Baker Tech's Stratagems

The Quest
A conqueror celebrates his victory but a veteran conqueror contemplates his next. Rather than resting on its past successes, Baker Tech is focusing on greater achievements ahead. Setting its sights on promising new opportunities, Baker Tech is capitalising on its established presence and consolidating forces to capture new arenas of growth.

The Strategists
Few battles were ever won without a plan. Baker Tech’s success is a result of the ingenuity of its people, who have conceived and executed shrewd strategies in its conquests. With keen foresight and instinct gained from experience, the Board, management and staff continue to push new boundaries together.

The Right Moves
With its sight on a common goal and aligning all its initiatives, Baker Tech effects massive but synchronised strides forward as an organisation. This focus has kept Baker Tech nimble and agile in making decisive moves when taking on new opportunities.

The Conquest
The greatest conqueror reflects on his past triumphs and reinvents his future missions. The cornerstone of Baker Tech’s enduring success lies in the company’s careful scrutiny of its performance each year, giving due recognition for a job well done but never becoming complacent.

The Discipline
To stay victorious in the challenging business world, a strict code of conduct is paramount. Baker Tech adheres to best corporate governance practices, ensuring that all parties’ interests are protected and potential conflicts are avoided.



source : Baker Tech Annual Report 2011

Hwa Hong still overvalued at 52 weeks low?

Hwa Hong released its Quarter 1 results this week, its revenue reduced by 35.8% versus 1Q2011 due to reduction in proceeds from sale of investment securities.  But profit before tax was higher by 245.1% because of gain on disposal of an investment property.  Until the time when its revenue stream is in steady and recurring state and its non-operating activities have stopped so it is impossible to forecast its revenue flow to its bottom line.  

Its last done share price on Friday was at its 52 weeks low of $0.41.  It will go ex-dividend on 8 May.  So, till then l am expecting its share price to hover around $0.41.  Will it drop to its NAV of 31.07 cents upon ex-dividend?  In the short term, this is quite unlikely as it will be a massive 24% slide of its share price.

A good quarter start for Serial

Serial System announced good sets of results for 2012 Qtr 1; some highlights as below :-

- turnover though declined 4% vs yago but excluding Unitron Tech which was disposed in 2011, Serial actually posted 9% increase in turnover amidst a challenging operating environment. Excluding Unitron, turnover in North Asia (comprising Greater China, South Korea and Taiwan) increased by 7%; turnover in South East Asia and India increased by 22% - mainly due to contribution from Intraco Technology which was acquired in May 2011.

- wise and sensible strategy by Serial to focus on sale of higher margin products.  Gross profit margin improved from 9.0% in 1Q2011 to 9.4% in 1Q2012.

- Total expenses increased from S$14.9 million in 1Q2011 to S$16.4 million in 1Q2012. This is actually in line with higher turnover as mentioned in the above. Key highlights here are increase in headcount to grow newer product lines and from business acquisitions made in 2011; increase in mandatory staff related costs; higher sales commission; higher office rental expenses, bank charges and various administrative expenses; higher professional fees due to corporate branding exercise; higher finance expenses due to higher utilization of trade facilities and higher costs of borrowing when comparing 1Q2011 and 1Q2012 but l am expecting this to improve as the total borrowings status as of 1Q2012 has lowered; other operating expenses reduced mainly due to lower allowances for inventory obsolescence offset by higher depreciation charges, amortization charges for distribution rights, impairment provision for goodwill arising from acquisition of subsidiaries as compared to 1Q2011.

- Trade and other receivables increased by about S$5.5 million mainly due to longer average credit period granted to customers.  I am certain Serial will keep a very close tab of the situation to avoid problem with collections.


- Inventories decreased by about S$19.6 million mainly due to tighter inventory management.

- Bank loans and borrowings reduced by about S$21.8 million due to repayment of trade facilities from cash generated from its operating activities.


- Trade and other payables increased by about S$4.1 million due to higher purchase and longer average payment terms to certain suppliers.


It seems that Serial did not issue a Qtr 1 results in 2011 so l reckon this 1Q2012 results release is to inform stakeholders that it is having a good quarter start into 2012 and it is (still) in good shape as always.

IMHO Serial share price is really undervalued at its Friday close at $0.116.  Serial deserves a much higher share price level.  Minimal level at least is its NAV level which is a fair pricing at $0.1427.



previous posting :- Serial System fighting on

Cash - Closing Status 27 Apr

This week, l have bought M1 5 lots, ST Engineering 3 lots, UMS 7 lots.  Also in this week, l have donated $100 to Parkinson's Disease Society (Singapore) utilising my realised funds under this Cash portfolio.

