Posted by albertlaw > 2013-11-06 18:26 | Report Abuse

Eden Advisors Contrarian and value investors focusing on high alpha undervalued stocks Sunday, October 20, 2013 Asiasons Capital - does fortune favors the bold? Interestingly, this 3 stocks have experienced strong upside momentum over the last few months with blumont gaining the most on an y-o-y basis. Personally, I have met with the owners of Asiasons before, seen them in person and watched them query private businesses in a 'pitch to the star investors moment'. They are by no means small unknown people, with a wide range of connections, I have been eyeing Asiasons since I met them at techventure 2012 and I found this quite an interesting window of opportunity. Note the interesting following: - The management are real, the people are smart and they own a total of 53% stake in the company. - Private equity and fund management skills are hard to come by, this people have strong credibility and connections, especially in Azlan who is a former Bursa regulator and he sits on the board of M+S (the temasek-khazanah collaboration). - Asiasons has one of the best run PE funds in the region with an end-to-end operations technique that includes marketing, advertising and website design that enhances value of their investment holdings. Risk - Share price have lost nearly 96% of its value from its top of 2.91, no one can quantify the bottom. (Currently at 0.128) - Share placements, deal-making and other value accretive acquisitions have been put on halt due to fall in share prices - Stakes in Liongold and connections to blumont and stuff continue to puzzle investors, notwithstanding a fraud collapse. And the last thing investors want is ambiguity which provides more reason for downside (see link - http://www.thestar.com.my/Business/Business-News/2013/10/19/Business-as-usual-board-to-focus-on-repairing-damaged-reputation-Asiasons-is-picking-up-the-pieces.aspx) Conclusion - The downside is kinda curtailed with 96% capital wiped, the company Net Tangible Value stands at 0.18, which remains quite a reasonable price on a liquidation basis (upside of 40%). Also, with not many private equity businesses in the region, this could be a multi-bagger in the long run and opens a wide opportunity for acquisitions. - Target price 0.34 with 3 year horizon Note : I am vested with a small portion.