Wednesday, June 06, 2018

Aztech Group

Someone posted in #HearMeOut ( his anger at the delisting of Aztech Group.

I looked at the share price of Aztech. It dropped from $1 to $0.40 over a period of 6 months prior to its delisting in Feb 2017.

In August 2017, Aztech Group embarked on a share reduction exercise and returned $0.42 per share to the participating shareholders. Details are in this letter.…/AztechGroupLtd_CircularDated0…

The letter stated that the share had been trading at a discount to its NAV (net asset value) prior to the delisting.

Aztech holdings has a history of 30 years. It is quite sad to see that the share price had been performing poorly, although the business seemed to be profitable.

I wonder if this company is suffering from the "Singapore disease" - high cost of doing business, lack of market, etc. This disease seem to be afflicting most small companies in Singapore.

It must be a big struggle for them.

1 comment:

Yujuan said...

That's the only reason why retail investors on SGX are fleeing the local
bourse, really not worth the risk.
No protection for the small investor guy.
All good listed Companies taking their Companies private.
Anyhow allowing shady third/fourth rate red chips from China to list here, just to pad up up diminishing quantity for show only.
The presence of SMEs left, with the better ones also ditching SGX to list elsewhere.
Only left GLCs who mostly make money only on monopolistic advantage on home soil. Most get trashed overseas, can't compete.
Folks, is there any good reason to invest your hard earned money on SGX?
Pay heed - invest in American equities, follow Warren Buffet's moves closely and follow what's he investing in recently, or follow his advice to his own family members, (when he meets the Maker) invest only in the S&P 500 stock index, if you dun know how to pick the right share.
Or be kiasu, follow TKL's advice, only invest in the STI Index, or the Nikko STI Index on SGX.
Otherwise you are just ti kum ti kum investing in SGX daughter shares. Remember Warren's advice rules, Rule 1, dun lose money, and 2nd, dun forget Rule 1.
Yes, ditch SGX, not worth the trouble as a long term investor, unless you are a Trader, gambling on technical analysis, long on resistance break up, and sell short on support break down.

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