Not sure my friend, still negotiating so it's still 50/50 . But I think it's still on bcos tho both parties came out with identical announcements day b4 yesterday price has remain steady... Very small profit taking after recent rise. It cld have drop at least 20-30 cent if the negotiation really fall thru. In my opinion the deal is still on. Just buy n keep for just a wee while... Godwilling U will not b disappointed . Just my 2 cents opinion .
For SYF to make particle board to support their hard wood furniture making is a daunting task because particle board production lines can be 5 times the cost of hard wood production line, not to mention the technical know-how involved
On the other way around, for Hevea to go downstream to support hard wood furniture production is sap sap sui in terms of capital involved and technical know-how
That is why you can see SYF is struggling to pull off their particle board production line in Gemas, which actually lead them to consider buying up Mieco. This explained the recent run-up in Mieco shares but the deal won't happen because no banks are going to lend to SYF, Ng Ah Chai or Chee Hong Liang because they are not furniture men but corporate raiders!
I am sure the management of Hevea see the 'hidden' value of SHH in what they can do with it after acqusition, and this is not something you and me can see
Hevea don't have a strong presence in US, and their market is mainly Japan and China. On the other hand SHH's market is mainly US. If Hevea takes over SHH, they gain immediate access to US market, although both products are a bit different.
Beside the amalgamation of both Hevea and SHH facilities to make 100% furniture in-house (particle wood/MDF + hardwood furniture), do you also know the that by so doing (merging), Hevea can cover a much larger market footprints?
Mind you, that 40 acres only has a few million book value and it is not revalue not since 1996 when SHH went public. That is 20 years of land appreciation without revaluation! You go do the numbers and you will agree with me that SHH is a great buy!
Picture this : Hevea's factories are in Gemas and Seremban while SHH's in Pagoh. It will form a "golden triangle" type of manufacturing facilities in less than 100 kms from each other!
That easy and golden triangle reach which is accessible by the North-South Highway, is a manager's dream for convenient management, logistics and even central material purchasing and distribution for both Hevea and SHH !
More collectors than sellers at the moment. Currently at neutral position and inclining. Looks good. May wait for it to down a little and compare the take-up before jumping in
Haha, look how people play shares lah. Last half an hour let you throw down to 1.41 but stand firm there. Unlike your WB, closing is fake from 2.03 jumped to 2.07 with 50 lots only. Lol
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
theavengers
412 posts
Posted by theavengers > 2015-03-31 19:06 | Report Abuse
Yaya....now is at consolidate stage.heading to north ...