The Trading Floor - October 2013

New thread for November 2013 .............

http://www.sniper-academy.com/threads/68837-The-Trading-Floor-November-2013?p=128303#post128303

 

F&N revamp nears listing milestone
F&N revamp nears listing milestone
The big question is what Charoen Sirivadhanabhakdi and his flagship company – Thai Beverage - plan to do with their respective 28.6% and 61.7% stakes in F&N.
Group takes a step closer to listing Frasers Centrepoint, paving the way for the company's restructuring.
By Denise Wee | 31 October 2013
Keywords: fraser and neave | charoen sirivadhanabhakdi

The protracted M&A battle for Fraser & Neave (F&N), Singapore's 130-year old conglomerate, might be done and dusted but the restructuring remains a work in progress.

F&N has received the nod from the regulator to spin off its property arm Frasers Centrepoint on the exchange and shareholders are set to vote on the listing at an EGM on November 13. The listing would leave F&N as a predominantly food and beverage company.

However, given that TCC Assets, Thai billionaire Charoen Sirivadhanabhakdi's privately held vehicle, holds a 61.7% stake in F&N, and has said it would vote in favour, this is a mere formality. F&N only needs a 50% majority to go ahead.

The listing will not raise any fresh capital but will see each F&N shareholders receive two Frasers Centrepoint shares for every one F&N share owned.

The bigger question is what Charoen Sirivadhanabhakdi and his flagship company – Singapore-listed Thai Beverage - plan to do with their respective 61.7% and 28.6% stakes in F&N and the new property listing.

In late August, Thai Beverage appointed a financial advisor - reportedly Maybank Kim Eng - to assist with the evaluation of its equity ownership in F&N. In a statement, Thai Beverage said it had requested its advisor to consider various options including “retaining or exchanging its interest” in F&N and other possible ownership structures.

According to CIMB analyst Kenneth Ng, about a third of F&N’s revised net asset value comes from its consumer business and two-thirds comes from its property business.

After the listing of Frasers Centrepoint, Thai Beverage will end up with roughly a third of the property business, while TCC Assets already owns two-thirds of Fraser & Neave, which will be left with the food and beverage business after the restructuring.

Both those stakes are roughly equal in value, say Ng, which could make for a neat swap without having to fork out too much cash - so that TCC Assets ends up controlling Frasers Centrepoint and Thai Beverage controls F&N.

However, the restructuring could be complicated by a dispute between F&N and its joint venture partner Union of Myanmar Economic Holdings over Myanmar Brewery, which F&N holds a 55% stake in. The government-linked Union of Myanmar Economic Holdings claims it should have had an option to buy F&N's stake in Myanmar Brewery before TCC took control of F&N.

Sirivadhanabhakdi also faces another issue - which is raising the free float of F&N and Frasers Centrepoint so that they meet Singapore's listing requirements.

Collectively, both Sirivadhanabhakdi and Thai Beverage own about 90.3% of the company, and the remaining 9.7% is free float. This is slightly below the 10% free float required by the exchange for F&N and the 12% required for the new listing Frasers Centrepoint.

F&N stock trades at S$5.82, well below the S$9.55 per share that TCC Assets paid in its revised offer for F&N. (The company's share price has fallen partly because of its capital reduction exercise in July, when F&N returned about S$3.28 per share to shareholders).

The company is faced with a December 31, 2013 deadline to meet its minimum listing requirements. Collectively, Sirivadhanabhakdi and Thai Beverage plan to pare down their stakes in F&N from 90.3% to 88%, at most, through a share sale, prior to Frasers Centrepoint's listing.

The reclusive Sirivadhanabhakdi has long kept his cards close to his chest but investors are probably hoping its dispute in Myanmar does not hinder the restructuring – which is expected to unlock value.

FinanceAsia’s November edition contains the full article.

© Haymarket Media Limited. All rights reserved.

http://www.financeasia.com/News/362623,fn-revamp-nears-listing-milestone.aspx

 

Wanted to follow and long at 5.01 as well. When I saw it dipped to 5.01, I wanted to observe some more and then suddenly it just shot up to 5.09. In the end, didn't long. But I long SATS at 3.40.

 

I am fully vested with SATS now. Will wait for its results on Tuesday. Tomorrow I will be going kai kai. That's the beauty of buying such a stock.
You will not need to worry about FA or TA. No need to track like a hawk after OA and buying in.

Time for dinner and relaxation. Enjoy your trading tomorrow and trade with care! Signing off for now. :seeya:

 

No problem but don't hamtam me if you didn't make because of my opinion.
I am just giving my two cents' worth.