Portfolio walk since previous posting :-

$1,266 Total Returns as of 20 Apr 

-$100 Donation to Parkinson's Disease Society (Singapore)

-$722 Unrealised positions worsened


$444 Total Returns as of 27 Apr

previous posting :- Cash - Closing Status 20 Apr

Parkinson’s Disease Society (Singapore)

Have just donated $50 twice to Parkinson’s Disease Society (Singapore) and this is to be funded from my Cash Portfolio.   In the earlier donation, my particulars was missed out so l have donated again with my details.

Parkinson’s Disease Society (Singapore) or PDSS, was formed in 1996 by a group of doctors and caregivers to help PD patients manage the disease better. The Society was registered as a charity on 27 December 1996 and became a member of National Council of Social Service.
Since then, the society has ran a range of number of programmes and activities. This included annual public forums, therapeutic exercise programmes and social outings. The society also works closely with support groups in various hospitals and publishes newsletters and books on PD. The society’s membership has grown steadily over the years, from 150 in the early years to over 300 currently.

Mission of PDSS

To promote awareness and understanding of Parkinsons and related disorders by educating patients, carers and their communities, and to support them holistically in their journey with Parkinsons.

Objectives

• To disseminate knowledge and information which promote better care and management of PD through books, websites, talks and public forums.
• To provide therapeutic exercise programmes and services that help patients sustain their functions and total wellbeing.
• To establish a social and community network of support for PD patients and caregivers through support groups, healthcare training and social events

Cash - Closing Status 20 Apr

For my Cash portfolio, invested small amount into KSH 5 lots and sold off SIA 1 lot this week.  Will consider getting into SIA again if it dips below $10.50.  KSH has been paying good dividend so, l am hoping this trend to continue.  And l hope its nine months results which was in the red would not lower its dividend rate when full year results is announced some time in May month.

Portfolio walk since previous posting :-

$1,140 Total Returns as of 13 Apr 

+$67 Gain on sales of SIA

+$59 Unrealised positions improved

$1,266 Total Returns as of 20 Apr

previous posting :- Cash - Closing Status 13 Apr

SRS - Closing Status 20 Apr

Sold off M1 5 lots this week after having purchased and holding it for just one week. When l first sold off M1 in the 30th Mar week, l have miscalculated the exit selling price and hence having profit shortfall by $183.  With this week's M1 disposal, this profit target shortfall has further reduced to $119.  Hoping to get into M1 again at below $2.45.

Portfolio walk since previous posting :-

-$576 Total Returns as of 13 Apr 

+$64 Gain on sales of M1

-$47 Unrealised positions worsened

-$559 Total Returns as of 20 Apr


previous posting :- SRS - Closing Status 13 Apr

K-Reit Asia pays up its dues

Superb results from K-Reit Asia particularly from OFC contribution.  Time for its shareholders to view the OFC purchase in positive lights now.

Same comparative reporting period with 2011, there will be no dividend payment for Qtr 1 results.

In a separate announcement made today, K-Reit changing to quarterly Distributions.

>>>>>> 

K-REIT Asia’s Distributable Income for 1Q2012 Doubled

- Annualised 1Q2012 Distribution Per Unit (DPU) increased 96.4% to 7.64 cents.

- Distributable income for 1Q2012 doubled from the previous quarter to $48.5 million due mainly to the contribution from the approximately 87.5% interest in Ocean Financial Centre (“OFC Interest”) that was acquired on 14 December 2011.

- Net income increased 113.0% year-on-year to $34.1 million due mainly to the contribution from the OFC Interest, and the increase in the share of results from BFC Development Pte Ltd (“BFCDPL”) and One Raffles Quay Pte Ltd (“ORQPL”).

- Average portfolio committed occupancy rose to 96.1% as at end-1Q 2012 from 94.1% as at end- 4Q 2011.

- 96.3% Singapore portfolio committed occupancy remains well above the average Singapore Core Central Business District (“CBD”) occupancy of 90.7%1.

full announcement :- K-Reit


>>>>>>>>>>>>>>



Unitholders to receive quarterly Distributions
 
The Board of Directors of K-REIT Asia Management Limited, the manager of K-REIT Asia (“K-REIT”), wishes to announce that K-REIT will make its distributions on a quarterly basis commencing from the financial quarter ending on 30 September 2012 (“3Q2012”). K-REIT will make its final half yearly distribution to holders of units in K-REIT (“Unitholders”) for the period from 1 January 2012 to 30 June 2012 (“1H2012”) before commencing with the quarterly distributions from 3Q2012. Unitholders can expect to receive their distributions in respect of 1H2012 and 3Q2012 in August 2012 and November 2012 respectively.
 

