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SilverLake Axis

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SilverLake Axis

Links
1) http://www.straitstimes.com/business/companies-markets/silverlake-axis-reports-lacklustre-q4-earnings
2) RHB Investment report 17 May 2017
3) http://www.silverlakeaxis.com/img/pdf/Silverlake%20Axis%20Ltd%20Executive%20Report%206%20Jan%202016.pdf

Decision to Buy - Company is relatively undervalued compared to peers, PE, Free cash flow, P/BV, profit margin perspective. Price is driven down due to speculative attack. There is no consensus to identify how much technology (Cyclical) companies are worth, but using my EPS model, This share intrinsic value is around 1.29701. This is not necessary reliable and I discounted the 2016 sharp increase in assets from disposal of its GIT shares to normal amount.

Untapped Debt Capacity grants greater financial leverage. Good cash flow to support its building up years and acquisitions without heavily resorting to debt, especially in these 2 years of impending interest rate hikes.

Growth company that is expect to benefit from fin…

Migration to Maybank

1) Signed up for May-bank Share-builder plan. Will be going down to their branch tomorrow to setup the share-builder plan (300SGD /month STI ETF) and GIRO DDA Linkage.

2) I have to sell off all of my shares in Philips share-builder plan before I can close off the account. I have suspended the GIRO payment. Transfer to CDP or Maybank account is too expensive and not cost effective.

3) I have successfully sold off my 100 shares of OCBC  (price 11.19) in the main market and 25 shares (price 11.16) in the unit share market. I have earned 19% returns (stopped DCA early). My initial hypothesis that the recession will be elongated was wrong and I successfully bought at market low and DCAed from $7 to $10.40 before I stopped the DCA. I didn't build up a sizeable position then due to risk aversion and limited cash flow.  Still, I made a sizeable profit which I realised now. 

Why Sell OCBC
i) OCBC is no longer cheap and the meat is all gone
ii) Migration from Philips to Maybank / CDP is too e…

SilverLake Axis

SilverLake Axis

Sources
1)http://sgyounginvestor.blogspot.sg/2015/12/reflection-on-silverlake-axis.html
2) https://sg.finance.yahoo.com/news/silverlake-axis-ltd-why-did-080000700.html
3) http://fifthperson.com/12-things-i-learned-from-silverlake-axis-agm-2015/
4) https://apenquotes.wordpress.com/2015/11/12/silverlake-axis-whats-behind-the-numbers/
5) http://whatsbehindthenumbers.blogspot.sg/2015/06/silverlake-axis.html#comment-form


Types of acquisitions and reasons
1) ATM Front End Processing for banks and front end sales management system
2) Silverlake Banking Systems Solution allows integrated end to end universal banking solutions through Silverlake Integrated Banking Solution (SIBS) – The one used at OCBC
3) Silverlake Japan which provides outsourcing services for credit cards systems and operations for many countries.
4) Structured Services Business (SSB) , and QR Tech. SSB contributes in application maintenance service portion to user of SIBS whereas QR Tech does developing, licen…

Longtop Fraud (Technology company)

CHINA STOCK FRAUD SHOCKER: Banks Were Complicit In Longtop Fraud Longtop Financial (LFT), a popular Chinese software company, has just been exposed as a colossal fraud.
The "cash balance" on Longtop's balance sheet, it turns out, was fake--a fiction created by the company's managers and helpers.
The Longtop fraud follows other China stock frauds that have made many of Wall Street's best and brightest look like fools. It has also increased the skepticism of American investors toward Chinese companies.
As well it should.
Unlike some of the more famous American-company frauds in recent years--Enron, Worldcom--it turns out that Longtop had institutional help in perpetrating its fraud. The reason Longtop was able to fend off skeptics for so long, despite multiple analysts arguing that it was a fraud, was that Chinese banks were complicit in the scam.
According to an extraordinary letter that Longtop's auditor, Deloitte, sent the company when it quit last we…