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Real-Time news about Sovgem (London Stock Exchange): 0 recent articles
|jhan66: Don't know, bardfield. Changing into a different animal now.
I suppose if there is value there, this may be a useful step to realising it. Issuing new shares at 11.9p sounds great with current price of 7/8p
Perhaps it was becoming more difficult to find or access more of the bargain companies they previously unearthed. Exhausted their reservoir from Socgen (or wherever they originated)
Investment Banks aren't my favourite holding at the moment, any share price approaching true NAV would be helpful exit. I should say that by fluke (or bad luck?) I massively trimmed my holding just yesterday. But at least I made a 120% net gain. Wish I could do that more often.|
|jhan66: Hi Bardfield1, I bought SOV a week ago for about a sixth of the price I sold them in late 2007. Net assets looked substantially more than the share price, to protect the downside. My remaining concern was whether the price would just sit there. No dividend, no liquidity, no noise.
I've held too many bargain shares over the years which though undoubtedly undervalued, refused to budge. I guess the market perceived them as `for the benefit of the directors' & without dividends there was never any progress.
Hopefully Sovgem doesn't come under this category. Good luck in recovering your outlay.|
|jhan66: Jonwig- done a bit of work to start you off. See what you think. I've pasted lines directly from Jun accounts so some of those `current value' figures will be confusing. Last line on each company is todays value.
30/6/08 had net assets of 28.8p = £6757456
17.3p of these assets (60%) were represented by these eight holdings below.
Harbin Electric (NASDAQ: HRBN)
SovGEM purchased its initial stake at $2 per share in 2005; the current price is $13.06.
500000 shares. Sold 380000 for $2.17M. Not sure when but received $5.70 average, so probably Dec.08.
Still got 120000. Today=$7.99=$960000
SovGEM purchased PURE in Dec 2007 at 170p; the current share price is 238p.
Bought 147059 at £1.70. Now worth £2.26 =£332353
average equivalent price of 86.1p current share price of CAD is 94p.
could be 483333 shares. Today 11.5p = £55500
American Oriental (NYSE:AOB)
Confusing. Had 325000 shares. Sold 265000 for $3M. Looks like most of this was sold before Jun'08 results. But pie chart below suggests differently. Had 60000 remaining worth $11.90 in Jun'08, Today=£4.04=$242000
current market price of $6.64 compares to our purchase price of $3.40
Bought 200000 @ $3.04 ea. Sold 50000 @$4.32, around Oct'08. Now have 150000=$1.29=$193500
current market price of 392p (SovGEM paid 79p)
Bought 243902 shares. Sold 218122 for £668000. Probably around October at £3.06 average.
Still got 25780. Today=£1.30=£33500
Worldwide Energy & Manufacturing (OTCBB: WEMU)
24 June 2008 SovGEM purchased 72,222 shares in WEMU at $4.50
current share price of WEMU is $6.75 also have some warrants
Price today $3.45=$249000
Tianyin Pharmaceuticals (OTCBB: TYNP) (amex:TPI)
current share price of TYNP is $2.30. Paid $1.60 for 312,500 shares
Today= $1.80 =$562500
In June last year, those investments were worth £4M. I can see today's value is £2M if I have the correct holdings, but there's plenty of sales to add back.
Nevertheless, Sovgem appeared to have had very real NAV shrinkage 12/9/08 NAV= 26.9p, 26/11/08 NAV=15.5p.
