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Yuuzoo Corp - The Rise
Tomique
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01-Sep-2013 22:11     
 
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In Singapore, we have done away with authorized capital because it bears no meaningful association with the actual or issued capital of the company. In olden days, the use of " authorized capital" is to allow the company to issue additional capital upto the amount of the declared " authorized capital" .   In Bermuda where Contel is registered, they are still using " authorized share capital" , and I am sure this is the reason for an increase in the authorized capital to legalize any additional funds being capitalized into the company.

There is no negative effect on any company (registered outside Singapore) that say they wanted to increase the authorized capital. On the contrary, it is a positive sign since increasing a company's physical capital strengthens it.

So no fear, as everything is at status quo pending RTO. The market came down on Friday because of the bearish outlook for the Sg market that was spooked by the conflicting signals on Syria.   Since there is no proof of CW used by the Assad govt, UN Security Council will not support any attack on Syria, unless Obama wants to do it alone (as he has insisted that even without approval from Congress he can order an attack on Syria) and that will be bad for Americans because it will signal the coming of a precedent for the president's unequivocal power to go to war or even to later institute marshal law should he so desires at any point of time to his own delight.  

Wake up, Americans. Weigh the consequences of your any move!! 
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Aberdeen123
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01-Sep-2013 21:24     
 
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I know of digiland and advance system automation have undergone capital reduction exercise several yrs ago.Similarily additional shares were issued and their shares px was adjusted  accordingly by market forces. 

With the increase in the nbr of of shares  from 750million to 3billion  shares  ultimately,earlier calculation of TP@10c will no longer hold water.

DYODD.Cheers!
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clonevil
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01-Sep-2013 13:01     
 
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Ttechnically, companies can issue new share capital even with vast accumulated losses. My point is that any new equity issue may not go down well with Yuuzoo since it may make the rto process more complicated. Which is why the 0% notes are being used to provide crucial working capital instead. Some may point out that the 0% notes are likely to be converted into shares at a subsequent date anyway. However, the conversion is likely to be done post-rto or after the rto doesn't go through (touch wood lol). So any impact of the 0% notes on share price will similarly be after the rto is concluded.

The capital reduction could be to allow the new post-rto company to have a nicer looking balance sheet. imagine taking over a company only to introduce huge accumulated losses on your balance sheet haha
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nqing87
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01-Sep-2013 09:21     
 
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Bro aberdeen has always been bearish in shares, not just contel lol.. probably he plays as a shortists and profit handsomely when stocks fall lol.. but we need ppl like him to keep in check of our bullish emotions haha..

agree with bro clonevil about point 2.. had called my broker few days ago about the effect of capital reduction on theoretical share price.. she explain something similar to you, but i dont really understand all those technical terms lol.. but in all, i confirmed with her that theoretically, the share price shouldnt get affected by capital reduction, aside from possible market reactions that probably may have reacted to it due to misunderstanding or whatever..

if i wasnt wrong, i think the capital reduction purpose according to circular i receive, is to " further provide the company with more flexibility to undertake future equity or equity-related fund raising to recapitalise the balance sheet of the company or other corporate exercises involving the issue of shares (page 21 of circular)" .. my interpretation is that they do capital reduction so they can do placement of shares.. dunno if my interpretation correct or not.. so bro clonevil, not sure if your last sentence of " new equity issue is not possible or prove problematic in lieu of rto" refers to saying placement of shares not possible?

clonevil      ( Date: 01-Sep-2013 00:43) Posted:



bro aberdeen, i have no crystal ball to say whether contel will go red on monday or not. dip to 68 could just be due to T+5 for all we know. but i would like to point out a few things about your 2 points.

Point 1 - Comparing 1H13 to 1H12 for contel is not useful. Firstly, USD26.24 million profit for 1H12 is due to one-off gain on disposal of discontinued operations. Whereas 1H13 losses are due to fair value gains/losses. Both are not related to contel normal operating business. If anything, gross profit of USD319k for 1H13 compared to USD8k for 1H12 shows contel's core operating business has improved y-o-y. It could also be argued that contel's business is improving with 2Q13 profits of USD877k compared to 1Q13 losses of USD1,430k. Not saying that the numbers actually say contel's business is improving or worsening. For contel, given the rto deal, the financial figures probably don't matter at all. Also, the financial results are old news, which the market has already reacted to with the spike to 75 a couple of weeks ago.

  Point 2 - A lot of people have wrongly misunderstood the capital reduction as some sort of devaluation/dilution of share price. The fact is,  capital reduction is simply an accounting adjustment to remove the accumulated losses from the balance sheet by offsetting against paid up capital or share premium account. It has no cash flow effects nor any effect on how much the share is worth. No money is taken out of the company nor is any money put in. It simply makes balance sheet look 'nicer'. Fellow readers, feel free to google 'capital reduction'. With or without the capital reduction, Net Value Asset per share (one of the many ways to value a share) is unaffected. Besides, the idea of par value for shares is misleading since shares, unlike bond, can never be redeemed. Hence, considering a share's par value is meaningless unless an investor wants to measure how much share prices have changed since the shares were first issued. Quote from investopedia - " Par value has no relation to the  market value  of a stock. A no par value stock can still trade for tens or hundreds of dollars - it all depends on what the market feels the company is worth."

