Caveat Emptor

Silver Lake axis - a silver lining in sight? I went to the Silver Lake axis EGM on 01 Mar 2018 to vote for the EGM regarding the acquisition of 3 subsidiaries. To be frank, I half expected a google like buzz and more hip and coming investors and tech geek, being a fintech company and all. In actuality, most of them look like senior citizens at retirement age, some hardcore retail numbers savvy investors, and a few fund managers / securities analyst whom mainly kept silent throughout the egm.  In fact, I think I am the youngest person on the room apart from the ushers. I believe I saw Rusmin Ang, the guy whom wrote articles about agm/egm in his website the fifth person, taking down notes there too. Now without further adieu, I will like to detail on the proceedings of the egm proper.  The first part of the EGM has the main board of directors. They are holding a q and a with shareholders about the acquisitions. The questions are numerous and I took down some of the most import

Silver Lake axis EGM (1)   THE PROPOSED ACQUISITION OF: (A)   70% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF SILVERLAKE DIGITAL ECONOMY SDN BHD,SILVERLAKE DIGITALE SDN BHD AND SILVERLAKE ONE PARADIGM SDNBHD (COLLECTIVELY, THE “TARGET ENTITIES”), HELD BY SILVERLAKE INVESTMENT LTD (“SIL”), PURSUANT TO THE ACQUISITION OF THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL OF SIL (“SIL SHARES”), AS AN INTERESTED PERSON TRANSACTION; AND (B)   THE BALANCE 30% OF THE ISSUED AND PAID-UP SHARE CAPITAL OF EACH OF THE TARGET ENTITIES, FROM THE MINORITY SHAREHOLDER (S) OF EACH TARGET E NTITY (COLLECTIVELY, THE “MINORITY SELLERS”),  WHICH,  TOGETHER  WITH  THE ACQUISITION OF  THE  SIL SHARES, CONSTITUTES A POTENTIAL MAJOR ACQUISITION, (COLLECTIVELY, THE “PROPOSED SHARE ACQUISITION”); (2)   THE PROPOSED EXECUTION OF (A) THE SYMMETRY LICENCE AND (B ) THE TRANSITIONAL SERVICES AGREEMENT (COLLECTIVELY, THE “PROPOSED ANCILLARY AGREEME NTS”), IN CONJUNCTION WITH THE PROPOSED SHARE ACQUISITION, AS IN

Stock Name Mode Qty Avg Cost Price Total Cost Percentage ASCENDAS-ITRUST CSH 2500 1.13 ASCENDAS-ITRUST 2,812.50 20.5554540471 ASCENDAS REIT CSH 1000 2.25 ASCENDAS REIT 2,250.00 16.4443632377 HYFLUX CSH 4000 0.57 HYFLUX 2,260.00 16.5174492965 RAFFLES MEDICAL CSH 2000 1.31 RAFFLES MEDICAL 2,610.00 19.0754613557 SINGTEL CSH 1000 3.75 SINGTEL 3,750.00 27.4072720629 STI ETF (Philips) Philips DCA 1859 3.047 STI ETF (Philips) 5664.373 41.3986698337 Singtel Maybank Cust 300 3.68 Singtel 1109.19 8.1066325598 STI ETF Maybank DCA 118 3.25 STI ETF 390.16 2.8515256715 Silverlake Axis Maybank Cust 2000 0.59 Silverlake Axis 1201.21 8.7791704732 Portfolio Book Value

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 ben