(20-03-2014, 02:14 PM)D.L Wrote: Hi Nick,
This is for the CYG project. Just take a look at the report that you posted previously, the asset that they are going to acquire would be an overseas project. I am not sure which project are they refer but I do remember the IR and Amos has some reservation in talking me regarding the deposit that they had made but by paying a 100 million and the earning are not that much as compared to SOA doesn't sound to be a great deal.
Hi D.L,
I highly doubt there will be a project generating 20% return on asset (assuming SOA earns $20 million) on the onset. Even SOA wasn't as high yielding initially. If the project could generate an incremental profit of > $8 million with the prospect of organic growth in the future, I think it would add value to the Company. Naturally, this is all speculation and I await further details (if the acquisition is completed). Could be game-changing if they do make a sizable acquisition IMO.
On another note, Straco closed at a new all time high of $0.605.
(Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.