Pan-Asia Equity Bottom-up, Wickhams Hill

Lloyd Moffatt

I am a fundamental-value investment analyst with a bent for events and soft catalysts.

During my time on both the buy-side and sell-side I focussed on small and mid-cap companies in ASEAN, Australia and HK/China.

Although a generalist, my background as an engineer lends itself toward deep-dive research in more practical sectors like consumer and industrials.

Previous recommendations include:

Concepcion Industrial		(CIC PM)	BUY	03/12/2015		+100.1%
OSIM International		(OSIM SP)	BUY	11/12/2015		+36.9%
Bellamy's Australia Ltd	(BAL AU)	SELL	08/06/2016		+60%
Pryce Corp				(PPC PM)	BUY	14/07/2016		+105%
Rukun Raharja			(RAJA IJ)	BUY	16/02/2017		+61%
Asian Pay Television Trust (APTT SP)	BUY	30/12/2016		+67%

Pan-Asia Equity Bottom-up

CSE Global to Recover on Better Oil Prices and Infrastructure Projects; Potential Upside > 50%

Tullow Oil (TLW LN): Oil-Levered Cash Flow Drives an Improving Balance Sheet

Research-Intensive Fundamental Value Advisor

Wickhams Hill

Wickhams Hill Capital is a research-intensive fundamental value advisor, on long and occasionally short investment opportunities concentrated in small and mid-cap public companies.

Equity Bottom-Up

On the 26th February 18, Singapore based activist firm Quarz Capital sent an open letter to the board of <a href="https://www.smartkarma.com/entities/4025" target="_blank" data-smartkarma-citation="entities:4025:1">CSE Global Ltd (CSE SP)</a>, urging the company to take immediate steps that it believes will generate a return of more than 40%. The stock is up 14.5% since publishing the letter.We have summarized the key points of Quarz <a href="http://en.prnasia.com/releases/apac/quarz-capital-management-ltd-sends-open-letter-to-cse-global-limited-to-engage-on-proposals-to-unlock-a-total-potential-shareholder-return-of-40-through-the-return-of-excess-capital-rightsizing-of-cost-base-execution-of-growth-strategy-and-the-alignment-of-board-management-and-shareholders-interests-202977.shtml" target="_blank">original letter</a> and <a href="http://infopub.sgx.com/Apps?A=COW_CorpAnnouncement_Content&amp;B=AnnouncementToday&amp;F=OQI08I25LHOBOATK&amp;H=77d444cee87538f03de1f4dfbe22c1eb45f72fa9611c7d994d8302dbf2b3e023" target="_blank">management’s response</a> below, along with our opinion on the legitimacy of their claims, which was published last Wednesday the 7th March 18.CSE Global indeed appears to have carried over sub-optimal financial management practices from the oil and gas bull-market more than five years ago, while maintaining executive compensation that is simply unjustified. A positive initial response from management should yield some low-hanging fruit through forcing increased capital return, alignment of management incentives and improved investor communication.The scope of opportunities in Singapore and Australia is unclear both in terms of scale and cost to pursue them. In our opinion, the real upside beyond the 40% heralded by Quarz will be from executing on this strategy and returning the company to growth in a higher quality segment.

On the 26th February 18, Singapore based activist firm Quarz Capital sent an open letter to the board of CSE Global Ltd (CSE SP), urging the company to take immediate steps that it believes will generate a return of more than 40%. The stock is up 14.5% since publishing the letter.We have summarized the key points of Quarz original letter and management’s response below, along with our opinion on the legitimacy of their claims, which was published last Wednesday the 7th March 18.CSE Global indeed appears to have carried over sub-optimal financial management practices from the oil and gas bull-market more than five years ago, while maintaining executive compensation that is simply unjustified. A positive initial response from management should yield some low-hanging fruit through forcing increased capital return, alignment of management incentives and improved investor communication.The scope of opportunities in Singapore and Australia is unclear both in terms of scale and cost to pursue them. In our opinion, the real upside beyond the 40% heralded by Quarz will be from executing on this strategy and returning the company to growth in a higher quality segment.

Our Take on Quarz Capital’s Letter to CSE Global