Elite KSB Holdings

The company has de-registered a subsidiary, Elite Asset Management Pte. Ltd. This company was incorporated just before the disposal, around mid of 2012. Initial purpose was for investment holding.

http://info.sgx.com/webcoranncatth.nsf/V...20036EAE5/$file/EliteKSB-Deregistration_of_subsidiary.pdf?openelement

(not vested)

I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

(27-05-2013, 06:36 PM)vader1671 Wrote: I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

Yes, you are right. The company is a cash company now, and becoming a new company via either M&A or RTO...

The financial report for April 2013 is out today

Summary:
- Dividend from China investment still "stuck" in receivable? It is definitely not a norm IMO.
- The China investment, the "cash cow" continue to generate cash, another 350K in April. From Jan-April, the cash generated is close to 1 mil.
- NAV attributable is approx $28.3 mil, or 21 cents per share.

(not vested)

(27-05-2013, 06:36 PM)vader1671 Wrote: I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

welcome to the party though not sure if u r a little bit late..hmm..why were u interested in a skeleton company?

(27-05-2013, 11:44 PM)pianist Wrote:

(27-05-2013, 06:36 PM)vader1671 Wrote: I was interested in this counter. However, going over their annual reports, I noticed that they have sold off the vast bulk of their profit generating business.

Am I reading this correctly?

Profit from Continuing Operations, Net of Tax: 1,245
Profit from Discontinued Operations, Net of Tax: 8,160

If this is the case, will I now be buying a company that has just sold off 80% of their profits?

welcome to the party though not sure if u r a little bit late..hmm..why were u interested in a skeleton company?

I'm probably very late. Oops. Not entirely interested in skeletons.

Hey All,

I m still new to value investing and i m still learning.
i have been looking into this company off late but i m currently lost on the jargons for this thread.
what do you mean by skeleton company/M&A/RTO?

Do give me some tips.

thanks.

(29-05-2013, 08:51 AM)Matt88 Wrote: Hey All,

I m still new to value investing and i m still learning.
i have been looking into this company off late but i m currently lost on the jargons for this thread.
what do you mean by skeleton company/M&A/RTO?

Do give me some tips.

thanks.

Skeleton company is not a jargon. The equivalent jargon is cash company. You can read through SGX Rule 1017, under chapter 10 for a detail description, with link below

http://rulebook.sgx.com/en/display/en/di...pany#r7792

M&A = Mergers and Acquisitions (in layman term, buying other companies)
RTO = Reverse Take Over (in layman term, bought by other company)

Hope it helps...

Mr. Chew Ghim Bok proposed to take over the KSB China, the cash cow of the company, for $10.57 million. Is this a good buy for Mr. Chew?

http://info.sgx.com/webcoranncatth.nsf/V...E003B27E5/$file/EliteKSB_Annt_Disposal-CapReduction.pdf?openelement

Preliminary view on the disposal.

The sale price of the share is $10.57 million, which is also the book value. The earning of the share is $2.1 million (FY12). So the deal is priced at PB 1 and PE of 5

IMO, a good deal for Mr. Chew...

is it true that most buyers of RTO would want a totally clean empty shell?

The market cap is already over book value. Any thoughts on how much a RTO is worth?