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hi susan66, thank you very much... yours is very informative.. think tomolo i will vest in this counter tomolo morning.. hope to make some coffee money... thanks again...
susan66 ( Date: 24-Feb-2010 22:46) Posted:
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I am no sifu but just my personal view. From the chart, can see it's oversold, starting to bottom-up and bollinger band tightened, higher percentage is to explode upwards. For more confirmation, look out if break 0.715 to have more upside and may speed up the pace. This counter when BBs come, it's very fast. Think can consider vesting. 
Snappers ( Date: 24-Feb-2010 22:36) Posted:
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looks like this counter today's volume quite high... thinking of vesting.... any sifu can give advice on this counter? thanks...
Bumped onto the following write-up in Bloombery (it has a buy recommendation for CH Offshore - TP is 87 cts):
Falcon to acquire the entire Scomi stake in CHO (29.1%) at S$0.70
per share.
New shareholder in complementary business, may offer synergies.
Although there is no takeover offer, transaction price should
provide downside support to CHO, Maintain BUY.
Falcon to acquire Scomi’s stake for S$0.70 per share. CHO’s largest
shareholder, Scomi Marine, has announced that it has entered into a
conditional share purchase agreement with Falcon Energy to dispose its
entire 29.1% stake in CHO (205m shares) for a cash consideration of
S$143.5m or S$0.70 per CHO share. Upon completion of the transaction, CHO
will become an associate of Falcon Energy.
Who is Falcon Energy? Falcon Energy is a Singapore-listed oil and gas
service provider, with an operational track record of 30 years. It focuses
mainly on the production phase of oilfield activities, and owns and
operates a fleet of vessels comprising mainly of work/accommodation
vessels. It is helmed by Mr Tan Pong Tyea, Executive Chairman and CEO, who
has over 20 years of experience in the industry, supported by a team of
industry veterans.
A positive change for CHO? While it is not immediately clear to what extent
Falcon will be involved in CHO’s daily operations, we believe that
synergies such as enlarged business network, cross-selling of services, and
broadened scope of services could be extracted from association with its
new major shareholder, given the complementary businesses.
Deal underscores CHO’s attractive valuations, maintain BUY. We maintain our
BUY recommendation on CHO as we believe this deal underscores CHO’s
attractive valuations. Although the deal does not trigger a general offer,
we believe the transacted price and our estimated asset breakup value of
CHO’s AHTS fleet of S$0.67 should limited downside to its share price. Our
TP is unchanged at S$0.87.
Noted. Thanks
tonylim2 ( Date: 11-Feb-2010 16:10) Posted:
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Tan Pong Tyea of Falcon and Jimmy pek of CHH are long-time close friend, ( more than 30 years ), believe Tan and Pek must have discussed before Tan decided to buy the stake from Scomi.
shplayer ( Date: 11-Feb-2010 15:21) Posted:
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Actually, the question about this takeover is....How does Chuan Hup Holdings (CHH) view it?
Bear in mind, CHH still holds 24% of CHO. If they view Falcon as a partner that shares the same ideals, then it will be a happy partnership. If not, then will CHH try to regain control of CHO?
Falcon has very little room to move.......v close to GO trigger and purchase price of CHO is 75c.
CHH is in a position to launch a fight for control.......at today's price, it can accumulate their stake in CHO at 64c.....much cheaper that Falcon....and they certainly have the $$$ to do so....cash in hand of USD35m (S$49m)....
Just thinking out loud and welcome forumers views.
its a good deal for CHO in the immediate term, good support in curretn situation. on far-sight, falcon is making a good m&a for near and future term
The following is from a local broking house:
Falcon (NOT RATED) announced last Fri that it was buying Scomi's 29.07% stake or 205m shares in CH Offshore (CHO, NOT RATED) for $143.5m or $0.70 per share
The financial impact is positive for Falcon immediately:
a) acquisition is earnings accretive given CHO's 7x PE vs Falcon's 14x PE
b) CHO's fleet is estimated to worth a market value of above $0.80 per share
c) deal could boost Falcon's FY10 earnings to above US$55m or 7.4x FY10 PE
Strategy wise, it is also positive for Falcon:
a) addition of new customer base from CHO
b) complementary asset class as Falcon focuses on production supporting vessels while CHO brings in a younger, deepwater AHTS fleet. This enables Falcon to offer a wider spectrum of services to the O&G industry
c) moving up the margin scale with deepwater vessels commanding GPM of >60%
d) CHO brings in new geographical exposure in Latin American and Australia
Although this deal is viewed as an investment in the short term, there are longer term excitement arising from potential synergy and cross-selling of product offerings if Falcon takes on a more active role in CHO
** Pasting what I posted in another forum **
Falcon had $12mil cash at the end of Jun 09. They raised about S$58mil from placements in Sep 09.
Also, they have to maintain some cash for existing capex and operations, so I would say Falcon needs to raise about $80 mil from debt or CB, which is not insignificant.
Currently, Falcon's equity is about $180 mil and debt is about $40mil. Assuming $80mil is borrowed, net debt will be about $110mil. Net debt/equity will be about 0.6, unless Falcon issue CBs or more placements.
Everyone has their own investment criteria and risk appetite......as such, sorry, I cannot make BUY, HOLD or SELL calls for others. I can present numbers and my personnal views but final decision to B, H or S is a decision left to individuals to make.
Suffice to say, I did not track Falcon and as such not vested. I only took notice of it when the announcement was made on 5 Feb.
Hulumas ( Date: 08-Feb-2010 19:25) Posted:
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So, BUY? HOLD? SELL?
shplayer ( Date: 08-Feb-2010 17:17) Posted:
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Today's market reaction today indicates it is not too eastatic about the takeover deal. Prices of buyer, seller and CHO all closed down.
Co. raised approx S$58.2m cash in a share placement exercise in Sep 09. This would raise its net asset to approx USD166m.
CHO total net asset is approx USD200m.....29.07% is approx USD 58m or S$81.4m....so this purchase is approx 60% of its current net asset......major acquisition.
For S$143.5m (USD102.5), it gives Co. control of a USD 200m company.
=> At S$143.5m, Falcon is paying a premium of 143.5 - 81.4 = S$62.1m....or 76.3%
Price per share for CHO works out to be S$0.75....2010 HY eps is approx SGD 4.0cents....extrapolating....fwd P/E is about 9.4 x?
Seems abit expensive ....but the upside is, it gets control of CHO, a company larger than itself.
Big question is where Falcon is going to get $143.50 million. Convertible bonds may be on the cards.
Scomi Marine selling CH Offshore stake
SCOMI Marine Services Pte Ltd is planning to sell its entire 29.07 per cent stake in CH Offshore Ltd to Falcon Energy Group Limited for $143.50 million. Scomi Marine Services is a subsidiary of Scomi Marine Bhd. The sale price translates into 70 cents per CH share.
I think the above news is positive to both companies (CHO & Falcon) as there will be synergy between the two similar type of business. The acquisition will help Falcon grow its business and expands its revenue source.
maybe today results will be good when everybody expect it wont. Hope it will.
time to exit if u donno :)
nice 0.80 :P
finally i see queue today... alot of queue.