01-03-2014, 01:55 PM
Actually, the more complicated and confusing the entire conglomerate, the better.
More importantly we must have faith behind the people backing UE - the conservative bankers/insurers/family fund that knows the combined entity inside out for more than a century.
They started the whole ordeal and surely they have a plan to finance and extract value from the ongoing drama series. They have deep pockets and simply have faith in them structuring the future episodes will be interesting to watch.
More importantly when value is extracted from restructuring, discount to reported books will narrow (capital gains for shareholders) and special dividends will be declared in the process (since a lot of Shxx has been accounted for). It is heartening to see that base dividends of 5 cents are being maintained and a track record of special dividends maintained notwithstanding the big mess that was created in 2013.
Vested
GG
More importantly we must have faith behind the people backing UE - the conservative bankers/insurers/family fund that knows the combined entity inside out for more than a century.
They started the whole ordeal and surely they have a plan to finance and extract value from the ongoing drama series. They have deep pockets and simply have faith in them structuring the future episodes will be interesting to watch.
More importantly when value is extracted from restructuring, discount to reported books will narrow (capital gains for shareholders) and special dividends will be declared in the process (since a lot of Shxx has been accounted for). It is heartening to see that base dividends of 5 cents are being maintained and a track record of special dividends maintained notwithstanding the big mess that was created in 2013.
Vested
GG
(01-03-2014, 01:06 PM)johnnydash Wrote: [ -> ]Wrong to say profit increased was due to divestment gain. UE segments were all profitable, whereas for WBL, the automotive, EMD were profitable.
Take a look at operating cash flow to have an idea of how cash generating the business is.
Of course I would be first to admit that UE overpaid for WBL. But then again if they did not, there would not be a chance to acquire UE at 0.4 RNAV. Plus I think the real crown jewe in WBL l is the property division with significant tracts of land.
I have no doubt UE is looking to sell non core business to pare down debt. Other completed property development and in particular Orchard gateway will also provide significant chunk of cash.In fact there might even be more acquisition of buildings for rental
(01-03-2014, 11:22 AM)Behappyalways Wrote: [ -> ]Took a glance at the FY2013 results.....Looks kinda bad to me......(maybe that's that why Jackson left.....which is why no replacement after his 'planned' retirement)
Profit increased was due to divestment gain. Interest expense of $32m with debts of $2.9b. That's about 1% interest. Most probably interest expense will rise significantly in FY2014 and eats into the P/L.
My guess is UE will probably have lower profit this year and maybe close to breakeven or loss....Just a guess.
They need to cut down on debts fast.....
not vested
