https://www.fool.sg/2016/01/15/this-litt...tors-here/
A very good article to share. Both Ezra and Noble have now resorted to selling stakes in their companies and are reporting losses due to the reduction in stakes. Raises a lot of questions on the true value of their assets and low cash flow generation ability.
<Ezra is my bet to fall most in 2016>
so much hoo-haas for just 1milo?
as if he is short of money? :O
(18-01-2016, 08:44 PM)brattzz Wrote: [ -> ]so much hoo-haas for just 1milo?
as if he is short of money? :O
It's more of the timing than the act of selling itself? As per article, sale was done 2days before results announcement. IIRC, there should be at least 14days blank out period before results announcement for all those who have access to material sensitive info.
A sidetrack on the company...
(not vested)
Ezra's Lee family puts Sentosa bungalow up for sale
04 Mar 2016 09:00
By Kalpana Rashiwala,Anita Gabriel
EZRA Holdings' Lee family has put their waterway-fronting Sentosa Cove bungalow on the block, months after they sold a Good Class Bungalow (GCB) along Windsor Park Road last October for a cool S$22 million.
The Business Times understands that the exclusive two-storey five-bedroom property in the South Cove precinct was put on the market after the Chinese New Year festivities. It comes with a price tag of S$26 million, or S$2,258 per square foot on land area, which industry watchers deem "reasonable".
The property is held by Lee Kian Soo, Ezra's founder and chairman and father of Lionel Lee, the offshore marine firm's chief executive and managing director.
Based on a corporate profile search, the Sentosa Cove property is listed as Mr Lionel Lee's address.
...
Source: Business Times
BTW, does anyone know if SG bankruptcy court claw back divorce settlement?
I know they claw back gifts given within 5 years before bankruptcy.
Thanks.
Dear Value Buddies,
An Idea to share: (The Magic of percentage)
Investor A bought a share of $1.00 per unit and it drops to $0.10. He lost 90%
Investor B bought the same share at $0.10 per unit and it rises back to $1.00. He gains 900%
Investor A put in $100,000, it became $10,000
Investor B put in $100,000, it becomes $1M.
Both person put in $100,000. One left with $10,000 & the other becomes a Millionaire.
Let us take a look at Ezra.
Share Price on 14.11.07 was $2.13 per share. ( Adjusted Historical High)
This share is now traded at $0.073 (Down by 96%)
According to my records, the company made profit every year from 2005 to 2015.
E&OE
Announcement:
http://infopub.sgx.com/FileOpen/Ezra%20C...eID=411280
(02-07-2016, 12:09 PM)Retired@52 Wrote: [ -> ]Dear Value Buddies,
An Idea to share: (The Magic of percentage)
Investor A bought a share of $1.00 per unit and it drops to $0.10. He lost 90%
Investor B bought the same share at $0.10 per unit and it rises back to $1.00. He gains 900%
Investor A put in $100,000, it became $10,000
Investor B put in $100,000, it becomes $1M.
Both person put in $100,000. One left with $10,000 & the other becomes a Millionaire.
Let us take a look at Ezra.
Share Price on 14.11.07 was $2.13 per share. ( Adjusted Historical High)
This share is now traded at $0.073 (Down by 96%)
According to my records, the company made profit every year from 2005 to 2015.
E&OE
Announcement: http://infopub.sgx.com/FileOpen/Ezra%20C...eID=411280
Total input $200k. Total output $1010k. Intriguing maths.
While a company may be profitable; if it needs to use its entire year profit to sustain next year's operations. It may not be a good deal.
Company A earns $100 in 2015. To sustain 2016 operations, it needs to put back $100.
In 2016, company A earns $110. However to sustain 2017 operations, it needs to put back $110
Cycle repeats non stop.
For minority owners of company A, they are not reaping any benefits because the company is not generating any free cash flow from dividends. Only the chairman/CEO/Board of directors of Company A, who may happen to be shareholders, are the only parties benefiting through their remuneration package.
Moving to the real world situation of Ezra. It is difficult for us to differentiate how much cash is being used for expansion and how much cash is being used to sustain its operations. This is because we are only OPMI and do not have access to the more detailed accounting breakdown books. No doubt Ezra has been expanding with the profits it has made since 2005; however what we are seeing now is that Ezra has started to write down on some of its Fixed assets/PPE/investments during this downturn. The Chioyoda divestment is the best example, the loss in book value to Ezra is about US $96 mil (2 years of its full year profits). a $60 million loss in fixed assets and 38 mil of impairment loss was made through the transaction. There will be a further 16 mil loss in book value upon the second divestment in the EMAS-Chiyoda JV. To summarise, the profits Ezra has been putting into EMAS as it expands is now becoming a loss.
In addition, Ezra has tends to record gain on purchase in acquisition of subsidiaries. It seems Ezra parks such gains under "Fixed assets". In the recent FY 2015, Ezra made 67 mil, but it was due to 118 mil being earned due to gain in bargain made in acquiring subsidiary. If we adjust this, Ezra in fact made a loss of 50mil.
If ezra starts divesting its many affiliates like what it is doing now but has to do write downs, Mr. Market will question how much of Ezra's fixed asset on balance sheet (which Ezra has sometimes booked as gains) are truly realizable when divested. No doubt PV Keezz is being sold at book value. However Chiyoda's large loss in the totality of its divestment is asking questions of Ezra's balance sheet items.
On Balance sheet, The entire equity value to ordinary shareholders is now equivalent to Ezra's fixed assets/goodwill/intangibles. But how much are they really worth? The 1 billion as stated?
(02-07-2016, 02:06 PM)GPD Wrote: [ -> ] (02-07-2016, 12:09 PM)Retired@52 Wrote: [ -> ]Dear Value Buddies,
An Idea to share: (The Magic of percentage)
Investor A bought a share of $1.00 per unit and it drops to $0.10. He lost 90%
Investor B bought the same share at $0.10 per unit and it rises back to $1.00. He gains 900%
Investor A put in $100,000, it became $10,000
Investor B put in $100,000, it becomes $1M.
Both person put in $100,000. One left with $10,000 & the other becomes a Millionaire.
Let us take a look at Ezra.
Share Price on 14.11.07 was $2.13 per share. ( Adjusted Historical High)
This share is now traded at $0.073 (Down by 96%)
According to my records, the company made profit every year from 2005 to 2015.
E&OE
Announcement: http://infopub.sgx.com/FileOpen/Ezra%20C...eID=411280
Total input $200k. Total output $1010k. Intriguing maths.
Dear GPD,
You hit the Bull's Eye. When you take A & B as the same person then it is called "Dollar-Cost-Averaging"
20.06.16 - Ezra Holdings starts 2H FY16 strong with US$300 Million worth of new deep water wins.