Special Situation stocks

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21 Jul 2017 11:33 #23914 by pine
pine replied the topic: Special Situation stocks
This is a classic, value play which has been re-rated by the market to 55.5 cents currently. I won't be surprised if it continues on to 70 cents

pine wrote: NAV of HG Metal about $111 m.
Now trading at market cap of about $61 m based on share price of 48 cents. .

Big discount to NAV, even after a 55% upward move in the year to date.!

No wonder fund manager had a lot to say: www.nextinsight.net/story-archive-mainme...r-from-quarz-capital

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02 Aug 2017 11:00 #23940 by Joes
Joes replied the topic: Special Situation stocks
Amplefield looks tempting yet scary.

It has proposed a rights issue whereby exercise price is 5 cents.


Negatives:

1. Currently share price is 4.5 cents, which means the rights will be mostly rejected by shareholders except for the controlling shareholders who have pledged to take up excess rights.

2. Ratio is 3 rights shares for every 1 ordinary share.

So if you own 10,000 shares ($450 cost), you need to cough up $1,500 to exercise the 30,000 rights.

Possible Positive:

If they will that the rights exercise shld be 'normal' then the share price could be pushed up beyond 5 cents. So there is possibly upside.

What do you guys think?

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02 Aug 2017 13:15 #23941 by hh488
hh488 replied the topic: Special Situation stocks
Hi Joes,

Yes indeed a bit tricky. Can buy from market rather thru' rights but then you don't get the free warrants. Seem like the discount to the right price is the cost of the warrants? More importantly, is Amplefield a good stock to buy?

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18 Aug 2017 09:08 - 04 Sep 2017 13:41 #23995 by admin2
admin2 replied the topic: Special Situation stocks
Well said by n3wbie @ Sharejunction
Stock is GSS Energy, 14 cents.

( Date: 17-Aug-2017 22:09) Posted:

if fundamentals of a company are intact, then correction presents buying opportunities. would need to scrutinse the recent set of 1H17 results closer before I realised that their PE business is actually performing really well, core net profit increased 56% to $3.9m for 1H17 from $2.5m in 1H16. on that note, the PE business would be on track to deliver in the range of $8-10m for the year as 2H17 is seasonally stronger. (evidenced by other manufacturers as well and historically for GSS). on that basis, the PE business is presently valued at about 7x FY17 PE (ex-cash PE of about 6.2x). This is way below that of the other peers which are easily at about 10x PE.

while the overall headline number does not look great, it is important to note that 1H16 was boosted by one-off divestment gain and 1H17 continues to be weighed by the expenses incurred for the oil business which is in the preparation phase for drilling. interesting to also learn that the oil business has a price recovery mechanism, thereby all expenses incurred thus far would be recovered once they hit first oil which is expected to be soon based on recent guidance in their results.

important for investors to value the company based on sum of parts valuation as both PE and O& G are distinctly different businesses. good opportunity to accumulate with this sell-off. of course, market risks prevail so dyodd, just sharing my 2 cents worth of analysis.
Last Edit: 04 Sep 2017 13:41 by admin2.

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20 Aug 2017 22:18 - 20 Aug 2017 22:20 #24000 by yeng
yeng replied the topic: Special Situation stocks
re my post in this thread on 10 June 2017 regarding the upside potential of CWT.

Now the D-Day has been set, and CWT's share price (last traded at $2.13) could firm up towards a potential takeover offer at $2.33.

Note CWT made the following announcement today 20 Aug 2017: .

As stated in the HK ListCo 18 August Update Announcement, the HK ListCo General Meeting will be convened on 7 September 2017 for the purpose of the shareholders of HK ListCo considering, and if thought fit, approving, among other things, the acquisition of the CWT Shares by the Offeror from the shareholders of CWT Limited under the CWT VGO and the transactions contemplated thereunder.
Last Edit: 20 Aug 2017 22:20 by yeng.

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23 Aug 2017 09:32 #24009 by BNN
BNN replied the topic: Special Situation stocks
OCBC report today;

CWT Limited: HNA general meeting to be convened on 7 Sep 2017



CWT Limited’s (CWT) offeror, HNA Holding Group (HNA), recently provided an update that a general meeting (GM) will be convened on 7 Sep 17 for the purpose of shareholders of HNA to approve the acquisition of CWT. Recall that all anti-trust pre-conditions had been satisfied while the other pre-conditions apart from approval by HNA shareholders is there being no material adverse effect in relation to CWT’s fundamentals (which can be waived by HNA).

While HNA has said it will finance the acquisition solely through an interest-free unsecured fund to be provided by its associates in the event external financing is not available, we remain cautious given no visibility over the outcome of the China banking regulator’s probe on overseas loans made to HNA. There is also no certainty over whether HNA will truly be able to fund the acquisition without external financing. All considered, we believe it makes sense for shareholders to reduce their risk by selling part of their holdings in the market with uneven risk-reward (based on 22 Aug closing price) – potential upside of 3.6% vs. potential downside of 15.1% (our FV on CWT without the deal is S$1.91).

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