Have u ever ask yrself why is there a need for rights issue? Who is the biggest beneficiary of rights issue?
Whatever it is, anything that happens, Yen family will benefit. From listing in 97 till now, they have been the biggest beneficiary.
If indeed business is so attractive, we would have already seen the emergence of small cap institutional investors already.
Also please do not forget the high profile departures of long serving directors like John Cambridge and Tang Kum Hon from both Toyo and SAH.
Still vested but I just want to balance up the opinions.
(08-05-2012, 10:38 AM)portuser Wrote: [ -> ]Green Giraffe
You have indicated that only in recent years has New Toyo become attractive as a yield play largely because of its share price being decimated post GFC.
The current share price of 28c should be adjusted to account for the 3-for-5 rights issue at 12c in 2010. The revised price of 38c is actually close to the pre-crash level.
The current 7% high yield is the result of company's policy of high dividend payout rather than price decimation. The 2c dividend rate before the rights issue was reduced marginally to 1.94c even though the rights issue increased the number of shares by a whopping 60%.
If smokers cannot differentiate the more premium packs and go for cheaper brands because of plain packaging, the price war amongst tobacco makers may see their revenue drop in billions of dollars.
Will New Toyo continue to remain unscathed from all these price wars and competition for market share ?
Whichever tobacco makers that remain in the market, New Toyo will continue to provide its much-sought-after printing and packaging services
New Toyo just needs to continue to serve the MASTER of the day, be it BAT, Phillip Morris, Imperial Tobacco, etc..
Green Giraffe
My comments were on dividend yield, and did not cover the investment merits of New Toyo.
Your point on the need to have balanced views on companies must be correct.
The rights issue was to enable Tien Wah to buy three printing presses and upgrade an existing one for short run printing jobs for BAT. That Tien Wah's profit has been improving significantly despite high depreciation arising from new asset acquisition may suggest that the rights issue was not ill-conceived.
Yen family was not allocated any excess shares. The unsubsribed shares went to small stakeholders who applied for excess shares.
It is a fact of life that generally controlling shareholders benefit more than small shareholders. During the recent EGM, shareholders seemed to think very well of Mr Yen for foregoing his $6 million bonus entitlements in the 11 years as the Executive Chairman.
I believe Portek was not tracked by institutions before the takeover offers were made by ICTSI and Mitsui.
I joined many in berating Shanghai Asia for selling its assets on the cheap. But the prospect of the company performing badly in the face of falling aluminium price has now caused me to reassess my original stand.
Another heavy buying day for Tien Wah!!!
Something good is brewing..!!
$2.17 (RM)
New high for the year!! Was it an all time high also??
(07-05-2012, 11:04 AM)Curiousparty Wrote: [ -> ]Tien Wah is resuming its unassailable rise, despite the general drag on indexes from the much lower than expected job numbers from USA..
2.14 this morning....something is brewing ...hoho
Well said Underdogger
New Toyo should position itself to capture more businesses whatever the outcome. It should and I think it will position itself to capture more printing/packaging businesses from emerging markets such as Africa, Myanmar, Indonesia, etc...
(08-05-2012, 01:38 PM)Underdogger Wrote: [ -> ]If smokers cannot differentiate the more premium packs and go for cheaper brands because of plain packaging, the price war amongst tobacco makers may see their revenue drop in billions of dollars.
Will New Toyo continue to remain unscathed from all these price wars and competition for market share ?
Whichever tobacco makers that remain in the market, New Toyo will continue to provide its much-sought-after printing and packaging services
New Toyo just needs to continue to serve the MASTER of the day, be it BAT, Phillip Morris, Imperial Tobacco, etc..
With due credit, NTI did sell off a property last year so we shouldn't be too harsh on their investment property portfolio.
To be more exact, five residential apartments in Inner Mongolia and three office units in Commonwealth Lane were sold in 2011 for $3.9m and a profit of $0.86m.
In early days, New Toyo acquired properties for its overseas operations. In Inner Mongolia, it bought 13 apartment units as living quarters. When it exited the corrugated containers business there, the units were rented and progressively sold, leaving only three now.
A wall of sellers at 30 cents...Can see that investors are usually impatient and harsh...perhaps I should join in the selling too
New Toyo may experience a serious sell-down for the following reasons:-
a. Expectation of special dividends from New Toyo, albeit just a few cents, wearing off
b. Uncertainties and worries surrounding the state of the SAH's shell - will it drag New Toyo into deep troubled waters?
c. Without the $8mil net profit contribution to New Toyo's bottom-line, New Toyo's management still seems pretty clueless about any new business opportunities to make up for the shortfall. Perhaps they are being too comfortable with the status quo of just milking from existing contracts...a sure danger sign...
well, let's hope that the sell-off will not be too bad..
How will New Toyo's accounts look without any contribution from SAH?
(09-05-2012, 11:05 AM)Underdogger Wrote: [ -> ]New Toyo may experience a serious sell-down for the following reasons:-
a. Expectation of special dividends from New Toyo, albeit just a few cents, wearing off
b. Uncertainties and worries surrounding the state of the SAH's shell - will it drag New Toyo into deep troubled waters?
c. Without the $8mil net profit contribution to New Toyo's bottom-line, New Toyo's management still seems pretty clueless about any new business opportunities to make up for the shortfall. Perhaps they are being too comfortable with the status quo of just milking from existing contracts...a sure danger sign...