Many, many Thanks to those who shared.
I heard one analyst from NRA was there too! Expect some coverage from them soon...
My main takeaway from EGM to share:1. On dividend & share price
- CEO was thankful to all shareholders support for last 4 years without any dividend & will reward them this FY
- besides divided, they are also exploring shares buyback or capital reduction. Think they want to do something that has longer impact on share price too, so I reckon it will be a combination of dividend plus something else
- indeed, they are equally puzzled & disappointed with the way market react, ignore to all its positive news.
- due to SGX blackout period rules & frequent M&A deals, management has only limited time window to buy from market though they would like to do so2. On its business prospects
- CEO was very confident & optimistic on all its remaining 4 pillars, via hardware & maintenance arm Procurri, IT solution arm Beacon, IT content provider e-commerce arm Corous 360, & e-logistics arm vCargo. The way CEO described is like these 4 engines are fired in full speed.
- They claimed to be unique as no one is in their model of developing these 4 segments in one go
- there are plenty of players within each of these 4 segments besides synergies, they are doing it differently. They proud themselves to do it so well that even catch the attention from big company like CITIC &， one more multinational company to buy Acclivis within such a short span
- Their model is to use the first 2 pillars to provide stable income to support & grow later 2 pillars. Eventually the one to bear bigger fruits will be Corous & vCargo, if they succeed in mass adoption. According to CEO, these 2 units are in good chance of doing that.
- 2017 will be the year to rebuild Beacon & further strengthen Corous & vCargo with vision to monetizing these 2 units in 20183. On main board or HK dual listing
- both not in their current plan
- catalist listing is more suitable for DeClout now as it need to do many M&A for all its subsidiaries, as procedures are much simplified than main board
- does not rule out upgrade main board when most M&As are done
- dual listing say in HK will be more on opportunistic than plan, will see how it's business grow4. On CITIC telecom relationship
- there some agreement on "first right of refusal" arrangements that the CITIC will buy DeClout's products & services
- they revealed the deal not benefiting the company but Singapore too, as CITIC will keep & grow Acclivis in Singapore here to support its penetration into SEA. The deal was well received by relevant government agencies5. On $10m national research funds
- in the process of selecting & concluding the project line & scope
- new JV with government agency will be form by end of this year to start the project in 2017
- can expect some announcement soon on this6. On company IR
- they reckoned more can be done to educate investors on the "unique" business model
- their IR firm revealed since the spin off of Procurri & Acclivis, they received much attention, trust & positive feedback on the company & will not be surprised more will choose to cover DeCloutOverall, can sense the positive mood, energetic, full of vision from the management team. They give me that kind of feeling that company can do well equally well even market turn bad as this will give them plenty of opportunities to buy & consolidate. They also are humble & patience guy & willing to take the time to explain questions posed.
My main takeaway from EGM to share:
1. On dividend & share price
- CEO was thankful to all shareholders support for last 4 years without any dividend & will reward them this FY
- besides divided, they are also exploring shares buyback or capital reduction. Think they want to do something that has longer impact on share price too, so I reckon it will be a combination of dividend plus something else
- indeed, they are equally puzzled & disappointed with the way market react, ignore to all its positive news.
- due to SGX blackout period rules & frequent M&A deals, management has only limited time window to buy from market though they would like to do so
2. On its business prospects
- CEO was very confident & optimistic on all its remaining 4 pillars, via hardware & maintenance arm Procurri, IT solution arm Beacon, IT content provider e-commerce arm Corous 360, & e-logistics arm vCargo. The way CEO described is like these 4 engines are fired in full speed.
- They claimed to be unique as no one is in their model of developing these 4 segments in one go
- there are plenty of players within each of these 4 segments besides synergies, they are doing it differently. They proud themselves to do it so well that even catch the attention from big company like CITIC &， one more multinational company to buy Acclivis within such a short span
- Their model is to use the first 2 pillars to provide stable income to support & grow later 2 pillars. Eventually the one to bear bigger fruits will be Corous & vCargo, if they succeed in mass adoption. According to CEO, these 2 units are in good chance of doing that.
