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HG Metal a hidden gem ?
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knightbridge
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15-Oct-2008 23:51
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HG Metal have been around very long so very experience in their trade. They have weather construction demand drop crisis in singapore. I am sure they will weather through this financial crisis. The demand for steel in Singapore is still strong. The construction and shipyard projects are all built half way so demand is not really affected now. Singapore government will definely speed up the project they have in mind in this crisis. Before the crisis, the delay alot of project due to inflation. Pity for HG Metal is they are quite conservative all along. When they start to expand financial crisis hit, this crisis will slow down their expansion plan. In term of sales revenue and profit, they have definitely growth in size. (Right now for the HG Metal Management is how to go to the next level) Whether in crisis or not, their will be alway a demand for steel to build building, ship, car or aeroplane. As long as they can raise fund to expand or keep stock. HG Metal will ride through the storm. HG Metal is a big steel stockist, how many big steel stockist in singapore that u noe off when u need to buy large amount of steel. - I think not many. It is trading below NTA. definite is bargain. But long term is who can bring HG Metal to greater height like maybe 1 billion S$ in sales revenue. Best if can brng in more reputation institutional investor or director on board. I might save some money to buy some to hold at 15cent for a long time (Risk on this counter is high, but i think can consider based on the upside potential of this counter) Currently the strong US$ is negative new for them, that why i think the price drop. |
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jackjames
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15-Oct-2008 23:12
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can tell you really selling hard on this stock, heee.. yeah, this is a good stock.. what's your entry price? |
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knightbridge
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15-Oct-2008 23:09
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You look at Warren Buffet who buy the stock of good companies and sound management in 1970 until now also no sell that why becoming ( Billionaire). He weather how many crisis. He has a clear mind when come to investing Not to Overcoming by Greed, Denial, Fear and Dispair when come to investing. Between Investing and Gambling is only a line, how you drawn the line depend on you. |
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knightbridge
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15-Oct-2008 18:21
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Agree with no Free Lunch in this world. Invest need patience, most people dun have long patience. But when you say buy HG 0.145 sell 0.17 easy 1k I dun agree with the comment. (Misled people into thinking easy money can be made in the market) Not very ethical business build from scratch also take a number of year to reach a certain size. Same with stock, is like buying business takes years to mature. If your business is still good, will you sell for book value. By the way, my focus on this thread is what are your view on HG Metal in 5years. I will not comment on your approach to investment view. My conservative and boring long term works for me so I will not change my method. HG Metal on books looks very attractive short term if market recover, but I want is long term investing. I will never try to use $1 to make 10 - 20 cents short term, cause not worth the risk. ( What if market takes a turn, lost 50% of capital and keeping stock that i dun want in my pofolio ) This mistake is made by many investor. SGX is a monopoly business i dun see another stock exchange comming up in singapore. If cannot make enough profit just increase fees. Monopoly business with good management. What are your view on alternative business that can beat ROE on SGX. I am sure have but not many, if i can get good return on divident based on 1.30 every year why do i have to let go and buy something no so good. Waste alot time to pick another good stock to add in the pofolio
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knightrider
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15-Oct-2008 14:11
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Hold long term, everyone also know how to say, btw I bought SGX at S$1.7 and get out at S$15.2.I bought DBS in 2002 at S$10 and get out S$16.4. I think that is long enough. So u c ! As for free rooms in overseas casino, don't talk crap la, please deposit and open a star account with the casino group and put in 6 figures before talking of free rooms. Overseas casino also has overheads, need to pay airticket to go there. In this world no free lunch unless u dare to go rob the bank!!!! |
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knightbridge
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15-Oct-2008 11:43
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My Intention are good, I dun believe in jumping in and out for retail investor cus will incurred alot of commission. I Hope Investor will make money. I hold stock mostly 5 five years. I brought SGX after IPO at $1.27 - $1.30 still holding havnt sell (Some investor think i stupid) but dividend they giv cover my capital. (More than 5 years) I hold venture before also after IPO for 5 years and sell off for 3 times capital. What i am trying to say is buying stock got alot of risk not worth to use 1 dollar to make that 10% - 15% return short term. How to built patience to use $1 to make $5 over a long period by doing homework I looking at HG doing homework to see whether the $0.15 can turn to $0.90 over a 5 year period. By the way, overseas casino got no charges and giv free room. |
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knightrider
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15-Oct-2008 09:37
