(07-07-2012, 09:29 AM)newyorkcityboy Wrote: [ -> ]heifien91, neratel isn't privatised. As a result, the price could tank on Monday due to the "merger arbitrage" breaking down + general market weakness.
I think that the share price has been held down for too long by the STE offer. Looking at their past 2 financial reports, the price is rather lowish. For a start, their PE is btw 6-7 and div yield abt 8% at current prices. Profits and rev seem to be on an uptick. In the short term the price will be flattish but in the midterm it should go up. The wildcard is if STE makes GO and offers a higher price, that is if they badly want the business.
Balancing all the above I think the price will be on an upward bias... if not on Mon.
So, anyone buying at current prices? At $0.40, it's easily 10%+ cleaper than the offer price! Or waiting for it to drop further? Since there's still a huge seller Q of ~1Mil shares...
I'm thinking of getting some, after reading the glowing posts in this thread on the high FCF, Yield and low debts but unfortunately, have not done any analysis and this is holding me back for now while I scramble to search and digest all the info and figures...
STE's offer price is actually S$0.39, because one needs to factor in the extra A$0.06 which comes from dividend payout by NeraTel.
(09-07-2012, 03:39 PM)newyorkcityboy Wrote: [ -> ]STE's offer price is actually S$0.39, because one needs to factor in the extra A$0.06 which comes from dividend payout by NeraTel.
It looks like No Scheme => No 6ct Div. I rechecked their Scheme announcement (mentioned as 'Permitted Div' + AGM vote list but not in list), seems like so.
Tried to call their IR (Ms Jessie Chiang : 6380-0308, website Tel is outdated) but no one picked up the phone, can't leave a voicemail as full and not redirected to someone else as not programmed. Called reception but also can't help!
Eltek ASA had collected shiok shiok dividend every year and the dividend for this year was not declared because of the takeover offer. Since the offer has lapsed, they sure quick hand quick leg arrange for a special dividend.
no dividend dun quote me hor.....
(09-07-2012, 04:14 PM)KopiKat Wrote: [ -> ]It looks like No Scheme => No 6ct Div. I rechecked their Scheme announcement (mentioned as 'Permitted Div' + AGM vote list but not in list), seems like so.
Correct. Since the scheme was not passed, there will be no 6c dividend.
This circus has no winners but I will say that management took the biggest hit because minority shareholder cannot believe management will approve such a scheme.
One shareholder at the meeting called the use of the 6c dividend sweetener as 'unethical' which clearly ruffles the feathers of Chairman Chandra Das.
Personally I find it hard to believe that Eltek has problems getting companies to buy over its stake after an exhaustive 1.5 yr effort.
I believe STE does not want to buy the 50.5 percent stake if they can't get the whole company. Otherwise, there is no need for such special scheme. STE can just buy the 50.5 stake and make a G.O.
Probably Eltek need find another taker for its 50.5 percent stake. It is not cheap to buy for over 2x book value for a private equity fund. It probably will not be too easy for Eltek to find another one.
(09-07-2012, 07:35 PM)lonewolf Wrote: [ -> ] (09-07-2012, 04:14 PM)KopiKat Wrote: [ -> ]It looks like No Scheme => No 6ct Div. I rechecked their Scheme announcement (mentioned as 'Permitted Div' + AGM vote list but not in list), seems like so.
Correct. Since the scheme was not passed, there will be no 6c dividend.
This circus has no winners but I will say that management took the biggest hit because minority shareholder cannot believe management will approve such a scheme.
One shareholder at the meeting called the use of the 6c dividend sweetener as 'unethical' which clearly ruffles the feathers of Chairman Chandra Das.
Personally I find it hard to believe that Eltek has problems getting companies to buy over its stake after an exhaustive 1.5 yr effort.
Thx for the confirmation!
They ought to have just paid out the Div = 6ct on the condition that it'll be deducted from the Offer Price if the Scheme gets passed. Perhaps, the chances would have been higher since shareholders after happily getting their 6ct Div, may just decide to accept the offer as there's no other Div payout to look forward to except one year later.
I have decided to join the circus as I'm a sucker for High Yield (10%+ if they maintain FY 10 Div = 4ct) track record, High Cash (14.93ct / share), Negligible Debts,... even if they have no Growth.
(09-07-2012, 04:28 PM)yeokiwi Wrote: [ -> ]Eltek ASA had collected shiok shiok dividend every year and the dividend for this year was not declared because of the takeover offer. Since the offer has lapsed, they sure quick hand quick leg arrange for a special dividend.
no dividend dun quote me hor.....
No worries... Will find out soon as 1H12 (Jun) reporting is just around the corner. If not, wait another 6mths.
(09-07-2012, 08:41 PM)KopiKat Wrote: [ -> ]...
I have decided to join the circus as I'm a sucker for High Yield (10%+ if they maintain FY 10 Div = 4ct) track record, High Cash (14.93ct / share), Negligible Debts,... even if they have no Growth.
...
You had created an interest on me for this counter, may join you after i dig in further.
Wow! Did not expect so many of the arbitrageurs to sell off today- either to cut loss or take profits. These are probably the traders and opportunists. The general sour mood in the market probably contributed a bit to the panic selling. Also gives some of us the opportunity to get in or increase our holdings at a better price. If one looked at their FY11 report in Jan or Feb this year, they actually declared a 4 cent dividend pending the Scheme. Since the Scheme is now off, they should be giving out this 4 cents which was what was declared 2 years ago when they upped the annual dividend from 3 to 4 cents. At 40 cents the yield would be about 10%.