Asia Enterprise Holdings

[thinleyw]

4th August 2Q results -

0.031c loss for 1H
Cash eq. increased to 64.97 (92.69% Mcap) no debt, almost trading at cash value.
NAV 0.3033 / share

Share price still stuck around 20c with not much volume

when will shipping steel sector pick up?

-v accumulating more soon-

As I mentioned in my post last yr, this is unfortunately a dead end business.
To make it worse, it is commodity related and steel stockists are likely to be screwed even more. Steel demand across the board has tanked, and is not likely to recover much in 2015 and even 2016.
Buy only with a very large MOS

Again, like I mentioned in my earlier posts, there is unlikely to be any recovery anytime soon.
Unfortunately steel stockists do not have any competitive edges, its just the nature of the business.
The inventory are all recorded at using a weighted average method. When the steel prices drops rapidly, and the demand is not there, its a double whammy because the prices of the inventory they hold keeps dropping, while they are unable to turnover the inventory fast enough (as demand isnt there)
So there'll be constant writedowns.
The converse is true in a rapidly rising market.
Management is fairly conservative, and has a long track record of maintaining dividends through all the ups and downs.
Unfortunately, like i mentioned, it is a dead end business and there's little prospect for growth.

How did you know they posted their Financial results?  Is there a way you can setup alerts?
Thanks

I used "stock alert" app from Apple Store.

It's not immediate, but within the few hours an announcement is made for a counter on your watchlist, it will send an alert. It sent alert for your target buy sell price too and show dividend history and yield based on current price.

Helpful for me

Thanks!