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accroding management, they wanna consolidate 5 shares into 1, to reduce the fluctuation in magnitude of the company's share price. but what strategy they are going to implement to ensure after consolidation, the share price will not drop back? if they have strategy, then why need to do consolidation? if share price drop back to $0.06 ~ $0.08, are they going to consolidate the share again?
seem like this company management provide good opportunity for short sell strategy....
If no dividend, the share will still go lower after consolidation.....
DESPATCH OF CIRCULAR
Further to the announcements made by the Company on 23 December 2009 and 11 January 2010 in
relation to the proposed share consolidation (the “
ordinary shares in the capital of the Company into one (1) consolidated share, the Board of Directors
of the Company wishes to announce that the Company had on 23 January 2010 despatched a
circular (the “
Consolidation, to shareholders of the Company (the “
to provide Shareholders with information relating to,
to seek the approval of Shareholders for the Proposed Share Consolidation.
The Circular also contains the Notice of Extraordinary General Meeting (the “
to be held at 50 Changi South Street 1, BBR Building, Singapore 486126 on Monday, 8 February
2010 at 9.30 a.m.. A copy of the Notice of EGM is attached to this Announcement.
Shareholders who have not received the Circular within a week from 23 January 2010 should contact
the share registrar of the Company at the following address:-
Proposed Share Consolidation”) of every five (5)Circular”) dated 23 January 2010 in relation to, inter alia, the Proposed ShareShareholders”). The purpose of the Circular isinter alia, the Proposed Share Consolidation andEGM”) of the CompanyBoardroom Corporate & Advisory Services Pte. Ltd.
3 Church Street #08-01 Samsung Hub
Singapore 049483
A copy of the Circular is available on the website of the Singapore Exchange Securities Trading
Limited at http://www.sgx.com.
Shareholders are requested to note the following important dates and times in respect of the EGM:-
Last date and time for lodgement of Proxy Form : 6 February 2010 at 9.30 a.m.
Date and time of Extraordinary General Meeting : 8 February 2010 at 9.30 a.m.
Place of Extraordinary General Meeting : 50 Changi South Street 1, BBR Building,
Singapore 486126
By Order of the Board of Directors
BBR Holdings (S) Ltd
Tan Kheng Hwee Andrew
Executive Director and Chief Executive Officer
23 January 2010
Ha ha, left 15 lts after consol. An abandon child, no issue loh.
Hope it will improve onces construction market strengthen. Cheers.
Mainboard-listed BBR Holdings (S) today says net profit after tax and minority interests more than
doubled to $8 million for the nine months ended 30 September 2009, a 109% increase over the
$3.8 million recorded in the same period last year.
The group recorded revenues of $166.7 million, down marginally by 8% or $13.5 million, primarily due
to a fall in revenue recognised from building and civil works. However, gross profit increased by 14%
to $13.6 million from $11.9 million previously. The group also saw an improved gross profit margin of
8% compared to 7% in the nine months of fiscal 2008 as a result of higher returns from specialised
engineering projects, both in Singapore and Malaysia.
It is quite natural for short term outlook investors to want illiguid companies to be return cash to them. However so far what I have recently seen of companies going private are not illiquid companies, like Courts, CK Tang and Robinsons, to name a few. Shareholders are always being played into the subtle hands of "rich" directors. They might feel short-changed and that is all that is rewarding, the feeling of being short-changed. So far the bureucracy has not done much to prevent this abuse or misuse of privileges to do the investors in. It should not turn a blind eye to the happenings around us or otherwise there may in future arise "sagas" worse than layhman, and not just a few hundred hoodwinked become poorer, but share investors being deprived of all their hard earned money.
Illiquid share counters should be given a chance to redeem themselves first by showing that they are viable by way of elaborate explanation, not just be accounts, and that by a certain period they must delist if they are unable to satisfy that continuing listing will be good for the public.
Illiqudity in the trading of shares of a company does suggest something about the company why its shares is not being pursued by investors. Questions to ask oneself when buying shares or holding shares to such illquid listed companies include "is the company not performing in terms of profitability so showing lackluster earnings and dividends growth" or "is it that the company's business potential has been neglected by investors so its shares is not actively traded"?
If the answer is more towards mediocre or underperforming business, then it maybe justified that its shares remain illiquid and receive lack of interest by investors alike. If the answer is towards investors not realising the future potential of the underlying business, then it maybe wise to still hold onto the company shares and await the future realisation of its business value (if the company is so excellent, it will prove itself by its excellent earnings and good dividends payout, then investors cannot choose to ignore such value anymore (unless investors are stupid) and the share price will follow the excellent earnings and dividends payout and rise).
Anyway, I do agree that it maybe to the shareholders' interests that a prolonged illiquid company may consider delisting its shares and go private since there is lack of attention from investors willing to invest in the company shares, and it may face difficulties in rasing capital through equity too. Going private will thus take away cost of listing on the stock exchange since there is no use for equity raising from public investors.....
Only buy and hold onto shares of very excellent businesses at good undervalued prices......anything falling short of these two criteria......it maybe wise to consider whether it is rational to keep holding on or to sell out and then pursue better businesses at better undervalued prices......
Sorry....left out another point to sell decision......
<Sell shares of a company only when business fundamentals have deteroriated irreversibily or when there is a better company than current one to invest based on future long term prospects.>
<Add in:- Sell also when share price has increased so much that it is grossly overvalued for the underlying business of the stock......so that the supernormal high share price is simply not sustainable based on long term business fundamentals and so it makes sense to sell out the shares.......>