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I have been following this stock since day 1 till now, I m not "Hor Lian", this counter bought me my Sony 52" LCD tv plus extras ! I am not always correct too, see Advanced Holding, follow since day 1, now like shit. Still holding it ! Same as MDR, now drop to coming S$0.005 soon, what to do still holding. Thus, when I saw opportunity in HG, just go for it, got $$$ must pick, if not thunder strike you then you know !!! So if your eye red, then go jump clifford pier la ! Sometime I saw others comment, without brain. Please use brain before you comment, not like Taiwan vice-president always used "2B" strategy ! What is "2B" , go find out lor. Indeed stock market is like casino, so you think go casino no overhead, need to pay S$100 extrance fee. Good luck to all. |
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firebear
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15-Oct-2008 02:08
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In their annual report FY2006 they no longer have any holding in FerroChina | |||||||||||||
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knightbridge
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15-Oct-2008 01:14
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Sorry my mistake. didnt check and see what u post earlier. You got do homework de | |||||||||||||
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knightbridge
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15-Oct-2008 00:10
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Knight rider u are playing stock like a casino. Might as well go to a casino no nid to pay brokerages commission + free drinks and snack for you. Like betting high no or low no for dice. Immediate outcome, no nid to turn on computer screen and check price all the time. 1 min can see win or lose. If you say because can contra without upfront payment, just borrow money from friends, associates and relatives. One bet on 1k make 1k in a min and no nid to pay commission and upfront paym from casino. |
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knightbridge
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15-Oct-2008 00:00
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HG Metal is in the steel trade as stocklist for very long as this is an herent risk of the business. I am sure they got measure for this kind of exposure with its client. They will have confirm price quantity and lead time from customer before making a big purchases. So i am not concern they lost money due to the steel price drop. It is the currency exposure that i am concern. Whether high US dollar is good or bad for them, do they hedge their currency exposure. |
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Andrew
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14-Oct-2008 23:14
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I think holding so much steel stock is also a problem now as the spot price for steel or any other commodities has fallen so much. If I not wrong, last week price fell 9% in one day due to the sell of in DOW. Too volatile.....also buying BRC @48M cannot be using internal resources ?? Partly also FerroChina, a few years back they sold some FRC shares with capital gain, did they still owe any of it ?? FRC event is very significant because a company (going to) failed due to the inability to roll debts is simply appalling.... Just my thought....please comment. |
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knightbridge
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14-Oct-2008 20:30
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This mean HG Metal nid more money to keep stock. I have been looking at this counter. The current book order for HG Metal seem bright, as they are one of the big stocklist of steel products in Singapore. With the Shipyard booming and the Construction Sector still hot and they have expanded warehouse and buy BRC to branch out to more products. The price look attractive at the current moment. With record profit and record sales revenue, so I ask myself what are the risk down the road. ( I am a long term investor will hold for 5 years or more) They buy steel in US Dollar and sell in SIN. What will happen down the road after 2-3 year later how can they continue to expand. They have been raising money to fund expansion now. Will they bring in High profile director with international exposure to join the busineess, from what i know they are quite family run. (They are stocklist, so they will need to continue to build good relationship with the steel mills). What are the relationship they have with the shipyard, if shipyard order cut will HG be compenstated. Will Singapore Shipyard moved out of singapore when the cost increase just like the electronic sector. How can HG Metal follow all these yard with the current business model. The price will reflect the future. Will HG Metal invite Keppel or Sembcorp to take a stake in them to assure their future? |
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knightrider
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14-Oct-2008 09:28
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Those who did head my advice buy at 0.145, now can cash out liao.... S$0.17. What an easy 1K. Good Luck. | |||||||||||||
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knightrider
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13-Oct-2008 10:25
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Wow, all time low liao, can buy now $0.145 ! | |||||||||||||
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knightrider
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22-Sep-2008 14:29
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knightrider
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14-Aug-2008 09:51
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HG Metal unit to buy 70.28% of BRC for $48.13m
HG Metal will undertake the acquisition in two tranches
By LYNETTE KHOO
HG Metal Manufacturing says it is going for the volumes game in the steel industry where size matters. Its 51 per cent-owned unit, HG Metal Pte Ltd, has agreed to buy 70.28 per cent of BRC Asia for $48.13 million or 11 cents per share from Acertec Engineering Ltd.