Also have interests in these companies. (11.5p of June'08 assets? Judging by the Jan. pie Chart, Russian Timber & Petrocom are a significant % of overall assets)
Russian Timber Group (formerly Tynda Forest Holdings) - an established forestry products company based in the Amur region of Russia's Far East servicing Chinese demand for timber
Sinosoft Technology plc (AIM: SFT.L) - a leading Chinese e-Government software provider. www.sinosoft-technology.net
Petrocom Energy an unquoted company that constructs state-of-the-art Coal Blending Facility (CBFTM) to produce compliant coal to serve the growing demands of China's power generation market. The Lianyungang CBF project is the first of PEL's 25 projects in China. Petrocom is headquartered in Hong Kong, registered in the Cayman Islands. www.petrocom-energy.com
HaiKe Chemical Group (AIM: HAIK) - based in Shandong, China, HaiKe manufactures petrochemicals, speciality chemicals and fine biochemicals. www.haikechemical.com
Concorde Oil and Gas plc - an unquoted company seeking to invest in or acquire operational oil and gas assets in the Russian Federation
CEP International Petroleum Limited - an unquoted oil exploration company with onshore exploration licences on the Kamchatka Peninsula in the Russian Far East. www.cep-international.ca
KimCor Diamonds plc (AIM; KIM.L) - a new mining and exploration company with various projects in South Africa. www.kimcordiamonds.com
Sorell Inc (OTCBB: SLLI) - designer and manufacturer of portable multimedia players, mobile phones and multifunction music players. Sorell was acquired by Togen, a UK-based holding company. www.sorellinc.com
China GengSheng Minerals (OTCBB:CHGS) - a manufac of refractory products for the steel and oil industries
Jan'09 pie chart suggests these values(very approx)
Russian Timb. 15%
Worldwide E&M 5%
CEP Int.Pet 4%
Chin GenShen 1%
Sinosoft, Concorde, Renesola, Infosmart, SRT 1%
Well needs more work but I suspect there's up to £2.5M in share assets and £1M in cash or new investments. Take away admin costs, add back dividends and you end up with a figure seriously over current share value (£0.8M)
My glasses are excessively rosy, focussing only on the positives, so I suggest you go through these figures more thoroughly.
It will probably be made very clear at the AGM in a couple of weeks but my be worth a punt before then.|
|jhan66: Sovgem NAV performance
Big drop in NAV over that last 5 month period. Share price fell by similar amount 21p to 11p
Since then it's dropped a further 60%. Can't imagine NAV has dropped by that much more
Hybridian indicated NAV discount was 46% last December, based on share price of 8p
|jonwig: Article in today's IC; part of a feature on playing Asian markets. Here it is:
SovGEM is yet another interesting small investment company in the mould of London Asia. Unlike its peers CYC and EnterpriseAsia, SovGEM has come up with a clever strategy that appears to be paying off. Basically, SovGEM is a way of buying into small, quoted Chinese and Russian stocks on the New York over-the-counter market and the UK-based Ofex market. A quick wiz through its investments reveals a number of clever buys.
- Bodisen Biotech, an eco-friendly, bio-fertiliser company that's traded on the US markets for a few years and has just listed in the UK. SovGEM bought $1m-worth of shares for $4.50 - they're now worth $14.92 a share.
- Harbin Electric, which makes something called linear induction motors. These shares were bought at $2, yet they now trade at $8.25.
- American Oriental Bioengineering. Bought at $4.80, but now trading at $5.40.
- China Natural Gas. Bought at $2.80, but now trading at $5.
- Concorde Oil and Gas, a Russian oil minnow quoted on Ofex.
SovGEM has also invested £500,000 for a 1.5 per cent stake in the Tynda forest, in the Amur region of the Russian Far East. Fellow investors include Peter Hambro from Peter Hambro Mining.
What's the sector play? Small resources and biotech over-the-counter stocks in the UK and the US.
What's the risk? That wide spread of quoted investments could crash if stock markets suddenly fall.
What's the potential reward? A share price level with net asset value of 25p looks reasonable.
Verdict: SovGEM appears to represent good value and is worth a small punt if you want access to a wide range of racy, primarily US-quoted, micro small caps.|
|jonwig: Bodisen starts trading on Monday 6 Feb.
This is Growth Company Investor's view:
Chinese fertiliser maker Bodisen Biotech starts trading on AIM on Monday after a £12 million placing.
Broker Charles Stanley arranged the placing for Bodisen, which is already listed on the American Stock Exchange, where the shares have recently traded at $18 substantially above the $13 (£8) price at which the oversubscribed AIM placing was carried out.* At the American price, the company boasts a market value of $279 million.
'This is the first company to obtain a dual listing on AMEX and AIM,' says Richard Thompson of Charles Stanley, who has been working on the complicated transaction for almost a year. 'We needed to obtain SEC registration in the US,' he explained.
