Korean team (NS HoSeo) to disband? - Page 3

On July 12 2013 21:56 FrostedMiniWheats wrote:


oh and he made ro8 for Iron Squid narrowly losing 2-3 to Nestea

On July 12 2013 21:59 nkr wrote:


no, Liquid´MKP

On July 12 2013 21:59 Garnet wrote:
I hope Prime and NSH merge.

On July 12 2013 22:00 Atoissen wrote:

Thanks for the feedback, I did not mean to bash him, it was a honest question. And you guys are probably right.
It is a bit strange to me noone els picked him up then? If he is such a talent, why wouldnty IM, EG etc pick him up?
He might be too good for NSHS, but is he good enough for any other pro team atm?

On July 12 2013 22:00 Atoissen wrote:

Thanks for the feedback, I did not mean to bash him, it was a honest question. And you guys are probably right.
It is a bit strange to me noone els picked him up then? If he is such a talent, why wouldnty IM, EG etc pick him up?
He might be too good for NSHS, but is he good enough for any other pro team atm?

On July 12 2013 22:06 Scarecrow wrote:
I doubt it's STX. They'd at least wait till they're eliminated from the playoffs. Any money it's NSH


Narrowly losing to Nestea in the quarterfinal of a foreign tournament is hardly a claim to fame.

On June 30 2013 01:07 lichter wrote:
Okay so I decided to do a little reading.

STX Pan Ocean is in deep shit. Stocks of both STX Group and STX Pan Ocean have been tanking since 2009. "STX Pan Ocean plunged to 2,565 won Tuesday from 10,900 won Dec. 15, 2008, and STX Offshore & Shipbuilding also 067250.SE +1.53% nosedived to 2,595 won from 14,500 won during the same period." That's a few years ago but the company hasn't really recovered since. Just last week, "STX Pan Ocean tumbled 14.9 percent before share trading was suspended," while "STX Corp dropped 14.8 percent and STX Engine slid 13.8 percent." Ouch.

"STX Pan Ocean, which became one of STX Group's most profitable units after emerging from receivership in 2002, swung to a net loss of 91 billion won in 2009. Its loss deepened to 467 billion won last year." I cannot find what percentage of STX Group's income comes from STX Pan Ocean, but most articles state that "90% of the group's sales come from [shipping and shipbuilding industries]." Their official website does not provide much financial information aside from graphs from the period of 2008-2010. Not a lot of info, but based on their graphs 1.) They are still profitable with a net income of 30.5billion Won in 2010 after a disastrous 2009 when they suffered losses of 171.8billion Won; 2.) Debt equity ratio continues to rise; 3.) Cash flow has been very bad, with 2010 reporting a -69.7billion, with most of that cash coming from "financing activities", and the biggest losses coming from their disastrous investments.

However, all is not lost.

"STX Group, with more than 10 trillion won, or $9 billion, in total debt, has sold 1.13 trillion won in assets as part of a 2.5 trillion won asset sale plan announced in May of last year." So they've been trying to repay their debts but so far it hasn't worked out smoothly as "STX Group had put up for sale its almost 36% interest in STX Pan Ocean, but no buyers came forward." Fortunately, "Creditors of ailing STX Offshore & Shipbuilding on Friday injected an additional 250 billion won (US$216 million) in liquidity into the shipbuilder in a bid to tide it over during its cash crunch, officials said." So even though STX Pan Ocean are in deep shit, it looks like its creditors are going to try everything they can in order to keep STX afloat. It looks like the government also has a stake in this as many companies, banks and institutions have investments or connections to STX Group. So yes, STX are in some trouble, but it looks a lot of people are trying to find a way to help them. However, Korea Development Bank, the second largest shareholder of Pan Ocean, decided not to buy out STX Group's shares, so it does look like everyone is skeptical about Pan Ocean's profitability (but STX Group as a whole are doing alright, note).

According to what I've read, " STX Group had a combined 2.86 trillion won in corporate debt to be paid out by 2015, according to NICE Investors Service, a local credit appraiser. Out of such debt, the group has 580 billion won in debt that is due this year." This is what is the most worrying as their most recent financial information states they only have a net income of about 30billion Won. I'm uncertain if the debt payments due this year stated above already includes interest payments or only the principal to be paid. Another problem is that "since the credit crisis, orders to build new ships have plunged. Contracts for new vessels halved to $84.7 billion last year, compared with $174.7 billion in 2008." Either way, if STX can find a way to refinance that debt and have a more frugal investment plan (apparently Kang wants to BUY ALL THE COMPANIES) they should come out of this okay. They also need to either sell of Pan Ocean or find a way to make it profitable (the main problems being: overcapacity of ships means less order for ship, less shipping due to financial downturn means less ships needed). They are still a profitable company that is important for the Korean economy, so I think they will find a way.

I could probably read more but I hate reading about business at home.

SUMMARY:
1. STX Pan Ocean and STX Group are in lots of debt, and STX Pan Ocean is doing terribly as a business
2. STX Pan Ocean and STX Group stocks are tanking
3. STX has been trying to sell of assets as well as a controlling amount of shares in some of its less profitable subsidiaries
4. STX Group, as a whole, is still a very important and profitable company
5. STX Group cannot pay off their debts with their cash flow, but if they can refinance that debt and get rid of Pan Ocean's perennial losses, maybe they can stay afloat.
6. I think STX Group will be ok, but the Pan Ocean business will likely go kaput.

Sources:
http://www.stx.co.kr/FrontEN/IR/IR_00201.aspx
http://www.reuters.com/article/2013/06/05/markets-korea-stocks-idUSL3N0EH11F20130605
http://online.wsj.com/article/SB10001424127887324904004578535041285632524.html
http://blogs.wsj.com/korearealtime/2013/06/11/stx-tycoon-on-the-ropes-after-bankruptcy-filing/
http://www.hellenicshippingnews.com/News.aspx?ElementId=ead348ff-078a-439f-9b6d-2667c4a8ccc6
http://www.bloomberg.com/news/2013-06-18/stx-pan-ocean-falls-as-receivership-filing-accepted-seoul-mover.html

On July 12 2013 22:08 DJHelium wrote:
Didn't jjakji say that NSH disbanding was very unlikely in some interview? He reacted almost like it would be shocking.

How is MVP doing sponsorwise?

On July 12 2013 22:18 FrostedMiniWheats wrote:


Didn't DRG cancel his DH participation because MVP didn't want to pay to send him overseas? :x