ASA Grp^   

Solid NTA 48 S'pore cents!

Hey,

Me away and will not respond to that circular can or not?

Thanks and hope for reply too...

 

Hi all

Just received the circular today and got questions to ask:

1. If appointing proxy, need to fill in the number of shares against the proxy's name?

2. What is the minimum age for proxy to attend company meetings? 18 or 21?

Thanks and hope for reply soon.

 

ASA had to issue revised P&L due to accounting errors:

1H07 Loss was reduced by $1.6m to $10.780m (Last Yr loss $12.545m). Their CEO/CFO are bumps, sleeping - damage already done with this stupid error.

1H07 EPS loss 5.30c (vs Loss 6.27c Last Yr)

1H07 NTA = 45.47c (vs 48.93c @ 31.12.06)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_C5EC97FC4DAEE298482573380039D3B7/$file/ASA_Amendments_to_halfyear_financial_statement.pdf?openelement

 

Looking at the Balance sheet details, I believe the Inventory of $44m could be a problem too, that is > 1H gross sales of only $33m. Taking the extreme, if they have to write-off 100% inventory = 22c per share, there is still a balance of NTA of 22c vs current price of 14c. Just a small consolation for those vested here.

 

I feel that results actually improved for the following reasons:

1. Losses include $1m provision for impairment of fixed assets and $1m for loss on  liquidation of subsidiary.

2. Increased depreciation by 700k.

3. Allowance for inventory $3,179,000, don't know if this should be accounted for in my calculation.

4. And best of all, check time and sales today and you will see 1 buy up of 500 lots at $0.135, more than 0.2% of company. (This guy would probably know what he is doing or else he would not buy so much, unless he is crazy.)

5. Improved cash and bank balances by $5m, which works out to cash per share of $0.075.

6. Cash from operations is $8,638,000, compared with ($5,990,000) previously.

Plus, NTA is still so high, at $0.4468.

Management has started to shut down loss making branches. And with property boom in China, sales of ceramic tiles are expected to grow.

Currently, I am holding onto 100 lots at $0.19, but I am not selling as I believe time will tell if I am right or not.

Having said so much, its up to you guys to decide.

Any comments, do feel free to speak up.

 

I still have some overprice ASA with this bad news. Dunno should hold or not

 

1H07 results was disappointing as investors were hoping for a turnaround, so tomorrow may see selling pressure back.

1H07 EPS = loss 6.10c (vs 1H06 loss 6.27c)

NTA = 44.68c (vs 31.12.06= 48.93c).

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_319B6D67ABC24EF1482573370042D414/$file/HalfYearResult.pdf?openelement

 

1H07 Results coming next Tues (14/8), hopefully it could boost the share prices - can't be worse than last yr's $32m loss. Even competitor Eagle Brand Ceramics 1H results improved by 83% & both operates in China. See below - for reference purpose.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_7BD64B6E12010DDB48257331003138B3/$file/2nd_Quarter_2007.pdf?openelement

 

Agree, should not drop. Nothing to do with finance or property or even the booming hot construction. People are just simply following the crowd. They will realise their mistake soon. By then, it will be too late to make up for their foolishness. Anyway, if you have holding power like me, just hold or better still, buy from them and squeeze them out of the market.

 

It's broad-spectrum panic selling in reaction to the US Dow Jones futures for today. Look at all the other stocks in SGX homepage - 1014 counters are down. So, for the weaker traders who perform cut loss or make an emotional decision to dump the shares, the compounded overselling effect will drag the share down.

Given the fact that ASA Grp isn't really linked to the Dow Jones, US housing market, or US banks/financial institutions caught up in the subprime market turmoil, most of the selling is sentiment-driven.

 

 

ASA getting lower and lower. Why? 

 

Good start to Monday morning for ASA.

 

Hi xavierlim,

Thks for your explanation... me really noob.. forget cash is also asset.. hahaha...

Cheers,

Anything.

 

Hi IreneL, got in at 16.5cts... Believe thats a rather nice price to enter. With the sale, ASA had netted a gain of 4cts per share making this counter even more asset rich. Going forward, any downside should be limited. 

 

Darn. Missed the opportunity to acquire more... Set my entry price too low @ 15c, I think I overestimated the effect of the initial bearish sentiment.

From the candlestick, we've got a bullish hammer. Long tail, close higher than open - indicates market rejected a massive initial selldown. I would discount the last trade of the day which was only one lot pushing up the price by .5c to 17.5c. What's more interesting is that all trades after lunchtime were buyups.

 

16:13:07	0.175	1,000	Buy Up
15:28:05	0.170	10,000	Buy Up
15:12:08	0.170	10,000	Buy Up
15:11:10	0.170	20,000	Buy Up
14:40:21	0.170	10,000	Buy Up
14:29:33	0.170	60,000	Buy Up
12:25:35	0.165	15,000	Buy Up
12:24:17	0.165	10,000	Buy Up
12:20:30	0.165	10,000	Buy Up
12:19:59	0.165	40,000	Buy Up
12:17:33	0.165	25,000	Buy Up
12:06:06	0.160	17,000	Buy Up
11:50:55	0.155	50,000	Sell Down

 

The strongest selldown candle was yesterday, but the volume traded yesterday was only 2.78mil. In contrast with other buyup candlesticks of similar body dimensions on 15 Jun, 25 Jun, and 2 Jul, it's not significant (min. vol was 7.5mil on those 3 days). Underlying confidence in this stock is still there.

Today's volume is a bit low at 718k shares traded. Perhaps because of slightly more cautious sentiment after yesterday's STI shock due to the adverse news for S'pore's property market (increased tax on property redevelopment). 

My personal opinion is that, this stock will take perhaps a few more days to bounce back, given that tomorrow's a Fri. Still vested.

As usual, caveat emptor (buyer beware). 

 

 

 

Very good explanation. Assets = Liabilities + Equity.

So in any case, every biz transaction will affect at least two of the above.

Accounting terms..

 

hi chin chye,

let me try to explain using an example..

    say the co. asset is now $40mil. if i sell off my property which is valued at $10mil, my asset will go down to $30mil. However, you got to remember that you receiving cash in exchange too, which is considered an asset as well. Although my property is $10mil, I maybe selling it for $20mil. Thus there will be an overall gain of $10mil and my asset will now increase to $50mil.

I hope u get it now..

Cheers
 

 

Hi Terencefok,

Disposal Of Property By A Subsidiary has an impact on NTA. As u mentioned in another post on the cal. of NTA = Amt. of asset holding ($) / no. of shares outstanding.

So i am quite puzzled how come if we reduce the asset holding, the NTA will increase?

Kindly enlightened me.. sorry for my ignorance.. thks..

Cheers,

Anything.

 

Hi Centaur At what price did you get into ASA? Regards

 

Been waiting for some time to enter ASA at 16.5cts.. Hi guys, just boarded the ship today.