ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

can see a lot of sellers clustering at 28.5 cents ... all waiting impatiently to dump?

In the latest update from SAH, http://info.sgx.com/webcoranncatth.nsf/V...400361C09/$file/SAH_2Q2012_Ann.pdf?openelement, an 8.5cents dividend will be paid out from SAH to all shareholders. New Toyo has 299,470,247 shares amounting to a total dividend of $24,454,970.995. If distributed in its entirety to all New Toyo shareholders (439424603 shares), each shareholder stand to get 5.79 cents per share. Based on the last transacted price (8 Aug) at $0.28, that translates to a dividend yield of 20.69%.

In my opinion, Mr Market should rerate the stock based on the possible dividend yield.

The long wait is paying off

The dividend will translate into about 5.6 cents of New Toyo

Think New Toyo will spike on Friday to at least 35 cents

BOOM!!!!

Don't forget that New Toyo still has gearing on books. It ain't over till the fat lady sings. Wait and see.

this question has been answered many times...

New Toyo's own borrowing is only a meagre $28mil which can be easily pared down without even any special dividends from SAH.

In fact, New Toyo can continue to dish out abt 2 cents regular dividend each year while continuing to pare down its meagre debt level (without any special dividends from SAH).
Tien Wah (54% owned by New Toyo) can easily pare down its debt within 2 years. If u dont believe, just wait 2 years and see

Pls check Port user's discussion

(08-08-2012, 08:45 PM)greengiraffe Wrote: [ -> ]Don't forget that New Toyo still has gearing on books. It ain't over till the fat lady sings. Wait and see.

---

Just want to add New Toyo NAV is severely understated .

Just need to check out the locations of Tien Wah's printing factories and all the investment properties on New Toyo's books!!! ....

a. Tien Wah's printing factories are currently located smack in the middle of Petaling Jaya Section 13
b. Both New Toyo and Tien Wah's investment properties are stated at BOOK VALUE.

I have this feeling that the remaining cash in SAH will be paid out very soon too...

what any silly investments can SAH do? with its tainted history, RTO might not be favourably viewed......

i agreed that it is a waste of shareholders' money ..
all the legal fees, consultancy fees, etc...

Just return and close shop - SAH!

(08-08-2012, 09:03 PM)Curiousparty Wrote: [ -> ]I have this feeling that the remaining cash in SAH will be paid out very soon too...

what any silly investments can SAH do? with its tainted history, RTO might not be favourably viewed......

you have forgotten to factor in the 2nd or remaining batch of 10 cents cash still in SAH.

18.5 cents - 8.5 cents = 10 cents (New Toyo - 6.7 cents)

12cents / 28 cents = 43% dividend yield
Mr Market will come to its sense soon

(08-08-2012, 06:30 PM)psolhawk Wrote: [ -> ]In the latest update from SAH, http://info.sgx.com/webcoranncatth.nsf/V...400361C09/$file/SAH_2Q2012_Ann.pdf?openelement, an 8.5cents dividend will be paid out from SAH to all shareholders. New Toyo has 299,470,247 shares amounting to a total dividend of $24,454,970.995. If distributed in its entirety to all New Toyo shareholders (439424603 shares), each shareholder stand to get 5.79 cents per share. Based on the last transacted price (8 Aug) at $0.28, that translates to a dividend yield of 20.69%.

In my opinion, Mr Market should rerate the stock based on the possible dividend yield.

The following is purely my personal opinion based on experience with New Toyo since its listing in late 90s.

There has been numerous U-turns in New Toyo history:

i) a failed diversification into Vietnam tissue paper plant that eventually the Yen family have to buy it off New Toyo;

ii) then came Shanghai Asia in 2004 - supposedly a winner in the consolidation of the Chinese tobacco industry but ended up drowning in it. Imagine SAH started as a defensive dividend yield play in one of the world's largest tobacco industry. Eventually, SAH has to diversify into aluminium foil manufacturing to salvage its own fortune. Just when the aluminium plant was completed, a trade sale was hatched;

iii) right after the listing of SAH, New Toyo was supposed to recycle the listing proceeds into related businesses to plug the earnings vacuum - that was in 2004. The meaningful and sizable acquisition only came in 08/09 when they bought out BAT's packaging business and was handed BAT's packaging for a period of time. The lucrative business took another 2 years to get over the start-up period.

There is no doubt that New Toyo is undervalued. However, it is undervalued for its track record.

With SAH divested and money returning, there could well be an incentive for New Toyo to be privatised especially when its gearing is lightened. At what value - may be at book value.

All my speculations...

Who will want to buy over New Toyo at its NAV? afterall, it is just a mundane cigarette packaging company...

(09-08-2012, 09:25 PM)greengiraffe Wrote: [ -> ]The following is purely my personal opinion based on experience with New Toyo since its listing in late 90s.

There has been numerous U-turns in New Toyo history:

i) a failed diversification into Vietnam tissue paper plant that eventually the Yen family have to buy it off New Toyo;

ii) then came Shanghai Asia in 2004 - supposedly a winner in the consolidation of the Chinese tobacco industry but ended up drowning in it. Imagine SAH started as a defensive dividend yield play in one of the world's largest tobacco industry. Eventually, SAH has to diversify into aluminium foil manufacturing to salvage its own fortune. Just when the aluminium plant was completed, a trade sale was hatched;

iii) right after the listing of SAH, New Toyo was supposed to recycle the listing proceeds into related businesses to plug the earnings vacuum - that was in 2004. The meaningful and sizable acquisition only came in 08/09 when they bought out BAT's packaging business and was handed BAT's packaging for a period of time. The lucrative business took another 2 years to get over the start-up period.

There is no doubt that New Toyo is undervalued. However, it is undervalued for its track record.

With SAH divested and money returning, there could well be an incentive for New Toyo to be privatised especially when its gearing is lightened. At what value - may be at book value.

All my speculations...