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LATEST JV TO DEVELOP & MANAGE ENERGY PROJECTS
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| Posted: Sat Nov 03, 2007 2:47 pm Post subject: |
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| P168 wrote: |
| cbkia wrote: |
| Oculus will be like Banjoo. |
It can be another Wilmar Int'l if given sufficient time!!!
Why sell cheaply??? 
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..See Parent Global issue 1.5 billion at 10cts price now still a premium a 16cts above the purchase price of 10cts to fund its RTO
Simlarly Oculus issue 1.2 billion shares at 50cts each shd be at least 56cts theoretically..as Areate is > profitable than the China base concrete supplier
..see below for details....
Posted: Fri Oct 26, 2007 6:44 pm Post subject: GLOBAL ARIEL: A play on China's property boom
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GLOBAL ARIEL may seem like a sexy play on China?s construction boom but it has been largely unnoticed since its shares began trading in June this year.
A US hedge fund, however, is betting on the company, which currently has a market capitalization of nearly $300 million and supplies ready-mixed concrete to the building industry.
On Oct 16, Global Ariel entered into an agreement to offer up to 29.4 million shares in a private placement to D.B. Zwirn Mauritius Trading and D.B. Zwirn Special Opportunities Fund.
D.B. Zwirn Mauritius Trading is wholly-owned by D.B. Zwirn Special Opportunities Fund, L.P., a limited partnership managed by D.B. Zwirn & Co., L.P., a global alternative investments manager and merchant capital provider with over US$5 billion worth of assets under management.
They are the same sources of a $100-million financing facility for Oculus in August this year to fund its expansion into renewable energy businesses.
The funds will acquire Global Ariel?s shares at a placement price of 17.01 cents a share.
The net proceeds from the placement are estimated to be S$4.8 million, which will be used for the construction of a multi-purpose development of mixed residential and commercial use in China.
Operations at a ready-mixed concrete plant. Picture by Dave TanThe placement will be part of a series of fund raising exercises which the company intends to undertake to fund the development. The property project will mark a major move in Global Ariel?s vertical integration of its business.
?Being the market leader of ready-mixed concrete in Suzhou gives us a strong competitive advantage over the cost of building materials, which forms a significant proportion of the costs for property development.
"We will expect the synergies generated from the progression to property development and the additional revenue streams to have a positive impact on our earnings in the coming years,? said Executive Chairman of Global Ariel, Mr Sun Jianming.
$115-million reverse takeover
In its previous incarnation, Global Ariel was Ho Wah Genting International, a company incorporated in Singapore 34 years ago as Horiguchi Engineering.
A series of events, including a business downturn, caused the company to become insolvent. It sought a suspension of the trading of its shares and that took effect in July 2001.
Ariel Singapore, a private investment company, undertook a white knight rescue of Ho Wah Genting International in March 2004 through an injection of funds. The company changed its name to Global Ariel in March 2005.
The move towards a reverse takeover of the China ready-mixed concrete business started in Feb 2006, when Global Ariel entered into an agreement to acquire Assetgold Finance, the investment holding company of 8 PRC subsidiaries in Jiangsu province. They are in the business of producing ready-mixed concrete.
The group is said to be the second largest supplier in Jiangsu.
Global Ariel completed the acquisition in June this year by issuing 1.15 billion new shares at 10 cents a share to Ever Universe Investments, which became the largest shareholder of Global Ariel with a 69% stake.
The vendors have given a dividend guarantee of 50 per cent of the net profit of the group this year, or $5 million, whichever is greater.
The executive chairman of Global Ariel is Sun Jianming, 38, while his father, Sun Jinnan, 60, is the managing director. They have a combined 34.2 % stake in Ever Universe.
FY 2004 FY2005 FY2006 1H 2007
Revenue (RMB '000) 814,641 594,476 609,664 303,957
Net profit (RMB '000) 151,477 49,244 12,680 16,364
EPS (RMB cents) 9.2 3.0 0.8 1.07
Barges transport raw materials for making cement to Global Ariel's plants, lowering costs. Picture by Dave TanThe group?s sales and profits slipped in FY 2005 and FY 2006 largely due to measures that the Chinese government took to curb speculation in the property sector.
