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"Inventories recognised as an expense, being cost of sales", is a normal and fine practice, isn't it? Big Grin

(not vested)

(10-10-2014, 03:48 PM)Ray168 Wrote: [ -> ]Point 1: Could it be accrual expenses like "Inventories recognised as an expense, being cost of sales"

When OSIM sell these inventories after AR, it is recognize as 100% profit.

Not vested.


(02-07-2014, 04:35 PM)rickytj Wrote: [ -> ]a bit cautious due to this:
1) what's inside the "other operating expenses"? why company didn't break them down? they are such a huge number
2) why didn't the company break down sales? as in how much come from massage chairs, TWG, and supplement business?
3) 2 lawsuits regarding TWG, one about its name and the other about share dilution of its founders
4) Brookstone saga, it seems to me management is trying to cover it up/ avoid discussing this openly? the bankruptcy itself shows management hasnt done enough due diligence prior to acquiring the business
5) Expensive valuation. Perhaps current expectation from the market is very high seeing how well the profits have grown. Any small mistake from Ron Sim can be very costly to investors.

just my 2 cents. not vested.
wah using bond issue monies to do cash buy back after share price tumbled, classic move.

I can almost predict what is going to happen next..

8/10 650,000 shares (0.9% of float) SGD 2.326
10/10 100,000 shares SGD 2.39
(11-10-2014, 01:09 AM)BlueKelah Wrote: [ -> ]wah using bond issue monies to do cash buy back after share price tumbled, classic move.

I can almost predict what is going to happen next..

8/10 650,000 shares (0.9% of float) SGD 2.326
10/10 100,000 shares SGD 2.39

With a cash horde of some $272M as at 2Q14, I guess they have plenty in store to do share buy back.
This is what I would call a RED FLAG if the share buybacks are sustained as it will be using debt to support share price.

Companies who do this normally don't end up very well...
quite weird to use debt to buy back shares
Indeed it is wired to use debt to buy back own shares.

But..... how do we verify that they use debt to buy back shares?

The treasury share own to date $S:

2014 ......... 2013 ....... 2012 ..... 2011 ........ 2010 ..... 2009
(13095)..... (36,962) ....(29,166) ..(14,277)..(37,662)...(2,289)

* 2014 1Q+2Q

(11-10-2014, 01:09 AM)BlueKelah Wrote: [ -> ]wah using bond issue monies to do cash buy back after share price tumbled, classic move.

I can almost predict what is going to happen next..

8/10 650,000 shares (0.9% of float) SGD 2.326
10/10 100,000 shares SGD 2.39
http://www.businesstimes.com.sg/companie...bond-issue

Is OSIM sell-off linked to S$170m bond issue?
By
Anita Gabrielanitag@sph.com.sg@AnitaGabrielBT
31025641.jpg AS OSIM International shares get pummelled further away from its near-term peak of S$2.87 scaled merely 2 1/2 months ago, the rub, say some market wags, could be related to the firm's S$170 million convertible bonds which were placed out to investors by HSBC, the issue's sole book runner and lead manager - ST PHOTO: KUA CHEE SIONG
14 Oct5:50 AM
Singapore

AS OSIM International shares get pummelled further away from its near-term peak of S$2.87 scaled merely 2 1/2 months ago, the rub, say some market wags, could be related to the firm's S$170 million convertible bonds which were placed out to investors by HSBC, the issue's sole
Apple and Microsoft also use debt to buy back shares or issue dividends. "Capital management" (not capital allocation) are non operational lower quality shareholders' returns. However the difference is that nobody questions the cash they have.

If Osim didn't do the CB and proceed to share buybacks then at least we know the money in their coffers are "fungible" to SGD. Now we won't know.

(28-08-2014, 12:28 AM)specuvestor Wrote: [ -> ]Count me in as another doubter of the conundrum that is Osim
(14-10-2014, 06:48 AM)greengiraffe Wrote: [ -> ]http://www.businesstimes.com.sg/companie...bond-issue

Is OSIM sell-off linked to S$170m bond issue?
By
Anita Gabrielanitag@sph.com.sg@AnitaGabrielBT
31025641.jpg AS OSIM International shares get pummelled further away from its near-term peak of S$2.87 scaled merely 2 1/2 months ago, the rub, say some market wags, could be related to the firm's S$170 million convertible bonds which were placed out to investors by HSBC, the issue's sole book runner and lead manager - ST PHOTO: KUA CHEE SIONG
14 Oct5:50 AM
Singapore

AS OSIM International shares get pummelled further away from its near-term peak of S$2.87 scaled merely 2 1/2 months ago, the rub, say some market wags, could be related to the firm's S$170 million convertible bonds which were placed out to investors by HSBC, the issue's sole

The convertible bonds placed out to investors in late August were lauded by analysts for its relatively cheap cost of funding - the five-year unsecured bonds bear no interest rate - but what appears to have piqued curiosity only now is that one day after the fund-raising plan, Ron Sim, OSIM's founder, chief executive and majority shareholder, entered into a stock borrow agreement with HSBC involving 20 million of his shares.

In filings to the Singapore Exchange, the firm said that the stock loan was issued to HSBC by Mr Sim "in support of (the) proposed issuance of convertible corporate bonds by OSIM International Ltd on 26th August 2014".

1. I wonder why OSIM is not using the pure bond or perpetual bonds, instead use a convertible bond

2. What does this mean for if someone lends a bank 20M shares? Is similar to SGX stock share for someone to borrow to short?
(14-10-2014, 01:49 PM)Contrarian Wrote: [ -> ]The convertible bonds placed out to investors in late August were lauded by analysts for its relatively cheap cost of funding - the five-year unsecured bonds bear no interest rate - but what appears to have piqued curiosity only now is that one day after the fund-raising plan, Ron Sim, OSIM's founder, chief executive and majority shareholder, entered into a stock borrow agreement with HSBC involving 20 million of his shares.

In filings to the Singapore Exchange, the firm said that the stock loan was issued to HSBC by Mr Sim "in support of (the) proposed issuance of convertible corporate bonds by OSIM International Ltd on 26th August 2014".

1. I wonder why OSIM is not using the pure bond or perpetual bonds, instead use a convertible bond

I reckon OSIM prefer equity-like funding, rather than pure debts. That consistent with all the previous right issues of warrant. That makes the growth story very important to Mr. Sim.

(14-10-2014, 01:49 PM)Contrarian Wrote: [ -> ]2. What does this mean for if someone lends a bank 20M shares? Is similar to SGX stock share for someone to borrow to short?

I am confused on Mr. Sim/HSBC agreement is for borrowing or lending by Mr. Sim? It is non issue for lending, but very strange indeed for borrowing, IMO

BTW, I didn't manage to find the disclosure. Any hint?

(not vested)
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