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Chartered Upgraded

As there so called  green shoots appearing, I believe the chip industry will be taking advantage of the economic recovery as many consumer products needs chips.  But Chartered had made itself seem so hopeless to its minority shareholders, and the other foundry players, that the rich abu sees Charetered as a easy prey and offers such a low price for its share. Abu smart, chartered dum in this instance. Minority should not vote in favour of the take over, unless the price is at least 25 % more. Anyway what happen to all the charted promises that it will add value to shareholder stake. Looking like running away from obligations.  Those who are working for Chatered, exp management need not worry because Abu will be giving them good jobs and good bonuses that make up for their loss in the shares now. It the poor bread and butter earning people who are being exploited.

 

I do feel that this time Temasek made the right decision. I agree that the sale of BAC was a sham. My head is still spiining from that single loss and I thot the reasons given were out of this world.

If Temasek pass up this opportunity, it may not come again. Given their dire state of indebtedness and less than promising prospects ahead, the company would be better off in the hands of the Abu Dhabi group. At least it will ensure it's survival. I feel sorry for those who paid $5-$9 per share for this sucker. Go take it out on mgmt(your last chance!)

I suspect the consolidation that they carried out recently was in preparation for a probable capital raising exercise between now and 2010. I can't see an end to this cycle.

smartrader      ( Date: 08-Sep-2009 20:25) Posted: Many singaporeans paid $5 to $9 per share (CPF or cash) because of the many news release on new technology, foundaries etc. It is definitely not a right time to sell when chip is recovering. This is similar to panic selling of BAC earlier this year. Hope the sale will be blocked by the minority shareholders as it does not benefit minority shareholders since it will be delisted as wholly own subsidiary...probably it is a package deal of sort...

 

BTW is the chip industry recovering just curious. cos if Abu Dhabi want to buy chartsc, does it mean that the price is cheaper then what the market is now. or they expecting higher return as year went down the road. anyone care to share

 

Abu Dhabi will pay cash to u! Damn rich...

yanggoat      ( Date: 08-Sep-2009 20:55) Posted: i have a question. if i'm holding on to the share now. what will happen to my share if the company delisted from SGX. is it converted to preference share... just curious

 

i have a question. if i'm holding on to the share now. what will happen to my share if the company delisted from SGX. is it converted to preference share... just curious

 

DGM said investors should reject offer. L&T said one present US institutional investor can single-handedly block the sale. Maybe, just maybe like STATS, this one can reject the offer. In Stats case, the US i.investor rejected the offer till now. Otherwise, its all up to the minorities. 

 

Many singaporeans paid $5 to $9 per share (CPF or cash) because of the many news release on new technology, foundaries etc. It is definitely not a right time to sell when chip is recovering. This is similar to panic selling of BAC earlier this year. Hope the sale will be blocked by the minority shareholders as it does not benefit minority shareholders since it will be delisted as wholly own subsidiary...probably it is a package deal of sort...

 

With the foundries on hand, they can derived synergies and possibly make Chartered more profitable in the medium to long term. So I dun think they are fools. It will make look like retards if they pull it off. Just my view.

Calculation      ( Date: 08-Sep-2009 15:12) Posted: Just read 2 old articles on websites : Around March 09, CSM announced a 27 for 10 rights issue when its share price was 12.5 cents. The rights was priced at 7 cents.  Hence theoretical price ex-right was 8.5 cents.  Any one holding 1,000 shares would end up with 3,700 shares. Some time in April or May, I guess, CSM did a 10 to 1 consolidation.  The same shareholder is now holding 370 shares with a theoretical valuation of 85 cents each. The media now was effectively saying that Madam Ho had found another greater fool to buy over CSM at $2.68 per share. Any one who bought the shares at 12.5 cents and subscribed for the rights would have made a return of 216%!! Hey, any body could recall the highs of CSM share price in those crazy days?

 

in 1999, high at ard $19

Calculation      ( Date: 08-Sep-2009 15:12) Posted: Just read 2 old articles on websites : Around March 09, CSM announced a 27 for 10 rights issue when its share price was 12.5 cents. The rights was priced at 7 cents.  Hence theoretical price ex-right was 8.5 cents.  Any one holding 1,000 shares would end up with 3,700 shares. Some time in April or May, I guess, CSM did a 10 to 1 consolidation.  The same shareholder is now holding 370 shares with a theoretical valuation of 85 cents each. The media now was effectively saying that Madam Ho had found another greater fool to buy over CSM at $2.68 per share. Any one who bought the shares at 12.5 cents and subscribed for the rights would have made a return of 216%!! Hey, any body could recall the highs of CSM share price in those crazy days?