Bodisen, which makes organic fertiliser in both liquid and compound forms, is also the biggest Chinese business yet to float on AIM, joining such ventures as orange grower Asian Citrus.
Bodisen has seen revenues more than treble since 2002 and Charles Stanley predicts net profits of $5 million for 2005 on turnover up 76 per cent to $28.6 million. The money raised will fund the construction of two new factories in China to expand the company's distribution range.
Founders and executive directors Qiong Wang and Bo Chen will see their 47.4 per cent stake diluted by almost ten per cent. A range of UK institutions supported the AIM flotation, alongside pre-IPO investor SovGem, which itself is listed on AIM.
Yesterday SovGem issued a trading update, revealing a net asset value of 24.5p a share, against a recent share price of 15p. SovGem has also backed five other Chinese or Russian ventures, including OFEX-traded Concorde Oil & Gas, which has nearly quadrupled in value. Concorde plans to join AIM shortly.
Another intriguing concern is Russian timber producer Tynda Forest, which also hopes to join AIM this year. The company operates just over the border from China in the far east of Russia and supplies markets nearby. Tynda boasts mining specialist Peter Hambro as chairman. His son Leo is managing director.
Expect some lively trading on Monday.
*May explain share price drop on Friday?|
|hugepants: Another investment showing significant paper profit in a very short period. How do they do it!
As part of the placing SovGEM bought 357,143 shares at US$2.80 per share. CHNG's share price at close of business on 20 January was US$3.90, representing an potential unrealised gain of US$392,857.|
|jonwig: Another investment (full RNS - see link in header):
SovGEM (AIM: SOV), the emerging market finance house, today announces that it
has made a US$1million investment in China Natural Gas, Inc. (CHNG). CHNG owns
and operates a natural gas pipeline in Xian, China, and distributes the gas to
businesses and consumers in the Xian area.
As part of the placing SovGEM bought 357,143 shares at US$2.80 per share. CHNG's
share price at close of business on 20 January was US$3.90, representing an
potential unrealised gain of US$392,857. Allowing for current valuations,
SovGEM's Directors estimate that the Company's current Net Asset Value is 20.8p an increase of 62.8% from its NAV of 12.77p at flotation (November 2004).
Will update header later.|
|jhan66: nature of quoted NAV discount has always irked me.
18p assets & 9p share price is a 100% upside rather than 50% discount. Semantics but I think it better reflects the true picture. Taking a view on current share price rather than perspective from underlying assets just seems more sensible.
minor grumble. moving on, share price is up & I'm off to find out about Soya extraction. Pass the Tofu.|
|jonwig: Thanks, John.
Sometimes you get the full story when you access the link, sometimes just an invitation to subscribe.
Seems I was lucky.
The price given was 8.75p, and date 23/11, so that's the reason for the buying.
SovGem has slid more than 80 per cent from its initial price of 50p last November, making it one of the worst performing new issues of the past year. However, this is unfair.
The current price values the Chinese investment vehicle at little more than its cash level of £1.97m. This means the group's two holdings in Chinese manufacturers organic fertilizer maker Bodisen Biotech and linear motor producer Harbin Electric can be picked up for nothing.
These are currently valued at £1.08m, giving the overall company a net asset value of more than £3m, or around 15p a share. The stock therefore trades at a discount of 40 per cent or so. This is unjustified, particularly as SovGem's major disappointment is being addressed.
SovGem's shares were suspended for five months this year, while chief executive Hugh de Lusignan attempted unsuccessfully to negotiate a reverse takeover. This left the company with an exclusive agreement to support some of the pre-IPO fundraisings carried out by Chinese specialist finance boutique Benchmark, now part of New York Global. Some investors felt this was too restrictive. De Lusignan has now managed to extract SovGem from this agreement, meaning he can select investments from a wider variety of sources.
Through a policy of selling investments judiciously, the company even made a £53,000 pre-tax profit in the first half, preserving the cash pile. Things are starting to look up at SovGem and the shares are worth a speculation.
Market cap: £2m
PE Forecast: n/a
Share price: 8.75p
Note they're taking lower values for the NAV than I am: will double check.|
Sovgem share price data is direct from the London Stock Exchange