Asiatic    Last:0.003   -

Hidden Gem

Asiatic's FY results are out. Do check it out on SGX's website.

Just some highlights:

-EPS 2.6 cents

NAV 26.8 cents

Higher revenue and profit. Revenue is at all time high, net profit is at 4 year high. No dividends are declared for this year, however its good sign as the company knows that they have to pay off the borrowings fast.

 

Hi smartrader, thanks for compliments. Actually i was trying to find the power tariff online, as that was what I needed to calculate the est. revenue.

 

Thanks. You're resourceful. More determine to keep the stocks for long term.

 

not yet, i think they waiting for release of full year results end may. gone through the energy development proposal downloaded online from yahoo. power tarriff is abt 600 riels per kwh. 4000 riels = US$1. Should have about 12 million dollars revenue for power plants from 1 november to 31 march

 

Terence,

Any update on the rights issue ?

 

Hi smartrader, the company has said its two power plants are near full operating capacity and they have been receiving prompt payments from the state utility.

 

 The company has considered the  discount to reward shareholders at  share pricet 30 cents. The strong showing is an endorsement of the coy fundamental. Price will come down after rights but will go up if the company continue to do well.

Going up further... it can go beyond 60 cents.  I am exiting beyond this level.

Cheers !!!

 

You don't want the rights and free warrants?

 

yes,. i have not sold any shares...i will exit during cum rights and warrants period

 

 

Hi smartrader, still vested.

 

Cheers !!! Cash cow...200%+ gain.. still counting..

 

Terence, hold on to your shares. The stock can go higher. Edge interviewed the CEO. The issues are more to reward shareholders and expand the trading band. It will move up higher.

 

Proposed Principal Terms of the Rights cum Warrants Issue

The Company is proposing a renounceable non-underwritten rights issue of up to

110,000,000 new ordinary shares in the capital of the Company (?

issue price of S$0.01 for each Rights Share with up to 27,500,000 free detachable

warrants (the ?

ordinary share in the capital of the Company ("

S$0.03 (the ?

detachable Warrant for every two existing ordinary shares held subject to every two (2)

Rights Shares subscribed by the Entitled Shareholders (as defined below) of the

Company as at books closure date to be determined (the ?

fractional entitlements to be disregarded (?

Can anyone help me interpret this? I don't quite understand the terms of the offer, especially the warrants. Thanks.Rights Shares?) at anWarrants?), each Warrant carrying the right to subscribe for one (1) newNew Share") at an exercise price ofExercise Price?) for each New Share, on the basis of one (1) freeBooks Closure Date?),Rights cum Warrants Issue?).

 

Terence, too bad i cannot follow your advice. Even if i sell all  Asiatic, i still do not have the sufficient fund. My CPF fund is too low because i am holding to 10lots of  SPH. I hope SPH will go up first after release of result on 12 Apr. If right timing is on my side, Asiatic may go higher by then and i can sell SPH and Asiatic to get the rights. . Hope for the best !!! 

 

I sold a small bit today at $0.385. The money from selling today is for my rights issue. I need the money to exercise the rights.

 

I'm holding till some experts advise on the fair value. Actually, i q to sell 31lots at 39cts today but not done.

 

noticed that not many people are selling Asiatic, but its the buyers who have been wanting to buy high, maybe because people want the rights issue. 1 cent per share only. cheap

 

Thanks. I will hold on for a while since it's been two yrs.

 

Hi smartrader, I am not to sure of the target price yet. Anyway, it depends on the amount of risk you can take, because my target price may not be met. If you are low risk taker, you can sell all at maybe say $0.35. But do look out for the demand of the shares when you want to sell as this will decide the selling price. For medium risk takers, consider selling half of your holdings and retaining the other half to see how much earnings the power plants can contribute. High risk takers would consider holding and not selling. Whether CR or not does not matter, but if you sell during XR pls calculate the price carefully ( (Closing price on last day of CR+0.02)/3)Currently, my fair value is pegged at $0.34, which is taking the book value of $0.26 + estimated earnings per share of $0.02 per year for the next 4 years, based on past history this company has stable earnings. I will review my fair value again when the results are released in May. I do not use PE but I use PB as well as Buffet's theory of not paying more than next 4 years estimated earnings + book value for the shares. Also, if a company has increasing ROE with PB below 1, then it is a hidden gem. If you decided to sell Asiatic, considerbuying Nippecraft. It is a good undervalued stock. With cash per share of 9 cents and tax credits remaining, they might pay special dividends. Maximum entry price would be $0.10. I might have said a lot, but hope it helps you.

 

Terence, what is the best time to sell ? During CR period ? What is your target price to liquidate ? Pls advise. Thks.