The offer price is at an 83.33 per cent premium over BRC's audited net tangible assets per share of six cents for the year ended Dec 31, 2007 and up to a discount of 10.6 per cent over the volume-weighted average price of its shares over the last six months. To manage its cash flow, HG Metal will undertake the acquisition - funded by internal cash hoard and debt financing - in two tranches. The first tranche will involve the purchase of 349.5 million BRC shares or 56.14 per cent stake, and this will take place by September after HG Metal has obtained shareholders' approval at an extraordinary general meeting. HG Metal is required to make a mandatory takeover offer for all the shares of BRC Asia that it does not already own under regulatory rules once the first tranche is completed. Under the second tranche, which will take place within a year from the completion of the first tranche, HG Metal will buy the remaining 88.05 million BRC shares or 14.14 per cent stake. This marks the HG Metal Group's first major acquisition after years of organic growth and the group will 'look at some more to come' both upstream and downstream, its CEO Wee Piew said at a briefing yesterday. HG Metal intends to maintain the listing status of BRC Asia after the completion of the deal. BRC, which derives its revenue locally, is mainly engaged in making and selling wire mesh under its 'BRC' brand name and developing a wide range of fabricated and prefabricated steel products for the construction industry. It has been the main supplier to public housing projects and has a dominant 40 per cent market share in the supply of wire mesh. Mr Wee noted that there are much synergies from the acquisition through cost savings from bulk purchase of materials, opportunities for cross-selling and streamlining of manufacturing and warehousing operations. There could be collaboration with BRC in the new warehouse that HG Metal is building in Nusajaya, Johor, he added. If this materialises, it will be BRC's first foray in Malaysia. BRC achieved a 28 per cent year-on-year jump in net profit to $2.89 million for the first half ended June 30 on the back of a 140 per cent surge in sales to $120.4 million. HG Metal will consolidate BRC's earnings by September next year. The HG Metal Group recently announced a near quadrupling in net profit to $28.5 million for the third quarter ended June 30 from $7.6 million for the previous year's third quarter as sales jumped 90 per cent year on year to almost $234 million. Mr Wee said there will not be major management changes at BRC following the acquisition and Lim Siak Meng, group managing director of BRC, will stay on. Mr Lim told BT that there is likely to be a rationalisation of business following the acquisition, with all development of steel reinforcing products likely to come under BRC. He said he believes the takeover by HG Metal will help expedite BRC's earnings growth. HG Metal Pte Ltd is 20 per cent owned by Lingco Marine Pte Ltd, which is 30.17 per cent held by the HG Metal Group's non-executive director Sia Ling Sing. Mr Sia also owns a direct 3.78 per cent stake in the HG Metal Group. Shares of BRC and HG Metal were halted from Tuesday pending the announcement and will resume trading today. |
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knightrider
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13-Aug-2008 11:45
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Acquisition. KBC Bank N.V., Singapore Branch wishes to announce, for and on behalf of HG Metal Pte. Ltd. (the "Offeror"), that the Offeror and Acertec Engineering Limited (the "Vendor") have on 12 August 2008 entered into: (a) a conditional sale and purchase agreement (the "First SPA") in relation to the sale and purchase of 349,500,000 ordinary shares (the "First Tranche Sale Shares") in BRC Asia Limited (the "Offeree"), representing approximately 56.14% of the existing issued and paid up share capital of the Offeree as at the date of the First SPA and the Second SPA1 (the "First Tranche Acquisition"). Under the terms of the First SPA, completion of the First SPA is subject to the satisfaction and/or waiver of the various conditions precedent as set out in paragraph 2.2(a) of this Announcement (the "First Tranche Conditions Precedent"); and (b) a conditional sale and purchase agreement (the "Second SPA") in relation to the sale and purchase of 88,050,000 ordinary shares in the capital of the Offeree (the "Second Tranche Sale Shares") representing approximately 14.14% of the existing issued and paid up share capital of the Offeree as at the date of the First SPA and the Second SPA (the "Second Tranche Acquisition"). Under the terms of the Second SPA, completion of the Second SPA will take place on the date falling on the expiry of 12 months after completion of the First SPA (or such other date as may be agreed between the Offeror and the Vendor) and is subject to the satisfaction and/or waiver of the various conditions precedent as set out in paragraph 2.2(b) of this Announcement (the "Second Tranche Conditions Precedent"). 1 |