Cash - Closing Status 13 Apr

In this week, sold off Advanced Holdings 15 lots at break even for purpose of re-investment in other stocks.

Added to my Cash portfolio this week, SIA 1 lot and HTL 3 lots.

Portfolio walk since previous posting :-

$973 Total Returns as of 5 Apr 

+$5 Gain on sales of Advanced Holdings

+$163 Unrealised positions improved

$1,140 Total Returns as of 13 Apr

previous posting :- Cash - Closing Status 5 Apr

SRS - Closing Status 13 Apr

After selling off M1 two week ago. l have re-invested in it for 5 lots this week

Portfolio walk since previous posting :-

-$163 Total Returns as of 30 Mar 

+$0 Gain on sales

-$413 Unrealised positions worsened

-$576 Total Returns as of 13 Apr


previous posting :- SRS - Closing Status 30 Mar

CPF - Closing Status 13 Apr

Updating the bank charges as shown in the CPF Investment Account statement received this week. 

Blue chips stocks continue to sink further, lowering my CPF portfolio value by $940.

Portfolio walk since previous posting :-

-$8,586 Total Returns as of 30 Mar 

+$0 No movement on Realised positions

-$940 Unrealised positions worsened

-$15 Qtr 1 Bank charges on CPF Investment Account

-$9,540 Total Returns as of 13 Apr

previous journal :- CPF - Closing Status 30 Mar

Technics, Money No Enough

Never mind the net profit increase 60% and revenue increase 48% y-o-y, how about rewarding its loyal shareholders with some dividends rather than allowing itself being "bullied" by suppliers and letting customers "dictating" how and when they will be billed :-

1. Other Assets increased by S$8.29 million or 25% to S$41.93 million as at 31 March 2012 from S$33.64 million as at 30 September 2011, mainly due to the subsidiary’s ship building business where costs were incurred upfront and billings can only be done upon delivery of vessels. 

2. Trade and other payables increased by S$16.08 million or 59% to S$43.41 million as at 31 March 2012 from S$27.33 million as of 30 September 2011 due to the increase in progress billings from suppliers for procurement of materials for the Group’s major EPCC and CE projects.


Technics needs to consider review progress billing policies with customer due to upfront costs incurred.  Fear of losing the customer?  By allowing progress billings from its EPCC and CE suppliers, probably it is safe to presume that suppliers have successfully demanded from Technics on upfront down-payments?

Aside from withholding dividend payment to shareholder during Qtr 1 results released, Technics recently successful with the issue and allotment of 13 million placement shares at a price of S$1.02 for each placement share in Taiwan's OTC.  With this, Technics has fully utilized net proceeds for the partial repayment of the bank borrowings of approximately S$12.7 million.

What's next, Technics?   How about issuing perpetuals bonds with retail investors?

Random thoughts

I have used to think timing the market for entry and exit can be accomplished.  IMHO this is not easily achieved; particularly for those retail investors who has a full time job.

Unless one is a seasoned investor and has a proven track record of timing a particular stock correctly all the time, l reckon that no one can consistently pick a stock's top or bottom.

The market timer in most of times would fret over when is the best time to get in or out of the market.

I reckon it is important to set an entry price and exit selling price. If l want to go long for a particular stock then l would probably set a budget (limit) for investing in it.  For exit selling price, l reckon one can use a certain reasonable returns % or an expected dividend amount.

For the Singapore market, how many have timed the entry buying price in Nov'11 and Dec'11 and exit selling price in mid-Mar'12 correctly?

Cash - Closing Status 5 Apr

Only one entry this week, bought TPV 10 lots and to-date total invested costs in TPV is approaching $5k.  Will continue to invest in TPV as its share price is nearing 52 weeks low currently but will limit my total investment costs in TPV at no more than $10k.

