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same old pattern...hit a high of 19.38 and then being manipulated to bring it to below 19.2..
too easily manipulated..
too easily manipulated..
tongphlp ( Date: 18-Nov-2021 09:29) Posted:
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Venture' s board should explore taking firm private as it prepares for founder' s exit
VENTURE Corporation should provide its shareholders with an opportunity to cash out at a premium to market price as it prepares for a future without its founder Wong Ngit Liong at the helm.
With a market value of S$5.6 billion, a net cash position of S$852.7 million as at Sep 30, and some 100 global companies that regard it as a partner of choice, Venture is likely to be an attractive and viable investment target for private equity investors.
Given Venture' s long-held position that it is not in its interest to reveal any information about its customers - even in the face of a brutal short-selling attack in 2018 related to its exposure to Philip Morris International' s e-cigarette product - the company is arguably better off being privately held anyway.
More importantly, the bulk of Venture' s shares are not held by the coterie of insiders who run the company but by public investors - who deserve to be consulted at this pivotal moment.
Venture' s most recent annual report said 81.3 per cent of its shares were held by the public as at Mar 9.
Filings over recent months show Wong Ngit Liong holds a direct stake of 7.1 per cent. Fund management groups BlackRock and Schroders have deemed interests of 6.2 per cent and just under 7 per cent, respectively.
For Venture' s public shareholders, many of whom may own the stock because of Wong Ngit Liong' s entrepreneurial track record, a take-private offer at a significant premium to Venture' s current market value is likely to be a welcome proposition.
Management changes
On Nov 3, just after the market closed, Venture unveiled changes to its senior management line-up that will see Wong Ngit Liong hand over the post of chief executive officer (CEO) to Lee Ghai Keen, who is currently the company' s chief operating officer (COO).
The vacated post of COO will be filled by Wong Chee Kheong, who is currently senior vice-president of Venture' s healthcare and wellness business and its global supply base management and IT division.
The changes will take effect from Jan 1, 2022.
Venture also announced the creation of two panels comprising specialists in selected fields to help the group chart its strategic direction.
A so-called " panel of experts" , comprising distinguished scientists and engineers, will help guide the group' s research and development initiatives. A separate " panel of advisors" will support Venture' s investment committee on business planning and strategic initiatives to, among other things, evaluate viable investments.
With these moves, Venture appears to be preparing itself for a future when Wong Ngit Liong, 80, will no longer be around.
In the meantime, Venture said he is to remain its executive chairman - a role that will be " critical" in setting its direction.
Wong Ngit Liong will " remain accessible to share his wisdom, tap on his connectivity and draw on his enduring experience in the constantly evolving technology space," Venture said on Nov 3, adding that Wong Ngit Liong will support Lee to " grow into his new role as CEO" and to enhance Lee' s leadership of the group.
" As chairman, Mr Wong Ngit Liong will continue to provide stewardship and strategic direction to the board fostering effectiveness and engagement to deliver sustained long-term growth for Venture promoting high standards of corporate governance encouraging constructive participation between members and making sure that the paramount interests of all stakeholders are adequately evaluated and considered," the company added.
Strong past performance
The leadership transition now unfolding at Venture is likely to have investors on tenterhooks.
Venture is perhaps one of the greatest success stories of the Singapore market, and Wong Ngit Liong has been its principal driving force.
Two decades ago, Venture derived almost all its revenue from providing electronic manufacturing services to companies in the printing and imaging, computer peripherals, and networking communications sectors.
Today, it also claims expertise in such cutting-edge fields as life science, genomics, molecular diagnostics and medical devices.
Shareholders of Venture have prospered enormously too. Over the last 10 years (until Nov 12) - the recent pandemic-related supply chain disruptions notwithstanding - the company' s shares have delivered a total return of 371.2 per cent on a dividends reinvested basis.
This was far in excess of the Straits Times Index' s total return of 63.5 per cent. It also beat the S& P 500 Index' s total return of 352.5 per cent.
Time for a deal?
While there is no reason to believe that Wong Ngit Liong' s successors will not capably assume the mantle when the time comes, Venture' s shareholders will probably appreciate the opportunity to cash in their holdings before then.
