SRL - Straits Resources

[aleckara]

Wish i had 125ml gross profit ,thats a pretty good profit.

Company has good cash flow and assets over 1.04 bil

Sure there net was only 6.0 mil after all out but they did do some acquiring of good stock.

and yes coal is still good price .

I think they are a strong company with good assets .

Strong company maybe. Good assets probably. Seeing a cent from those assets? Nope!

This minority interest is getting preference over ordinary shareholders (refer to annual report). What I would like to know is why? Couldn't find the info.

 

[YOUNG_TRADER]

Strong company maybe. Good assets probably. Seeing a cent from those assets? Nope!

This minority interest is getting preference over ordinary shareholders (refer to annual report). What I would like to know is why? Couldn't find the info.

ummm what Minority interest?

The big cash generator is the coal division other wise known as Straits Asia Resources

SRL holds basically 50% of Straits Asia, now heres the interesting part, Straits Asia have 1Billion shares, so that means SRL holds 500m SARL

SRL has about 250M shares, so basically in theory SRL's share price should be 2x SARL + a premium for the Aussie assets they have

Last I checked SARL was at 95c = an implied value of $1.90 to SRL + a more for its Aussie assets

As with everything not trading anywhere near NPV or fair value

Here's some good research starting points

Straits http://www.straits.com.au

Straits broker reports (BEWARE THESE ARE MARCH 08 ie pre crunch) http://www.straits.com.au/default.asp?V_DOC_ID=848

Straits Asia http://www.straitsasia.com

 

[aleckara]

ummm what Minority interest?

The big cash generator is the coal division other wise known as Straits Asia Resources

SRL holds basically 50% of Straits Asia, now heres the interesting part, Straits Asia have 1Billion shares, so that means SRL holds 500m SARL

SRL has about 250M shares, so basically in theory SRL's share price should be 2x SARL + a premium for the Aussie assets they have

Last I checked SARL was at 95c = an implied value of $1.90 to SRL + a more for its Aussie assets

As with everything not trading anywhere near NPV or fair value

Here's some good research starting points

Straits http://www.straits.com.au

Straits broker reports (BEWARE THESE ARE MARCH 08 ie pre crunch) http://www.straits.com.au/default.asp?V_DOC_ID=848

Straits Asia http://www.straitsasia.com

That's the thing I guess.
Profit attributable to minority interest 31,023,000 - straight from the annual report.

Leaving the holders of SRL with a 5,995,000 loss.

Overall profit 25,028,000.

Seems like whoever this minority is is taking up more than a majority of the pie. Maybe I've misinterpreted the statements. I welcome any corrections.

Youngtrader - owning the shares is no good if you are not getting any of the profits.

 

[YOUNG_TRADER]

Youngtrader - owning the shares is no good if you are not getting any of the profits.

Well I'm pretty sure buying around 95c and selling at $1.35 is profitable

I'm not sure what you mean with minority interest or not getting profits,

I'll have a look later, busy at the moment on RIO and BHP

 

[cruise61]

That's the thing I guess.
Profit attributable to minority interest 31,023,000 - straight from the annual report.

Leaving the holders of SRL with a 5,995,000 loss.

Overall profit 25,028,000.

Seems like whoever this minority is is taking up more than a majority of the pie. Maybe I've misinterpreted the statements. I welcome any corrections.

Youngtrader - owning the shares is no good if you are not getting any of the profits.

Look at page 12 of finacial report shows 4.6mil paid to shareholders and 4.2 mil paid to minority shareholders.

This would of been for the div paid of 2c on 28/05/08

No div was paid from the annual report due to economic circustances and to allow contined cash flow and free funds for further aquisitions.

Smart move considering the times

This is a very young company but they do seem to be growing in the right direction.

Main drop in share price is i believe is due to global conditions but i believe once all settles SRL will grow and continue to profit and this will benefit all shareholders.

This is why i have increased my SRL portfolio at this price.

Let the ride continue

 

[cruise61]

Some latest reading from around the word in relation to coal at this time.

http://money.cnn.com/news/newsfeeds/articles/djf500/200810161043DOWJONESDJONLINE000754_FORTUNE5.htm

http://www.marketwatch.com/news/sto...C595B8-F840-44FB-93B1-8BAF62020B0E}&dist=hppr

http://www.theaustralian.news.com.au/business/story/0,28124,24507893-643,00.html

Yes coal prices have gone down slightly but demand still seems to be there and REGARDLESS OF ALL China will need it.

Higher fuel and electricty prices mean Coal is becoming a more viable resourse daily.

When this slump is over which we all hope is soon Chinas coal requirements will rapidly grow.

Question is will we ba able to keep up with demand ?

 

[cruise61]

More interesting reading on company forcasting sept 1 , you will see shares were sitting at 5.59 and rising just prior to the global collapse.

SARL have just refinanced to expand.