Portfolio walk since previous posting :-

$1,326 Total Returns as of 30 Mar 

+$0 Gain on sales

-$353 Unrealised positions worsened

$973 Total Returns as of 5 Apr

previous posting :- Cash - Closing Status 30 Mar

Ocean Sky - Very Substantial Acquisition Or Reverse Takeover

extract of announcement made :-

>>>>>>>

Introduction

The Board of Directors (the “Board”) of Ocean Sky International Limited (the "Company" and together with its subsidiaries, the "Group") is pleased to announce that the Company has entered into a Memorandum of Understanding (the “MOU”) dated 2 April 2012 with ChiwayLand Group (Singapore) Pte. Ltd. ("ChiwayLand", and together with the Company, the "Parties") in relation to:

(a) the proposed acquisition by the Company of the entire issued and paid-up share capital of ChiwayLand (the "Proposed Acquisition"); and

(b) the proposed disposal of the Company’s existing business to certain of its directors and shareholders, namely Mr Ang Boon Cheow Edward, Mr Ang Boon Chong and Mr Ang Siew Tiong (collectively, the "Controlling Shareholders", and such proposed disposal, the "Proposed Disposal"), (the Proposed Acquisition and the Proposed Disposal collectively, the "Proposed Transactions").

The Proposed Acquisition, if undertaken and completed, is expected to result in a “Very Substantial Acquisition” or a “Reverse Take-over Transaction” as defined under Chapter 10 of the listing manual (the “Listing Manual”) of the Singapore Exchange Securities Trading Limited (“SGX-ST”) and is subject to the approval of shareholders of the Company (the “Shareholders”) at a general meeting. The Proposed Disposal is an interested person transaction and will be subject to Shareholders' approval pursuant to Chapter 9 of the Listing Manual. The Proposed Acquisition and the Proposed Disposal will be inter-conditional on each other.


Rationale for the proposed transactions

The Directors are of the view that the Proposed Acquisition presents an opportunity for the Company to acquire a new operating business with a track record and growth potential. In addition, the Proposed Acquisition would have the potential to significantly increase the market capitalisation of the Company and potentially widen the investor base for its Shares, thereby enabling the Company to attract more extensive analyst coverage, leading to an overall increase in investor interest and trading.

Although the Group was profitable in the last financial year, it continues to operate under challenging market conditions, due to the slowdown in the recovery of the global economy and consumer spending, and the volatility of cotton and yarn prices. Given the foregoing, the Board is of the view that the Proposed Transactions and the resultant change of business will enhance shareholder value for the Company.


Information on Chiwayland and its subsidiaries (The “Chiwayland Group”)

The ChiwayLand Group is one of the leading property developers involved in the development, project management and sale of residential and commercial properties in the Yangtze River Delta region of the People's Republic of China ("PRC"). The ChiwayLand Group has a track record of more than 10 years in property development and has to date, completed and managed seven property development projects with an aggregate gross floor area (“GFA”) of more than 900,000 square metres. In addition to its completed properties, the ChiwayLand Group has a strong pipeline of large and well-located properties under and held for development with an aggregate GFA of approximately 1,885,000 square metres.

full announcement :- MEMORANDUM OF UNDERSTANDING

Cash - Closing Status 30 Mar

 This week, l have sold M1 3 lots and purchased Advanced Holdings 8 lots, Foreland Fabrictech 50 lots, TPV 3 lots.

I have wanted to average down on Advanced Holdings but the additional 8 lots purchased this week was not enough to lower the average buying price; hope to sell it off soon at break even.  Doing the same average down on Foreland and l have probably committed too much funds by doing so at 50 lots!  TPV has corrected more than 25% off from its recent high of $0.42 so, l have invested a small sum in it at 3 lots and if its price worsened next week then l would consider increasing investment in it.

Sold off M1 3 lots at nett gain of $239.  The ex-dividend date on M1 is 11 April and for 3 lots at dividend rate of $0.079, the expected dividend amount is $237.  My exit selling price which resulted in $239 nett gain is in line with the next expected dividend amount of $237 for 3 lots. 

 Portfolio walk since previous posting :-

$1,572 Total Returns as of 23 Mar 

+$239 Gain on sales of M1

-$485 Unrealised positions worsened

$1,326 Total Returns as of 30 Mar

previous posting :- Cash - Closing Status 23 Mar

SRS - Closing Status 30 Mar

Sold off M1 5 lots this week.  I have miscalculated on its exit selling price.  This is because if l have factored in its dividend going ex on 11-April of $0.0790 then my exit selling price on M1 should have been at $2.59 and l reckon it is an achievable target price.  If its share price goes below $2.50 in early next week then l would consider re-investment.

Portfolio walk since previous posting :-

-$979 Total Returns as of 16 Mar 

+$212 Gain on sales of M1

+$604 Unrealised positions improved

-$163 Total Returns as of 30 Mar


previous posting :- SRS - Closing Status 16 Mar