- 2017 will be the year to rebuild Beacon & further strengthen Corous & vCargo with vision to monetizing these 2 units in 2018
3. On main board or HK dual listing
- both not in their current plan
- catalist listing is more suitable for DeClout now as it need to do many M&A for all its subsidiaries, as procedures are much simplified than main board
- does not rule out upgrade main board when most M&As are done
- dual listing say in HK will be more on opportunistic than plan, will see how it's business grow
4. On CITIC telecom relationship
- there some agreement on "first right of refusal" arrangements that the CITIC will buy DeClout's products & services
- they revealed the deal not benefiting the company but Singapore too, as CITIC will keep & grow Acclivis in Singapore here to support its penetration into SEA. The deal was well received by relevant government agencies
5. On $10m national research funds
- in the process of selecting & concluding the project line & scope
- new JV with government agency will be form by end of this year to start the project in 2017
- can expect some announcement soon on this
6. On company IR
- they reckoned more can be done to educate investors on the "unique" business model
- their IR firm revealed since the spin off of Procurri & Acclivis, they received much attention, trust & positive feedback on the company & will not be surprised more will choose to cover DeClout
Overall, can sense the positive mood, energetic, full of vision from the management team. They give me that kind of feeling that company can do well equally well even market turn bad as this will give them plenty of opportunities to buy & consolidate. They also are humble & patience guy & willing to take the time to explain questions posed.
How does it different from Amazon cloud service?
I try to put in layman terms what they do, at the basic level they are in the business of cloud computing and provide cloud computing solutions to the various industries. Branch out from here what is necessary to smoothly operate cloud and the emcompassing needs (security, data, hardware etc) kind of a bao ka liao company.
Rise of the machine! Declout' s business fit the longer industrial trend, which is advancement and use of technology. For selfish reason I hope the price doesnt trend up now or too fast as I am waiting for fund to buy more. I have time horizon of 2-3 years for Declout but I am only willing to buy below 21.5 cents.
thanks to the shareholders who attended the egm today and shared some of the feedback. management seems earnest in rewarding shareholders, let' s see what they intend to do but I heard from some friends who attended that no commitment was made on a dividend but rather they are working out the mechanics of how they would reward...
Most companies' s now are storing their data to cloud storage. and some are doing migrating from servers to cloud servers. That is the current technology for cloud computering, might have more in the future. We won' t know what can we do in the future we cloud computering. It' s gonna to be a long term investment, but the question is how long will it take to rise? Not many retail investor willing to wait for a long time for the money they invest in to increase, and to say that declout is not a very big coy at the moment.
I try to put in layman terms what they do, at the basic level they are in the business of cloud computing and provide cloud computing solutions to the various industries. Branch out from here what is necessary to smoothly operate cloud and the emcompassing needs (security, data, hardware etc) kind of a bao ka liao company.
Rise of the machine! Declout' s business fit the longer industrial trend, which is advancement and use of technology. For selfish reason I hope the price doesnt trend up now or too fast as I am waiting for fund to buy more. I have time horizon of 2-3 years for Declout but I am only willing to buy below 21.5 cents.
Yup they are in cloud and related business. With US Presidential Election and weak oil price plus rate hike hanging on the horizon, I think time is on my side to accumulate more at current price level. But if market increasingly confidence in a Clinton wins, the price might move up (for general market) closer to 8.11.16.
I try to put in layman terms what they do, at the basic level they are in the business of cloud computing and provide cloud computing solutions to the various industries. Branch out from here what is necessary to smoothly operate cloud and the emcompassing needs (security, data, hardware etc) kind of a bao ka liao company.
Rise of the machine! Declout' s business fit the longer industrial trend, which is advancement and use of technology. For selfish reason I hope the price doesnt trend up now or too fast as I am waiting for fund to buy more. I have time horizon of 2-3 years for Declout but I am only willing to buy below 21.5 cents.
I try to put in layman terms what they do, at the basic level they are in the business of cloud computing and provide cloud computing solutions to the various industries. Branch out from here what is necessary to smoothly operate cloud and the emcompassing needs (security, data, hardware etc) kind of a bao ka liao company.
Rise of the machine! Declout' s business fit the longer industrial trend, which is advancement and use of technology. For selfish reason I hope the price doesnt trend up now or too fast as I am waiting for fund to buy more. I have time horizon of 2-3 years for Declout but I am only willing to buy below 21.5 cents.
Terraces believe you were at the EGM just now i guess.If you guys want to know the dividend amount, it' s not mentioned, only confirm there will be. Mr Wong' s answered all shareholders' queries, basically their priority is to be in net cash, beefed up Beacon from the void left by acclivis through acquisition as organic growth will take a longer time. Their main focus for 2017 is more on growth than profitability (correct me if I heard wrongly) and they are hoping CITIC help them open doors to China while in turn they are helping CITIC to open doors to south east asia region. Reason for the sale is that CITIC was one of 2 bidders for Acclivis, DeClout didn' t plan to sell Acclivis and instead wanted to merge operations with Beacon, but the Acclivis' s operations was extremely vital in the business of CITIC, hence the acquisition.
