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Cogo Group, AŞ Message Board

  • waytoogoodforwords waytoogoodforwords Sep 23, 2013 5:30 PM Flag

    Acquires 30% Net Assets $80 mil, Mkt Cap is $69 million?

    On the balance sheet net assets are shown as approx. $240 million. Are the remaining 70% of net assets ($160 million) worth nothing?

    Sentiment: Strong Buy

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    • he remaining assets will ONLY LOSE MONEY as Kang has bought all the money making assets! The only thing we can hope for is a buyout of the remaining assets and distribute the cash to the shareholders. If not, COGO goes to ZERO! as soon as they show little if any sales and big loss!

      • 1 Reply to steve1337
      • euniceschipper@hotmail.com euniceschipper Sep 26, 2013 8:09 AM Flag

        There is still a lot of confusion about the assets that will be sold and what will be left for the shareholders.

        During the Second quarter conference call on the 15th of August, Brian Alger of Wedbush asked some questions.

        When Brian Alger of Wedbush asked on the call whether after the deal " would be a balance sheet that is supported by above $140 million in cash virtually no liabilities and a cash flow breakeven to cash flow positive business starting right out of the gate, is that correct?"

        The chairman and CEO of COGO replied: " Yes, correct."

        Please have a look at page 3 of the transcript of the call:

        http://seekingalpha.com/article/1639902-cogo-groups-ceo-discusses-q2-2013-results-earnings-call-transcript?page=3&p=qanda&l=last

        In reply to another ( previous question) the CEO of COGO indicated that there will be at least 10-50 million in annual revenue left after the asset deal is closed.

        Anybody can argue about the value of the business that will be remaining ( 10-50 million in revenue per year) ...but with 140 million in cash and virtually no liabilities.... COGO imo should be at least worth 140 million or 4.74 dollar per share ( based on 29.52 million shares outstanding)