Showing posts with label liondiv. Show all posts
Showing posts with label liondiv. Show all posts

Friday 22 June 2012

Investor's Checklist: Industrial Materials

This is a very traditional Old Economy sector, with many hard assets and high fixed costs.

Industrial materials are divided into commodity producers (steel, chemicals) and producers of noncommodity value-added goods and services (machinery, some specialty chemicals).

Buyers of commodities choose their produce on price - otherwise, commodities are the same product, regardless of who makes them.

The sales and profits of companies in this sector are very sensitive to the business cycle.

Very few industrial materials companies have any competitive advantages; the exceptions are those in concentrated industries (e.g., defense), those with a specialized niche product (e.g., Alcoa, some chemicals makers), and, above all, those that can produce their goods at the lowest cost (e.g., Nucor).

Only the most efficient producers will survive the downturn:  The best bet is to be the low-cost producer and owe little debt.

Asset turnover (total asset turnover [TATO] and fixed asset turnover [FATO] measure a manufacturing firm's efficiency.

Watch out for industrial firms with too much debt, large underfunded pension plans, and big acquisitions that distract management.


Ref:  The Five Rules for Successful Stock Investing by Pat Dorsey



Read also:
Investor's Checklist: A Guided Tour of the Market...

Monday 22 March 2010

William Cheng buys 33.5m Lion Industries shares

William Cheng buys 33.5m Lion Industries shares


Written by Joseph Chin
Monday, 22 March 2010 19:36

KUALA LUMPUR: Tan Sri William Cheng acquired 33.5 million shares of Lion Industries Corp Bhd at the exercise price of RM1.29 per share from Megasteel Sdn Bhd.

Lion Industries said on Monday, March 22 the acquisition of the shares was the remaining stake he was to acquire from Megasteel under a put option of 51 million shares.

He had on Dec 23, 2009 acquired 17.5 million shares also at RM1.29.

Under the terms of the proposed disposal, Cheng was required to complete the acquisition of 51 million shares, representing 50% of the 102 million shares under the put option, by March 31.

http://www.theedgemalaysia.com/business-news/162060-william-cheng-buys-335m-lion-industries-shares.html

Comment: Maybe a reason why Mr. Cheng has been selling so many shares in Parkson.

Tuesday 20 October 2009

Lion Div further cuts stake in Parkson to 1.45%

Lion Div further cuts stake in Parkson to 1.45%

Tags: Amsteel Corp Bhd | Excel Step Investments Ltd | LDHB | Lion Corp Bhd | Lion Diversified Holdings Bhd | Megasteel Sdn Bhd | Parkson Holdings Bhd

Written by Ellina Badri
Monday, 19 October 2009 22:30

KUALA LUMPUR: LION DIVERSIFIED HOLDINGS BHD []'s (LDHB) subsidiary Excel Step Investments Ltd disposed of a total 36.74 million shares representing a 3.62% stake in PARKSON HOLDINGS BHD [] between June 29, 2009, and Oct 19, 2009, for RM185.8 million cash, to partly settle its deferred cash payments.

In a statement today, LDHB said 16.74 million shares were sold in the open market, with the remaining 20 million disposed off via a placement through JPMorgan Securities (Malaysia) Sdn Bhd.

It said its deferred cash payments payable were from its RM100 million acquisition of a 11.1% stake in Megasteel Sdn Bhd in February this year and its purchase of RM450 million Lion Corp Bhd Class B(b) bonds from Amsteel Corp Bhd, also in February.

It also said the balance of the proceeds from its share disposal would be used to repay borrowings and for working capital.

LDHB said following the disposal, its stake in Parkson was now reduced to 1.45%, adding that Excel Step held RM228.8 million redeemable convertible secured loan stocks 2007/2010 convertible into 57.2 million new Parkson shares.

"The LDHB group's original costs of investment in the 36.74 million Parkson shares was approximately RM147 million and the investment was made in Sept 2007," it added.

It said as of today, it had disposed of a total of 55.24 million Parkson shares, or a 5.44% stake, for a total cash consideration of RM272.3 million.

Between Apr 24 and June 26, it had disposed of a 1.82% interest in Parkson via the open market for RM86.5 million cash.