(24-12-2013, 10:56 AM)orangetea Wrote: [ -> ] (23-12-2013, 04:42 PM)CityFarmer Wrote: [ -> ]The recent slump in price of the company, provided an opportunity for those interested.
(vested)
No problem at all.
This was not in radar/watchlist.
Small qty, not so much difference.
Its arbitrage play since above mentioned
"The key numbers are $1.10 (issued price of UEL's shares) and $0.11 (valuation of MemstarT by UEL)"
Hence memstar at 0.08 is about 25% discount which is still good enough for a tikam
Thanks btw!
Divested at 0.099 cos the discount between UEL and MS has turned negative.
The calculated was taken from KopiKat on Jul 31
UEL (U19) 0.935 (Current price)
UEL Value per share 0.098 (Tabulated)
Memtech (5MS) 0.099 (Current price)
Discount -1.41% (Tabulated)
(Divested)
(02-01-2014, 04:25 PM)orangetea Wrote: [ -> ]Divested at 0.099 cos the discount between UEL and MS has turned negative.
The calculated was taken from KopiKat on Jul 31
UEL (U19) 0.935 (Current price)
UEL Value per share 0.098 (Tabulated)
Memtech (5MS) 0.099 (Current price)
Discount -1.41% (Tabulated)
(Divested)
Congrats, more than 20% gain in slightly more than one (1) week.
IMO, the value is yet fully realized, so I will stay vested.
(vested)
The company got waiver of Rule 1018 Escrow Requirements, after the UEL/MemstarT deal is completed. Further information received. All proceed will be distributed, except 1.75 mil. The proceed will be paid out within 10 weeks after EGM approval.
(vested)
Ref:
http://infopub.sgx.com/FileOpen/MS-Grant...eID=270540
(10-01-2014, 09:58 PM)CityFarmer Wrote: [ -> ]The company got waiver of Rule 1018 Escrow Requirements, after the UEL/MemstarT deal is completed. Further information received. All proceed will be distributed, except 1.75 mil. The proceed will be paid out within 10 weeks after EGM approval.
(vested)
Ref: http://infopub.sgx.com/FileOpen/MS-Grant...eID=270540
The asset realization schedule is more certain, with the EGM convened on 12 Feb 2014
Will the shareholders approve it? There is no good reason to reject it, IMO.
(vested)
Ref:
http://infopub.sgx.com/Apps?A=COW_Corpor...tx6vBCwrDc
The company disposal of assets to UE, is a typical case of special situation investing.
The disposal announcement was made around end Jul 2013. No overwhelming support in price from Mr. Market, which gave an opportunity for special situation investing.
First of all, we need an valuation for entry, which should take care of the downside, in case the disposal fall through.
The PE median in WWT industrial, was around 17. With PE 17, and EPS 0.45 cents, the fair valuation, even without the deal, was around 7.6 cents. Memstar Tech has its own membrane tech, so should has a premium, thus a valuation of 8 cents per share seemed reasonable.
The market price stayed above 8 cents per share for months. When the market price falled to around 7 cents around Dec 2013, it served as an opportunity to accumulate, with a good 10% MOS.
The exit valuation was the next homework, which should be a moving target, with more certainties disclosed. A minimum exit value was derived. The remaining value of the company was estimated as 2 cents. The fair valuation of UE base on the same methodology, was 90 cents per share. With distribution of 1 UE share per 10 Memstar Tech share, the minimum valuation, if the deal succeed, is 11 cents (9 cents + 2 cents)
The current market price is below 11 cents. The company value should be realized in Feb/Mar, which is likely more than the value estimated.
I am sharing the story, for those interested on special situation investing. Thanks.