01-04-2016, 02:12 PM
(01-04-2016, 01:39 PM)GFG Wrote: [ -> ](01-04-2016, 08:56 AM)TUBInvesting Wrote: [ -> ]What are ways that value can be unlocked here?Unlock value?
Actually I am recently vested with them as I think their margin of safety is quite reasonable. Understand they have huge pieces of lands in Malaysia, if any unlock of value is to happen, it will be in another 3 to 4 years time..i guess.. In between, we can only hope their steel business can grow back to how things were.
Just sell and leaseback their FH industrial property at Arumugam road and based on the most recent valuation, the proceeds alone will cover the entire market cap of the company!
Everything else, the steel, the seven crescent units that r unsold, the Sogo stores, Malaysia land etc would b all free
Unfortunately, as with deep value situations like these, a catalyst is needed to unlock value.
If a deep pocketed activist could come in, this looks like a v easy situation to be an activist.
For a moment I do sound stupid here. Time to create more weightage comments.
But the FH industrial property seems to be their investment property - it does not make sense to do a sale and leaseback on yr investment properties right? Most of these sale and leaseback will be done via properties for your own usage.
Anyway, your guess should be right, an activist is required here to unlock any value.