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well i hav put in my orders too...wud not mind if they are not fulfilled Smile

i too believe that cheung woh is deeply undervalued especially considering that the promoters hold a huge stake and i don't think the company is going to go out of business anytime soon...well i guess we all hav to go thru this wild ride...like it or not...

(11-08-2011, 01:49 PM)RBM Wrote: [ -> ]Yes sgmystique .......... I have put a bid in for a few Cheung Woh shares earlier this afternoon .........but I do not and I would not wish Cheung Woh's current share price on anyone.

I have gone in because at the last traded price of S$ 0.17, this company is now trading on a PE ratio just above 3 and its dividend yield (based on last FY profits) is 8.7% (repeat: 8.7%). Cheung Woh is now trading at 50% of its end April levels. I believe this is a good buy.

When the Europeans got out of their beds the trading picture seems to have become a tad more rosy. As at 15.00 hrs, Cheung Woh's share price is now up to S$ 0.18, offer prices of 0.195 (18,000 shares) and 0.205 (50,000 shares), and several buyers offering bids of at least S$ 0.17 (337,000 shares). In a way, I'm pleased my bid price was not nibbled at. I know this all sounds terribly short-termist.

I do hope Cheung Woh (in which I'm vested) seeks and moreover applies a mandate to buy back its shares soonest. I'm intrigued why Adampak (in which I'm not vested) appears to have seen nowhere near as big a drop in its share price as Cheung Woh.
I count myself lucky that i managed to nibble a little more today of CW. Really hope to see a bumper dividend or great buyback mandate..
PE of 3 for a profitable company is absurd!
I nibbled some too. Can't tahan the temptation.
nibble nibble nibble.. but i still keeping bullets available for any impending crash..
Just saw this announcement. Is this a one-off event or will it have significant long-term negative ramifications for the Company?

Major Customer of Cheung Woh filing for Bankruptcy in USA
http://info.sgx.com/webcoranncatth.nsf/V...5001FF194/$file/CWS_SGX_announcement_-_Solyndra.pdf?openelement

(Not Vested)
Thanks for sharing this Musicwhiz - indeed this is bad news,

Four points ..........

- Cheung Woh "major customer" Solyndra made it known it was filing for Chapter 11 on August 31st. This particular filing has attracted attention in the US because in 2009 Solyndra, a solar company, a) had been a recipient of a > US$ 500 Million Federal Government Loan Guarantee to build a factory ............ a factory which I understand was completed only months ago, b) laid off all its 1,100 workers at end August and c) was sometimes held up as the kind of job-creating enterprise the US needs right now. Is it not a tad puzzling that it took Cheung Woh nine (9) days to report Solyndra's Chapter 11 filing to the SGX? To be fair, may be they needed time to quantify the impact.

- Readers of this particular VB thread may recall some excellent recent interchanges between redcorolla99, dydx, sgmystique and others regarding Cheung Woh's high and monotonically increasing level of receivables. My word, how this concern has come home to roost. From observing her at AGM's and the like, while Finance Director Ms. Law (no doubt related) is clearly able to count the beans, I wonder if she has the fortitude and grit to internally push for the controls and measures required to bring Cheung Woh's receivable levels to heel? This question may sound harsh but Cheung Woh's BOD and its wider leadership needs to look darned hard at themselves to learn from the Solyndra episode's (hard) lesson .............. when customers get into trouble it is usually too late to react.

- Cheung Woh's recent Chinese transaction effectively put nearly all its eggs in the HDD business - I suspect that as a result of today's news there may be a heightened level of questioning amongst shareholders regarding the strategic wisdom of this move. However, Chairman & MD Law has demonstrated his skills and touch in the past - I'm confident he made this call after a great deal of carefull thought and calculation.

- It will be interesting to see how Mr. Market treats Cheung Woh tomorrow. And even more interesting to see if long-overdue share buy-backs or other share-propping-up measures are initiated and pursued by Cheung Woh. Since April the share price has plunged > 45%, a far inferior performance to e.g. Adampack or Techcomp.

