Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
(06-08-2013, 11:47 PM)WolfT Wrote: [ -> ]Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
He sold 1,040,000 shares. That means $20,800 forgone for the 2ct Interim Div.
Asia System (ASL) owns 193,173,439 shares in Neratel and will get $3.86Mil from this Interim Div.
Canopus Asia Systems is the controlling entity of ASL and CEO sold his stake in Neratel for a minority stake here.
So, the Million Dollar Question is whether his minority stake is large enough such that his share of the Neratel div will be higher or lower, assuming the money does get distributed out.... or perhaps, it opens up a whole lot of other opportunities for him, via Canopus, assuming it gets reinvested?
(07-08-2013, 12:10 AM)KopiKat Wrote: [ -> ] (06-08-2013, 11:47 PM)WolfT Wrote: [ -> ]Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
He sold 1,040,000 shares. That means $20,800 forgone for the 2ct Interim Div.
Asia System (ASL) owns 193,173,439 shares in Neratel and will get $3.86Mil from this Interim Div.
Canopus Asia Systems is the controlling entity of ASL and CEO sold his stake in Neratel for a minority stake here.
So, the Million Dollar Question is whether his minority stake is large enough such that his share of the Neratel div will be higher or lower, assuming the money does get distributed out.... or perhaps, it opens up a whole lot of other opportunities for him, via Canopus, assuming it gets reinvested?
I see it as he did for his own benefit, as with Canopus, he is able to take advantage of a bigger entity than himself to have better investment opportunity.
(07-08-2013, 12:23 AM)NTL Wrote: [ -> ] (07-08-2013, 12:10 AM)KopiKat Wrote: [ -> ] (06-08-2013, 11:47 PM)WolfT Wrote: [ -> ]Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
He sold 1,040,000 shares. That means $20,800 forgone for the 2ct Interim Div.
Asia System (ASL) owns 193,173,439 shares in Neratel and will get $3.86Mil from this Interim Div.
Canopus Asia Systems is the controlling entity of ASL and CEO sold his stake in Neratel for a minority stake here.
So, the Million Dollar Question is whether his minority stake is large enough such that his share of the Neratel div will be higher or lower, assuming the money does get distributed out.... or perhaps, it opens up a whole lot of other opportunities for him, via Canopus, assuming it gets reinvested?
I see it as he did for his own benefit, as with Canopus, he is able to take advantage of a bigger entity than himself to have better investment opportunity.
I mean why not do both? It is not like he can't fork out another 830k ? CEO lay...
Uncle Kopi!
Lets do the CD/XD trick again...
(06-08-2013, 11:30 PM)KopiKat Wrote: [ -> ]IIRC, one of the analysts got it right, must have been from the horse's mouth... Net Cash Inflow on Acquisition (Nera Malaysia) = $5,335,000 (pg6) vs ~$5Mil in that report. This translates to ~1.5ct and was the justification for a Special interim Dividend of 2ct in that report... From now, must really pay special attention to the contents of analysts' reports / news interview, if those were written after co. meetings/briefing....
Should we also assume that it will contribute about $0.5 mil per quarter thereafter?
Unless they managed to produce a much strong Q3 compared to last Q3 with high positive net cash inflow, a 4cts final dividend will see CPS dropping further. Will ended up as 1cts + cash from Q3 + Q4.
That $7mil doesn't translate into cash. I wonder wonder why they pay out this interim dividend.
(07-08-2013, 12:30 AM)WolfT Wrote: [ -> ] (07-08-2013, 12:23 AM)NTL Wrote: [ -> ] (07-08-2013, 12:10 AM)KopiKat Wrote: [ -> ] (06-08-2013, 11:47 PM)WolfT Wrote: [ -> ]Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
He sold 1,040,000 shares. That means $20,800 forgone for the 2ct Interim Div.
Asia System (ASL) owns 193,173,439 shares in Neratel and will get $3.86Mil from this Interim Div.
Canopus Asia Systems is the controlling entity of ASL and CEO sold his stake in Neratel for a minority stake here.
So, the Million Dollar Question is whether his minority stake is large enough such that his share of the Neratel div will be higher or lower, assuming the money does get distributed out.... or perhaps, it opens up a whole lot of other opportunities for him, via Canopus, assuming it gets reinvested?
I see it as he did for his own benefit, as with Canopus, he is able to take advantage of a bigger entity than himself to have better investment opportunity.
I mean why not do both? It is not like he can't fork out another 830k ? CEO lay...
Uncle Kopi!
Lets do the CD/XD trick again...
Maybe the deal is to get him into the board of Asia System or Canopus (still very confused between these two). Director's fee + share options sounds more decent?
(07-08-2013, 12:42 AM)GPD Wrote: [ -> ] (06-08-2013, 11:30 PM)KopiKat Wrote: [ -> ]IIRC, one of the analysts got it right, must have been from the horse's mouth... Net Cash Inflow on Acquisition (Nera Malaysia) = $5,335,000 (pg6) vs ~$5Mil in that report. This translates to ~1.5ct and was the justification for a Special interim Dividend of 2ct in that report... From now, must really pay special attention to the contents of analysts' reports / news interview, if those were written after co. meetings/briefing....