Interestingly, Wong Ngit Liong bought 200,000 Venture shares in the market on Nov 8 for S$3.8 million, which works out to an average price of S$18.728 per share. Following the purchase, he held 20.6 million Venture shares.
The last time he purchased Venture shares in the market was on Sep 12, 2017, when he bought 400,000 shares for just over S$6.1 million, or S$15.255 per share.
Venture' s share price was in the midst of a major rally at the time, fuelled by sharply rising earnings. The stock had climbed from less than S$10 at the beginning of 2017, and would eventually hit S$28.80 in April 2018.
Then the short-selling attack happened, badly affecting confidence in Venture and resulting in its shares losing more than half their market value by the end of 2018.
It' s worth pointing out that Venture' s profitability, which increased substantially in 2017, did not fall back until the pandemic happened in 2020.
Venture reported earnings of S$108.7 million for 2016, S$361.5 million for 2017, S$370.1 million for 2018, and $363.1 million for 2019.
For 2020, Venture' s earnings declined to S$297.3 million as a result of pandemic-related disruptions to the group' s production capacity and supply chains.
For the first 9 months of 2021, Venture reported earnings of S$217.4 million, up slightly from the S$210.7 million chalked up during the corresponding period in 2020.
Venture' s board should consider to what extent Venture' s stock price volatility over the last few years is weighing on the market valuations of the company' s public-listed shares, and whether it will get worse once the stabilising presence of Wong Ngit Liong is gone.
With Venture' s earnings likely to improve as the pandemic abates, and Wong Ngit Liong' s share purchases signalling the stock might be attractively priced, openly exploring the possibility of obtaining offers from private equity investors might provide an additional tailwind for the stock in the months ahead.
It might also result in a deal that satisfies Wong Ngit Liong as well as the many shareholders of Venture who have had the good fortune of riding along with him all these years.
VENTURE Corporation should provide its shareholders with an opportunity to cash out at a premium to market price as it prepares for a future without its founder Wong Ngit Liong at the helm.
With a market value of S$5.6 billion, a net cash position of S$852.7 million as at Sep 30, and some 100 global companies that regard it as a partner of choice, Venture is likely to be an attractive and viable investment target for private equity investors.
Given Venture' s long-held position that it is not in its interest to reveal any information about its customers - even in the face of a brutal short-selling attack in 2018 related to its exposure to Philip Morris International' s e-cigarette product - the company is arguably better off being privately held anyway.
More importantly, the bulk of Venture' s shares are not held by the coterie of insiders who run the company but by public investors - who deserve to be consulted at this pivotal moment.
Venture' s most recent annual report said 81.3 per cent of its shares were held by the public as at Mar 9.
Filings over recent months show Wong Ngit Liong holds a direct stake of 7.1 per cent. Fund management groups BlackRock and Schroders have deemed interests of 6.2 per cent and just under 7 per cent, respectively.
For Venture' s public shareholders, many of whom may own the stock because of Wong Ngit Liong' s entrepreneurial track record, a take-private offer at a significant premium to Venture' s current market value is likely to be a welcome proposition.
Management changes
On Nov 3, just after the market closed, Venture unveiled changes to its senior management line-up that will see Wong Ngit Liong hand over the post of chief executive officer (CEO) to Lee Ghai Keen, who is currently the company' s chief operating officer (COO).
The vacated post of COO will be filled by Wong Chee Kheong, who is currently senior vice-president of Venture' s healthcare and wellness business and its global supply base management and IT division.
The changes will take effect from Jan 1, 2022.
Venture also announced the creation of two panels comprising specialists in selected fields to help the group chart its strategic direction.
A so-called " panel of experts" , comprising distinguished scientists and engineers, will help guide the group' s research and development initiatives. A separate " panel of advisors" will support Venture' s investment committee on business planning and strategic initiatives to, among other things, evaluate viable investments.
With these moves, Venture appears to be preparing itself for a future when Wong Ngit Liong, 80, will no longer be around.
In the meantime, Venture said he is to remain its executive chairman - a role that will be " critical" in setting its direction.
Wong Ngit Liong will " remain accessible to share his wisdom, tap on his connectivity and draw on his enduring experience in the constantly evolving technology space," Venture said on Nov 3, adding that Wong Ngit Liong will support Lee to " grow into his new role as CEO" and to enhance Lee' s leadership of the group.
