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Neratel fly fly fly!
Power of Myanmar!!!
Nera Tel one of our top picks in the mid-cap space retested its 2013 high yesterday at 69 cents before closing at 67.5 cents on a higher than average 3mln shares traded.
The stock has risen 9% in 2 days on optimism that its customers Norway’s Telenor and Ooredoo(formerly known as Qatar Telecom), the recently announced winners of one of 2 telecom license in Myanmar means increased business opportunities for the company.
According to Nera’s management, while they have supplied Telenor and Ooredoo in the past, they would still have to go through official bidding processes.
But both Telenor and Ooredoo have 9 months from Sept’13 to start operations and they are targeting to cover 75% of Myanmar with voice services and 50% with data services within the next 5 years. Ooredoo is targeting to spend US$15bln to reach 90% of Myanmar’s population within 2 years
This suggests that they will need a lot of support from their existing supplier base such as Nera Tel.
Nera has already began deploying payment solution terminals for the biggest banks operating in Myanmar and their prior experience with operating in frontier economies such as Afganistan and Pakistan would also help them set up operation in Myanmar.
The above suggests continued potential robust order wins ahead.
While the stock has done well, being one of the few to be retesting its 2013 highs, we continue to like it as its yield of 6% and forward PE of 10x against growth of 20% remains attractive.
Neratel communication closed $0.645 today with some strength that it might break through the sideway consolidation zone of $0.65 to $0.59. this counter is a good dividend payer. Can consider to enter if price break $0.65 stoploss can place somewhere below 0.59...Last Done: $0.675 ....
Nera could be the beneficial of Myanmar opening and antiqued telecom infrastructures. At PE 12.5 it is not exactly a bargain but with a dividend yield of 6%, pricing is not expensive. Offer a good exposure to emerging market like Myanmar and Thailand.
With Myanmar play near resisting and in various states of deflating, Nera offer a safer exposure.
Price is at 66cts at last Friday closing, below 20mA, offers a potential entry point. Further support is at 61.5 cts. Stochastic at 20 and RSI 30. Look for a white candle to enter.
With Myanmar play near resisting and in various states of deflating, Nera offer a safer exposure.
Price is at 66cts at last Friday closing, below 20mA, offers a potential entry point. Further support is at 61.5 cts. Stochastic at 20 and RSI 30. Look for a white candle to enter.
NeraTel's FY2012 result announced:
- Turnover increased by 14.5% at 178.8m
- Gross profit increased by 25.3% at 55.9m
Div. at 4 cents payable on 16May.
FY Results will be out afterhours.
Looking forward for good dividends.
Cheers.
NeraTel shareholders advised to reject Northstar off er
Northstar Group's off er of 49 cents per share should be rejected by NeraTel shareholders, the deal's independent fi nancial adviser (IFA) said yesterday.
NeraTel's independent directors agreed with the IFA's view in yesterday's circular, and recommended that shareholders reject the off er as well.
What is the buy back offer price? Sometime the offer price includes the deduction of the coming dividend like recent delist of Sakari. You need to do the Math.
Good Luck!
Thanks.
That means the risk is low buying at 0.49. The risk of falling < 0.49 is low if the acquisition does not get thro' as there is a support from the potential dividend declaration maybe a week or two after the results of acquisition.
One more thing to consider is it may delist and re-list in another country or here again just like courts after a few years. If so, as a private shareholder will then get a very good profit but you are at the mercy of the major shareholder which you never know what is their final plan.
Good luck!
If you rejected the offer the 1st time and it did not get more than 90% then it will remain listed, nothing changed.
However, if it is able to get > 90%, then it will extend the same offer to the remaining < 10% shareholders for the final time before it delist. If you choice not to accept the final one then you will end up as a shareholder in a private company, meaning that you no longer able to sell it in the open market after it delisted. Maybe one day, the major shareholder may offer a very good price to buy over your shares but it may be a very long wait.
Anyway, the delist process will take some time so u will have time to think about it.
Received the mandatory unconditional cash offer letter from North Star Group. Anyone can tell me if I do not take up the offer , and North Star able to garner > 90% , would North Star ignore the remaining minority shareholders? What would happen to the minority shareholders who do not accept the offer ?
From the document , it seems like North Star would exercise the right to compulsory acquire all the shares of shareholders who have not accepted the offer at a price equal to the Offer Price.
If this is the case, who bought it at the price higher than 0.49 , need not take up the offer at a loss. In addition, the fair value is 0.64 couple with high dividend yield of this stock. From longer term perspective, it may not be advisable to take up the offer , and yet the dividend declaration is just around the corner , which I believe will be declared soon after the results of the acquisition. (provided North Star does not garner > 90% and unable to get it through). A typical 4 cents or even 5 cents is expected due to their sterling performance in 3rd Q , primarily , income from overseas businesses. Just my opinion .....
* Please trade with your own risk and do your own analysis ......
LATEST RESEARCH REPORT BY OSK/DMG on 17/10/12.
TARGET IS .64 CENTS.
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Re-ini tiating Coverage |
Private Circulation Only |
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TECHNOLOGY |
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Edison Chen +65 6232 3892 [email protected] |
NERA TELECOMMUNICATIONS |
BUY |
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Price |
S$0.515 |
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Terence Wong, CFA +65 6232 3896 [email protected] |
Previous |
S$0.47 |
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Target |
S$0.64 |
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Another dividend? not likely. Just had one in July.
Today closed at 0.535, not sure what is cooking. Anyway, happy that it keeps going up....
Earnings results this Thursday probably. Going up and up and looking forwarding for dividend of .02cents plus..
Cheers.