In late Jan (which is just 2 months ago) when the market sentiment was pretty good, Sinotel issued 28m new shares at S$0.5755 a share, which was a 10% discount to the closing price of S$0.62 on 20 Jan 2010. The strategic investors who picked up the placement shares included Emirates Tarian Asset Mgmt, OneEquity SG, and Asian Trust Investments. Sinotel said it was gonna use the $ to grow its business outside Shanxi province, where it started and became entrenched. I doubt Sinotel needs to do further fund raising for the rest of this year after doing two placements and securing a bank loan in the space of about 5 months (ie Sept 09 to Jan 10). And at the current price of 51.5 c and a historical PE of 5.5 X , it\'s too cheap for them to do further placements. What they should focus on now is use the new capital to prove they can grow their business and reward shareholders. The chairman own 29% after all. Just my 2 cts worth. What do you guys think? Pls share your views.
the 3 funds that took up the placement shares at arond 57 cents in January 2010: 1) Based in Singapore, Emirates Tarian is a boutique investment firm focused on financial services in the Middle East and Asia Pacific regions, with principal activities in Asset Management, Wealth Management and Alternative Investment services. the other 2 can\'t find (easily )via Google search. anyone knows anything abt them?
I doubt Sinotel needs to do further fund raising for the rest of this year after doing two placements and securing a bank loan in the space of about 5 months (ie Sept 09 to Jan 10). And at the current price of 51.5 c and a historical PE of 5.5 X , it\'s too cheap for them to do further placements.
Although i m vested as well, I really do think that further fund raising is well on the way unless they can recover their account receiables quickly and not fall into bad debt. If you look at their OCF, it is negative mainly due to working capital adjustments. They had to do fund raising previously as to probably generate continued support from the banks for its line of credit to continue operations. However, as my investments have a longer horizon, I believe Sinotel should be able to survive the current onslaught and emerge like a fiery phoenix in next few years. haha. And if the management ever decides to start giving dividend or have a consistent dividend policy, it should stabilize the price volatility and become a gem-grade S-chip. Just my 2c
According to a posting on CNA forum by \'sin9999\' -- Sinotel ADR in US last night at USD9.48 which works out to 0.655 ! Something GOOD is definitely cooking. Guys do not lose your pants to the Angmohs here and sell them at 0.53. Wake up.... Good Luck
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