Datapulse Technology

[lonewolf]

Actually the dividend is the same as last yr. 1c final. 1c Special.

The Capital Reduction Exercise is a little puzzling though.

In the EGM held on 18 Feb 2013, proposed resolution to expand into property development was duly passed.

So considering that huge capital outlay you will need to venture into property, the rationale for the capital reduction to 'to return to shareholders of the Company (“Shareholders”) surplus capital of the Company in excess of its needs' does not really add up.

In the latest FY FS, Datapulse is currently sitting on 30.982 million or about 5.21c per share. Its cash balance for the last 10 yrs has been in excess of 30 million (average 36 million). Its FCF has also been positive (not bad for a sunset industry company). So if nothing has really change in the capital structure all these years, I wonder why there is a need to 'achieve a more efficient capital structure' now.

Any views? (Vested)

[DP28]

Actually the dividend is the same as last yr. 1c final. 1c Special.

The Capital Reduction Exercise is a little puzzling though.

In the EGM held on 18 Feb 2013, proposed resolution to expand into property development was duly passed.

So considering that huge capital outlay you will need to venture into property, the rationale for the capital reduction to 'to return to shareholders of the Company (“Shareholders”) surplus capital of the Company in excess of its needs' does not really add up.

In the latest FY FS, Datapulse is currently sitting on 30.982 million or about 5.21c per share. Its cash balance for the last 10 yrs has been in excess of 30 million (average 36 million). Its FCF has also been positive (not bad for a sunset industry company). So if nothing has really change in the capital structure all these years, I wonder why there is a need to 'achieve a more efficient capital structure' now.

Any views? (Vested)

From a long term perspective, their main business nature in data storage seem to be in a sunset industry, They may have probably miss the bumper crop of the property cycle. The timing of their capital reduction exercise also come inline with the cessation of their Chairman. Ng Khim Guan, Early August also saw another of the independent non-executive director Ng Boon Yew stepping down.

There's something brewing for this company, probably a change in business direction that I see that as a significant risk. Hence, explains the "capital reduction" exercise (cashing out) with cessation of both directors.

[kagemusha]

Peter Lynch likes sunset industries, as he explained, that means that the operations is pretty much lean and alot of competitors are dying/already dead.
It is better to be in a monopoly in a sunset industry than to be a player in a "hot" industry, or something to that extend.

[opmi]

Peter Lynch likes sunset industries, as he explained, that means that the operations is pretty much lean and alot of competitors are dying/already dead.
It is better to be in a monopoly in a sunset industry than to be a player in a "hot" industry, or something to that extend.

Peter Lynch likes sunset industries meh??? He is the one popularized PEG ratio..More of growth guy.

Buffett like 'sunset' industries - low and predictable growth. Good for him with his 'free float'

[kagemusha]

yes he does. In his 2nd book, he penned it.

[odie]

share consolidation of 1 for every 3 shares held
date to be announced

[odie]

code for datapulse change from D04.SG to BKW.SG
Share consol 1 for every 3 held

[cyclone]

No Special Dividend ?

The Proposed Disposal of the Property at 15A Tat Seng Drive Singapore 535225 - Grant of Option to Purchase

Datapulse Technology Limited announced that the Company has, on 26 July 2017, granted an option to purchase (the "Option") to an independent third party purchaser for the sale of its property situated at 15A Tai Seng Drive Singapore 535225 for an aggregate consideration of S$53,500,000 on the terms and subject to the conditions of the Option. The Option shall remain valid up to 4.00 p.m. on 9 August 2017.

The Property is a leasehold property granted by the Jurong Town Corporation with a 30-year lease tenure commencing from 16 August 1993 with a further term of 30 years. It is a six-storey industrial building comprising production and warehouse areas as well as ancillary offices, and has a gross floor area of approximately 15,174 square meters.

The excess of the proceeds from the Proposed Disposal over the book value of the Property is approximately S$45,109,000 and The net gain on the proposed Disposal is expected to be approximately S$44,474,000.

The Company intends to deploy part of the proceeds from the Proposed Disposal to acquire a new premise to continue its existing business and operations. The remaining proceeds from the Proposed Disposal will be used as general working capital for the requirements of the Group’s businesses and operations and for the Group to undertake new investment opportunities that may arise in the future.

More details in http://infopub.sgx.com/FileOpen/Announce...eID=464781

[odie]

28 Sept EGM approved the disposal of property at 53.5 m
any chance for special dividend?
any views?
thanks in advance

[odie]

anyone attended the AGM today?


please share 

thank you