left is 0.6 Sg cent. Take current price 32cents, minus the proposed dividends 25 per share, the PE after disposal will be more than 10. Is the remaining business worth this?

LongCheer earning has progressed since 2013. The unknown to me is does selling Mobell takes away $50k worth of its earning or the earning of its remaining business after selling Mobell is 10k?

They did a restructuring exercise prior to this sale. I wonder if they have dumped more profitable businesses into Mobell especially when it is mgmt buying out their own business.

The price has depressed from a peak of 35cts to now 29cts.

Hope buddies who know the coy well can shed some light to this.
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#58
Just read your posts guys, was interested at first as this disposal seems like good news with the upcoming special divs.

from the balance sheet cash is 210M and debt 77M, but whats confusing is trade payables is 1.5Billion. Owing money is supposed to be good generally speaking but such a large amount for creditors? recieveables is only 510M. Also large amount of cash tied up in the restricted and pledged category 1.1billion

Seems like the the good parts are being sold off at cheap price or it would seem like a "reverse privatisation". the massive div looks like its to fund the buyout of the good parts.

Assuming sale goes through and post special divs, you would be paying 5 cents for a shell of a company worth nothing in terms of NAV at todays share price.
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#59
Very fast progress, 1st dividend of SGD0.1139 will go ex on 22/8 and be paid on 2/9; with another SGD0.1423 coming shortly. One thing to note, Longcheer should be announcing its full year result somewhere next week, the SGM was held last week right before the results announcement Dodgy.

Though after the disposal, the listed entity ceased to involve in ODM, but I think somehow this news still worth a read: http://suyi.baijia.baidu.com/article/25905

So Longcheer's minorities, do you call yourself lucky? Big Grin
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#60
While many of us do concerns on the left-over business... If we just take the value of the investment properties (CNY144.6M) divided by the number of shares (352.5M), you get CNY0.41 or SGD0.082 based on a conservative 5:1 exchange rate. The theoretical xd price would be SGD0.0688, so can it also be viewed as buying over the income-producing properties at 16% discount, with some freebies (the rest of assets net of liabilities)?
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