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Any big dividend from this S & P?
Major hurdles for the buyout process has been overcome. Next step is for company to call for EGM to approve the sale.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_1A61CBBDBDCBBA274825744F008062EE/$file/BowAIPAnnouncementv1.pdf?openelement
Saw the litigation case announcemet. Hard to prove quality of products poor unless they rejected the goods in the 1st place. Anyway, 1c per share is max hit & it will be years before it's resolved.
Price not affected by litigation announcement.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_19F4BE492AB61F4F4825743D004249AF/$file/Announcement_of_Litigation.pdf?openelement
EGM of S&P for the Components division expected soon?
am expecting lowest to be ~10-10.5c, in case of a sudden dip (likely due to some ppl getting margin call). waiting to accumulate for 2H of year. at that px, it's below NAV. so there's a 'buffer' there. plus, achieva has never fallen below its aug 17th low yet. unlike most other counters.
worthwhile to watch. it becomes mathematical already, if you can get it at that px. (ie, low probability of losing.)
usual caveat applies. esp as i'm interested in this counter. heehee. fyi only ah. pls don't just 'whack' any stocks at this pt in time. wld be very dangerous to. prudence and go in slowly, only with what cash you have to spare. and be prepared to sit for a few mths at least.
Director and substanial shareholder exercise their share option, as per their announcement to SGX. Can buy this shares?
Did the foundedrsof Achieva Electronics and Achieva Component get anything from this deal, ie selling to Arrow Inc? The founders may be one of the largest shareholders of Achieva. Please advsie.
how far south will this counter goes?
eh elf, agree with u.. looks like future of 90% of sgx counters look bleak.... heehee
Hi shplayer,
then accordingly to yr last post, the counter is almost fully back up by cash..
But still, i do hope to see some directions from the coy. As u guys mentioned, its left with money losing business, not really that appealling really.
lol. eh, whereru, if you look across the board, every company's future looks dim!
Look at SGX: one of the bluest of the blue, but dropped from high of 15.5 on dec 7 to now, 7.58 close on mar 5. That's a 50% drop in 3 mths. in relative comparison, achieva's drop is from 18c to 16c for same period, that's just ~12% drop only.
everything's relative. haha.
but seriously, entire market is tanking; isn't just this stock alone lah.
in this market: either play fast (read: <5 days, pref intraday) or sit long term. In-betweens are likely to get caught.
Thanks shplayer...
But i think the future of this coy looks dim.
I wil take to first opportunity to run/cut loss.
So, will it continues south tomorrow?
Centaur,
Actually, after the sale, there is probably more than 12.5c cash.
Ref to FY07 results, net current asset is S$57,386k.
Ref to SnP announcement, Net current asset of the SG is (104,149 - 63,354) = S$40,795k.
Therefore net current asset of Achieva after the sale should be 57,386 - 40,795 = S$16,591k (assume sale completed 31 Dec 2007) - or 3.25c per share. Of this, there will be some cash component.
So, there can be up to 12.5 + 3.25 = 15.75 c cash per share.
whereru,
Read para 4 2nd para, of the announcement.....says proceeds will be use to distribute to shareholders, invest in new assets/business, reduce bank borrowings and working capital.
Note the Company has not announced what they will do with the cash from the sale.
Or what biz will they be in for the future?
What's there in for shareholders? Things really looks uncertain for now, I guess only the price action will tell.
Hoped for the best!
TA-wise (on busd alone): the drop does not come as a surprise as there was quite a bit of opportunistic trading on the counter prior to the TH. i.e., a lot of contra players--20-100 lots. THese would have had to sell out by the T+5 date (count from the first spike in ach's px), no matter what, if they could not afford to pick up the stock. That'd account for the drop in px today: overhang from mon-tues.
o/w, the movement is actually quite normal. You'll notice that most of the buying, esp prior to the halt, was in quite large lots:100 to even 500+. Consistently the pic for this counter is buy ups. There's some support, for whatever reason.
FA-wise: centaur has a point. Am still not very familiar with FA, apart from the ARs, but logically, when a co sells its profitable units, it means it's likely going to dispose of the rest, and venture into new areas. Precedence is Jade, from 8c to 55c at its peak when it sold off all its units and is now instead converted to a proxy gas/oil play.
Risky either way. but then, risk and reward are proportional.
either way, on TA terms, support at 12.5.
if thats the case, means current price of 15.5cts is 80% back up by cash (12.5cts)?? That looks good to me.
Anyway, logically why would mgmt want to incur loss perpetually, they might as well dissolve and return all proceeds from sale back to shareholders. Also, would the major shareholders be fine to incur losses indefinitely?? i guess not. With so much cash on hand after the sale, won't the next step to be identify a more viable business for the coy to go into?? or at least something that they are more familiar with? I'll not be surprise if the co would want to foray into a new business but the most important thing now is; without a clear direction, investors gonna steer clear out of this counter, whats more with the current market sentiments.
Further to my earlier post.....
Did the management deliberately sell off the SG so cheap for bigger things to come.......re the mention of RTO mentioned in July 07????
Or....did they make a blunder????
Anyone care to comment??