Tuesday, March 30, 2010

Lion Asia Pac (LAP SP) SGX

Apologies for the slow post up, been caught up meeting friends and setting this blog up which I hope in the long run demonstrate my thoughts and share my knowledge. Classic asset play here.
Share # after dilution = 405.930224m
cost is S$0.36, hence mkt cap = S$146m

Financials and factors to purchase Lion AsiaPac
  • Cash S$ 190.174m and debt S$ 0.257m = net cash S$189.917 or S$0.467 per shr
  • NAV = S$0.5393
  • S$ 134m from disposal of automotive business in China (Anhui Jianghuai Automobile Co)
  • 30% upside at least for the cash, rest of operations for free!
  • Profits largely from investment gains, firm operations - limestone, metals trading and PCB pdtn fared poorly
  • 2009 bid for Polaris Metals shows mgmt stance to pursue acquisitions (cash needed)
  • Firm paid S$0.01 pr shr for past 3 yrs, S$0.05, S$0.007 and S$0.005 in 2006, 2005 and 2004

31 Mar - Price hit $0.45 on open and now $0.46 (27% up) on news of special $0.15/shr dividend. Not wise to go in now since everyone is rushing in and pricing as if firm will give out 100% of cash which is impossible.

Now, my first mistake on this blog, I was sure of the position even before the announcement. Ought to have loaded up more in view of such skewed profiles. No wonder Peter Lynch mentioned, stock investing is not so much on intellect but more on guts. Oh well, hindsight is always 20/20.



Great info

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