" As chairman, Mr Wong Ngit Liong will continue to provide stewardship and strategic direction to the board fostering effectiveness and engagement to deliver sustained long-term growth for Venture promoting high standards of corporate governance encouraging constructive participation between members and making sure that the paramount interests of all stakeholders are adequately evaluated and considered," the company added.
Strong past performance
The leadership transition now unfolding at Venture is likely to have investors on tenterhooks.
Venture is perhaps one of the greatest success stories of the Singapore market, and Wong Ngit Liong has been its principal driving force.
Two decades ago, Venture derived almost all its revenue from providing electronic manufacturing services to companies in the printing and imaging, computer peripherals, and networking communications sectors.
Today, it also claims expertise in such cutting-edge fields as life science, genomics, molecular diagnostics and medical devices.
Shareholders of Venture have prospered enormously too. Over the last 10 years (until Nov 12) - the recent pandemic-related supply chain disruptions notwithstanding - the company' s shares have delivered a total return of 371.2 per cent on a dividends reinvested basis.
This was far in excess of the Straits Times Index' s total return of 63.5 per cent. It also beat the S& P 500 Index' s total return of 352.5 per cent.
Time for a deal?
While there is no reason to believe that Wong Ngit Liong' s successors will not capably assume the mantle when the time comes, Venture' s shareholders will probably appreciate the opportunity to cash in their holdings before then.
Interestingly, Wong Ngit Liong bought 200,000 Venture shares in the market on Nov 8 for S$3.8 million, which works out to an average price of S$18.728 per share. Following the purchase, he held 20.6 million Venture shares.
The last time he purchased Venture shares in the market was on Sep 12, 2017, when he bought 400,000 shares for just over S$6.1 million, or S$15.255 per share.
Venture' s share price was in the midst of a major rally at the time, fuelled by sharply rising earnings. The stock had climbed from less than S$10 at the beginning of 2017, and would eventually hit S$28.80 in April 2018.
Then the short-selling attack happened, badly affecting confidence in Venture and resulting in its shares losing more than half their market value by the end of 2018.
It' s worth pointing out that Venture' s profitability, which increased substantially in 2017, did not fall back until the pandemic happened in 2020.
Venture reported earnings of S$108.7 million for 2016, S$361.5 million for 2017, S$370.1 million for 2018, and $363.1 million for 2019.
For 2020, Venture' s earnings declined to S$297.3 million as a result of pandemic-related disruptions to the group' s production capacity and supply chains.
For the first 9 months of 2021, Venture reported earnings of S$217.4 million, up slightly from the S$210.7 million chalked up during the corresponding period in 2020.
Venture' s board should consider to what extent Venture' s stock price volatility over the last few years is weighing on the market valuations of the company' s public-listed shares, and whether it will get worse once the stabilising presence of Wong Ngit Liong is gone.
With Venture' s earnings likely to improve as the pandemic abates, and Wong Ngit Liong' s share purchases signalling the stock might be attractively priced, openly exploring the possibility of obtaining offers from private equity investors might provide an additional tailwind for the stock in the months ahead.
It might also result in a deal that satisfies Wong Ngit Liong as well as the many shareholders of Venture who have had the good fortune of riding along with him all these years.
nott1965 ( Date: 18-Nov-2021 15:20) Posted:
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Venture Corp&rsquo s Wong raises stake just before stepping down as CEO
The Edge Singapore Published on Thu, Nov 18, 2021 / 1:09 PM GMT+8 / Updated 17 hours ago
https://www.theedgesingapore.com/capital/print-week/venture-corps-wong-raises-stake-just-stepping-down-ceo
Lobster ( Date: 18-Nov-2021 13:33) Posted:
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or maybe he got too much $ and don' t know what to do with it?
Lobster ( Date: 18-Nov-2021 15:55) Posted:
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that' s why - DO also die...Don' t DO also die :)
Lobster ( Date: 18-Nov-2021 15:55) Posted:
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You should ask yourself, why he bother to buy at all.
tongphlp ( Date: 18-Nov-2021 15:34) Posted:
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okok bro...u have nailed it...' small' .....
