To get around this MPT, then Chasen likely to consolidate its shares. This isn't good for small investors like us. Didn't they had this consolidation exercise before?
1. consolidate its share
2. if market cap reaches $40 mil. (no need to consolidate)
3. move back to catalist (no need to consolidate)
To reach S$40 mil cap ... the share price will have to be at above 10.7 cts -
10.7cts X 374,593,000 shares = S$40,081,451. The 52 weeks high was 10.6 cts and the 2 year high was 14.3 cts. Given the much improved results, a higher dividend, low valuation w a p/e of less than 5 X and bullish management comments, the probability of the share price appreciating could be quite high. If this is the case, the company need not have to consolidate its share.
1. low valuation w a p/e of below 5 X
2. improved dividend of S$0.003, giving a yield of around 4.2%
3. bullish management comments
4. trading far below its nta of 18.7 cts
5.the investments in new areas in the last few years are showing positive results ... cross border logistics, USA relocations business etc
Above are just my views/observations n i could be wrong. pls dyodd
Above are some figures on the financial results of Chasen in the past 3 years.
As can be seen the revenue, profit and dividends have been growing. Given the
bullish management comments and the positive investment make in the last few
years, it is likely that 2019 will be another outstanding year for Chasen.
Above is just my view n i could be wrong.
Just sharing ... not a call to buy or sell.
Am vested.
Last edit: 6 years 4 months ago by josephyeo. Reason: spacing
Below are 2 extracts from an article on Chasen as appeared in the Business Times 12 July:
Extract 1
Also on Chasen' s plans are potential spin-offs of its subsidiaries, which it believes will be able to unlock their value, as the sum of its parts is currently worth more than the whole, non-executive chairman Eric Ng told media and analysts in a Wednesday briefing.
Extract 2
Asked if it is pursuing these strategies to lift its six-month volume-weighted average stock price to at least 20 Singapore cents - one of the requirements before it can exit the watch list, Mr Ng said the company also has other ways to boost its value, either by finding investors for its subsidiaries, or listing them.
" We are probably looking at both ways. This year, we will focus on this and probably you can look forward to some announcements. We have three potential subsidiaries to do this with - two in China and one in Malaysia. We are looking at the Hong Kong Stock Exchange Gem board."
