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NOL announced that it is considering the sale of its logistics business. Its logistics arm is the only profitable business in the company currently if im not wrong. Will the company be ploughing the proceeds back into its loss-making shipping arm after the sale? case of NOL throwing good money after bad?
Haiz..
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May be a repeat of like selling the profitable AET to Malaysians? When they tried to have a rights issues not too long ago, NOL had to withdraw due to unfavourable circumstances. And sold their NOL Head Office buildings instead. What else can they sell before ????
WB:-
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2) Rule # 2, refer to # 1.
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20-08-2014, 04:11 PM
(This post was last modified: 20-08-2014, 04:19 PM by CY09.)
Nol has us$569m of liabilities to repay within this 10 months. Furthermore with potential interest rate hikes, it may not wise to be burdened with us$7.3 billion of total debt and non cancellable financial lease. Therefore a 750 mil sale seems feasible to tide the company as a rights issue at low price does not seem palatable
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end up become a holding company... all assets sold... roughing out the low-turn in shipping...
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2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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The report on the announcement. If the disposal is via IPO, it will be interesting, depending on the detail...
(not vested)
NOL says sale of its logistics business ‘preliminary and exploratory in nature’
Neptune Orient Lines has responded to media reports that it is planning a sale of its logistics business.
NOL said in a statement to the SGX that it continually evaluates all available options to improve the strategic positioning and performance of its businesses.
These include considerations of a potential sale or initial public offering (IPO) and listing of its logistics business as a separate, stand-alone unit from NOL.
...
http://www.theedgesingapore.com/the-dail...ature.html
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NOL always have ah gong behind it - another Temasek milestone after lifting stake from less than 50% to a subsidiary when shipping cycle was running real hot during the peak of last cycle.
Seems like Temasek like momentum investing in its long term strategic process...
Whatever lah, without Temasek, NOL is also another pile of scraps... better off keep things simple and invest in ks players like Godfather Ow
Odd Lots Vested
GG
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