Maxgrow68 ( Date: 18-Nov-2021 15:36) Posted:
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As a small token of confidence passing the baton to the next CEO bah...
tongphlp ( Date: 18-Nov-2021 15:34) Posted:
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humans are humans....i ask myself...why he bought 200k shares and not 2m? 200k to ah Wong is chicken feet! I can only afford 200!
Lobster ( Date: 18-Nov-2021 15:30) Posted:
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Haha! hope so...I will fly with him!
tongphlp ( Date: 18-Nov-2021 15:27) Posted:
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err...but is true...issuing bonus shares would have pros and cons...there' s always 2 sides to a coin...
Lobster ( Date: 18-Nov-2021 15:30) Posted:
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not saying $25 is impossible as it has hit $30 in the past..matter of whether the BBs want to manipulate it or not..
tongphlp ( Date: 18-Nov-2021 15:27) Posted:
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No one seems interested in this news, so let me tell you a coffee shop story....
I wrote somewhere here that many years ago when the stock was breaking record highs, I asked openly at an AGM whether company could consider giving bonus shares, or stock split so as to preserve the liquidity of trading. Some old timers shot down the idea claiming it would dilute the shares. Actually Mr Wong didn' t say no, just said it was something the company could consider since the prices were getting higher.
The next year, after the AGM, and during makan time, I met and asked Mr Wong about the bonus shares issue again. Whether he was joking or really meant it at that time, he said something like if and when he retires he may consider it as a farewell gift to his many loyal shareholders. Some of the old timers who overheard it immediately dismissed it, saying that as Mr Venture, it is impossible for Mr Wong to retire. Some Chairman or CEO carries on to their late eighties, like Wee Cho Yaw.
Now it happen. This largely uncommented action of Mr Wong buying, may be a sign that a rewarding development may be happening, whether it is a privatisation with a good offer, or bonus shares, or generous special payout... the black market are of the view that if the share price go beyond $20 and never come down to this below $20 again, it is clear indication of the possibility.....
vested. Pdyohwadfmb
I wrote somewhere here that many years ago when the stock was breaking record highs, I asked openly at an AGM whether company could consider giving bonus shares, or stock split so as to preserve the liquidity of trading. Some old timers shot down the idea claiming it would dilute the shares. Actually Mr Wong didn' t say no, just said it was something the company could consider since the prices were getting higher.
The next year, after the AGM, and during makan time, I met and asked Mr Wong about the bonus shares issue again. Whether he was joking or really meant it at that time, he said something like if and when he retires he may consider it as a farewell gift to his many loyal shareholders. Some of the old timers who overheard it immediately dismissed it, saying that as Mr Venture, it is impossible for Mr Wong to retire. Some Chairman or CEO carries on to their late eighties, like Wee Cho Yaw.
Now it happen. This largely uncommented action of Mr Wong buying, may be a sign that a rewarding development may be happening, whether it is a privatisation with a good offer, or bonus shares, or generous special payout... the black market are of the view that if the share price go beyond $20 and never come down to this below $20 again, it is clear indication of the possibility.....
vested. Pdyohwadfmb
Lobster ( Date: 18-Nov-2021 13:33) Posted:
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Ah Wong will place order 2 new Airbus if Venture hits $25!
nott1965 ( Date: 18-Nov-2021 15:20) Posted:
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Privatise at $25
Maxgrow68 ( Date: 18-Nov-2021 15:16) Posted:
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His 2 new Bentleys and 1 Lambo on the way
Maxgrow68 ( Date: 18-Nov-2021 15:16) Posted:
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Ah Wong got confidence in his company.... He bought 18.70 now up to 19.26 now....
Lobster ( Date: 18-Nov-2021 13:33) Posted:
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haha..good one...we should treat smokers and drinkers with respect...as they pay a lot of taxes to the govt..
nott1965 ( Date: 18-Nov-2021 14:56) Posted:
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where the govt is going to get revenue if no cigarettes? If govt really want to ban cigarettes, very easy, just treat cigarettes like drugs with severe penalties. There is a reason why govt keep telling people to stop smoking and on the other hand happily collect taxes
tongphlp ( Date: 18-Nov-2021 14:32) Posted:
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