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knightrider
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13-Aug-2008 11:28
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The Board of Directors of HG Metal Manufacturing Limited (the "Company") wishes to announce that its wholly-owned subsidiary, HG Metal Investments Pte. Ltd. ("HG Metal Investments") has entered into a joint venture relating to HG Metal Pte. Ltd. (the "Joint Venture") on 12 August 2008 with, amongst others, Lingco Marine Pte. Ltd. ("Lingco Marine"), an associate of Mr Sia Ling Sing, who is a director of the Company, pursuant to which HG Metal Investments and Lingco Marine would invest in the Joint Venture and hold the issued shares in the capital of the Joint Venture ("Shares") in the proportion of approximately 51.00% and approximately 20.01% respectively. The remaining approximately 28.99% of the Shares would be held by other private investors (the "Other Investors"). |
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knightrider
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13-Aug-2008 11:23
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BRC files High Court summons against Sembawang E&C
It wants payment for supply of steel products to SEC for Sentosa IR project
By ARTHUR SIM BRC Asia has filed an originating summons with the High Court in connection with the supply of steel products to Sembawang Engineers and Constructors Pte Ltd (Sembawang E&C or SEC) for which it wants payment. It is also understood that the supply of the steel products was in relation to a contract that SEC was awarded by Resorts World at Sentosa for sub-structure works. In a statement released on July 29, BRC Asia said SEC had requested a quotation in April 2007. It then submitted a quotation to SEC - formerly a subsidiary of Sembcorp Industries and now a member of India's Punj Lloyd Group - for the supply of various reinforcing steel products which was valid up to May 25, 2007. BRC Asia says SEC did not accept the quotation but instead sent a letter 'purporting to set out their intention to appoint the company as SEC's sub-contractor for the fabrication, supply and delivery of the products, subject to a formal sub-contract being signed'. However, BRC Asia said it was not agreeable to the terms set out in SEC's letter. BRC Asia said SEC 'purported to award the sub- contract to the company' on Aug 13, 2007 but as the terms and conditions were not agreeable to BRC Asia, it began negotiations on the sub-contract with SEC. Last September, BRC Asia released a statement that it had received a letter of award from the 'main contractor' for the sub-structure works for the Sentosa Integrated Resort (IR) Project, to supply about 40,000 tonnes of reinforcing steel in the form of prefabricated rebars and wiremesh for the project. BRC Asia added then that the parties had in-principle agreed on the main terms of the contract and that it had started supplying such reinforcing steel. SEC was not specifically named as the 'main contractor'. In its statement yesterday, BRC Asia said that as at June 30, it had supplied about $39 million of the products to SEC. It added that it was seeking a ruling from the High Court in relation to payment from SEC for the supply of products on a quantum meruit basis - at a fair and reasonable market rate. BRC Asia is also seeking a ruling that there is no binding agreement or contract with SEC, and that it is not obliged to continue to supply the products to SEC. Alternatively, BRC Asia said it is seeking a ruling that the only valid contract is based on the terms of the quotation. When contacted, SEC declined to comment, while BRC could not be reached for comment. BRC Asia is also understood to be in the process of a takeover by rival HG Metal. |
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