E-Pay Asia Share Discussion Threads

[monkey puzzle] 16/9/2011 12:17

I wish I could give him $18k ASD....but a bit short this month.

[buywell2] 16/9/2011 09:13

I think he is asking you Monkey as you have done a decent job thus far

[monkey puzzle] 15/9/2011 16:20

Who you asking for that?

[manonph] 15/9/2011 16:08

ok if there is nothing untoward
give us a breakdown of the higher inventories and trade payables
is it A$ 4.9 mio of inventories and A$ 100k of trade payables
because if it is near that level and malasyian company has got a nice
starting kick

give me A$ 18K and i promise not to compete FOREVER

[monkey puzzle] 15/9/2011 14:56

Looks like Liabilities & Trade Payables reduced from $12.5m (as at 31 Dec 10) to $7.3m (as at 30 June 11)...so the the $12.5m was "spent" long ago (perhaps in 2010 or even earlier) but $5m of that amount was only paid for this year.......looks like Loh was reducing monies owed by Epay before he tried to buy it this year......is that good enough as an explanation for you?

Trade Payables definition:

Liabilities owed to suppliers for purchases or services rendered

[monkey puzzle] 15/9/2011 14:35

I never said it was did I?

I thought the discussion was about assets of 28c per share?

[buywell2] 15/9/2011 14:31

Well in that case it's not part of the inventory

From the results


''The Group's operating cash flow was -$6.8m (2010: $3.2m) and cash balance stood at $6.9m (Dec 2010: $12.2m). The negative operating cash flow mainly resulted from higher inventories purchased and lower trade payables.''

[monkey puzzle] 15/9/2011 14:30

I think you need to look at that again, the pre-paid airtime of $18m value would be monies received from customers would it not (i.e the credits they have bought via epay? I don't think it would have been money spent by the company would it?

[buywell2] 15/9/2011 14:27

Exactly

Why did the company buy that much pre-paid airtime with the cash pile

THEN

The CEO launches a cheap skate takeout offer of 17 cents

[manonph] 15/9/2011 13:28

monkey puzzle
re yr 285

it may be but it may also be 5-10 mio dolls of prepaid airtime
almost cash
thats i would like to know also

[monkey puzzle] 15/9/2011 12:18

That 28c per share of net assets is clearly detailed in the report an accounts and is mostly made up of cash in the bank, trade receiveables and pre-paid top up air time....take $16m of assets, divide by 57m shares and you get 28c per share.....the biggest single asset is actually $18m of pre-paid airtime top ups.

ASSETS

CURRENT ASSETS

Cash and cash equivalents 3 6,894,503
Trade and other receivables 3,043,774
Prepaid airtime top-ups 18,010,608
Other current assets 81,952

TOTAL CURRENT ASSETS 28,030,837 30,605,521

NON-CURRENT ASSETS

Plant and equipment 1,244,166
Intangible assets 37,736
Financial assets 24,932

TOTAL NON-CURRENT ASSETS 1,306,834

TOTAL ASSETS 2 (ii) 29,337,671

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 7,302,587
Borrowings 5,775,209

TOTAL CURRENT LIABILITIES 13,077,796

NON-CURRENT LIABILITIES

Borrowings 98,359
Deferred tax liabilities 111,636

TOTAL NON-CURRENT LIABILITIES 209,995

TOTAL LIABILITIES 2 (iii) 13,287,791

NET ASSETS 16,049,880

[monkey puzzle] 15/9/2011 11:57

why?

What is the point you are trying to make?

[buywell2] 15/9/2011 11:56

Sorry it isn't because we don't know the details of inventory

And we should be told

[monkey puzzle] 15/9/2011 11:55

Sorry but it's irrelevant...they could just as easily be redundant and worthless machines if the business isn't coming through the shops at decent prices any more.....

[buywell2] 15/9/2011 11:53

On the basis that there was an inventory build up last year of maybe circa $5m
of company monies have been spent

These as I have suggested could be on new terminals to use the services that E-Pay offers

ie in effect this $5m of inventory is 'in the price' it WAS cash before



From the results


''The Group's operating cash flow was -$6.8m (2010: $3.2m) and cash balance stood at $6.9m (Dec 2010: $12.2m). The negative operating cash flow mainly resulted from higher inventories purchased and lower trade payables.''

[monkey puzzle] 15/9/2011 11:51

"Perhaps Mr Loh thought he was going to get a good deal for $8.5m"

That's right he did....and also why he dropped out at a 50% premium to his knock down opportunistic offer....of course now he stands to gain alot from both the 22c per share payout + $1.8m to him personally from Euronet, not a bad bit of business for him for simply saying he would like buy the company for $8.5m which he must have known would attract other interests. Clever, very clever.....

[monkey puzzle] 15/9/2011 11:48

"Looks like EuroNet are getting a steal" ?

On what basis? Look again at the last set of results, what was turnover performance and profits/losses + commentary from the company...it didn't look very pretty to me....the Malaysian business looks to be under alot of price and margin pressure now and going forwards, needs a bigger parent to manage it and Euronet looks the right move for it.

Lots of small struggling companies being bought out on the cheap these days and well below NAV etc.

[buywell2] 15/9/2011 11:36

Perhaps Mr Loh thought he was going to get a good deal for $8.5m

Sort of got a lot of stock ready as it were .... to be carried forward

I suppose some new terminals form quite a bit of the 'inventory'

After all the roll out of GSM in Malaysia taking place means more coverage = more potential new customers

The size and content of the 'inventory' should be detailed by the BOD

What we need is a 3rd Party

All the facts are NOT clear for a prospective buyer

Looks like EuroNet are getting a steal

[monkey puzzle] 15/9/2011 11:33

How on earth can it be a "stitch up"? They potential buyer has made a significantly higher offer than Loh did. If anyone was "stitching us up" it was Loh. Btw, did you notice the clause that provides Loh with a one-off payment of $1.8m ASD to not complete with the Malayasian business for 2 years?

You may not be happy with the actual value being paid for the Malaysian business but it is what it is in awful markets and looking back at the share price history this is good news for all of us compared with the last year or so when we down at 12c a share on the market etc.

We will receive 22c a share and still have our shares in EPY going forwards that can be sold after the deal closes.

[manonph] 15/9/2011 10:55

buywell2

good spot re. the inventories
should it not be 10mio though to reflect the change in operating profit
and what are the inventories ?
this is looking more like a stich up every day

[monkey puzzle] 15/9/2011 10:46

Why on earth would you do that?

1 You will be getting 22c a share if the deal closes
2 + you will still have shares in what's left of Epay Asia
3 You might get a further cash return of up to 12c a share if they close the business and share out what's in the bank
4 Or otherwise you will still have shares in the company with some $8m ASD in the bank while the BoD decide what to next with business.

[buywell2] 15/9/2011 07:19

From the last set of results

Results for announcement to the market
Six months period
ended 30 June 2011

1.8 Net tangible assets per share is ............ 28 cents





Cash in the bank

The Group's operating cash flow was -$6.8m (2010: $3.2m) and cash balance stood at $6.9m (Dec 2010: $12.2m). The negative operating cash flow mainly resulted from higher inventories purchased and lower trade payables.


so $6.8m NOT $8m

BUT

It looks like the buyer is going to get a WHOLE LOAD of inventory .... ie say $5m worth .... this is effectively THROWN IN AT THE PRICE

[buywell2] 14/9/2011 07:50

So why is the share price only 21 cents ?

[monkey puzzle] 13/9/2011 18:19

It could be as much 0.14c if you take 57m shares over $8m asd.