Hi gfg
Having 180k cash stuck there with 1%+ yield while waiting is indeed a tedious process, at leasr for me. Wat r ur thoughts when u decided to buy this counter?
Cos historically i dun remember ltc to give juicy div. Its recent raise still place the yield to me 1%+.
I agree that it is unlikely to sell its core biz seg ie steel biz.
Gautam
We should all be aware that it is difficult to find a good and well-managed business with good assets that are undervalued, and just because of this point alone investors should be willing to take a longer term view.
Yield is low, undervalued assets are not going to be unlocked in forseeeable future...... Just a forelong wait ?
(27-11-2013, 08:56 AM)dydx Wrote: [ -> ]We should all be aware that it is difficult to find a good and well-managed business with good assets that are undervalued, and just because of this point alone investors should be willing to take a longer term view.
LTC steel business is a tough business, even with good mgt. will subjected to cyclical steel market.
Gimme the assets, and others can have the steel business. haha
(27-11-2013, 09:33 AM)opmi Wrote: [ -> ]LTC steel business is a tough business, even with good mgt. will subjected to cyclical steel market.
Gimme the assets, and others can have the steel business. haha
Lion Teck Chiang's well-established construction steel bar business should continue to do well under the prevailing high demand situation in the Singapore market as well as the global low/falling steel prices environment. BRC Asia's recent FY13 (ended 30Sep13) full-year results should be a good indicator.....
http://infopub.sgx.com/FileOpen/BRC_Asia...eID=265072
When the recurrent profits are good, is it conceivable that Lion Teck Chiang's BOD may reward shareholders with more dividends? I would think this is a reasonable bet too.
(27-11-2013, 09:47 AM)dydx Wrote: [ -> ] (27-11-2013, 09:33 AM)opmi Wrote: [ -> ]LTC steel business is a tough business, even with good mgt. will subjected to cyclical steel market.
Gimme the assets, and others can have the steel business. haha
Lion Teck Chiang's well-established construction steel bar business should continue to do well under the prevailing high demand situation in the Singapore market as well as the global low/falling steel prices environment. BRC Asia's recent FY13 (ended 30Sep13) full-year results should be a good indicator.....
http://infopub.sgx.com/FileOpen/BRC_Asia...eID=265072
When the recurrent profits are good, is it conceivable that Lion Teck Chiang's BOD may reward shareholders with more dividends? I would think this is a reasonable bet too.
BOD will want to repay loans first. Then it keep the cash as reserve for 'rainy days'. Like what small caps SMEs like to do. Until they privatised at a market downturn.
(27-11-2013, 09:47 AM)dydx Wrote: [ -> ] (27-11-2013, 09:33 AM)opmi Wrote: [ -> ]LTC steel business is a tough business, even with good mgt. will subjected to cyclical steel market.
Gimme the assets, and others can have the steel business. haha
Lion Teck Chiang's well-established construction steel bar business should continue to do well under the prevailing high demand situation in the Singapore market as well as the global low/falling steel prices environment. BRC Asia's recent FY13 (ended 30Sep13) full-year results should be a good indicator.....
http://infopub.sgx.com/FileOpen/BRC_Asia...eID=265072
When the recurrent profits are good, is it conceivable that Lion Teck Chiang's BOD may reward shareholders with more dividends? I would think this is a reasonable bet too.
BRC has a better chart for the demand of the steel in page 3 of the press released.
http://infopub.sgx.com/FileOpen/BRC_Asia...eID=265073
(27-11-2013, 08:14 AM)gautam Wrote: [ -> ]Hi gfg
Having 180k cash stuck there with 1%+ yield while waiting is indeed a tedious process, at leasr for me. Wat r ur thoughts when u decided to buy this counter?
Cos historically i dun remember ltc to give juicy div. Its recent raise still place the yield to me 1%+.
I agree that it is unlikely to sell its core biz seg ie steel biz.
Gautam
In this easy credit environment, it seems like everyone is just looking for yields. I too would prefer higher dividends but I look at the track record of LTC, the rise in share price has way exceeded any yield u can get over the last 5 years. The BOD have sizable stakes in the company and I am sure they would love to have more dividends too. I suspect they are conservative as they know of the cash problems of megasteel and would not want to repeat the same mistakes. As long as management does the right things with the capital, I am happy to support.
They have also raised the dividend this yr fy13, so they do take into account minority sentiment.
Actually, I prefer if they don't pay too much attention to minorities and just do what's right. Most minority SH are not bothered about how well a company does in the long run. They just want dividends every yr, or hope the share price shoots up quickly, before dumping for a profit.
Like I said, maybe if anyone of us is part of management, we would be singing a different song. We may be thinking these minorities don't even know anything about the business.
* my earlier stake was invested at a much lower price so I didn't come up with 180k. But point taken about the low yields in this easy credit environment
(27-11-2013, 09:33 AM)opmi Wrote: [ -> ] (27-11-2013, 08:56 AM)dydx Wrote: [ -> ]We should all be aware that it is difficult to find a good and well-managed business with good assets that are undervalued, and just because of this point alone investors should be willing to take a longer term view.
LTC steel business is a tough business, even with good mgt. will subjected to cyclical steel market.
Gimme the assets, and others can have the steel business. haha
Yes that's true. Steel stockists have a tough time. It's a tough business with long cash conversion cycles generally. I think Asia enterprises Holdings is another stockist which controls inventory very well
Generally it's not a fantastic business to be in, with low margins and -ve CCC.
HG Metal suffered losses in last few Qs.