Hotung

we are all only humans, mistakes are common including yours truly. so as long we dont lose our pants in the process. and thats why forums are useful, everyone shares ideas and cross check mistakes. most imptly everyone here is more geared towards value investing so i prefer next insight forums! btw hotung looks cheap but I think alot of room for it to get cheaper ...just like how innotek got hammered even though it has high dividends.

Long time have not looked at the stock, but it is holding admirably at 12.5 cents. This is the all-tech stock - if the tech boom sustains, this Taiwan venture capital company is gonna continue to be highly profitable. What do u guys think?

A little dampener is the series of sale of shares of Hotung by Tai Lung Capital. Not much , but still ..... Otherwise, I was thinking Hotung is a good play on the tech boom as its venture capital investment in tech companies shld come up positive overall in this boom. Hotung is not an easy company to analyse of course, as you never really know how its investments in private tech companies are really doing. It\'s a collection of investments but chances are good that overall, things are turning up rosy. the only analyst coverage I know of is by NRA Capital and it\'s pretty positive: HOTUNG: \'Expect further re-rating on tech recovery,\' says NRA Capital www.nextinsight.biz/content/view/2400/79/

A few points to add on: 1) Net cash of USD0.06 - More than 50% of current traded price. 2) USD decline against SGD seems to be slowing down when viewed over a 10-yr horizon? 3) P/NAV of 0.5 - Pretty safe 4) Another way to play tech + Taiwan/China improved bilateral relations 5) Erratic dividend payout and highly risky business 6) Low ROE historically due to high cash holdings 7) Tai Lung Capital doing some selling recently (buy high sell low?) I remember Techcomp\'s Richard Lo did this before as well. Quite an \"old-bird\" in Taiwan VC industry. Anyone can add-on?

1. Net Asset Value is TWD6.98, equivalent to SGD0.30,  or USD0.23.

Stock trades at USD0.11 cents, what a laugh!

More than 50% discount to NAV.


2. Hotung is a long-time pre-IPO investor of one of its biggest holdings, MStar, which is going IPO next month. The divestment will bring in tonnes of cash.....

Re-rating of Hotung is inevitable! How about 15 US cts?

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See :

MStar Semiconductor To Seek Up To US$300 Million In Taiwan IPO -
Today : Thursday 11 November 2010

MStar Semiconductor Inc. (3697.TW), a Taiwan-based TV panel chip maker, plans to raise up to US$300 million in an initial public offering ahead of a listing in Taiwan slated for next month, a person familiar with the deal said Tuesday.

The offering could surpass TPK Holding Co.'s (3673.TW) US$200 million deal to become the island's largest IPO this year.

MStar said in a statement Monday it has hired Goldman Sachs Group Inc. (GS) and Capital Securities as the underwriters of the offering, but didn't disclose the offering size and other listing details.

The person said the roadshow for the offering will begin in early December, and the company will likely debut on the Taiwan stock exchange by the end of the year.

Goldman Sachs is the first non-Taiwanese investment bank to underwrite a domestic IPO in Taiwan.

-By Aries Poon, Dow Jones Newswires; 886-2-25022557; aries.poon@dowjones.com

 

Hotung is very active this morninmg with 3 m shares done in 10 mins.
Never seen this activity in a long long time. Something brewing? Anyone can shrare???

Something to do with Mstar IPO?