Action Asia

[value.for.money]

9M'10 results were good: http://info.sgx.com/webcoranncatth.nsf/V...100353545/$file/AALFSResults3Q2010.pdf?openelement

Currently trading at about P/E of 4.3, P/B of 0.83, Yield of 4.9 and ROE of about 25.10%, making very attractive value criteria.

Anyone share the same sentiments?

[d.o.g.]

Something is not quite right.

In September 2009 the company announced a plan to list new TDRs amounting to 37.5% of the enlarged company, at $0.10 per new share, which was below the NTA of $0.1346 per share.

This was despite the company being profitable and debt free, with a normal level of receivables and very little inventory.

40% of the placement was to go to various members of controlling shareholders. This would have allowed them to partially offset the dilution, a privilege not extended to minority shareholders.

The rationales given were:

1. To raise funds

The company was doing well enough to pay dividends for 2007 and 2008. The 9M 2009 results showed continued improvements in sales and profits against 9M 2008. The balance sheet was clean. Clearly the company didn't need money. So this is not correct.

2. Capitalise on the market for electronics companies in Taiwan

The parent company Action Electronics was already listed in Taiwan. So any attention would probably be directed at the parent, not Action Asia. So this is not correct either.

3. Widen the foreign investor base and raise its profile in Taiwan and internationally

The company was too small to attract any notable foreign investors whether in Taiwan or elsewhere. If there was any attention it would be directed at the parent. So this is also not correct.

===
The TDR exercise has been called off for now. But that the controlling shareholders would even propose it suggests a lack of concern for minority shareholders.

As usual, YMMV.

[mrEngineer]

In this case, it shows that the controlling shareholders were greedy and probably knew that there was upside for them.

Are you highlighting more that the controlling shareholders are not shareholder friendly? I can't see the implication of this issue.

[Big Toe]

It is totally rationale.
To many listed companies, the objective of listing is to bring value to themselves,
as for ordinary/minority shareholding folks like you and me....we'll be lucky they do not suck us dry.

[f2o]

Dear all, anyone analysed this share recently?
Any comment?


Be Healthy and Wealthy

[Gaudente]

Any comment?

Yes: I wish I hadn't bought 100,000 of this crap at 21 cents three years ago

[Gaudente]

at least recovered 19 cents with delisting