HG Metal

Re: HG Metal

Postby Aspellian » Tue Jan 05, 2010 9:33 am

financecaptain wrote:What to do ?
A case of majority shareholder feel that current mgt did a poor job. Perhaps the new mgt can do a better job. As long as majority shareholders' stakes are substantial, their interests should be align with minorities. Concerns are if the stakes are not substantial, majority shareholders only want to milk company at the expense of minorities.
Not vested. Do not like this type of business because profits depend on mgt's ability to read steel prices well. You stock steel correctly you make a lot of monies if not you lose. Not much of a business franchise right ?
In any case, I see it as a speculative grade investment. You either win big or loose big as a minority.


that's another interesting viewpoint. most businesses depend highly on management's abilities to make the right calls at the right times. But of cos there are some calls having more volatility than others (eg. steel prices, property cycles, ship-building cycles and many more).

Business franchise - even bad management can earn profits. Today its really an eye-opener to fully understand the concept about business franchise. Imagine if I am the CEO of a company (i plan to invest in), and I still can earn profits despite knowing little about the industry, then that is a great business franchise! ;)

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Re: HG Metal

Postby millionairemind » Tue Feb 09, 2010 7:45 pm

February 9, 2010, 7.24 pm (Singapore time)

HG Metal faces potential payment claim of S$3.27 mln

By ANGELA TAN

HG Metal Manufacturing Limited said on Tuesday that LPM Projects Pte Ltd is seeking a payment claim of about S$3.27 million.

HG Metal' chief executive officer, Chng Hee Kok, said in a statement to the Singapore Exchange that the claim is related to a proposed erection of a single-user industrial development at Jurong Port Road.

HG Metal said its board is in discussion with their legal advisers to determine the next course of action.

The board's preliminary view is that only about S$1.50 million is due to LPM and the claim will be resisted accordingly.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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Re: HG Metal

Postby Aspellian » Wed Feb 10, 2010 8:57 am

usually when the board cannot concentrate on protecting its on turf and expanding the business, one bad thing leads to another... customers will be turn-off too to do biz with them. staff not motivated to excel, bad customer service or follow-up. profits drop, bonus little if any, salary freeze, talents leave... more management tussle... could be some time before the dust really settles before this company turns around...

its already difficult to run a biz (just ask Ah-Sim peddling the massage equipments)... but at least if the mangement is united (and hopefully competent), then there's still light that the biz can turn around.

not all companies and type of biz can be run by so-so managers and still be very profitable (if you find any, give a call to Mr Warren B)!

;)

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Re: HG Metal

Postby millionairemind » Mon Mar 08, 2010 2:15 pm

Published March 8, 2010

HG Metal to further cut stake in BRC Asia


By JOYCE HOOI

HG Metal Manufacturing's subsidiary, HG Metal Pte Ltd (HGPL), will sell 28 million shares in steel company BRC Asia Limited (BRC), to help meet HG Metal's short-term debt.

HGPL has inked a deal with 12 separate buyers to sell the BRC shares at $0.135 per share in cash, for a total of $3.78 million.

The market value of the BRC shares stood at $0.1435, based on a five-day volume weighted average price.

'The proceeds from the proposed disposal will be utilised to reduce the short term indebtedness of the company,' HG Metal stated in an announcement filed on the Singapore Exchange on Saturday.

'The company will realise an estimated net loss of approximately $700,000 from the proposed disposal,' it added.

HGPL had acquired the BRC shares in August 2008 for $0.11 per share, but they were subsequently revalued to a fair value of $0.16 per share in February - resulting in a deficit of the net proceeds over the sale shares' book value.

The completion date of the sale and purchase agreements is expected to be March 15.

HG Metal Manufacturing was last month hit by a $3.27 million claim from LPM Projects Pte Ltd, after recording five straight quarters of losses ending with Q4 FY2009. It has since swung back into the black with a Q1 FY2010 net profit of $8.70 million, helped along by gains from an earlier disposal of BRC shares.

HGPL had sold 80.6 million BRC shares at $0.145 in January, through a private placement exercise. This had netted it about $11.7 million.'

The sale had pared its stake in BRC down from 43.67 per cent, to 31.67 per cent. This latest proposed sale will bring its stake down to about 27.50 per cent.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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Re: HG Metal

Postby millionairemind » Tue May 04, 2010 6:44 pm

May 4, 2010, 6.01 pm (Singapore time)

HG warns of losses in Q2 due to sale of BRC shares

By ANGELA TAN

SINGAPORE - HG Metal Manufacturing Ltd warned on Tuesday that it expects to report a loss for the second quarter ended March 31, 2010.

The loss is attributable to the $1.9 million (US$1.4 million) loss, from the sale of shares in BRC Asia Limited.

HG Metal expects to announce its unaudited financial statements for the second quarter on May 12.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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Re: HG Metal

Postby winston » Tue Nov 30, 2010 8:28 am

Not vested

HG METAL MANUFACTURING - HG Metal said on Monday it narrowed its losses in the fourth quarter to S$10 million, compared with a net loss attributable to equity holders of the company of S$11.59 million a year ago.

The firm's net loss was due mainly to a write down of S$11.5 million for inventories.


Source: Reuters
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Re: HG Metal

Postby Aspellian » Tue Nov 30, 2010 5:22 pm

I tot the metal stockists supposed to be earning money as their steel stocks supposed to be of a lower purchase price??? hmm... maybe the HG management took the wrong bet.

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Re: HG Metal

Postby behappyalways » Sat Sep 30, 2017 5:25 pm

hg-metal-proposes-capital-reduction-and-cash-distribution-stake-sale-brc-asia
https://www.theedgesingapore.com/hg-met ... e-brc-asia
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Re: HG Metal

Postby behappyalways » Sat Aug 25, 2018 3:17 pm

HG Metal acquires majority stake in Myanmar JV, to open steel rebar facility
https://www.theedgesingapore.com/hg-met ... r-facility
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