Search Results for: ipo

Value destruction by Contel

I pity those investors who are vested in Contel since their IPO days (although i dont think the number is high). 1.5 years ago, i had a posting, in which i advised all investors to avoid Contel due to its constant and urgent need for capital. On top of that, free cash flow was non-existent. http://level13-analysis.blogspot.com/2007/07/raising-capital-at-contel.html Let me do a recap on the amount of money that Contel raised ever since it was listed and you can make up your mind if it was indeed a value destruction job. In Dec 2005, Contel was listed at an IPO price...

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What is the purpose of a Stock Exchange?

It seems with the daily barrage of news, forecasts, predictions and commentaries by pundits, professionals and “sooth-sayers”, perhaps no one has really realized the purpose of having a stock exchange in the first place ! The way the newspapers and publications go about it, you would not be blamed for mistaking the stock market as some national lottery game or gambling den, or even some fast-paced high-octane game where “The Winner Takes It All” (as ABBA sang it so succinctly some 30 years ago). Nothing could be further from the truth though. The stock exchange’s true purpose is for...

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How to make investment enjoyable

By: La Papillion Durio asked me to write an article on how to make investing enjoyable. I thought that was a very good topic to explore, and what better time then to do it in a bear market like this? Have fun while working and you’ll never find yourself working again. My definition of investing in this article refers to a very general kind – any activities related to the stock market, which includes trading for short term. Why not try some of the activities suggested while waiting for the Return of the Bull? I divided the activities into...

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China Sports International 2008 Q2 result

By: Alen It is interesting to evaluate other sports player result also. Following is the China Sports International result for Q2. Revenue +50% Cost of sales +49.9% (in sync with revenue) Selling and distribution expense +281.5% Administrative expense +387.3% Profit before tax increased only 25.7% as a result of high expenses incurred. The group is probably trying to put resource to grow faster. Group has no debt Look at cashflow statement, profit before tax +25.7% Net cash generated from operation 123,932k RMB. Minimum cash used in investing and financing activities Cash at end of period 535,293k RMB. Strong cash...

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Feeble defense of Hongcheng

By: La Papillion What an interesting forum! Someone launching attack on FA people on huatopedia. Basically, millionairemind is trying to question an assumption held by some- that there is a PE where the stock will not go any lower. The thread is about busting common investing myths – excellent discussion going on there :) He argued that, “If a stock you are looking at has a PE ratio of 6 and growing at a reasonable 10-15% a year, with low debts, would you buy it??? Sure, most FA will say… Remember, the value of a company is what the...

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Mind Share

By: Jay This concept should be familiar to followers of the guru and value investing as well. Essentially, we should invest in companies that have a market share of our minds. The bigger the better. Well, basically, we are talking about branding, but Mind Share sounds so cool right! So let’s just use this term indiscriminately in this post. For the uninitiated, let’s try to define what’s Mind Share. In today’s world, most of us suffer from information overload, everywhere we go, we get bombarded by sexy ads, bright slogans, spam emails, fancy taglines, funny ringtones etc. We used...

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RTO = Ready to offload

By: Level13 In the Business Times on Thursday: Backdoor listing is the flavour of the season as companies are taking the reverse takeover (RTO) route to the stock exchange instead of initial public offerings (IPOs). In the first half of this year, the value of announced reverse takeovers (RTOs) on the Singapore Exchange surged to US$969 million – an all-time high that even exceeded the amount raised through IPOs, year-to-date. Some US$797 million worth of RTOs were announced for the whole of last year – a record by itself – data from Dealogic shows. The first six months of...

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Successful Value Investing in Asia – Tony Measor

By: La Papillion I’ve not done a book review for some time, but this book that I read beckons me to review it, so that I can share with more people and also that I can remember the lessons taught. This book that I’m talking about is: Successful Value Investing in Asia – 10 timeless principles by Tony Measor. To be frank, I saw this book from major bookstores before but I rubbished it away. Perhaps in the past I saw this book with a different light than what I saw now. When I finished reading it yesterday, I...

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Synear Food Holdings: Looking better than an overpriced shit

By: Drizzt Background Synear Food Holdings Limited is a Singapore-based investment holding company. The Company and its subsidiaries develops, produces and sells quick-freeze food products under its Synear brand name. The Company produces a range of traditional Chinese staple food products, including savoury dumpling products, glutinous sweet dumpling products, and other products, including glutinous rice dumpling products and specialty desserts and snacks. Its operations are principally conducted in the People’s Republic of China. The Company’s business consists of the manufacture and sales of frozen food. The Company has a sales and distribution network in more than 20 provinces in...

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Shareholders’ Equity

By: Jay The balance sheet is basically an elaborated display of a simple equation. Assets – Liabiilities = Shareholders’ Equity or simply Equity What this means is that whatever assets that a company owns, subtracting whatever the company owes, gives you what’s left for shareholders. This is also known as the book value of the company. Shareholders’ Equity is usually at the bottom right of the balance sheet (Assets on the left side, Liabilities on the top right) and is usually broken down into the following sub components: Common stock Paid in capital Retained Earnings Preferred stock Treasury stock...

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Stock Analysis

Updated 2 March 2008 Drizzt did an analysis on another four company’s’ financial results – Sarin, Telechoice, Nutrifoods and Celestial Hong Wei. 28 February 2008 A slew of financial results were released during the past month and my fellow authors have been busy analyzing on the stocks that they have owned. I believe many people would also like to hear what the average investor has to say about their stock on top of reading analysts’ reports. Hence I will compile them and put it in an accessible to read format when I upgrade my blog template. Below is a...

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Market Update.

By: Kleer This weekly commentary was compiled by DBS Vickers this morning: Stay cautious this week, as the market is likely to continue its downward bias. The play on recent IPO listings has waned while S-chips could suffer more downside amid concerns about margin pressures as investors unwind. The impact of the credit crisis on the corporate earnings of US financial companies will be accessed. Expect financial companies to announce more losses stemming from their exposure to mortgage-related investments. Citigroup releases results on Tuesday, JP Morgan Wednesday and Merrill Lynch on Thursday. The releases of December US PPI and...

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Derek (2007 Portfolio Overview and 2008 Action Plan)

By: Derek Lim My 2nd year into stocks and it has been a pretty messy year. I applied for almost half the IPOs this year thinking that I can make a quick buck, tried contra, applied for rights, use my CPF to buy stocks and buying on broker’s recommendation all with mixed results. I’m fortunate that I did not suffer too much a loss because 2007 has been a relatively strong year but I’m determined not to repeat the same mistakes again as I’m very sure that I will get burnt real bad one day. Lessons Learnt: Keep your...

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Of estimates and consensus thinking

By: Jay I attended an investment session where the instructor asked the class (of around 20 pple) to estimate the size of Thailand vs Singapore. Was it 50x bigger? Or 100x bigger? Or 500x or what? He wanted to prove a point. The true answer will lie in the range of everybody’s estimate. Bcos someone was bound to get it right. Well his point was quite valid, in the end, the answer did lie within the range of everyone’s estimate. But what was more striking to me was that most estimates are wrong and some VERY WRONG. For those...

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Is there any reason for the fall in high yielding dividend counters?

By: Drizzt I know alot of folks are fans of high yielding stocks and are heavily vested in it. If you have notice recently, alot of these high yielders are falling like flies. What happens in such a situation? the yield gets more attractive. some good examples are MIIF, Allco REIT, Cambridge REIT, Babcock & Brown. So do they make a good buy now? I’m still investigating the repurcussions of the subprime mess and credit squeeze and their effect to these counters. Personally for me to be vested, I would really need a bloody large yield to make me...

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