Highlights of its 1H 2007 (period ended June 30) results:
* Revenue increased 13.53% (or RMB 37.3 m) as a result of a 5.6% increase in output and 10.2% rise in average selling price.
* Gross profit margin was 16% versus 14.3% previously.
* Profit attributable to shareholders crept up 1.8% to RMB 16.3 million.
* Net asset value as at June 30 this year was 24 RMB cents.
The group?s sales are primarily of ready-mixed concrete, which has a shelf-life of about four hours after it is mixed and poured into the mixer truck for delivery.
Canals are commonplace in Suzhou, threading even between homes.
As a result, the group?s customers are located within 50 km of its concrete-mixing plants. The business is largely dependent on the building and construction industry in Jiangsu, a province whose better-known destinations include Suzhou city.
The city has a network of rivers, which serve Global Ariel well. All of the Group?s concrete-mixing plants are located near rivers, and raw materials such as coarse aggregate, sand and cement are transported to the plants on barges.
Growth drivers from Suzhou development
Global Ariel?s management is of the view that Suzhou?s growing economy and increase in capital investment will lead to an increase in infrastructure and construction projects that will result in increased demand for ready-mixed concrete. Suzhou?s GDP is currently ranked fifth among PRC cities.
In February 2007, the PRC government approved the construction of an underground light railway system - the Suzhou Metro - through the city of Suzhou. It is the first prefecture level city in China to gain approval for such a major project.
Light railway systems have already been completed in provincial-level cities such as Shanghai, Beijing and Guangzhou.
Construction of the first railway line is expected to start by the end of 2007 and be completed by 2011. This first line, starting from Suzhou National New & Hi-Tech Industrial Development Zone and ending at Suzhou Industrial Estate, stretches over 26.1km with 23 stations.
The total investment involved for the first line is estimated to be around RMB9.7 billion. Based on the construction of Guangzhou Metro Line 2 (23.3 km with 20 stations) which requires a total of 1.14 million cubic metres of concrete, the amount of concrete needed for the entire Suzhou Metro Project is estimated to be around 6.8 million cubic metres.
Another key driver for infrastructure growth will come from the Suzhou City Master Development Plans (2007-2020). Picture by Dave TanAnother key driver for infrastructure growth will come from the Suzhou City Master Development Plans (2007-2020) under which the planned city centre will have a total built-up area of 599.2 sq km, close to 3 times the built-up area in 2005.
The government also targets to increase the population in the city centre from the existing 2.3 million to 3.6 million by 2020, representing a CAGR of 3.2% over the next 13 years.
The urbanization and population increase in Suzhou will further boost demand for infrastructure and property development projects over the next ten years. This will also involve the extension of Suzhou?s internal railway system to link up with the neighbouring cities.
Among the top 5 in China
Global Ariel is currently the largest ready-mixed concrete producer in Suzhou and among the top 5 in China. Besides ShanghaiConstruction Co, Global Ariel is the only listed player among the top 5 ready-mix concrete producers.
Given its market leading position (approximately 25% market share in Suzhou), some observers figure that Global Ariel is well-positioned to leverage on the booming construction growth in China and likely to be involved on a major scale for the upcoming infrastructure projects in Suzhou.
As of June 2007, Global Ariel has signed contracts to supply ready-mixedconcrete to 162 projects of various sizes. Some of the more significant projects include the relocation of the Railway Station in Suzhou.
Foreign investors have placed bets on China?s construction and property development sector by investing in cement makers. Recently, Goldman Sachs bought a 25% stake in Hongshi Group, second largest cement maker in Zhejiang province for RMB600 million.
MS Asia Investment, a private equity unit of Morgan Stanley and International Finance Corp, agreed in April last year to pay RMB1.27 billion for a 14.3% stake of Anhui Conch Cement, the largest cement maker in China.
http://www.nextinsight.com.sg/content/view/117/55/
Last edited by iamalwaysin on Fri Oct 26, 2007 6:46 pm; edited 1 time in total
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Zao Bao says uptrend all the way after this....not necessary true..many mths ago same paper mentioned Achieva filled gap of 15 to 20cts will soar but today's Achieva is still at 20cts .