Things are certainly on the up here.

http://news.smh.com.au/business/straits-tips-record-output-in-2008-2009-20080901-46o2.html

Shares are starting to increase again to reflect the growth and forcast but they still have a long way to go before they are at the 6.00 just prior to the crash

This could be a good ride

 

[cruise61]

Just keeps getting better

STOCK DASHBOARD: October 17, 2008

Straits Resources Ltd

Closing Price: $1.45

Price change from previous trading day: 33.0%

Relative Strength (6 months percentile rank): 5.4

Market capitalisation: $338 million

Turnover volume: 6,515,094.0

Volume Index (1 is average): 3.7

Turnover value: $8 million

Turnover period: 6 months

Value of $1,000 invested 1 year ago: $254

Source: www.BuySellTips.com

 

[stockGURU]

Just keeps getting better

Value of $1,000 invested 1 year ago: $254

Are you serious?

A company that has a share price that is 25% of what it was a year ago 'Just keeps getting better'?

Don't tell me, you hold, right?

If you believe SRL just keeps getting better, how about explaining in detail why instead of just cutting and pasting details of the day's trading from another website?

Here's a 12month chart for some perspective:

 

[cruise61]

Are you serious?

A company that has a share price that is 25% of what it was a year ago 'Just keeps getting better'?

Don't tell me, you hold, right?

If you believe SRL just keeps getting better, how about explaining in detail why instead of just cutting and pasting details of the day's trading from another website?

Here's a 12month chart for some perspective:

First off i cut and paste because it gives readers a broader aspect of the company and its shares without going just on my comments .

Next have a close look at your cut and pasted chart SRL decline started sept 2nd the day the us stock crashed and just like every other stock it has plumeted since then apart from today when some people woke up and realised value .

As for a year ago the 25% look at your cut and pasted chart apart from the crash its stock was steadily rising . go back 6 weeks when this crash all started its price was 5.89 and rising.

As for me owning shares ,of course i do thats why im here , and trust me i dont give money away for nothing , well not since i was married last anyways .

Let me guess you dont hold and didnt get on the wagon today to and enjoy the 33% rise , gee wonder if your a rio man

I see it i research it i like it i buy it i support it

 

[stockGURU]

First off i cut and paste because it gives readers a broader aspect of the company and its shares without going just on my comments .

Next have a close look at your cut and pasted chart SRL decline started sept 2nd the day the us stock crashed and just like every other stock it has plumeted since then apart from today when some people woke up and realised value .

As for a year ago the 25% look at your cut and pasted chart apart from the crash its stock was steadily rising . go back 6 weeks when this crash all started its price was 5.89 and rising.

As for me owning shares ,of course i do thats why im here , and trust me i dont give money away for nothing , well not since i was married last anyways .

Let me guess you dont hold and didnt get on the wagon today to and enjoy the 33% rise , gee wonder if your a rio man

I see it i research it i like it i buy it i support it

You're right, I'm not a holder. Perhaps I have a little more objectivity because of that. I can certainly see through your ramping. You are obviously here to contribute a sales pitch, not any serious analysis.

What makes SRL worth anything more than it is now? Why should we expect the share price to rise from here? What was the cause of the 33% rise today?

How about providing those reading this thread with some more detail instead of just a self interested sales pitch? If you are just here to ramp there are plenty of other forums where you can do that and be welcomed with open arms. This forum is not one of them.

 

[cruise61]

You're right, I'm not a holder. Perhaps I have a little more objectivity because of that. I can certainly see through your ramping. You are obviously here to contribute a sales pitch, not any serious analysis.

What makes SRL worth anything more than it is now? Why should we expect the share price to rise from here? What was the cause of the 33% rise today?

How about providing those reading this thread with some more detail instead of just a self interested sales pitch? If you are just here to ramp there are plenty of other forums where you can do that and be welcomed with open arms. This forum is not one of them.

showing a companies good points or bad is not ramping or down ramping ,it is providing non biased research in an aim to help shareholders umderstand movements in a price.

I have provided more than enough research as to why the price is increasing ,please feel free to provide your research rather than a graph as to why it wont increase.

Why are we here?? certainly not to talk about the weather

 

[cruise61]

Quaterly report just out all looking good for next quarter.

Seems all on schedule with all % up exp gold and silver.

Pity report came out after market closed

Bit late out to help todays market though

But tommorows another day

 

[Sean K]

Yet another WAY below NTA. Probably the largest differencial in the market. Next maybe BRM.

Market's factoring MASSIVE slides in the demnd and price of some materials.

Will it be that bad?

If not, some of these are going for a song.

Nice chart.

I note some goose on HC ramping this as the buy of the century at $1.10. lol

Straits Resources

PERTH-BASED Straits Resources (SRL) has been beaten up terribly in recent months, along with the rest of the diversified mining sector.

But at least the group and its 47 per cent owned Straits Asia, unlike a big chunk of the sector, has put its refinancing issues behind with Straits Asia's debt facility deal with Standard Chartered Bank.

