3 weeks ago got share placement at 24 cents. last night announced another placement -- this time at 45 cents. Recently, directors also placed out vendor shares at 32 cents. Major dilution for existing shareholders and the other challenge is there is little clarity on the near-term potential of the new ventures.
NRA Capital's fair valuation of ISDN was recently reported to be just S$0.24, "after rolling forward our base from FY13 to FY14, still pegged at 1x P/NTA."
I hope Morpheus and other readers didn't get burnt by ISDN falling from 90+ cents 2 days ago to 76 cents currently.
I had offloaded all my holdings that I had bought one year ago when it was thinly traded at low prices. There is no certainty that the agreement will go through and even if it did, there is no assurance that a hydropower plant will yield positvie returns as i had noted that on the Catalist board, Asiatic is also building a hydropower plant and a biomass project. But then its earning is not splendid. Of course the scale of projects may be different but I am cautious as any legal dispute, project delays or cost overruns will have material impact on the expected earnings of the energy-related projects. They are large investment amounts involved so better be prudent. For those who are vested, best of luck to you. I wiould rather look at others. So far, Digiland may be a better bet (though with some risks) as it is priced at the lowest (0.1 cents) while its net assets should be about 5 cents if I am not wrong. Moreover, Thai Coke trader, General Nice had bought the Rights shares at 0.1 cents too to becme a substanstial shareholder. A RTO may be on the cards.
Nice one Speedster. Fundamentally, the earnings of ISDN were not great last year and the new ventures (hydropower, Myanmar, coal) will take several years to bear fruit.
When I saw the stock touch 90 cents, I thought oh my god, a lot of people will get slaughtered if they had just got in. On a PE basis, the stock was trading at 50X last year's earnings! It's higher PE if you take into account the no. of shares placed out in a few rounds recently.
Good luck. (King Wan Corporation would look much more attractive at a dividend yield of 9% currently -- but tht's another story).
King Wan looks ok to me. But will look at the best opportunity to enter it as now the market not moving a lot with the uncertainty clouding the North Korean missile threat and the slowdown in many economies. f it is a down market, I will look at best price level to enter.Thks
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