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25-11-2016, 10:13 AM
(26-07-2016, 02:19 PM)chew Wrote: Hi Shrivathsa
Wonder if you have taken a look at HG metal? It has a 22.43% stake in BRC Asia worth 21 mio based on current BRC Asia share px of 50.5 c. Cash & equivalent of 58.7 mio, receivables of 20 mio, against total liabilities of 20 mio. HG metal current market cap is 33.8 mio (based on current share px of 26.5 c). I think this is a fairly comfortable margin of safety, and would like to hear your thoughts.
Share buy back executed for 33,500 shares at 0.55 per share on May 27.
Quite a small buy back considering that NAV is much higher.
Will be interesting to see if there is any more buy back
Hi Mr.Chew,
My apologies on the delay in getting back.
I took a very brief look at HG Metal.
There were a few red flags i noticed about HG Metal.
Simply put, there seems to be a lot of repeated fund raising from share holders.
They do have a cash hoard.
However, that does not seem to be generating very much.
I look for companies which are seemingly reasonably shareholder friendly.
HG Metal comes across as a repeated capital raising company for purposes which are not fathomable.
I find that any company which seems too hard to understand is better to pass over.
Therefore, HG Metal went into my too hard to understand pile.
Regards
V
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures