Saratoga Investment Corp (SAB)

This just keeps going up. Glad I bought it when it was down.

boing

No, even positive. Was bold enough to average down @$3.35 and sold most above $5. I think there is not much risk involved here, but I didn't want to have the money locked for whatever time.
Nice run up right now but I'm watching from the sidelines now. GLTY

I understand your frustrations. ADRs not great with communication. Hope didnt get hit.
Good luck.
mlkr

OUT

Despite 3 emails to 3 different people (thus for a combined 9 emails), and very polite ones, asking for guidance and clarification about the fate reserved by the company to their U.S. shareholders, I didn't get ANY ANSWER.

This is very bad omen, so I'm now out and without regret as I'm just seeing a disreputable management behind SABA. GLTA.

Neither did I.

http://www.bmv.com.mx/

Did anyone call the company to know if they really intend to ask for delisting from NYSE tonight?

And what about the 1 to 10 Mexican shares transfer, as per ADR program?

I sent them 2 emails but no answer yet.

Yep! Strange decision to say the least.

Your welcome..interesting play here..

Dave

thnx.
mlkr

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Grupo Casa Saba to Delist and 1 Stock Falling to 52-Week Lows
By Mark Lawson | More Articles
November 17, 2012

Trade Free for 60 Days
at E*TRADE Securities
Grupo Casa Saba (NYSE:SAB) has chosen to delist its American Depositary Shares from the New York Stock Exchange, and will hence focus all trading of its ordinary shares on the Bolsa Mexicana de Valores in Mexico, and will be terminating its current ADS program. The firm has made several purchases during the last four fiscal years, and it experienced difficulties in joining these businesses into its financial reporting structure, resulting in its auditors having to release qualified audit reports in three of the past four fiscal years. Through the decision to delist its shares, the company has considered the low trading volume of its ADS on the NYSE, along with the associated expenses of maintaining the listing and related obligations, which include the increased complexities originating from its recent acquisitions. Grupo Casa Saba has neither arranged for the listing or registration of its ADS or ordinary shares on another American national securities exchange, nor for their quotation in a quotation medium in the United States. Further, the company intends to file a Form 25 with the Securities and Exchange Commission to obtain the delisting from the NYSE on or about November 26th, with the actual delisting becoming effective 10 days later. Shares closed down 59.15 percent on the day at $3.35, having been traded in a 52-week range of $6.36 to $10.73.

Grupo Casa Saba Reports - Grupo Casa Saba Announces its Intention to Delist From the New York Stock Exchange
Press Release: Grupo Casa Saba, S.A.B. de C.V. – Thu, Nov 15, 2012 10:00 PM EST
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SAB.MX 10.98 0.98

MEXICO CITY, Nov. 15, 2012 /PRNewswire/ -- Grupo Casa Saba (SAB)
Grupo Casa Saba, S.A.B. de C.V. ("GCS" or the "Company") (BMV: SAB* and NYSE: SAB) announces its intention to delist its American Depositary Shares ("ADSs") from the New York Stock Exchange ("NYSE").
GCS will concentrate all trading of its ordinary shares on the Bolsa Mexicana de Valores in Mexico ("BMV") and will be terminating its current ADS program. GCS has made a number of acquisitions over the last four fiscal years, and it has faced difficulties in integrating these businesses into its financial reporting structure, with the result that its auditors have issued qualified audit reports in three of the last four fiscal years. In determining to delist its ADSs, GCS has taken into account the low trading volume of its ADSs on the NYSE, and the associated costs of maintaining the listing and related obligations, including the increased complexities arising from its recent acquisitions.
GCS has not arranged for the listing or registration of its ADS or ordinary shares on another U.S. national securities exchange or for their quotation in a quotation medium in the United States.
GCS intends to file a Form 25 with the SEC to effect the delisting from the NYSE on or about November 26, 2012. The delisting will become effective 10 days later.
GCS will continue to be subject to reporting obligations under the U.S. Securities Exchange Act of 1934 (the "Exchange Act") until such time as it can terminate its registration under the Exchange Act. GCS will continue discussing with the SEC the resolution of the deficiencies in its financial reporting structure that have led to its auditors issuing qualified audit reports.
GCS's CEO Manuel Saba Ades commented: "GCS's delisting from The New York Stock Exchange means we can concentrate our attention and resources on a single listing on the Bolsa Mexicana de Valores. The delisting will have no impact on GCS's commitment to corporate governance and transparent disclosure."
About Grupo Casa Saba
Grupo Casa Saba, S.A.B. de C.V. ("GCS", "the Company" or "the Group") is one of the leading Mexican distributors of pharmaceutical products, beauty aids, personal care and consumer goods, general merchandise and publications. It also operates one of the most important pharmacy chains in Latin America. In 2011, the company had net sales of Ps. 46,568 million pesos. The Group is currently listed on both the Bolsa Mexicana de Valores (Mexican Stock Exchange) and the New York Stock Exchange (NYSE).

Grupo Casa Saba Reports - Distribution Sales to Institutional Clients Declined While Chile and Mexico Demonstrated Improved Performance
Press Release: Grupo Casa Saba, S.A.B. de C.V. – Fri, Jul 27, 2012 7:51 PM EDT
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SAB 4.08 0.35

MEXICO CITY--(Marketwire -07/27/12)- Grupo Casa Saba (SAB)
Financial Highlights:
All figures are expressed in millions of Mexican pesos. Comparisons are made with the same period of 2011, unless otherwise stated. Figures may vary slightly due to rounding).
The Group's net sales for the quarter reached $12,253.1 million pesos
Gross income for the period was 2,233.4 million; the gross margin for the quarter was 18.23%
Operating expenses reached $1,967.0 million pesos and represented 16.05% of the Company's total sales
Quarterly operating income was $266.4 million, resulting in an operating margin of 2.17% for the period
Second quarter EBITDA was $377.1 million, or 3.08% of total sales
The Group's net profit for the quarter was $177.4 million
As of June 30, 2012, GCS's net debt totaled $9,535.2 million pesos
GCS closed the quarter with 25 Distribution Centers and over 1,340 pharmacies in operation across Latin America
Grupo Casa Saba (SAB) ("Saba," "GCS," "the Company" or "the Group"), one of the leading Mexican distributors of pharmaceutical products as well as health, beauty aids and consumer goods and publication, and one of the most important pharmacy chains in Latin America, announces its consolidated financial and operating results for the second quarter of 2012.
QUARTERLY EARNINGS
In the second quarter of 2012, Saba faced close competition in the distribution and marketing of pharmaceutical products, health and beauty aids, and consumer goods in Mexico as well as in the other Latin America countries in which we operate. Our operating strategy maintained emphasis on improving efficiency levels and controlling logistic costs and expenses, generating positive results in practically all our divisions. At the sales level, we focused on improving the availability of the most in demand products for our clients in wholesale and in our pharma network, as well as improving the care and service of our stock sales. In regards to growth, opening new pharmacies in Latin America and in Mexico allowed us to strengthen our presence in the markets in which we already operate, as well as to improve the knowledge of the brands with which we operate.
At Grupo Casa Saba, we will continue to focus on making ongoing improvements to our logistic and commercial operations in order to offer all of our clients a wide range of products at competitive prices. In our pharmacy network, we will also strive to offer the best integrated health, beauty and consumer goods solutions.
NET SALES
Net sales for the quarter reached $12,253.1 million, an increase of 1.4% compared to $12,084.1 million in 2Q2011. This increase resulted from the higher performance in our distribution division.
SALES BY DIVISION
Distribution Division
PHARMA, HEALTH, BEAUTY AND CONSUMER GOODS
Sales from our Pharma, Health, Beauty and Consumer Goods division increased 3.46% versus the 2Q2011, totaling $5,557.0 million. In terms of total sales, this division's percentage went from 45.78% in 2Q2011 to 46.72% in the 2Q2012.
GOVERNMENT PHARMA
Quarterly sales in our Government Pharma division grew 9.99% compared to the second quarter of 2011. This growth was due to our increased participation in the bidding processes of various State and Federal health institutions. In terms of total sales, this division represented 2.78% in 2Q2011, down from to 3.02% in the 2Q2012.
PUBLICATIONS
Sales from our Publications distribution division declined 20.59% compared to the second quarter of 2011, as a result of lower sales from various publishers and as well as a downward adjustment. In terms of total sales, this division's percentage went from 1.67% in 2Q2011 to 1.31% in the 2Q2012.
RETAIL PHARMACY
During the second quarter of the year, sales from our Retail Pharmacy division decreased by $14.8 million pesos, or 0.2%, as a result of the divestiture of Peru, the Brazilian restructuring, and lower institutional sales in our Farmacias ABC chain. A portion of this effect was offset by the positive performance of Farmacias Ahumada in Chile, which increased its sales by 2%.
This division's percentage of the Group's overall sales rose to 48.9% vs 49.7% in the 2Q2011.
GROSS INCOME
During the second quarter of 2012, gross income reached $2,233.4 million pesos, primarily due to the improved gross margins in Chile, Brazil, Mexico (Farmacias ABC) and the Pharma, Health and Beauty distribution division. The above shows our efforts to improve service, availability and commercial supply to our clients.
Compared to the second quarter of 2011, the Group's gross income increased 4.7%. Gross income margin showed an improvement of 59 basis points in the second quarter of the year, reaching 18.23%.
OPERATING EXPENSES
Operating expenses in the second quarter of 2012 rose by $221.2 million pesos, or 12.67%, compared to the same period of the previous year. This increase was the result of the annual increase in payroll and higher expenses in both our Government Pharma division and our Chilean and Mexican (Benavides) operations, due to their larger infrastructures, as well as the increase in loss reserves.
As a percentage of total sales, operating expenses represented 16.14% during the second quarter of 2012 compared to 14.45% during the same period of 2011.
OPERATING INCOME
Quarterly operating income for 2Q2012 was $266.4 million, down from $385.8 million reported in 2Q2011. This decline in operating income was the result of a lower gross income as well as the increase in expenses.
Operating income margin for the 2Q2012 was 3.19%, versus 2.17% in 2Q2011.
OPERATING INCOME PLUS DEPRECIATION AND AMORTIZATION (EBITDA)
EBITDA for 2Q2012 was $377.1 million, a decrease of 23.94% compared to the $495.9 million reported during the second quarter of 2011.
EBITDA margin for the second quarter of 2012 was 3.08%.
COMPREHENSIVE COST OF FINANCING (CCF)
The Group's CCF reached $115.5 million, 56.6% lower than the CCF reported during 2Q2011.
This decrease was primarily due to minor interest payments.
NET DEBT
The Company's net debt at the end of 2Q2012 was $9,535.2 million pesos.
OTHER EXPENSES (INCOME)
During the second quarter of the year, other expenses totaled $94.7 million.
It is important to mention that the results listed in this line item are derived from activities outside of the company's normal business operations and, as a result, they are not necessarily recurrent.
TAX PROVISIONS
Tax provisions for the second quarter of 2012 were $68.1 million pesos, 9.2% higher than the amount reported in 2Q2011.
NET INCOME
In the second quarter 2012 GCS recorded a net income of $177.4, an increase from the $69.0 million in the second quarter of 2011.
The net margin for 2Q2012 was 1.45%.

