NLX - Nylex Limited

Dutchy3 said:

Closed up 4.8% today which is nice in itself ... yet MD at the close is 10:1!

I've read all the corp guff an reasonable convinced that the restructure etc is delivering cash and maintaining the turn around on EBIT ...

Anyone care to speculate on ownership changes?

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Excuse my ignorance. Can you explain MD 3:1 and MD 10:1. I'm either not familiar with the acronym or have mind fog.

Garpal

Hi Garp

Market Depth ... in this case 10 shares to buy against 1 to sell ...

Taken over a few days having more buyers than sellers standing in the market provides some comfort for price support ....

Dutchy3 said:

Hi Garp

Market Depth ... in this case 10 shares to buy against 1 to sell ...

Taken over a few days having more buyers than sellers standing in the market provides some comfort for price support ....

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Thanks mate, it was brain fog, just had a long day and a tony pepperoni from dominos.

I enclose an interesting chart.

NLX has had support and resistance at $1.90, so if it closes beyond that it may keep on going.

Garpal

Hi Garp

If you are interested have a look at the CUE thread and the weekly chart I just posted ... then revisit NLX and have a look at a weekly too .... similar perhaps?

Dutchy3 said:

Hi Garp

If you are interested have a look at the CUE thread and the weekly chart I just posted ... then revisit NLX and have a look at a weekly too .... similar perhaps?

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Thanks Dutchy,

I agree both are exhibiting typical bottoming with recovery. I'm not buying anything at present, waiting until Nov Dec at the earliest but both appear like goers.

Garpal

Garpal Gumnut said:

NLX has had support and resistance at $1.90, so if it closes beyond that it may keep on going.

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Just hit $2.05.

Since their breakout in mid-July, they've been wandering nicely upwards. But where to now? Any of you charting gurus wish to speculate?

Since its consolidation to around $2.04 in Jan '07, NLX dropped to its lowest price of $1.28 towards end of May, where it stayed till mid July. Then it rose to about $1.45 where again it stayed stable till early September - right across the heavily turbulent period caused by the sub-prime crisis. After weathering this storm NLX rose to over $2 on very low volumes, where it is now. A lot of good stocks got hammered over this period, but not NLX. Makes you wonder why not.


Some interesting developments are currently taking place that warrant a closer look at Nylex.

On 29th June 2005 associated group comprised of Kerry Mathew Stokes (KMS), Garden Park Equities (GPE) and Australian Capital Equity (ACE) held about 270 mln NLX shares giving them 28.25% of voting power. On 28th September 2007 the same group held 14.4 mln (post consolidation) shares, with voting power of 33.74%. This seems to indicate a considerable degree of confidence by these major shareholders.

Recently there have been some significant purchases of NLX shares by two investment funds -

1. 17/09/27 Harmony Investment Fund : Initial substantial holder : Acquire 2,426,092 ordinary shares. Voting power 6.09%

2. 28/09/07 Harmony Investment Fund : Change of interest : Acquire 2,426,092 ordinary shares. Number of shares held now 5,413,327. Voting power 12.64%.


3. 19/09/07 UBS Nominees Pty Ltd : Initial substantial holder : Acquire 2,711,449 ordinary shares. Voting power 6.81%.

4. 28/09/07 UBS Nominees Pty Ltd : Change of interest : Acquire 2,711,449. ordinary shares. Number of shares held now 5,697,684. Voting power 13.31%.


In Nylex's upcoming AGM on 14/11/07 four directors are offering themselves for re-election. Two of these directors - Mr Ian Fraser and Mr Suresh Withana, are of interest and may provide an indication to Nylex's future. The Board recommends their re-election and provides following information on their backgrounds -

1. They both joined NLX Board as directors on 18 December 2006.

2. They are both directors of Harmony Capital Partners Pty Ltd - a Singapore based company specialising in restructuring and turnaround investing in Asia Pacific that manages Harmony Investment Fund Ltd, a substantial holder in the company.


A Google search on Harmony Capital yielded further information -

Mr Fraser and Mr Withana are founding members of Harmony Capital.

Harmony has a team of highly experienced investment, financial and administrative professionals responsible for, amongst other things, deal sourcing, analysis, risk management, structuring, execution and exit management. The Fund's principal investment objective is to achieve capital appreciation via investment in special situations including turnaround, stressed, distressed and deep value situations in Asia.

The Fund currently uses the following service providers (note the UBS) -

* Administrator : HSBC
* Prime Broker : UBS AG
* Auditor : Ernst & Young
* Lead Counsel : Deacons

Please note that the above share purchases data has been obtained from company announcements to ASX found in Trading Room's Quotes & Charts. The following url will get you straight there -

http://www.tradingroom.com.au/apps/qt/quote.ac?code=nlx&section=ca&submit=Go!


Purpose of this post is to dig up some new data which might explain which way Nylex might be moving.

Do not take any of my figures for granted. Check them out using the above reference.

This is not advice. Do your own thinking.

I hold Nylex shares.

anon

Thanks for the comprehensive summary, anon. Excellent post.

I'd noticed that Harmony Capital had bought in, but there are so many capital companies simply buying in to grab a slice of listed companies (and/or take them over) that I didn't look into who they are. I wonder if the new Singaporean connection will make it easier for Nylex to make deals with SE Asian companies for supplies? Could open up a whole lot of advantages with Harmony appearing to take an active role.

After a good, steady rise, NLX has suddenly plunged from around $2.35 to under $1.80 in 4 days. On the last couple of days, volume has been well above average too, so someone is dumping them quite aggressively. No pattern or reason to it that I can see, unless someone was somehow disappointed by the AGM?

Woohoo!

ASX Announcment:

"The Board of Nylex ... has received a non-binding proposal from CHAMP Private Equity. ... CHAMP is proposing a 100% cash offer of $2.65 per ordinary share or convertible note and $0.81 per option."

CHAMP has since pulled out of this buyout offer.

Anyone think NLX is ripe for a re-entry of CHAMP or even another party? NLX has been oversold in my opinion, down to 0.77 now, can't recall it ever being this low (cf. note 40:1 share consolidation last year, so in effect is less than 2c per share, compared to earlier pre-2007).

sachz said:

Anyone think NLX is ripe for a re-entry of CHAMP or even another party? NLX has been oversold in my opinion, down to 0.77 now, can't recall it ever being this low

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Surely they'd have to be thinking about it? They could offer half what they were considering before and probably get away with it.

Volume is very low now and price holding around 81c. Any big buyer or big seller will push the price a lot one way or the other.

Business Monday reported that Esky will be sold to Coleman in the USA. Today's announcement of asset sales says that an agreement has been signed, but the buyer isn't named.

The receivers are periodically announcing asset sales, but not disclosing the amounts or the buyers. Does anyone know how much the asset sales are netting and what is likely to become of Nylex in the end?