Should we also assume that it will contribute about $0.5 mil per quarter thereafter?
That was what the analysts estimated.... But, if I were to use the FY12 Proforma figures from their
Nera Malaysia acquisition announcement,
Before Restructuring : EPS = 5.36ct
After Restructuring : EPS = 7.31ct
Negative Goodwill = $5.05Mil or 1.4ct
Nera Malaysia EPS = 7.31 - 5.36 - 1.4 = 0.55ct
I also used the above math using Q113 Proforma figures and got only 0.1ct for that quarter.... but, still acceptable as EPS need not be smooth throughout all quarters.
Perhaps my method used for estimating is wrong?? It could also be due to Equity Accounting of Associate vs Subsidiary (whatever that means, but mentioned in latest Presentations pg8 to explain why PAT margin appears lower, despite better GPM) Still, I'll use EPS = 0.55ct/yr for my own crystal ball as it's more conservative...
Oops... just realised after posting that $0.5Mil / Q => 0.14ct / Q or 0.56ct / Year, so, very similar to my above...
Quote:Unless they managed to produce a much strong Q3 compared to last Q3 with high positive net cash inflow, a 4cts final dividend will see CPS dropping further. Will ended up as 1cts + cash from Q3 + Q4.
According to their
Presentations (pg9), there was also about S$9m capex on POS leasing, which "helped" to deplete the Cash. I suppose that ought to translate to more cash inflow as it gets deployed in the coming months.
Further, the Q4 Div is usually only paid in May. They'd have Q3, Q4, Q114 & Q214 of Cash Inflow to counter your fears that it'll drop to 1ct Cash/Share.
Quote:That $7mil doesn't translate into cash. I wonder wonder why they pay out this interim dividend.
I highlight in bold what I posted earlier. There was a Cash Inflow from the Nera Malaysia acquisition of ~1.5ct / share. The bulk of the Special Interim Dividend came from this "extra" cash. I only hope they won't be reducing the Final dividends cos' of this payout..
(07-08-2013, 12:30 AM)WolfT Wrote: [ -> ] (07-08-2013, 12:23 AM)NTL Wrote: [ -> ] (07-08-2013, 12:10 AM)KopiKat Wrote: [ -> ] (06-08-2013, 11:47 PM)WolfT Wrote: [ -> ]Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
He sold 1,040,000 shares. That means $20,800 forgone for the 2ct Interim Div.
Asia System (ASL) owns 193,173,439 shares in Neratel and will get $3.86Mil from this Interim Div.
Canopus Asia Systems is the controlling entity of ASL and CEO sold his stake in Neratel for a minority stake here.
So, the Million Dollar Question is whether his minority stake is large enough such that his share of the Neratel div will be higher or lower, assuming the money does get distributed out.... or perhaps, it opens up a whole lot of other opportunities for him, via Canopus, assuming it gets reinvested?
I see it as he did for his own benefit, as with Canopus, he is able to take advantage of a bigger entity than himself to have better investment opportunity.
I mean why not do both? It is not like he can't fork out another 830k ? CEO lay...
Uncle Kopi!
Lets do the CD/XD trick again...
Own time own target... xd soon... sudden buying interest... 82 high...
(07-08-2013, 12:30 AM)WolfT Wrote: [ -> ] (07-08-2013, 12:23 AM)NTL Wrote: [ -> ] (07-08-2013, 12:10 AM)KopiKat Wrote: [ -> ] (06-08-2013, 11:47 PM)WolfT Wrote: [ -> ]Why did the CEO sell away his shares if he knows there are going to be an interim div?
Does he really need the extra 830k for his new minority stake? Hmmm...
He sold 1,040,000 shares. That means $20,800 forgone for the 2ct Interim Div.
Asia System (ASL) owns 193,173,439 shares in Neratel and will get $3.86Mil from this Interim Div.
Canopus Asia Systems is the controlling entity of ASL and CEO sold his stake in Neratel for a minority stake here.
So, the Million Dollar Question is whether his minority stake is large enough such that his share of the Neratel div will be higher or lower, assuming the money does get distributed out.... or perhaps, it opens up a whole lot of other opportunities for him, via Canopus, assuming it gets reinvested?
I see it as he did for his own benefit, as with Canopus, he is able to take advantage of a bigger entity than himself to have better investment opportunity.
I mean why not do both? It is not like he can't fork out another 830k ? CEO lay...
Uncle Kopi!
Lets do the CD/XD trick again...
Own time own target... xd soon... sudden buying interest... 82 high...
$0.82 is where SA got off, natutally becomes a point for people to follow suits.
(12-08-2013, 03:17 PM)NTL Wrote: [ -> ]$0.82 is where SA got off, natutally becomes a point for people to follow suits.
To be exact, using the figures reported to
SGX,
17-Jul-13 : 365,000 @ $301,169 => $0.8251
18-Jul-13 : 675,000 @ $556,250 => $0.8241
I suppose if we assume the consideration received were inclusive of brokerage charges, he must have sold at market prices of $0.825 to $0.83?