1 mistake I made was looking at it' s business separately, all their businesses actually have a link to each other, in Mr Wong' s word " We don' t do different things, we just do things differently" .
lets wait for nextinsight to give us more clues.
this excerpt from last week:
We estimate that DeClout will have up to 4.6 cents per share of net cash after the disposal of Acclivis. With the net cash, DeClout can afford to pay recurring dividends for several years, or even reduce its capital if its share price remains lacklustre. For instance, DeClout can spend S$8m to S$10m of maximum net cash of S$31.0m to buy back 5% of its shares, thereby increasing the concentration of its shares and reducing share price volatility.
Rise of the machine! Declout' s business fit the longer industrial trend, which is advancement and use of technology. For selfish reason I hope the price doesnt trend up now or too fast as I am waiting for fund to buy more. I have time horizon of 2-3 years for Declout but I am only willing to buy below 21.5 cents.
Terraces believe you were at the EGM just now i guess.If you guys want to know the dividend amount, it' s not mentioned, only confirm there will be. Mr Wong' s answered all shareholders' queries, basically their priority is to be in net cash, beefed up Beacon from the void left by acclivis through acquisition as organic growth will take a longer time. Their main focus for 2017 is more on growth than profitability (correct me if I heard wrongly) and they are hoping CITIC help them open doors to China while in turn they are helping CITIC to open doors to south east asia region. Reason for the sale is that CITIC was one of 2 bidders for Acclivis, DeClout didn' t plan to sell Acclivis and instead wanted to merge operations with Beacon, but the Acclivis' s operations was extremely vital in the business of CITIC, hence the acquisition.
1 mistake I made was looking at it' s business separately, all their businesses actually have a link to each other, in Mr Wong' s word " We don' t do different things, we just do things differently" .
dont expect the special div to be high.
Terraces believe you were at the EGM just now i guess.
If you guys want to know the dividend amount, it' s not mentioned, only confirm there will be. Mr Wong' s answered all shareholders' queries, basically their priority is to be in net cash, beefed up Beacon from the void left by acclivis through acquisition as organic growth will take a longer time. Their main focus for 2017 is more on growth than profitability (correct me if I heard wrongly) and they are hoping CITIC help them open doors to China while in turn they are helping CITIC to open doors to south east asia region. Reason for the sale is that CITIC was one of 2 bidders for Acclivis, DeClout didn' t plan to sell Acclivis and instead wanted to merge operations with Beacon, but the Acclivis' s operations was extremely vital in the business of CITIC, hence the acquisition.
1 mistake I made was looking at it' s business separately, all their businesses actually have a link to each other, in Mr Wong' s word " We don' t do different things, we just do things differently" .
Cannot find special dividend mentioned in the closing report in this special AGM is because it was during the Q& A session Mr Wong Kok Khun(Chiarman cum CEO) stated that special dividend will be given to shareholders after minus off current debts and set aside appropriate amount of working capital. Hope this will help.
I read the announcement about the 100% in favour about the sale of the subsidiary.But, did not read about the special dividend.
Care to clarify? Seems like it' s everybody' s (DeClout shareholders) interest.
motion 100% pass
special dividend confirm, transaction most porbably complete by nov, as to get how much and when, 1st need to become net cash, build up beacon from void left by acclivis.
Page 17 of the latest circular quoted:
"The Company will decide on the amount and method of Distribution (such as by way of capital distribution, share buyback or special dividend) following Completion of the Proposed Transaction, after taking into account the Group's needs and the requirements of the Companies Act and the Catalist Rules. Further announcements on the Distribution will be made in due course."
I read the announcement about the 100% in favour about the sale of the subsidiary.But, did not read about the special dividend.
Care to clarify? Seems like it' s everybody' s (DeClout shareholders) interest.
motion 100% pass
special dividend confirm, transaction most porbably complete by nov, as to get how much and when, 1st need to become net cash, build up beacon from void left by acclivis.
I read the announcement about the 100% in favour about the sale of the subsidiary.
But, did not read about the special dividend.
Care to clarify? Seems like it' s everybody' s (DeClout shareholders) interest.
motion 100% pass
special dividend confirm, transaction most porbably complete by nov, as to get how much and when, 1st need to become net cash, build up beacon from void left by acclivis.