  However, bro Aberdeen has rightly pointed out that contel needs fresh capital to continue its operations. However, new equity issue is not possible as it would go against or prove very problematic in lieu of the rto. This is why the $5m 0% tranche 1 notes are being issued - to keep the company going. Hope this clears up any confusion =)

Aberdeen123      ( Date: 31-Aug-2013 23:28) Posted:

Beware,come Monday Contel will be in deep red.

1.IH13 Result was bad.Company reported a loss of USD553,000  as compared to 1H12, USD26, 240 000 profit. A 97.9% loss..

2. The proposed capital reduction will dilute the share price dratically. The Proposed Capital Reduction will result in the par value of the Shares being reduced from US$0.04 to US$0.01 and the number of shares in the Company?s authorised share capital will be increased from 750,000,000 Shares of US$0.04 each to 3,000,000,000 Shares of US$0.01 each.The Company will make an announcement on the Capital Reduction Effective Date in due course.

Friday closing px saw many investors  exited at the first opportunity  after  the SGM.

Recall I have alrdy warned  that the company have a ongoing concern going forward and the company definitely need to raise capital.In this case they have opted for capital reduction.  I feel it is not the right time to buy now for RTO.I suspect px to trend lower in view of 2.
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clonevil
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01-Sep-2013 00:43     
 
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bro aberdeen, i have no crystal ball to say whether contel will go red on monday or not. dip to 68 could just be due to T+5 for all we know. but i would like to point out a few things about your 2 points.

Point 1 - Comparing 1H13 to 1H12 for contel is not useful. Firstly, USD26.24 million profit for 1H12 is due to one-off gain on disposal of discontinued operations. Whereas 1H13 losses are due to fair value gains/losses. Both are not related to contel normal operating business. If anything, gross profit of USD319k for 1H13 compared to USD8k for 1H12 shows contel's core operating business has improved y-o-y. It could also be argued that contel's business is improving with 2Q13 profits of USD877k compared to 1Q13 losses of USD1,430k. Not saying that the numbers actually say contel's business is improving or worsening. For contel, given the rto deal, the financial figures probably don't matter at all. Also, the financial results are old news, which the market has already reacted to with the spike to 75 a couple of weeks ago.

  Point 2 - A lot of people have wrongly misunderstood the capital reduction as some sort of devaluation/dilution of share price. The fact is,  capital reduction is simply an accounting adjustment to remove the accumulated losses from the balance sheet by offsetting against paid up capital or share premium account. It has no cash flow effects nor any effect on how much the share is worth. No money is taken out of the company nor is any money put in. It simply makes balance sheet look 'nicer'. Fellow readers, feel free to google 'capital reduction'. With or without the capital reduction, Net Value Asset per share (one of the many ways to value a share) is unaffected. Besides, the idea of par value for shares is misleading since shares, unlike bond, can never be redeemed. Hence, considering a share's par value is meaningless unless an investor wants to measure how much share prices have changed since the shares were first issued. Quote from investopedia - " Par value has no relation to the  market value  of a stock. A no par value stock can still trade for tens or hundreds of dollars - it all depends on what the market feels the company is worth."

  However, bro Aberdeen has rightly pointed out that contel needs fresh capital to continue its operations. However, new equity issue is not possible as it would go against or prove very problematic in lieu of the rto. This is why the $5m 0% tranche 1 notes are being issued - to keep the company going. Hope this clears up any confusion =)

Aberdeen123      ( Date: 31-Aug-2013 23:28) Posted:

Beware,come Monday Contel will be in deep red.

1.IH13 Result was bad.Company reported a loss of USD553,000  as compared to 1H12, USD26, 240 000 profit. A 97.9% loss..

2. The proposed capital reduction will dilute the share price dratically. The Proposed Capital Reduction will result in the par value of the Shares being reduced from US$0.04 to US$0.01 and the number of shares in the Company?s authorised share capital will be increased from 750,000,000 Shares of US$0.04 each to 3,000,000,000 Shares of US$0.01 each.The Company will make an announcement on the Capital Reduction Effective Date in due course.

Friday closing px saw many investors  exited at the first opportunity  after  the SGM.

Recall I have alrdy warned  that the company have a ongoing concern going forward and the company definitely need to raise capital.In this case they have opted for capital reduction.  I feel it is not the right time to buy now for RTO.I suspect px to trend lower in view of 2.
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Aberdeen123
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31-Aug-2013 23:28     
 
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 Alert Admin 		Beware,come Monday Contel will be in deep red.

1.IH13 Result was bad.Company reported a loss of USD553,000  as compared to 1H12, USD26, 240 000 profit. A 97.9% loss..

