The stock looks well supported at 32 c. No surprise given that net cash is 47 c. Rare value. However, the core business not making $. And the superb stock invsting skills of the management are being called upon in another area: Go hunt for a good business and buy it to run. That\'s why no special dividend for now. At full-year, maybe yes, maybe no. Read this line fr statement: \"Notwithstanding the unsuccessful acquisition exercises previously undertaken, continuing focus is being made to explore new business opportunities in order to generate better returns for the Group.\"
Looking back at its history... there hasn\'t been any interim dividend for the past few years. The last time that they pay interim dividend was in year 2006. 2007, 2008, 2009 only final dividend was declared. Based on today\'s price of $0.32, it is trading at - 40% discount to NTA - 32% discount to Net Cash. Thanks Value Investor for your great articles.
www.nextinsight.net/content/view/1597/60/
Taken from
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The management of Lion Asiapac has paid a dividend of 1 cent per share in the last two financial years. Interestingly, a total dividend of 5 cents per share was declared in June 2006. Back then, the cash coffers had increased following the disposal of its stake in Zhejiang Qianjiang Motorcycle Company. This time, following the disposal of the Anhui Jianghuai stake, it is estimated that its net cash (cash less total debt) is about S$0.48 per share. Question: Does the management need to keep the whole S$190 million? Whether the management will declared special dividend... only time can tell.... Meanwhile MIIF is another one which have massive cash onhand and evaluating whether to do share buy-back or go for new acquistion.
There is a good reason why investors are not chasing up this stock. They are not sure if there will be a special div. If there is going to be one, it is still 6 months away, when the full yr results are out. I thnk it was too much to expect an interim special div, so I was not surprised by the selldown to 32c. Lion Asiapac had tried to do 2 interested party transactions in recent times - with Changshu Lion Enterprise which was shot down by shareholders at an EGM. Then it tried to acquire Polaris Metal. Clearly, Lion wants to invest its surplus cash in some business. Some people think this means no special div will come, but obviously there is always room for special div in addition to injectin of $ into a new business, isnt it?
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