ASA Grp^   

Solid NTA 48 S'pore cents!

ANOTHER SHAMEFUL COUNTER.................

IPO $1

DELIST 4 CTS................

 

ASA Group: Proposed Delisting At S$0.04 In Cash For Each Share.
24 Dec 2010 09:17

Shanghai Jinming Investment Group Co., Ltd. has presented to the directors of the ASA Group Holdings Ltd. a formal proposal to make an exit offer to the Shareholders. Under the terms of the Exit Offer, the Offeror will make the Exit Offer at the exit offer price of S$0.04 in cash for each Share...

 

 

 

Good Bye ASA.

 

Exit offer of 0.04

 

Many discrepancies in the account. Don't know whether shareholder can get back money or not.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_888D851C9D3585C14825771F002FE9F0/$file/ASA_Variances.pdf

 

Tan Jin San, 30 Mar 2010 SGX says it is delisting five companies on its watchlist. They are General Magnetics, Chuan Soon Huat, ASA Group, Fastech Synergy and Ionics EMS. The companies have registered financial losses for at least five successive years. They did not manage to turn their businesses around after two years and their market cap is less than S$10 mln each.

 

I love NTA.  48cts NAV for 10cts ....so good.  But they loss too much money every year.  How to play ?

And now, it cannot even afford an exit offer....or did they ??

 

Andrew      ( Date: 17-Apr-2008 22:30) Posted: This company has been losing money for 3 consecutive years. And it is currently in SGX watchlist. They lost 16.95cts in 2007 and 16.08cts in 2006. At this rate, the company may disappear in perhaps 1~2 year. Assume NTA is 32cts.

 

Nav only left with 0.07

 

CASHFLOW  is  mOre  impOrtant  than  NTA ?

 

Suspended

 

The Board of Directors of ASA GROUP HOLDINGS LTD (“the Company”) wishes to update its shareholders and other stakeholders on the following:

(1) Collection of the remaining balance of the sale proceeds on the disposal of property

The Board wishes to announce that the Company’s wholly owned subsidiary, Shanghai ASA Ceramic Co. Ltd (“Shanghai ASA”) has on 27 June 2008 collected the remaining balance of RMB 62.5 million of the sale proceed of RMB 110 million {“sale proceeds”} for the sale of Shanghai ASA’s property located at 3988, Hong Mei Nan Lu, Min Hang Qu, Shanghai, 201108, Republic of China, represented on Title Deed No. 953963 (“the Sale Property”) from Shanghai JinMing Investment Group; Ltd (“Shanghai JinMing”). The said remaining balance of the sale proceeds from Shanghai JinMing for the property was original due on 31 December 2007 but an extension of time to 30 June 2008 was given to Shanghai JinMing to make full settlement.

Shanghai ASA has also received RMB 3 million being the interest on the late payment of the remaining balance RMB 62.5 million of the sale proceeds from Shanghai JinMing.

(2) Repayment of Bank Loans by Shanghai ASA Ceramic Co., Ltd (“Shanghai ASA”) and Shandong ASA Ceramic Co., Ltd (“Shandong ASA”)

(a) Shanghai ASA has utilised part of the above mentioned repayment from
Shanghai JinMing to repay its RMB 57.5 million one-term loan provided by the Bank of China; and

(b) The Company’s 75% owned subsidiary, Shandong ASA has also fully repaid its RMB 15.0 million one-year term loan to Jiao Tong Bank, China which matured on 28 June 2008. Shandong ASA is now seeking Jiao Tong Bank Ltd’s approval to renew a further one-year term loan of RMB 15.0 million to meet its current working capital requirements.

The Company will make immediate announcement if any material development occurs before the next Quarterly Update announcement, pursuant to Rule 1313 (2) of the Listing Manual of the Singapore Exchange Securities Trading Limited, which is to be released in September 2008.

By Order of the Board
ASA GROUP HOLDINGS LTD

Chan Chun-Hsiung
Non-Executive Chairman
Dated: 30 June 2008

 

As I mentioned, ASA now has an independent director with 10 years in Corporate Recovery and Insolvency. Some shareholders too, questioned about the receivable of $16 million. But from what I read in the AR, the sale proceeds of some properties are above the carrying value in the books, and the sale was pending completion at 31 Dec, it was not recognised in the income statement. But they indicated it will be completed latest by june 08. The rest of the information they say they cannot reveal yet as it would be unfair to most of the shareholders who never come. This might be considered as insider trading or something like that, but they only mentioned they will be having their board meeting after the AGM.

 

Did they mention what stategies they had in mind to turnaround the companies?? From the AR, the only thing they are doing is to discontinue money losing operations. That will cut operating expenses to some extend but def cannot help the top line

 

Went to today's AGM, saw their annual report about some properties. Clarified with the Directors and found out those "houses" were bought long time ago when prices were very low, so now at least they can still sell off for cash if they need money. The Director says they are going to reduce headcount further to cut cost. Anyway, they are committed to turning the company around. And ASA now has an independent director with experience in turning companies around. Hopefully a new lease of life will come soon.

 

The problem here is as of 2007, Cash & Eq. is SGD 4.56M or 2.22 cts/shr !!!  Fire sale of asset, let say, at 25% of the original price is 3.68cts.

All in all, 5.5cts seems a fair value for NOW, still losing money everyday. Or joking, can as Dr Soh to buy at 22cts. Still a better deal than Jade.

 

 

That is why I say they should just wind up and distribute all the assets to us...anyway, how long does AGM normally take?

 

This company has been losing money for 3 consecutive years. And it is currently in SGX watchlist.

They lost 16.95cts in 2007 and 16.08cts in 2006.

At this rate, the company may disappear in perhaps 1~2 year. Assume NTA is 32cts.

 

 

Used to be 48, now only 32. Just went through the annual report, the Chairman is so apologetic. But not sure if he is sincere or not. Last year and this year's opening speech about the same.

 

keep losing money like this... even high NTA also cannot substain their losses for long, might as well return back to investors. Now under srutiny from SGX, laggi worse.

 

I like comopanys with high NTA or NAV. Are you sure ASA is 48 cents that much? And trading at low single digit? Where to find supporting information?