(I'm vested and I've been nibbling at more Cheung Woh shares lately based on its very low P/E (may be not so low any more!) , perception of the Chairman/MD's strengths and the > 8% dividend yield).
Based on the latest announcement, we know better now that even we have a smart and experienced management in Cheung Woh, a customer could just spring a surprise on the company. What I wish to stress is that by taking a full $1.7m accounting charge in Q2 (ended 31Aug11) on everything (trade receivables, inventories, and machineries) on the B/S related to Solyndra LLC, CW's management and BOD have proven again their financial prudence and taking their responsibilities seriously. As the announcement has said that this is done "on prudence ground", it is reasonable to expect that the eventual loss should be lower, as even in a worst-case scenario, the inventories and machineries (amounting to $862k in total) could still be sold as metal scraps. We should also bear in mind that Solyndra LLC's business is still operating. In fact, according to a Bloomberg report dated 8Sep11, the U.S. Bankruptcy Court, District of Delaware (Wilmington) has just granted the company an approval to borrow USD2.5m (from an undisclosed party).....
http://www.businessweek.com/news/2011-09...uptcy.html
More background info on Solyndra LLC.....
http://www.solyndra.com/

If Solyndra LLC still needs the parts from CW in order to continue operating, there is a good chance that CW can clear most of the undelivered inventories ($403,000 in BV) on cash terms.

We should also bear in mind that (1) the expected $1.7m financial charge in Q2 will amount to only approx. 1.8% of CW's latest (as at 31May11) equity of $95.1m; and (2) in a few months, CW should receive enough cash from the proposed partial sale of its interest in PRC subsidiary Suzhou Tysan Precision Engineering Co Ltd to become debt-free.
I think it is now more a question of keeping the faith as far as Cheung Woh is concerned. Of course my ardour to increase my stake in CW has certainly cooled a bit with this announcement. Will have to wait and watch how the coming few quarters work out for the company. As dydx has kindly pointed out, CW management has been quiet prudent in taking the maximum possible hit due to Solyndra's bankruptcy. But the actual hit to the bottom-line and balance sheet may be far lower...

But of course if the price takes a big hit due to this announcement, I would surely like to nibble a bit more Smile

(09-09-2011, 06:49 AM)dydx Wrote: [ -> ]Based on the latest announcement, we know better now that even we have a smart and experienced management in Cheung Woh, a customer could just spring a surprise on the company. What I wish to stress is that by taking a full $1.7m accounting charge in Q2 (ended 31Aug11) on everything (trade receivables, inventories, and machineries) on the B/S related to Solyndra LLC, CW's management and BOD have proven again their financial prudence and taking their responsibilities seriously. As the announcement has said that this is done "on prudence ground", it is reasonable to expect that the eventual loss should be lower, as even in a worst-case scenario, the inventories and machineries (amounting to $862k in total) could still be sold as metal scraps. We should also bear in mind that Solyndra LLC's business is still operating. In fact, according to a Bloomberg report dated 8Sep11, the U.S. Bankruptcy Court, District of Delaware (Wilmington) has just granted the company an approval to borrow USD2.5m (from an undisclosed party).....
http://www.businessweek.com/news/2011-09...uptcy.html
More background info on Solyndra LLC.....
http://www.solyndra.com/

If Solyndra LLC still needs the parts from CW in order to continue operating, there is a good chance that CW can clear most of the undelivered inventories ($403,000 in BV) on cash terms.

We should also bear in mind that (1) the expected $1.7m financial charge in Q2 will amount to only approx. 1.8% of CW's latest (as at 31May11) equity of $95.1m; and (2) in a few months, CW should receive enough cash from the proposed partial sale of its interest in PRC subsidiary Suzhou Tysan Precision Engineering Co Ltd to become debt-free.

From a vested perspective ............ after a hesitant "watch-and see" period in the first hour of SGX trading, there seems to be a pleasingly measured and balanced view of yesterday's not-so-positive Cheung Woh disclosure ............ so far at least. NO trades as of 14.40 hrs but buyer depth in the market is pleasingly strong with the highest bid of 100,000 units at S$ 0.175, i.e. above yesterday evening's close. The only seller with a material offer in the market is at S$ 0.185 per share. A sign of market sanity perhaps? A sign that the current shareholders trust the Chairman/MD to navigate through the current turbulence? I hope so.

I understand that the Cheung Woh units supplied and manufactured for Solyndra are quite specialised and tailor-made for that Solar company. I do hope some value can be resurrected from the now-written-off inventory.

A former colleague of mine who is in-the-know on IT and technology is of the view that there will likely be other victims in the technology buyer community who may be in a "spot of bother" right now. Solyndra will not be the last. All the more reason to bring inventories and receivables to heel.
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