Superior Multi-Packaging

[corydorus]

Twice within a year better have good reasons.
However, this will be good opportunity for Fund Managers to Enter if is a Placement.

Which is better for us ?

[dydx]

If SupPack would actually attempt to do a share placement at the prevailing low share price in order to raise new capital from some third-parties or fund managers, many shareholders - me included! - will want to throw rotten eggs to the entire management team and BOD!

No shareholder with a rational mind would accept a dilution of his interest by a share placement to outsiders and being priced less than 50% of the corresponding per share NAV of the existing shares. It will be viewed as unthinkable, and amounting to a robbery act!

[FFNow]

Anywhere i can find this article ?

(I am still Vested)


Cory

You can buy from newsstands. I don't think they have it online.

[corydorus]

If SupPack would actually attempt to do a share placement at the prevailing low share price in order to raise new capital from some third-parties or fund managers, many shareholders - me included! - will want to throw rotten eggs to the entire management team and BOD!

No shareholder with a rational mind would accept a dilution of his interest by a share placement to outsiders and being priced less than 50% of the corresponding per share NAV of the existing shares. It will be viewed as unthinkable, and amounting to a robbery act!

This answer my question. Without reading the article, I will likely support the rights issue. The management could have taken the easy way out. They didn't.

I can be drastically wrong in my assumption though and suffer ... At least is not through unethicals way.


Cory

[Behappyalways]

Saw an article on the company from The Edge and browse thru the numbers...Seems like they are starting to perform and they expect better performance this year but a few things to take note of. I find their depreciation too low. Did not check on their annual report hence not sure what their fixed assets compose of. Last year they made a loss on disposal so that might also imply that depreciation rate is too low. If they revised their depreciation rate, the earnings may be lower and also NTA may need to revalue downwards....

2 cents worth. Not vested

[corydorus]

Not sure are we looking at the same data.
I am reading as follow.

Y2010 depreciation is just 300k less than Y2009 considering amount in the size of ~ 5 Millions.
Y2010 Net Profit is about 5 Millions despite paying nearly 1 millions in taxes more than Y2009.


Cory
(Vested)

[Behappyalways]

yes. I find a depreciation rate of 10% too low. 10% depreciation rate on plant and machinery for example meant that they are going to use that for 10 years.(Ps: you need to check on the annual report what is the depreciation policy for their plant and machinery) That's a bit 'oldish'.... That why I read from The Edge when the CEO comes in, he bought new equipments....But if you are vested, you need to dig more deeper into their assets. Who knows that their factories in China may be sitting on a piece of land many times more than stated on book value.

not vested

[corydorus]

Ok i got what you mean now.

Not sure i am willing to go out that far as this will open up so much other factors.
I will let level of trust in the management.


thanks
Cory

[dydx]

Just checked my bank account and noted a nice credit from SupPack's $0.003/share Final dividend for FY10. Feeling good!

I have also taken some time to review SupPack's high-quality and very informative FY10 AR, and the recently revamped website.....
http://info.sgx.com/listprosp.nsf/07aed3...10036e0d2/$FILE/SMPL%20AR2010%20Fullset.pdf [FY10 AR]
http://www.smpl.com.sg/home.html

Just based on SupPack's latest per share NAV of $0.2224 (after adjusting for the $0.003/share Final dividend for FY10) - vs. the last done share price of $0.09 (13May11) - this is another clear case of gross under-pricing by Mr Market. We should recognize that SupPack is quite an old company (established in 1979) and owns substantial and quite valuable industrial properties - a total of 9 sites/plants in Singapore and PRC (full details in p90 of the FY10 AR) - which are carried in its B/S at undestated BV at historical cost.

There is also little doubt that SupPack's 2 well-established busineses are poised for further growth in the next few years. Therefore, the current market cap. of $32.74m (derived from 363,756,000 shares x $0.09) is simply not right!

[dydx]

Looking at today's (25Jun12) rather active buying and high volume transacted (1.03m shares), as well as the $0.003 (or 4.1%) increase in share price which closed at the day's high of $0.077, it appears something positive may be cooking? The counter has so far risen by $0.009 (or 13.2%) from the low of $0.068 (recorded on 8Jun12), after it had gone 'XD' on 31May12 for the $0.0015/share Final dividend for FY12 (ended 31Dec11).

The best, of course, is for a trade buyer or an institution making an offer for the entire company or business, driven partly its large and under-valued - beaing in mind SupPack is an old company - asset base. I suppose a GO at a price close to the latest NAV/share of $0.2293 (after deducting the $0.0015/share Final dividend from the NAV/share of $0.2308 as at 31Dec11) will make all shareholders laughing all the way to the bank! Or am I just dreaming again?
http://info.sgx.com/webcoranncatth.nsf/V...20055B720/$file/FY2011.pdf?openelement [FY12 results announcement]