Should demand commitment IDs and management about what concrete steps they are going to take to ensure improvement in shareholders value rather giving excuses like blackout period and tough competition.
Shares are heavily undervalued and it is expected that the IDs and management ensure that is not the case when they have very generous means to improve it.
With so much of money should not give excuse that need money for expansion.When the company buy back the shares on the cheap why not doing so with so much of cash to spare? Low Wei Chong pls answer.
Should demand commitment from IDs and management about what concrete steps they are going to take to ensure improvement in shareholders value rather giving excuses like blackout period and tough competition.
Shares are heavily undervalued and it is expected that the IDs and management ensure that is not the case when they have very generous means to improve it.
With so much of money should not give excuse that need money for expansion.When the company can buy back the shares on the cheap why not doing so with so much of cash to spare? Low Wei Chong pls answer.Share buybacks on the cheap will benefit all shareholders value as the NTA will go up tremendously and share price will move towards the natural value for the remaining LOYAL shareholders.
This is simple logic unless there is a hidden agenda.IDs who represent retail investors should know that too. Why nothing happening?Do what you are paid for or else step down and get someone else who can do the job.
It basically sound like bullshit to me.... no one have asked the management to spend all the cash to buyback all shares in the market.
They just have to spend a small portion of their cash which gives immediately super high ROI for all shareholders.
Using 4 cents to buy back something that is worth 21 cents. This is 500% return without having to invest the cash and wait for a few years for the new business to be profitable.
Does the management and board even pass Math for their PSLE exam?
Best is stay out of S-chips, esp newbies who are attracted by their low PE, P/B , cash hoard etc. I have bought abt ten S-Chips over the last few yrs and have attended several AGMs/briefings. Generally, the CEOs ( usually the major shareholder and founder ) are low grade and not suitable to run listed companies. In one AGM , the CEO was asked why no dividend despite record cash/profit, and he answered that he should be the one complaining as he owns the most shares. Off course I dumped my shares after that AGM.
Most of the 150 S-chips are trading well below their IPO price. Just imaging how much money local retail investors lost ? Even funds lost big time , so they are unlikely to buy again. I am lucky that I have not been hurt by S-Chips. I don’t own any S-Chips now, but even if I do, I won’t waste my time attending their AGMs. As for their CFOs/IDs, most will just parrot what their CEOs want them to say.
I am not saying one cannot make money out of S-chips as all ships will rise with a rising tide, but I’d not hold them long term as too risky for me. However, I think all serious investors should attend AGMs and ask tough questions directly to CEO ( not to the CFO or IDs ) so as to gauge the CEO’s competency.
Relaxing, your views are sound. I am, however, thinking that this is the prevalent thinking about S-chips and that it could change with time. Already, I am sensing from talking to a no. of investors, that people accept that the cash is real in many S-chips because the auditors and the IDs are making sure they do their homework. To go beyond this sense of assuredness is not difficult -- people begin to see the value in the companies, and what it would take to catalyse the stock price are:
a. Recovery in profits.
b. The start of a dividend payment, or a rise in dividend payment.
Then the regulator SGX should do something about it as they are responsible in bringing this S-Chips to Singapore. We should not be left at the mercy of the management and IDs.
SGX should tell the IDs what is expected from them rather than toeing the line of the CEO in an illogical manner.
Low Wei Chong who staunchly supported the CEO on the matter of share buyback should be brought to task for not serving retail investors interest. Tell us what is the hidden agenda for not addressing the low share price value. Not asking to do something that is going to cost a bomb.
Share buybacks that is not costing a bomb can go a long way to improve investors' confidence.
Management has explained beyond doubt that cash is real then why not buyback the shares to meet retail investors expectations.
I think SGX should take a firm stand on all the S-Chips with ample cash to push for improving shareholders value or delist and return the cash to shareholders instead of being at the mercy of the management.
To be at their mercy is really unfair. All the IDs who are receiving director fees should be monitored to see whether they are doing their duties effectively.
Maybe SGX should have system of feedback on the performance of Independent Directors in order to protect retail investors that's the way the retail investors can be protected and not at the mercy.
Whoever attended the AGM and find it not satisfactory about the reasons given for not doing share buyback should file a complain to SGX for their illogical reasons. Only then the IDs will do the job they are paid for. It will also wake up other IDs.
