ChanKitWhyePrior to his retirement, Chan Kit Whye worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.

Asian Pay TV Trust: For gamblers only. This stock offers more than 10% dividend yield, but the payout comes from both operations plus remains from IPO proceeds. 

So, when the result is released on Feb 24, you can gamble that the share will go up 4.1 cents. 

If not, cut loss.  

Be prepare to lose, but how low can this stock goes?

asianpaytt_2.14Asian Pay TV Trust has a market cap of S$1.08 billion. Chart: 

ramba_oil2.14Ramba is engaged in oil and gas exploration and production in Indonesia. It ventured into the energy sector in 2008 with the goal of becoming a significant energy producer in Indonesia. Photo: CompanyRamba Energy: Reported Q4 2013 loss of $4.4 million as compared to prior year Q4 of $1.9 million. 

Its full year 2013 loss stood at $15.7 million, 105% more than its previous year's loss of $7.5 million.

Loss per share was 4.5 cents. Free cash flow was negative at $5.7 million.

Its cash balance increased by $1.2 million despite a rights issue with proceeds of $18.4 million, and $13 million being utilised for the acquisition of intangible assets.

Its NAV per share stood at 17.29 cents.

In 2013, all its three segments - Oil & Gas, Logistics and Rental - reported losses.

Its share price will get hammered down tomorrow but the directors are trying their luck by making an announcement that its Drill Stem Test results at the Akatara-2 appraisal yielded positive results, with initial flow rates of up to 2,300 barrels oil per day.

Given the positive DST results and commercial flow rates from the Selong-1, Akatara-1 and Akatara-2 exploration wells, the Company shall begin to make preparations for commercial production and will submit the plan for development to the relevant authorities in due course.

But its current price-to-book ratio is 3.3 times, and I wonder how far can its share price go with such poor performance in 2013.

You may also be interested in:


#2 Chan Kit Whye 2014-02-19 08:15
Greenrookie, dividend out of proceeds will be depleted very soon, and APTT must grow its cash flow from new business, especially meeting its target for expansion into Taichung. Its tax dispute issue with the Taiwan government must be settled amicably, and management must focus of managing its business and growth efficiently and effectively rather than taking a risk on foreign exchange swap deals. The dividend yield currently exceeds 10% and yet its share price is not moving. It means that there are associated risks that the market is factoring in its share price.
#1 greenrookie 2014-02-18 21:02
Hi, mr chan,

Can u tell me why u think APTT can only pay out its dividends from both operations and proceeds. My calculation is it is possible to maintain that payout with operation and the loans that has been secured but not drawn down, taking into consideration all telcos are highly geared too, not just APTT.

Perhaps APTT is not a stock u can sleep with, but the next 2 years dividends is rather safe, if u look at the current assets EBITA, and if u calculate a modest 5% growth, ( can come from Taichung basic cable, gain of premium cable subscribers, and broadband) granted competition will increase with rezoning, but the effect will be felt after 2 years only, and the market is generally big enough for 1-2 competitors. No one in the right mind will go in for a 4 or 5 way contest.

You have no rights to post comments

Counter NameLastChange
AEM Holdings3.280-0.020
Avi-Tech Electronics0.250-0.005
Best World1.680-
Broadway Ind0.0920.002
China Sunsine0.3950.005
Delfi Limited1.1300.010
Food Empire1.090-
Fortress Minerals0.3100.010
Geo Energy Res0.280-
GSS Energy0.028-
Hong Leong Finance2.4800.010
Hongkong Land (USD)3.190-
ISDN Holdings0.330-0.005
IX Biopharma0.043-
Jiutian Chemical0.0260.001
KSH Holdings0.290-
Leader Env0.0530.003
Medtecs Intl0.1400.004
Nordic Group0.400-
Oxley Holdings0.100-
REX International0.166-0.002
Sinostar PEC0.135-
Southern Alliance Mining0.670-0.005
Straco Corp.0.470-0.015
Sunpower Group0.240-
The Trendlines0.0910.001
Totm Technologies0.038-
Uni-Asia Group0.905-0.030
Wilmar Intl3.6200.010
Yangzijiang Shipbldg1.4900.040

We have 335 guests and no members online

rss_2 NextInsight - Latest News