If ShanghaiAsia (SAH) were to do something like Aussino and its share price doubled to say 36 cents, how will happen to New Toyo (which owns 34% of SAH)?
Aussino is a cashless shell and yet it can turn its fortune by a mere RTO, from 7.5 cents to 15 cents (100% Gain). On the other hand, SAH is backed by 18 cents of solid cash per share.
How much will New Toyo benefit? now 18 cents of SAH translate into 12 cents of New Toyo (solid cash).
Think about it
The market is irrational.
New Toyo can easily "encash" its various components:-
a. 54% of Tien Wah or $40mil or 9 cents
b. 34% of SAH or 12 cents
c. $25mil of investment property or 5.5 cents
d. Speciality printing business - $4m to $5m per year or 11 cents (PE-10)
All add up to 37.5 cents,
of which (a) & (b) & © close to pure cash = 26.5 cents.
Is it better for New Toyo to just sell off and encash each of its components, and then DELIST?
Honestly speaking, those who bought New Toyo in antipication of higher dividend and special dividends (50% of payout from SAH's asset sales) must have felt CHEATED by company...
think something BIG is going to get announced soon
At most a privatisation at book value... dun think the family will share wealth with minorities beyond that since the business is auto-pilot
(02-07-2012, 08:32 PM)Stockerman Wrote: [ -> ]think something BIG is going to get announced soon
the website of SAH has been DOWN for quite sometime...
probably announcement underway on how to deal with all the cash holdings...
(90% with MAS escrow account..)
Remember the previous runup to 32 cents....
this time around, it should be breaking that level...Plus with the impending announcement from SAH, ...
half year dividend still can maintain at 0.9+cts. I dont see any issue without SAH as most of the cigarette company are making big bucks and giving increasing dividend. Why would they want to do anything supply chain changes if everything is going well for them.
Some of the best value add stock in the world fast moving consumable goods is actually sin stock.
How about a special dividend this qtr?
I can tell you honestly too that those who waited patiently will be heavily rewarded
(28-06-2012, 08:50 AM)potatolover Wrote: [ -> ]Honestly speaking, those who bought New Toyo in antipication of higher dividend and special dividends (50% of payout from SAH's asset sales) must have felt CHEATED by company...
SAH's website has been DOWN for quite some time...
the logical rationale for this is cash distribution, depending on what they want to do with the SHELL...
The full cash is there
[90% with MAS escrow account & every month, a cashflow report is submitted to SGX]
If you are tracking Tien Wah (54% owned by New Toyo), it has said in its AR that it has completed its capital investment program and is now ready to capitalize on any new opportunities..[No need for further capital expenditures]
Well, the chance for a full or close to full cash payout is very high...Furthermore if New Toyo manages to sell off its 34% stake of SAH at a much higher cash value say 25 to 30 cents (compared to the cash value of 18 cents), the special dividend is going to be very attractive...
From New Toyo shareholders' pt of view, we are talking about at least 10 cents special dividends..(excluding regular dividends)
Special Dividends
SAH 18 cents = New Toyo 12 cents [100% cash]
SAH 30 cents = New Toyo 20 cents [achievable target]
(03-07-2012, 05:02 PM)ValueBeliever Wrote: [ -> ]half year dividend still can maintain at 0.9+cts. I dont see any issue without SAH as most of the cigarette company are making big bucks and giving increasing dividend. Why would they want to do anything supply chain changes if everything is going well for them.
Some of the best value add stock in the world fast moving consumable goods is actually sin stock.
How about a special dividend this qtr?
