Delong Holdings

[Sumeria]

Thanks Mslee for the advice. Yes, I know the risks involved in S chips, having seen the destruction they did to many investors during my 30 plus years of trading/investing.

Delong is the only high risk stock in my portfolio currently, which is mainly made of up of safe asset-backed property developers. If my gut feel on the counter changes, I
will exit it.

[Sumeria]

https://www.thepaper.cn/newsDetail_forward_2018340


Speech by Delong CEO and major shareholder Ding Liguo at the 18th annual meeting of Yabuli China Entrepreneur Forum, where industry experts, academics and other participants gathered to discuss the innovative technologies and business models that would shape China’s economy in the years to come.

[Sumeria]

Delong's AGM Notes for those who are interested:

1. Ding, the major shareholder and CEO, appears honest and not haughty or confrontational. However, he probably has a strong sense of just running a good company (hopefully it’s only due to over-prudence) rather than paying attention to shareholders' requests (especially about dividend payout).

2. A group of investors are actively demanding that the company pay attention to minority shareholders’ calls for dividend, less diversification, etc. A request for the minutes of the AGM to be put in the company’s website was made. Supporting reports on Delong’s share price and accounts were distributed and minority shareholders were invited to join the group’s mailing/contact list for updates/sharing of information. Martin Wong, who owns about 400,000 shares (as indicated in the annual report) appears to be leading this group.

3. The company’s investment in Indonesia plant seems genuine, with the CEO able to give precise cost savings figures. The main JV partner is another China company (Decent Investment, a unit of Tsingshan Iron & Steel, which is ranked no. 26 in China’s private enterprises, perhaps by revenue).

4. Post AGM, Ding asks shareholders to be patient and wait a little bit longer, giving some listeners a bit more confidence that the company is doing something to hopefully address small shareholders’ concern.

5. I am more assured about Ding’s character after meeting him for the first time. While I will wait for more concrete measures taken by the company before pumping more money into the stock, I am comfortable with my present holding in the stock as it only makes up a small percentage of my portfolio.

6. Due to shutdown in the company’s Hebei plant over the past 3 months or so, I expect next set of results to be weak. But this has been divulged by the company some time ago, and hopefully it is reflected in the share price

[Sumeria]

Delong shareholders' trust in the company and Ding has been vindicated. Ding's purchase at above $7 per share is proof that Delong is not just another S-Chip.

[Terry]

Hi,
May I know where do u find it was transacted $7 per share?

[Sumeria]

Hi,
May I know where do u find it was transacted $7 per share?

As disclosed by the co to SGX on 1 June: "On 1 June 2018, Best Decade Holdings Limited ("Best Decade") entered into a sale and purchase agreement with EVRAZ Group S.A. ("Evraz") and Vollin Holdings Ltd ("Vollin") to acquire 16,569,599 and 2,522,100 Shares from Evraz and Vollin respectively (the "Acquisition"), collectively representing approximately 17.33% of the total number of Shares. The Acquisition will result in Best Decade obtaining an approximately 75.56% interest in the total number of Shares."

Price paid as disclosed: US$100,865,354, which translates to US$5.2832 per share, or about S$7.07 per share.

Read also article on Nextinsight: https://www.nextinsight.net/story-archiv...fell-swoop

[Terry]

thanks for the explanation.

I wonder why does a person not buy from market @ $4.4 range gradually to $7.07.
or a privatization offer at $7.07 when the price is @ $4.4.
why only buy out from 1 group at a premium.

[kelvesy]

There is simply no liquidity and Evraz bought it at much higher price back then. You need to give some premium to entice Evraz to sell. They nearly wanted to buy out Ding back then in 2008. Roman Abramovich (Evraz's owner) is one of the steel moguls in Russia, owns Chelsea club as well.

Anyway, it is good that Ding is consolidating his position. Ding Liguo is a reputable person and he is known as King of Steel in China. Many other steel companies model after his company's environmental policies.

Happy for Delong shareholders.

http://www.marketwatch.com/story/evraz-s...2008-02-19

https://www.bloomberg.com/news/articles/...yes-really

[growthinvestor]

Hi guys,
 

The EPS for past 4 years : 0.208
(0.444)
1.154
2.648

There is a sudden surge in EPS while revenue grew at a slower rate.

May I know what happened?

[kelvesy]

Operational leverage where the rise in revenue in proportionally greater than the fixed costs. It is owing to the steel prices increase.

Their SGA has been relatively fixed, but it is the interplay between COGS and revenue.