Category: NeraTel

Sell @ $0.78, $0.785

Gave up on waiting for higher prices and sold more at $0.78. A few lots were done at $0.785 after queueing whole day. AGM on 29-Apr & xd on 5-May are the days to watch out for any changes in share prices. I've managed to sell all of my extras, bought at >$0.725. Am left with those extras bought at +/- 70ct. Will likely clear those >70ct and may keep those high 60s ones, depending on the price… 😀

Sell @ $0.78

Continue with my selling… Unfortunately, it refuses to move higher, with Buyer patiently putting in small Buy orders .. 😀

Sell @ $0.78

Continue with my plan to sell my extras.. Still have a huge reserve.. Low vol but someone is continuing to collect.. Let's hope it hit above 80ct soon.. 😀

Sell @ $0.775

Continue to reduce my holdings. I have sold my $0.735 & $0.73 ones (own creative accounting), Next in line are the $0.725 ones… 😀

Someone is patiently accumulating… always topping up the Buy Q to 18 lots…

Sell @ $0.775

Finally decided to start selling my extras, which I do have a lot… AGM on 29-Apr ; xd on 5-May are the days for me to monitor.

It'd appear that the new Indonesian major shareholder may have toned down their plan for unlocking value (which appeared in a couple of articles in TheEdge previously). My guess is they have bigger problems to deal with for their other Indonesia investments due to the weakened IDR and other economy related issues. Still, Neratel may have transformed into a bigger Cash Cow (I hope), with their Leasing Model.

Let's monitor their Quarterly financials closely and make decision accordingly. In the meantime, I'll be divesting my huge short-term stake which I'd built up at +/-70ct (most 71.5ct to 73.5ct), target latest by xd (may keep some to sell after xd)… 😀

Sell @ $0.73

Contra off the extras I got recently … 😀

Buy @ $0.725

Add back the ones I had to contra off due to my payment timing issues… These are extras and can be for short term… 😀

Sell @ $0.735

Contra off some of the ones I bouight on Friday. Got a bit carried away and bought too many in one day and created a challenging timing issue on funds transfer on due date. Altho' I'd already reduced this problem by doing a contra of STEng yesterday, today's contra will reduce it to a much more manageable issue.

The surprise is CP = DMG which also happen to be the analyst of the not-too-optimistic report that I'd attached to my previous post. 😀

I may buy back again, even at $0.73, if I have the spare cash.

Buy @ $0.725, $0.72

Helping to provide price support… Did a Jump-Q @ 5pm for the 72ct ones. These are extras and can be for short term trading..:D

Looks like the 2 prelim negative writeups by the analysts may be having some impact on share price weakness. The interesting points from the OSK DMG report below,

• Nera Product Distribution Agreement Expires in Jan-14 ie. they will not only retain the Nera brand, but will be able to distribute other brands as well
• OSK DMG has made the conclusion that Neratel will stick to the status quo of High Dividend Payout instead of a Growth path. I wonder if it's based on the Div = 4ct payout or they'd spoken to Nera mgmt??

Share price may head towards $0.70 till it gets closer to xd time… as even OSK DMK Tgt Price = $0.72…

 

Buy @ $0.73

Results were out last night. In summary,

• Div = 4ct maintained
• Cash = $39.3Mil (10.85ct / share), recovered from the drop last 2Qs from $41Mil to $25Mil
• Revenue Flat ; Profit Lower (if exclude Extraordinary Gains from Nera Malaysia acquisition)
• Telecom +ve for Both Revenue & Profit but Orders Reduced
• Infocomm Lower for Both Revenue & Profit (Large drop due to Increased Expenses) but Orders Increased
• FY Results shows good Profits from Telecom and much lower profits from Infocomm
• Q4 Results and Order Intake shows a strengthening Infocomm and weakening Telecom, likely continuing into FY14

If we strictly look at FY13 results, it's rather disappointing if we exclude the one-time Gains from Nera Malaysia acquisitions. In fact, prelim reports from OSK DMG & Lim & Tan indicated similar views…

But, if we look at the strategic changes they'd put in place to increase their recurring income from Payment Solutions segment,

• Leasing model – Explains the depletion of Cash in previous Qs to buy Equipments for Leasing
• Leverage on Indonesia network of new controlling shareholder – Indonesia biz was lower FY13 vs FY12

and if they do succeed, we could potentially see growth… Will need to monitor their quarterly financials closely….

Anyway, their maintaining 4ct div + Cash increase is sufficiently reassuring for me… for now… If the price do go up substantially before it xd, I'll likely take some profits… If it goes down, I'll likely buy more..  😀