(09-07-2016, 06:06 PM)Retired@52 Wrote: [ -> ]Dear Value Buddies,
If you want to know the Values of the Buddies, you read this post all the way right from the beginning.
Read all 52 Posts, none of them had a positive comment whether they were vested or not.
I take my hat off to them.
If you were vested and took heed, you would have escape suffering loss.
According to my records, this company made good profits from 2007 to 2012 ($25M, $34M, $40M, $54M, $63M & $44M) respectively.
The company started going down 3 years ago.
What caused the problem?
Having said all the above, is the company currently under price?
Trading at the price of the Rights, $0.21. NAV $0.94, Historical high on 12th July 2007 was $2.067 adjusted price per share.
Let's see if anyone has some insight.
For the full story you need to go back to the old wallstraits forum. Between years of 2007 to 2012 singapore saw a property bull run which means spillover into the construction industry.
Prior to 2007 and much earlier it was bad time for construction industry there was even a news article in the straits time that said construction was in a sunset industry this was long before announcement of genting and mbs casinos.
During that time I remember this stock ran into it's troubles, prior to 2007 was trading at 2 cents a share. It was deep in debt, in negative capital, had a david vs goliath litigation with bank who place it under judicial management and appointed a person to oversee it.
When a company placed under judicial management means "last chance" already. The last option is to appoint a manager to see if it can be rescued if cannot then the manager's job is to oversee 'proper disposal of assets in a orderly manner' euphemism for make sure the internal people dun plunder anything.
And most times JM appointee is someone with strong financial background but will not risk their reputation, most cases I see they will just find a prospective knight for takeover or RTO. But for YN case expected RTO never happened this was different.
At that time around 2 cents a share I remember reading the sgx announcement the company was in such dire straits they couldn't even afford to pay a salary to the JM manager and issued him a huge load of shares. That guy really worked hard for his money also took a big personal risk, if for any reason what he did, didn't turn company around not only was he answerable and the shares wouldn't be worth a farthing he didn't get paid on top of it.
But it turned out well, he put in place very strict financial systems and cost controls hired in right people didn't allow cost overruns, the rumor was these controls didn't sit well with internal people, they had a rights issue that put the company into positive footing and being positive financially means they could tender for bigger projects w bigger margins like the BKK Suvarnabhumi Airport where they erected the massive columns to support the iconic dome like structures. They even surprised many when they won a high court case dismissal in their favor overhanging their fate.
After nicoll highway mishap government started to pump up spending and also announced "integrated resort" property boom took off at one point YN share price traded at a crazy high of 58 cents never quite closed at that level though but by then they already out of the woods.
Then suddenly shortly after getting out of the woods the company announcement the JM director who turned around the company was stepping down and leaving - wild rumors of boardroom coup.
Almost 10 years on we hear company again in debt, rights issue seems like backsliding into "ol times".
What do you all think is wrong?
I think from the projects they handle I would say they have very capable structural engineering team there's no doubt.
Not sure how good their current business/financial team but from how to explain cost overruns if they had systems put in place by previous I would hazard a guess financial team now gets overruled somehow?
not vested