ADR ratio?

Very good info and take . wonder delisting may have something to do with improper things. I don't think the cost of listing requirement is too prohibitive for such large dealer wheeler co.
mlkr

Business Summary
Grupo Casa Saba, S.A.B. de C.V., through its subsidiaries, operates as a multi-channel and multi-product wholesale distributor primarily in Mexico. It distributes pharmaceutical products; health and beauty aids; publication products, such as magazines, books, albums, and stickers; food and non-perishable products; personal care and consumer goods; and general merchandise. The company also sells pharmaceutical products through its Farmacias ABC pharmacy chain located in Guadalajara, Jalisco; Farmacias Provee de Especialidades primarily located in Monterrey and Nuevo Leon of Mexico, as well as in the states of Chihuahua and Coahuila; and through Farmacias Benavides. In addition, it provides freight services to third parties. Further, it operates medical clinics; and offers specialized medical, rehabilitation, and surgical services, as well as provides real estate services. The company serves pharmacies, mass merchandisers, retail and convenience stores, specialty stores, supermarkets, and other specialized channels. As of December 31, 2010, it operated a distribution network consisting of 22 active distribution centers. It also operates in Brazil, Chile, and Peru. Grupo Casa Saba, S.A.B. de C.V. was founded in 1892 and is based in Mexico, Mexico.

JPMorgan or Bank of NY will convert ADR's back to common..there was never a danger of losing shares..people panicked I guess because it's not a liquid ticker

Following the recent announcement from the company to voluntary delist from NYSE without providing an alternate U.S. exchange but concentrate its trading on its main exchange in Mexico, the U.S. shares lost 60% on last Friday.

Note that the U.S. market didn't react at once to the decision made public already on Nov 14th but there was a massive sell-off from 10:34 on Friday without any reversal.

On the Yahoo board, I saw many panicked investors asking for what would be the remaining value of their shares once delisted.

The company did a terrible job in its PR and scaremongers are now filling the void. This is not a BK company but a profitable one in a booming economy (Mercosur zone). So, obviously, there is value in SAB shares.

IMHO, the company should issue a PR stating the automatic conversion of each ADR share (the U.S. SAB share) for 10 mexican ones once the ADR shares are delisted.

This is the only solution to be fair with the U.S. investors as this is the conversion rate announced in the ADR program and the actual one before the disastrous announcement of voluntary delisting from NYSE.

Besides, if such a corrective PR is not coming, SEC should be alerted. Shares and the underlying money invested cannot just disappear in thin air like this when a company is just deciding to regroup its trading on a single exchange. No bankruptcy here, no financial problems, no change in value for the company if not a slight appreciation due to the savings from not maintaining two separate listings.

I addressed such a request to the company on Saturday, no answer yet. GLTA


Contacts:

Grupo Casa Saba
Carlos Mora
+52 (55) 5284-6623
cmora@casasaba.com

or

IR Communications:
Jesús Martínez Rojas
+52 (55) 5644-1247
jesus@irandpr.com