2. The proposed capital reduction will dilute the share price dratically. The Proposed Capital Reduction will result in the par value of the Shares being reduced from US$0.04 to US$0.01 and the number of shares in the Company?s authorised share capital will be increased from 750,000,000 Shares of US$0.04 each to 3,000,000,000 Shares of US$0.01 each.The Company will make an announcement on the Capital Reduction Effective Date in due course.

Friday closing px saw many investors  exited at the first opportunity  after  the SGM.

Recall I have alrdy warned  that the company have a ongoing concern going forward and the company definitely need to raise capital.In this case they have opted for capital reduction.  I feel it is not the right time to buy now for RTO.I suspect px to trend lower in view of 2.

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clonevil
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30-Aug-2013 22:40     
 
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 Alert Admin 		yup. tan choon wee also explained to a shareholder that paperwork related to the rto has been submitted to sgx for approval and hopefully sgx will reply in 1-2 months. also, the 0% notes is essentially tan choon wee pumping more money into contel to keep the company running. of course, he stands to earn handsomely from this interest-free loan when he converts it to equity post-rto. all these seem to me like tan choon wee is committed to the rto, if not, at least the company.

Tlc8888      ( Date: 30-Aug-2013 20:45) Posted:

All approved. The Co will make further announcement on the effective date for capital reduction. The reason for a temporary name change to W Corporation Ltd is to return the name back to Grandpex after the sale of  the business to them earlier. Thus, once all the processes are completed, one fine day  the name will eventually become Yuuzoo Corporation Ltd.

Moomooland      ( Date: 30-Aug-2013 14:58) Posted:

Any updates from SGM?
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Tlc8888
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30-Aug-2013 20:45     
 
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 Alert Admin 		All approved. The Co will make further announcement on the effective date for capital reduction. The reason for a temporary name change to W Corporation Ltd is to return the name back to Grandpex after the sale of  the business to them earlier. Thus, once all the processes are completed, one fine day  the name will eventually become Yuuzoo Corporation Ltd.

Moomooland      ( Date: 30-Aug-2013 14:58) Posted:

Any updates from SGM?
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Moomooland
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30-Aug-2013 14:58     
 
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 Alert Admin 		Any updates from SGM?
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Tlc8888
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29-Aug-2013 22:14     
 
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 Alert Admin 		Playing hide and seek or playing blindfolded, clap2  and seek? Just make sure we don't bang our head to the closet, because you'll never know who or what  is inside......
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mb7269
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28-Aug-2013 17:49     
 
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 Alert Admin 		hammer this down.... tp .064 sure get soon. Now no hurry to buy!
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wendel
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28-Aug-2013 15:47     
 
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 Alert Admin 		we should see a breakout tomorrow...on my chart....current mkt seems to work against my plot!!

jacelin84      ( Date: 28-Aug-2013 15:26) Posted:

Come 66c come.
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jacelin84
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28-Aug-2013 15:26     
 
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 Alert Admin 		Come 66c come.
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wendel
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28-Aug-2013 14:40     
 
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 Alert Admin 		Waiting waiting...surpass my 72....quick!! BB come...!!

Tlc8888      ( Date: 28-Aug-2013 14:21) Posted:

Consolidation, accumulation...30% off

seanpent      ( Date: 26-Aug-2013 12:06) Posted:

seems that Contel is warming up liao ....
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Tlc8888
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28-Aug-2013 14:21     
 
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 Alert Admin 		Consolidation, accumulation...30% off

seanpent      ( Date: 26-Aug-2013 12:06) Posted:

seems that Contel is warming up liao .....

clickshop1628      ( Date: 24-Aug-2013 23:22) Posted:

Play likely in Sep after SGM this coming Friday. Hopefully heong heong like Albedo or Mirach type -  3 bagger 


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seanpent
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26-Aug-2013 12:06     
 
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 Alert Admin 		seems that Contel is warming up liao .....

clickshop1628      ( Date: 24-Aug-2013 23:22) Posted:

Play likely in Sep after SGM this coming Friday. Hopefully heong heong like Albedo or Mirach type -  3 bagger 

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clickshop1628
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24-Aug-2013 23:22     
 
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 Alert Admin 		Play likely in Sep after SGM this coming Friday. Hopefully heong heong like Albedo or Mirach type -  3 bagger 
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wendel
Master
24-Aug-2013 23:19     
 
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 Alert Admin 		We shld see it chiong on Tues...Mon open lower that Friday's close...more buy thereafter n chiong on Tues.
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ysh2006
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24-Aug-2013 12:48     
 
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 Alert Admin 		The SGM is on 30 Aug or 28 ?....confuse leh....anyway next week might have some play on this counter I just think only...win or lose up to luck!  if 5: 1 at 50 cents is okay.......

ruready      ( Date: 23-Aug-2013 15:35) Posted:

buy enought liao,,,,,,,,,,,,,remember 28/08 there meeting
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wendel
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23-Aug-2013 19:42     
 
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 Alert Admin 		I want PMS too!

avid1980      ( Date: 23-Aug-2013 18:53) Posted:

Sis!! I also wan pm..lol

halleluyah      ( Date: 23-Aug-2013 18:42) Posted:

Bro louis, pls read pm..
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