 

Just read 2 old articles on websites : Around March 09, CSM announced a 27 for 10 rights issue when its share price was 12.5 cents. The rights was priced at 7 cents.  Hence theoretical price ex-right was 8.5 cents.  Any one holding 1,000 shares would end up with 3,700 shares.

Some time in April or May, I guess, CSM did a 10 to 1 consolidation.  The same shareholder is now holding 370 shares with a theoretical valuation of 85 cents each.

The media now was effectively saying that Madam Ho had found another greater fool to buy over CSM at $2.68 per share.

Any one who bought the shares at 12.5 cents and subscribed for the rights would have made a return of 216%!!

Hey, any body could recall the highs of CSM share price in those crazy days?

 

Means last time u have 10000shares bought at 0.2cents... But became 1000shares at $2 lor... Nothing really very special actually.. except alot ppl stuck with odd lots haha

Calculation      ( Date: 08-Sep-2009 14:08) Posted: I must have missed out a lot of news about this Chartered Semi-Conductor; I have never been a fan of this industry.  A number of you guys mentioned about "10 to 1 consolidation", what had happened?  Consolidated at what price?

 

I must have missed out a lot of news about this Chartered Semi-Conductor; I have never been a fan of this industry.  A number of you guys mentioned about "10 to 1 consolidation", what had happened?  Consolidated at what price? 

 

Only a, a rich God father can afford to loss more. If competition get fierce, Ai yo yo stressful leh for Ho Ching, sell oso cannot, don't sell oso cannot 
Going into 45nm and below that require huge funding......only company no-1 can do this type of business without guarantee can earn big money. 

smartrader      ( Date: 07-Sep-2009 22:14) Posted: It is like it can't wait to gett rid of a bad investment.. how much money were burnt -- selling at 26.8 cents (price before consolidation of 10 to 1) .  (and fter asking shareholders to pay extra 7 cents per share durng right issues).  How come selling so cheap when  chip industry is recovering ? Something wrong with the investments in technology and wafer plants  ? Anyone need to answer for this ?

 

Maybe the institutional investor holding 8% of CSM may block the sale, similar to Stats.  Sale wont be so stright forward.

 

It is like it can't wait to gett rid of a bad investment.. how much money were burnt -- selling at 26.8 cents (price before consolidation of 10 to 1) .  (and fter asking shareholders to pay extra 7 cents per share durng right issues).  How come selling so cheap when  chip industry is recovering ? Something wrong with the investments in technology and wafer plants  ? Anyone need to answer for this ?

 

This deal will go through.....no question about it. Temasick owns 62% of CSC and they already stated their support for the deal. Its also a relief for Temasick cos it will bring $$$$ them.

By itself, CSC is not worth anything near the offer price. Since its listing, except for 1 or 2 Q, it has lost $$$ every Q. So, this offer, at face value,  is extremely generous to Temasick....so is there more to it than meets the eye?

For the acquirer, ATIC, it makes sense to add this asset to their recently created 56% owned, Globalfoundries, a JV with AMD.....the world 2nd largest semiconductor company....2nd only to Intel.

Yep, this certainly contributes to CPF being able to extend 4% interest for a couple more years.......but hope Mama doesn't go out and mismanage our $$$$$ .... with the reluctance of Temasick to make organisational changes, history is likely to repeat itself.

Personnal opinion.

Farmer      ( Date: 07-Sep-2009 17:48) Posted: I wonder the deal from Abu can get thru' the investors(exclude Tamasick)? If it does, what if Tamasick were to try take it private like for the case of StatsChipac? After all, the amount it losses on ML or BAC & Barclay is more than enough to cover the cost!!!

 

I wonder the deal from Abu can get thru' the investors(exclude Tamasick)? If it does, what if Tamasick were to try take it private like for the case of StatsChipac? After all, the amount it losses on ML or BAC & Barclay is more than enough to cover the cost!!! 

 

Stats could not be privatised as one fund deemed the price too low. Wonder if  the same thing can happen to Chartered.

 

I am puzzled by this sell down after takeover announcement.

 

Thanks!

tonylim      ( Date: 07-Sep-2009 15:36) Posted: There is no more upside and better to take profit unless you are prepared to wait for a couple more cents.  Sell and switch to better stocks such as midas, boustead, hiap seng, ezra, zion holding, ho bee, wheelock and uic upforever      ( Date: 07-Sep-2009 15:00) Posted: why the selling down today? the abu buyer may lower the bid?