Hexza plans to sell another 20,000 unit of Nvidia, with current price of USD 500/unit, they will cash out another USD10mil. Not sure they still hold how many unit of NVidia after the disposal. Symbolic price at USD57/unit with average cost USD38/unit, margin USD5.7mil. Hexza management not smart in their core business but really excellent in US stock market investment.
If they haven't sold any of their 20,000 Nvidia as of today, that chip stock is already worth 1/3 of their market cap, not including cash of over 50 mil + other equities worth over 60 mil.
i) The Company has acquired quoted investments amounting to RM22.80 million as announced on 21 February 2024. ii) The aggregate fair value of the Group’s investment portfolio as at 26 February 2024 was RM60.08 million higher compared to the reported fair value as at 31 December 2023.
Meaning, if there is no much change is the poftfolio, next quarter (31 Mar 2024) you will see the NTA increase by another 30sen, from RM1.86 to RM2.16.
This company has no debts, and have RM60mil cash in bank.
As well as the earnings in US investment never bring back to Malaysia, the cash in hand of Hexza will never increase and there was no special dividend given to the shareholders. Only Reserve and Equity in Balance Sheet increased.
Why Hexza still donwan to dispose Nvidia.. I feel like US equity is going to collapse, or limited room to go up. Why Hexza still don't want to take profit?
From Peak USD 950 to current price USD760. NVDIA share price has dropped USD190. Based on Hexza holdings of 20,000 NVDIA share, Hexza has its unrealised gain shrinking by USD190 x 20000 x RM4.80 = RM18.2Mil.
I already mentioned on two weeks ago, at that time Hexza still have opportunity to dispose it NVDIA share at around USD880 - USD910 level. And NVIDIA is very liquidate counter, company can easily dispose its 20,000 within few minute. Hope fully company has already disposed it at peak level, just yet to make announcement to Bursa.
Nvidia hit USD1,200. 20,000 x USD1,200 x RM4.70 = RM113mil. Its original cost of investment is only USD90, which equal to 20,000 x 90 x 4.70 = RM8.4mil.
If dispose now, there will be a gain of almost RM105mil.
as per Hexza announcement on 31 july 2019 hexza held the followings Apple 30k(latter 1 split into 4), Facebook 30k Alibaba 30k, NVIDIA 10k (later 1 split into 4,and recently split into 10). This year Hexza announced the total value of investment is RM312m against the cost of RM147m.It is noted that the above share purchased was done between 2015 to 2018when exchange rate was around RM3.80 to 1 USD.
During the bearish market counter like Hexza, on net cash, high NTA with consistent dividend yield higher than bank rate is worth holding. Collect the dividend and wait for the better days ahead.
Surmising that this co. may not pay much more than 5-7c dividend, if that, this year & the fast sagging stock prices of NVDA & Symbiotic, I SOLD most of my Hexza $1 & above on Monday & even the week b4, leaving only 5 lots in case I'm wrong. The profit is already more than the equivalent of a 5c dividend on those shares if I were to hold on to them till Jan '25. You know what they say about a bird in hand! Also taking profit on my latest US stock purchase on May 31 [AT & T]: https://www.youtube.com/watch?v=z7Di3GFWgvE
Proposed dividend 7.5 sen if approved in AGM payable in 4 months' time. It is sweet return for anyone buying this counter recently. NTA has gone up to RM 2.33 and it still holds onto 200K NVIDIA currently traded around 120 USD and the management will disposed it when it deemed fit.
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Posted by stockraider > 2023-11-29 12:53 | Report Abuse
Latest 007 investigator report shows Hexza still holds 20,000 of nvidia shares mah!