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Yes we are somewhat consistent. I don't see value in paying $60k a month to look after an all-cash shell company.

(24-02-2015, 05:27 PM)CityFarmer Wrote: [ -> ]

(24-02-2015, 05:02 PM)Debronic Wrote: [ -> ]

(24-02-2015, 04:14 PM)egghead Wrote: [ -> ]Shell company still have expenses to pay. Will I pay $77.8 for $80.3 - can't say I am excited.

If you look at the past few announcements on its cash balances and expenses, you can estimate that the burn rate is unlikely to be more than $1 mil per year and will be mitigated by interest from the cash.

The $80 mil is what I see as a floor because it consists of mostly liquid net assets. Upside will come from RTOs or other corporate actions from potential acquirer of UE. Just as an illustration, shell value will typically add around $10-15 mil in an RTO situation.

In any case, I already pointed out this is going to be a very low risk and limited return scenario. Not the kind of investment for everyone. But if you have cash stashed aside and not being able to find any bargains in this environment, this is not the worse stock you can buy.

I reckon you are consistent with egghead, "limited return scenario" == "can't say I am excited"

The burn rate estimation is around 0.7-0.8 mil, and let's put it as 1 mil. One year later, the cash will be reduced by 12 mil, and make the remaining around 70 mil, or 10-11 cents per share. The cost to park capital here, is the opportunity cost, I guess.

(not vested, and one of the stocks watched)

Haha…but the upside to such stocks in frothy markets is that their prices are usually very defensive and don't fall much even during big market corrections.

Btw, the cash burn is not 1 mil per mth but 1 mil per year at most. Staff and related expenses form the bulk of it at 50-60k/mth in the last 3 months or so. I assume legal and professional fees related to the disposal should not be significant going forward.

(24-02-2015, 05:43 PM)Debronic Wrote: [ -> ]Haha…but the upside to such stocks in frothy markets is that their prices are usually very defensive and don't fall much even during big market corrections.

Btw, the cash burn is not 1 mil per mth but 1 mil per year at most. Staff and related expenses form the bulk of it at 50-60k/mth in the last 3 months or so. I assume legal and professional fees related to the disposal should not be significant going forward.

Yes, I am wrong on the monthly number. My apologies.

Anyway, the conclusion stays. The main cost to hold the stock with current price, is the opportunity cost.

Yeah I am not disputing that.
Just that opportunity cost is a lot lower these days with the market at these levels.

(24-02-2015, 09:38 PM)Debronic Wrote: [ -> ]Yeah I am not disputing that.
Just that opportunity cost is a lot lower these days with the market at these levels.

I see and understood.

IMO, I am seeing more great opportunities around, amid the volatility.

(share a view, and no issue on other views)

Anyone attended the AGM today?
My friend attended --mentioned they are actively looking for RTO candidate.

They will decide RTO or distribution in mid of 2015.
Maybe China company is interested.

(17-04-2015, 01:45 PM)tiyana Wrote: [ -> ]Anyone attended the AGM today?
My friend attended --mentioned they are actively looking for RTO candidate.

(17-04-2015, 03:47 PM)shubin88 Wrote: [ -> ]They will decide RTO or distribution in mid of 2015.
Maybe China company is interested.

(17-04-2015, 01:45 PM)tiyana Wrote: [ -> ]Anyone attended the AGM today?
My friend attended --mentioned they are actively looking for RTO candidate.

Mid 2015 is only 2 months away.
Looking positive from the increased volume and price yesterday.

Capital reduction of $0.10 announced in 5 August.
Closure date not fixed yet

They said somewhere in Dec.......大约在冬季......yawnnnnn