Boustead Singapore Limited wishes to announce that it has divested its entire shareholding of 50,000,000 ordinary shares in OM Holdings Limited, an integrated manganese mining company listed on the Australian Securities Exchange. The trade for the Divestment took place on 28 March 2013, the last trading day of the Company's financial year ended 31 March 2013. The Divestment, representing approximately 7.4% of the existing issued share capital of OMH, was transacted via a married deal at a price of A$0.37 per OMH share for a total sales consideration of A$18.5 million, approximately S$24.0 million. The Company is expected to record a gain of S$5.0 million from the Divestment...
Boustead shares being dropping for the past week, cant find any news except divestment (which I tot is a gd move though market may view it as loss of potential, which is previously factored into shareprice) and change of Board of Directors?
Any views?
PS: I am a novice who is from a hybrid Fundamental + Technical School of thought
(08-04-2013, 12:01 PM)evolance Wrote: [ -> ]Boustead shares being dropping for the past week, cant find any news except divestment (which I tot is a gd move though market may view it as loss of potential, which is previously factored into shareprice) and change of Board of Directors?
Any views?
PS: I am a novice who is from a hybrid Fundamental + Technical School of thought
No news except for OMH, which I see as a +ve for Boustead.
Mr Market's perception may have been that the divestment was bad, as it means the cash will languish again instead of generating decent returns.
Well, our job as investors is not to question Mr. Market; it is to take advantage of him based on an objective assessment of the facts and figures.
(08-04-2013, 12:13 PM)Musicwhiz Wrote: [ -> ] (08-04-2013, 12:01 PM)evolance Wrote: [ -> ]Boustead shares being dropping for the past week, cant find any news except divestment (which I tot is a gd move though market may view it as loss of potential, which is previously factored into shareprice) and change of Board of Directors?
Any views?
PS: I am a novice who is from a hybrid Fundamental + Technical School of thought
No news except for OMH, which I see as a +ve for Boustead.
Mr Market's perception may have been that the divestment was bad, as it means the cash will languish again instead of generating decent returns.
Well, our job as investors is not to question Mr. Market; it is to take advantage of him based on an objective assessment of the facts and figures.
Boustead and the rest of the market have performed strongly over the last few months. As investors, we should not take such strong performance as a given even though I remain optimistic that the the ongoing bull trend will last till 2016/17. I have been warning many to expect sharp corrections in long term secular trends and personally I do not think that such sudden glitches are anything to worry about.
We are not traders and should not be unduly concern over corrections. In fact corrections are good as it provides good opportunities to build up position in businesses that we are comfortable with.
Anyway, we are coming up to the traditional May lull period - in the northern hemisphere - its always sell in May, go away.
GG
Probably the DIvestment means special DIvidend coming?
$24M at least equal to 4 cent? Let's say half of it is given out (2 cents)?
The idle cash is humongous now.
While still generating more cash ($38M akan datang).
I certainly don't mind if the cash retained is generating more returns.
And with ROE of more than 20% it is really respectable.
But I won't complain if special dividend is on the way.
(08-04-2013, 12:22 PM)greengiraffe Wrote: [ -> ]Boustead and the rest of the market have performed strongly over the last few months. As investors, we should not take such strong performance as a given even though I remain optimistic that the the ongoing bull trend will last till 2016/17. I have been warning many to expect sharp corrections in long term secular trends and personally I do not think that such sudden glitches are anything to worry about.
We are not traders and should not be unduly concern over corrections. In fact corrections are good as it provides good opportunities to build up position in businesses that we are comfortable with.
Anyway, we are coming up to the traditional May lull period - in the northern hemisphere - its always sell in May, go away.
GG
Ya...I am very much aware of May lull period, and the fact that I did not have a good margin of safety. This is making my speculative side take over...haaaa... =P
I only started looking at Boustead fundamentals last Dec, entered in Jan/Feb period.
Still thinking thru Musicwhiz's advice though
'our job as investors is not to question Mr. Market; it is to take advantage of him based on an objective assessment of the facts and figures.'
We are coming up to the traditional May lull period - in the northern hemisphere - its always sell in May, go away. Will this be a reality or a myth?
(23-04-2013, 06:32 PM)a74henry Wrote: [ -> ]We are coming up to the traditional May lull period - in the northern hemisphere - its always sell in May, go away. Will this be a reality or a myth?
As a value investor, does it matter?
Of course it does! When it happens, we buy more
(23-04-2013, 06:32 PM)a74henry Wrote: [ -> ]We are coming up to the traditional May lull period - in the northern hemisphere - its always sell in May, go away. Will this be a reality or a myth?
Frankly, this should not be a concern at all. Just focus on the business.