STATS ChipPAC   

Statschip trading halt

How come no more news on the capital reduction?

 

in my watchlist now :)

 

Something brewing?????????

 

Surge again despite STI down by 57 points!

they file Form 6K almost evey other day lei. What does that mean?

Anyone?

 

Form 6-K filed with the S.E.C. (US)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_7FBCF802B22D451948257441003A8C07/$file/6KQterlyReport.pdf?openelement

 

Hi any one know for the sudden surge

 

Hi Elfinchilde

Don't worry!  I should thank you for the different scenarios.  I will make my own choice and be responsible for any lossess or gains.

Have a nice weekend.

regards.

 

hey fishie, no prob! :) pls do rem that i'm not responsible for any of your losses or gains tho! was just giving my personal reading based on the ARs and charts. Do make your own choice. Altho either way, i see that you're likely in a very enviable position of win-win, just a qn of win less or more, that's all.

cheers! :)

PS: no trouble about the AR. just count as my own practice session; i do read annual reports for FA practice (since i trade mainly by technicals), so it's not a trouble at all. :)

 

Hi Elfinchilde

Great job! You are very helpful. Thank you so much, for taking the trouble to read the annual report. Thanks for your detailed explanation. I have a clearer picture now.  Once again, thank you for the valuable advice.

regards. 

 

Hi Elfinchilde

I am not sure which one US$0.37 or US$0.39, and dont understand the whole text.  I tried to copy and paste the paragraph from sgx announcement for you to read but unable to do it. So sori, not so good in computer.

 

 

gah. just read their annual report. confusing company man...this is as far as i have calculated, pls do verify the figures yourself yea; it's caveat emptor all the way here:

briefly: the share float is about 2000mil. so a capital reduction of up to US$813 means about S$585 cash return per lot (counting exchange rate at 1.44). This would be the approximate value of the capital reduction.

note that their statement expressedly states that there is no guarantee the capital reduction will go through.

So XD, you'd expect the price to fall to about $1.

However, there's some buyout offer going on from Temasek. The offer px is 1.75, if they garner 90% of the vote, they'll give 1.88 per share. (when is this due)?

it becomes a timing thing now. If the XD is before the buyout, makes more sense to hold, since then you'd get the cap reduction, as well as the offer px of 1.75 (assuming they don't renege on the deal) when you sell out later.

but since there doesn't seem to be a timeline on the buyout, you might end up just holding the stock XD, which is essentially a status quo situation--price dip XD is likely to be equivalent of the cash given, if not more.

personally, if it's me and i bought at 90c, i'd have locked out the counter at 1.52 already. this is a 68% ROI, incredible in this turbulent market. tech shows may head higher in the coming sessions tho. wld call a sell at 1.6-1.7, since that's close to the offer px: ie, upside from there on is limited.

just my opinion yea. do make your own call. of course, if undecided, can adopt a half in half strategy: ie, sell half when you feel like it and lock in the profit first, and just keep the other half for the cap reduction, if it occurs. if it doesn't, no loss to you since the first half locked in would have buffered the cost/fall.

good luck!   

 

how much is the capital reduction worth?

 

Hi Elfinchilde

Thanks for the reply.

If bought it at about 90 cents, and Friday's closing price is $1.52, in this case, what should I do with the share. Is it wise to wait for the capital reduction or to sell off  or to wait for the company to buy back the share. I'm confused.  Please help.

 

capital reduction: ie, they will return pure cash to shareholders. based on number of lots you have. so it's up to 813mil divided by the share float, which will give you an estimated amt that you can expect to receive per share.

normally you'll expect the stock price to drop by the equivalent amount XD though.

cf FJBen and Ossia as recent examples of capital reduction and post XD drops.

if you'd bought in early and cheap though, it's a good deal.

cheers!  

 

Hi

Could someone help to explain what does it mean by the following statement from SGX announcement : -

STATS ChipPAC Proposes to Undertake Capital Reduction Exercise with the Intention to Effect a Proposed Aggregate Distribution of Up to US$813 Million Cash to Shareholders   What will happen to our shares? Thanks and regards.

 

Aiyo yo..what will happen to our shares if SGX decides to delist Stats. Pl advise for the benefit of those still holding the shares. The price seems to be going downhill...  thanks.

 

seems like its on downtrend... might drop below 1.50

 

Existing shareholders should keep pushing the price up and not sell to Temasek cheaply, beat them at their own game... Make them pay $2 and above!!!

 

Wonder how this stock will be trading now with decreased liquidity? Price expected to drop unless another offer from Temasek or the UK firm. Any views on this, and who's still hold'g to this stock?

 

So it's firmed.  Offer has lapsed with Tamasek taking in less than the 90% necessary equity.