Not that it has shown up in SRL's share price just yet. It was again looking friendless on Friday at 77 ¢ a share, down 2 ¢ on the day.

It does have a friend in Euroz analyst Greg Chessell. He believes Euroz continues to be at the low market valuations on both Straits Asia (a two-mine Indonesian coal producer) and SRL. In the case of SRL, at say 70 ¢ a share, its market cap of $163 million is a whopping discount on the $320 million market value on its stake in Straits Asia.

In Chessell's view, SRL's investment in Straits Asia is worth more like $630 million or $2.70 an SRL share. And then there are SRL's other net assets of $160 million, or 70 ¢ a share.

 

[Sean K]

Heads up, SRL reviewing it's stake in Straits Asia after some interest shown.

Might cause some interest by the market. Or not..

Strategic Review

The Board of Directors of Straits Resources Limited ( Straits Resources ) (ASX: SRL) has received a number of unsolicited expressions of interest in respect of its 47.1% shareholding in Straits Asia Resources Limited ( Straits Asia ) (SGX-ST: SAR). Straits Resources has also noted the sustained period during which the value of its interest in Straits Asia has not been appropriately reflected in the market capitalisation of Straits Resources on the ASX. In light of these matters, Straits Resources has decided to conduct a strategic review in relation to its shareholding in Straits Asia to determine if there is an appropriate proposal that is in the interests of its shareholders. The Board notes that whilst several approaches have been received, the completion of the strategic review may not result in a specific transaction or proposal being implemented.

 

[Sean K]

Well, I've placed my bet on heads.

Head em up Straits!!!

Maybe a run of 10 heads in a row would be nice!!!

STRAITS RESOURCES TO CONDUCT STRATEGIC REVIEW

Singapore - 4 December 2008, the Board of Straits Asia would like to announce that its major shareholder, Straits Resources Limited (“Straits Resources”), which owns 514.7 million shares of Straits Asia (approximately 47% of the issued shares), has informed the Company that it intends to conduct a strategic review in relation to its shareholding.

This strategic review has been prompted by the receipt of unsolicited approaches from several parties in relation to the acquisition of Straits Resources’ ownership in the Company. Straits Resources has also noted the sustained period during which the value of its interest in Straits Asia and its other assets have not been appropriately reflected in the market capitalization of Straits Resources on the Australian Securities Exchange.

Having regard to the size and strategic nature of Straits Resources’ shareholding, Straits Asia and Straits Resources have agreed that Straits Asia will be fully engaged in the strategic review with the expectation
that this will best serve the interests of all Straits Asia shareholders.

There is no assurance that the completion of the strategic review will result in a specific transaction or proposal. Straits Asia and Straits Resources will keep shareholders informed of all material developments during this period and there is no need for shareholders to take any action in relation to this announcement at this point in time. Macquarie Capital Advisers and Standard Chartered Bank have been appointed to advise the Company.

In closing, the Board of Straits Asia notes that following the recently successful refinancing of debt facilities the Company’s financial position remains sound. Further, the Company’s coal producing operations are performing to plan and the Company continues to benefit from its coal offtake agreements which are generally set at favourable prices with premium customers.

In the case of SRL, at say 70 ¢ a share, its market cap of $163 million is a whopping discount on the $320 million market value on its stake in Straits Asia.

In Chessell's view, SRL's investment in Straits Asia is worth more like $630 million or $2.70 an SRL share. And then there are SRL's other net assets of $160 million, or 70 ¢ a share.

 

[Sean K]

Hey kennas, this is going OK since the bottom, and looks a little rounded to me. Coming up against some significant resistance at $1.00. Perhaps the news about the sale of Straits Asia will send it through, or back to the crap farm. Nice chatting to you. kennas :

 

[J.B.Nimble]

Hey kennas, this is going OK since the bottom, and looks a little rounded to me. Coming up against some significant resistance at $1.00. Perhaps the news about the sale of Straits Asia will send it through, or back to the crap farm. Nice chatting to you. kennas :

I reckon you're right, though even if they hold on to it I feel this should give one of the better and earlier recoveries. I got in to this at the bottom of the previous dip and in a not too nimble moment I managed to miss my profit take at 1.50. I've promised myself I will do better, much better this time

 

[Sean K]

First close above $1.00 resistance, but it could be short lived. No outstanding breakout, but could be seeing the first signs of upward movement.

Haven't heard much on the Straights Asia sale for a while....

 

[J.B.Nimble]

First close above $1.00 resistance, but it could be short lived. No outstanding breakout, but could be seeing the first signs of upward movement.

Haven't heard much on the Straights Asia sale for a while....

They really ought to be moving up in price considering the moves we are seeing elsewhere in the coal sector - unfortunately the diversified tag sees the coal interests heavily discounted.

I'm of two minds on the SARL sale. It would be nice for a quick profit that we/they could churn in to other opportunities but at the same time there is a nice story of a significant coal company emerging here. The Sebuku Western Leases scoping study was the latest good reading in that story. Could be a good hold.