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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 ?
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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!
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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
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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)
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15-04-2011, 02:03 PM
(This post was last modified: 15-04-2011, 02:03 PM by 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
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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