 

Hahahahhaa. Never trust an analyst's views. They got vested interest.
If I am going to spend a lot of dollars on a $4 stock, I would better know the FA.........

 

Thanks sis Adonis!!

 

Recently UOB KayHian issued a BUY Call with Target Price of $5.60.
Me no FA guy. Dunno how to crunch numbers.
The only numbers I know are 1 to 45.

 

As I said, I do not know her well. This one you would need to look at her FA, whether she is really worth $4.

 

Hello, sis cheryl! I would rather buy the mother shares than the warrants. The warrants still have to add 18 cents to convert to the mother share. So there is a risk element.
If the warrant's price continues to drop, you would have no choice but to sell at a loss or pay more for the conversion. Of course that is still a long way off.

If you ask me, I would say don't buy either for the time being. May have to hold until Jan 2014 when they launch their Iskandar project.
I am still holding abit of the mother shares plus warrants. I put in the freezer for the time being. hahahahahhahahhaaa

 

SUPER JOINS THE HONOUR ROLL OF THE SINGAPORE
BUSINESS AWARDS


Mr David Teo, Chairman and Managing Director of Super Group commented on the Group joining the honour
roll for the SBA, “Since its inception, Super Group is committed in ensuring product quality and food safety.
The reasons for the Group’s consistent results are due to its integrated business model, collaborative
teamwork and cooperation of the management and staff. I offer my heartfelt thanks to them for their
continued support. As we enter into our 26thyear anniversary, we believe we are entering our new phase of
growth as we focus on building the Super brand and product innovation. We believe that we are in a good
position to ride on Asia’s consumption growth. “





http://www.supergroupltd.com/wp-con...per-Joins-The-Honour-Roll-Of-The-SBA-2013.pdf

 

All along, I have been quite uncomfortable with SuperGal cos I don't know her well. All I know is about her Super coffee. I do not understand how a coffee maker's share price could be $4 and above.
That's why I just tikam tikam the past two times I bought it. After that, I did some thinking. Pennies are sold down one by one, sometimes for no reason.
Then I thought what if SuperGal also kena this type of sell-down? There's a long way to go down from $4.
So I decided that, since I was going to JB today, I do not want to hold an open position on it. That's why I sold it yesterday.

Having said that, I am not saying that it is not a good stock. I just don't know her well.
My friend told me today that Super's IPO was at 90 cents. It went down to 20 cents before coming up all the way to the current price.

I have made up my mind to deploy a new trading strategy.

Since my playing capital is not small (to my standard lah), I decided to choose one stock (blue chip mid-cap) and hamtam all.
In this current instance, it's SATS. Wish me luck!!

 

Paper loss of more than 11K became only $300. At one time saw paper gain of $200 even.
That's the power of Never Fail To Come Back stock combined with the power of LOON Kungfu.
Something which a penny counter cannot do. That's why I avoid pennies.
If can add to that the power of Follow The Market Strategy....which means I also open SHORT
positions to make on the way down but without having to cut my LONGs if I dun want to, then
I would have made $10K from opening SHORT positions. Next time.

SIA Engrg...... I meant to SHORT her.
Saw strength at 5.00 and 4.98 and decided to LONG her instead at 5.01.
She closed at 5.05. Tomorrow see how.

 

Hello sis Adonis!!! I just came back from running errands & covered partial shorts. Good for Bro Fafafa.....SGX down 10cts today also.

Dunno to buy back some Rowsley warrants??!! Seems reversing from downtrend.

 

Bullish or Bearish engulfing?

 

SinkTel...

Closed at 3.78.
This kind of sudden retreat must have trapped many LONGs at 3.79 to 3.84.
Now all Cow Bear Cow Bull-ing leow.
But I still think just follow the price down and when it rebounds, can LONG
for Result Play and Dividend Play. Dividend should be around 0.068 cts.

 

Indeed, my Da Lole should be delighted that Super Group is back in the black. I did not jump onboard as I am not comfortable with how the price action behave particularly this week as compares to last week. At this point, the resistant is @4.28 falling back towards her last low will mean engulfing last and previous week candlesticks.

 

Thanks and congrats to you too, sis lexanne!! :hurray: No more buying of pennies for me for the time being.

 

Hello bro fafafa! I also feel happy to be back. After checking my trading account, the first thing I do is to come into this forum to find what all my wonderful cyber friends are doing.
When I saw SuperGal's price, I knew bro NB is very the happy!! :thumbup:

 

Nice to see you back, Sis Adonis.