PPle don't want to wait 3 to 5 mths..but for value investing don't bother about this..RTO is likley to succeed as these involve Singapore cos not PRC..Oculus instantly become profitable with 20mil qnd 30mil for Fy 08 and Fy 09 respectively...previously also tested high at 45.5cts in June before July-Aug it was sold down heavily to a low of 15cts but within 2 weeks it spring bk to 25 to 33cts...the swiftness it bounced back is an assuring sign..in fact I collected a lot during its downtrend ..hence see my thread it'll cross 33cts otherwise rights issue aborted..Oculus doesn't even need the rights issue money(gd news right issue cancelled recently) and the American Fund mgr is providing 100mil free interest loan speaks well og co's potential.hence the $600mil to be financed by issuing wholly Oculus shares
at 50cts is justifiable.
2nd fear ppl hve is its parent Global Ariel has tumbled 60% to about 16cts after its RTO by injecting a China-based concrete business in June this year.But the key here is 2 different animals altogether.Carbon Credit Biz
will be the market Darling for the 21st century esp with global warming will be giving najor emphasis by all industralised countries.Those not familiar of course sold out but this time is to collect at cheap prices but likel the renowned Warren Bufftet he doesn't worries about fluctations in share prices-for this U need patience and holding power.Of courese everybody want speculative shares that soar non stop but
these will be brought to their knees if they hve no solid biz to back up.
Although the hydroelectricity powers with PRC cos was aborted but Oculus still provide advisory role..expect more tie-ups but meanwhile the Areate_oculus RTO may bestow 50mil carbon credit to Oculus worth $1 > billions...this kind of enviromental firm is likley to attract American -European fund mangers when Oculus got relisted..but everything has a price..the price U pay is for the wait(3 to 5 mths)
.. I don't speak or read chinese. I don't see that published in english papers. any body know any other sourse that I see for myself about what Zaobao wrote.
Thanks
Hi Bros & Sis who hold Oculus.
Zaobao on
2 Nov 07 showed a Chart, TA report by the regular "Silver"...
It mentioned that Oculus would retreat the most to 0.23 shortly forming DOuble-bottom,
and then will be Uptrend all the way!
Cheers!
Unless have better stock to move funds to, think better to hold on a bit longer rather than cut loss.. I remembered couple of weeks ago, saw my portfolio gone down by 5-6k & heart really pain.. decided not to cut loss & ride it out & price sure enough went up.. Supposed to make 6-7k but greedy me wait a bit longer and now loss again .. my advice is cut loss unless necessary since i believe there is still play on this counter.. i'm certainly holding on for a while
Good News = Down
STI Up = Down
STI Down = More Downs
No holding power, unseen supports.. thats what i mean shitties..
Cant bare to take loses.... Hoping to c an Up for a day but until now everyday is a (Down) <-- Shitty?
than y are u still holding on to this shit?
I still haven let go... i bought it @0.41
This is a shitty stock...
I think macuser made a wise decision to let go at 0.3.
I also let go liao..... Cut my losses.
Very stressful to see it drop every day!
| 14:45:08 |
0.28 |
100000 |
| 14:44:51 |
0.28 |
60000 |
| 14:42:59 |
0.28 |
970000 |
Got sell down again... must be some joker with lots of Lots to throw...
I think will close at 28.5 or 29.0. Hopefull 30cent, but Honestly, I don't see the chance...
The closing price for today.. will show the actual support on this counter.
support for oculus is quite strong at 28.5cts. Don't think will go beyond that today.. volume also much lower as compared to past few days. So looks like not much panic selling..
Notice a number of transactions done with very small qty (like 3 lots, 5 lots) at 1 bit below the last done price.
Is this an attempt to push down the price ?
I don't think there will be so much will sell down.. most of the chickens have ran out. unless some one try to play it again.
No brave heart to come in newly also..
According to some friends and brokers I asked, they all told me it will take 2 to 3 months from the initial announcement.
Now DJI dropped >100.... tmr Oculus may head down further to break 29.5cts....
Anyone knows when likely the RTO will be approved? How long more to wait?
sure.. minimum up to 50cents.. when the RTO is approved...
sian, really heart pain... from profit few thousand to now loss few thousand.. think i will hang on for a while.. hope it will turn around.. if RTO successful, the price should move up much higher to reflect the potential ..
