K1 Ventures   

K1, result coming $$$119mil profit

sorry, did not see these question earlier.

waihaisei,

Divvy or Cap Red.....its money back in shareholders' pockets. So, technically, it price will correct accordingly after upon. Also, its NAV will also reflect the payout.

gentledove,

Generally, before divvy or cap red, the share price will be firm or go up and will make adjustments when the stock goes xd. As to whether it is a good entry price, I am afraid you need to make your own decision as we all have different investments strategies and objectives.

 

 

hi master shplayer, i m a newbie too is now the right price to go for k1? Thanks.

 

oh I see, thanks. Wouldn't that be bad for the share price?

 

wanhaisei,

not divident..... 6 ct capital reduction

 

Hi, newbie here. Did they announce that they are going to distribute 6 cents dividend?

 

shplayer, thanks alot..for your insight.  Hopefully the interest sustains...

 

Sorry, typo error

If the mgmt uses the 127 mil to reduce loans, it can reduce finance cost by approx 12.2 mil which will increase bottomline to 55mil (based on FY07 figures) increasing eps to 1.9 ct


The 55 mil should be 41 mil

 

EastonBay,

Yes, looks like its creeping up. Perhaps they will be announcing the date of AGM soon whereby the resolution will be passed to distribute a capital reduction of 6 ct.

However, personally, I prefer they use this money to reduce debt.

If you look at the balance sheet of FY 30 Jun07,

Term loan approx 455 mil

Finance cost approx 43 mil => cost of funds approx 9.5%

Cash in hand approx 310 mil.

Net Profit - 29 mil........eps 1.31 ct => ROI (NAV 32 ct) - 4.1%

Cost of Cap Red 127 mil

If the mgmt uses the 127 mil to reduce loans, it can reduce finance cost by approx 12.2 mil which will increase bottomline to 55mil (based on FY07 figures) increasing eps to 1.9 ct

With the completion of sale of Mid Pac Petroleum, they would have got another 83 mil in hand. If, instead, they pay off 300 mil of the term loans, Co. will still have approx 93 mil cash in hand (for future investments) and reduce term loan to approx 155 mil. Finance cost will then be reduced by approx 28.5 mil making eps 2.7 ct (double 2007 eps) and ROI of 8.4%........which is a much more decent figure.

Just my personnal opinion.

 

 

shplayer... moving already? Am I seeing dim light at the end of the tunnel?

 

It hold well at 33cts (PE 3.55), next level shld be 37cts (PE 3.98)!

 

 

buy at 30cts ...then hardly sell at 30cents also..now 33cents......squeeze b

 

Shplayer, sincere thanks for taking time to present your views. I will go back to Q1, Q2 reports again and be more critical this time. thanks again.

 

EastonBay,

I think normal adjustments for FX gains or losses can be expected in the course of a company's business. If you look at FX gains/loss for 1Q (+1,054) and 3Q (-1,169)...I will not be too concerned about it.

However, 2Q was an exception as the the company probably did not hedge against their S$ exposure for the divvy payment.....this, I think was very poor (negligent) financial management on the part of the company. To answer your question, yes, I will take the 2Q FX loss as a one off item.

However, the overall result of the company is a disappointment. The primary cause of it is revenue contribution from the two main income stream (gasoline sales and transport leasing) is dropping.

                                      1Q                         2Q                     3Q

Gasoline sales               69,839                   57,417               55,049

Transport Leasing       35,136                     36,225               32,575

So, unless they pull this up or find additional source of revenue, K1's performance is not expected to improve.

If you read the comments under 'Prospect' in their 3Q announcement, they said that gasoline sale may be affected by high commodity price and transport leasing will be affected by the slowdown in housing. 

 

 

 

shplayer, may I ask what's your view after the 3rd Q result has been released?

 

I hope you can comment on how I look at it. I looked at the financial 3rd Q, looks like it continues to suffer from foreign losses although the pace is slowed as compared to the previous 2 qtrs. Forex loss for the qtr 1.167m as compared to avg 4.32m per qtr for the 1st 2 qtrs. As their investment are mainly in the US, they cannot avoid this forex loss as long as US$ slides against SGD?

 

Overall, the 9 mths PBT  Profit fr continuing operations both look quite good to me. For yoy 9 mths comparison with FY06, it didn't look good because there was a 16m profit from discountinued operations in FY06. Do we treat this 16 m profit last year as an one-off extraordinary item and therefore be excluded for meaningful comparison?

 

Hope to hear your comment. Thanks!!

 

Last Q results was hit by exchange losses due to USD depreciation against SGD in the 6 cts per share divvy pay out. This Q should reflect the actual performance of the counter. 

 

anyone has any take on this share?  the charts look good?

 

DOW transport has been going up alot, i wonder if HELM is part of the stocks involved?

 

tml should have some dip of 1/2 - 1 cent. can collect at that px..

 

Time	Last	Volume	Bid/Ask
17:05:05	0.330	615,000	X
16:59:12	0.325	5,000	B
16:58:34	0.325	30,000	B
16:57:47	0.325	5,000	B
16:52:35	0.325	273,000	A

Bot up in a married deal (X)

Traded Summary:

Last	Trades	Volume	Bid Volume	Mid	Ask Volume
0.320	21	789,000	789,000	0	0
0.325	17	1,118,000	40,000	0	1,078,000
0.330	1	615,000	0	615,000	0
TOTAL	39	2,522,000	829,000	615,000	1,078,000

 

 

seem to have bottomed.. anyone views differ?