Thursday, September 10, 2009

Delisting Company: China Precision Technology (I78)


Company Info:

China Precision Technology Limited is an integrated manufacturing services provider for the consumer electronics, automotive and telecommunication industries. The Company provides precision engineering services, such as metal stamping, plastic injection moulding, die-casting, mould design and fabrication, as well as assembly and electroplating for metal and plastic parts. The Company operates in three segments: Electronic Tuner Component (ETC), Automotive and Others. ETC segment manufactures the mechanical parts of the electronic tuner, such as connectors, pins, frame and covers. Automotive segment provides plastic injection moulding and electroplating services for automobile parts. These parts include grills, logo and other accessory parts.

Offer details:
I missed this delisting offer on my alert but I fixed my alert so it will not happen again. I prefer this offer than Chartered because:

* No condition other than the usual regulatory.. Chartered offer will probably only materialize in end of November, December due to the condition stated in the document. I probably have a chance to buy it after I manage to cash out of Sihuan, provided the Sihuan deal complete.

* Uncertain of Chartered business if the offer lapse. Chartered loses money in the last few quarters and is a highly capital intensive company. If the offer is not completed, I feel very uncomfortable having Chartered in my portfolio. Furthermore, I am uncertain of Chartered fulfilling the conditions because I have no knowledge of the semiconductor industry.

Profit Margin:

33 lots @ $0.27 and selling $@ 0.28 = 2.39%

However because of my late entry, I am probably unable to get the stock at $0.27. I had been trying 40 lots @ $0.27 from Tuesday onward but yet to get it.

References:

  1. SGX - China Precision Proposed Delisting

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