(08-03-2013, 10:57 AM)Retired@52 Wrote: [ -> ]I bought BRC in May 2008 @ $0.13 and out of fear of being delisted; I accepted the unconditional offer in Oct 2008 @ $0.11. I lost 19% on this stock in 5 months. Today its share price is trading @ $0.187 and they’ve been paying high dividends for the last few years.
I got an unconditional offer by WingTai in July 2012 @ $1.39 per share, I refused to accept the offer and its share is now trading @ $1.90 (I would have less gain 30% in 7 months)
I voted against the Offer by ST Engineering to delist NeraTel at $0.45 in June 2012 and I’m glad that we the minority shareholders had won.
ST Engineering failed to delist NeraTel at $0.45 and we later received a Dividend of $0.04 on 3rd Aug 2012 and its share price now stands at $0.65 (Gain 44% in 9months)
I bought STX OSV in April 2012 @ $1.71. How can I accept an offer of $1.22 (Lost of 28% with 1 year)?
If they call for a meeting, I’m definitely going to vote AGAINST and hope that many minority shareholders do likewise.
The Value of this share is underpriced. I just added another 30 lots of STX OSV yesterday @ $1.255
Sorry, the above was from a new thread but I think it'd be more convenient for future reference to post the reply here.
Yes, the current scenario for STX OSV is very similar to that of Neratel ie. A financially weak controlling majority shareholder (>50%) sells their entire stake to a 3rd party, thereby triggering a Mandatory Offer. The price offered is also below the last traded market price, I guess no choice as financially weak means they have to sell at a discount, else no takers.
But, for those who're expecting to make 30%+ (am using Neratel Offer @ $0.49 vs $0.655 yesterday's close) by betting on a failure of this Mandatory Offer (closes on 13-Mar), do take note of the following differences,
1. Profitability - For Neratel, we were seeing an increasing Revenue + more importantly, Profit from their new MENA territory. For STX OSV, their latest Q4 shows a continued downward pressure on their profitability. Although the forward guidance is cautiously optimistic of a potential recovery in one of their segment, note the huge difference vs Neratel.
2. Balance Sheet - For Neratel, negligible debts + Cash 12.09ct / share. For STX OSV, Debts > Cash.
3. New Controlling Shareholder - For Neratel, I'm expecting them to benefit from their network with potential new biz and especially in the Indonesia mkt. For STX OSV, Fincantieri is expecting to benefit from their technology and expertise. Perhaps there may be some savings in terms of cost due to greater economy of scale in common items, but I'm not so optimistic and can only hope they don't do things that may negatively impact STX OSV... haha..
Despite the above, I've placed my tikam and will be following the outcome closely. Despite the bullish mkt, current share price is likely depressed due to a substantial shareholder (Oz) selling daily, bit-by-bit. Good thing it seems to be well absorbed and has yet to hit the offer price of $1.22.