hi swinger,
the news for redev of 6kim chuan was out weeks ago.
this is one obsure n underlooked counter with hidden gems n cash bank to already or nearly occupy its current market cap.
of course, prime consideration is its core steel biz steel. afterall, without the latter, I doubt the existence of their properties.
on a bright side, the constant share buy back would help to enhance existing shareholders' value.
Hi Paullow, despite the under-performing core business, there is still consistent dividend payment yaer after year?
i think we need to understand that the biz is cyclical in nature esp since we know that it serves the oil n marine industries which shows mediocore results. and even different companies which serves the same industries may have different results also eg cosmosteel etc.
what we dun know we cannot predict as prediction is akin to speculation.
but wat we know is that hsh paid dividends faithfully every yr for as long as i know. majority of holdings are in lim family so its natural for them to pay themselves yr after year. some of the lim members might not hold shares reflected in the shareholding list but they too are looking forward to be paid.
but if their core biz continues to remain at this type of current momentum, then just by relying on this, i think we would likely to see a dividend cut or no dividend.
how hsh performs we wld have to check on their quarterly results. and really no one can oredict when recovery would take place if any.
but wat we already know is that 6kimchuan will be really in some 1.5yr time. and hope it can contribute 0.5c to eps a yr.
to add on:
shd recovery really happens n those who entered ard 20c good for u. but i do hope investors also considered the possibility of the core biz not recovering n hsh depending on its rental income to stay in the black.
ah lim continued his buying spree. largest in recent buybacks this yr. 300lots today.
i take this as a positive move as this will enhance existing shareholder value.
I would think best way to unlock shareholder value would be to get those analyst to initiate coverage...
or use the cash to do some take-over or buy-in of other more productive companies..
paullow : any chance this counter delist?
3rd gen company with so many vested family members big n small, i think keeping it listed would be the more transparent manner to everyone.
anyway, cash would gradually reduce by 14m over the next 18mths. unless steel biz stage a recovery, i think management unlikely to use more of its cash horde. management is thoroughly conservative. with ah kong biz, ceo lim wouldn't want things to go grossly wrong at his hands. 70yr aniversary coming somemore.
but of course, thats my opinion n i could be wrong.
and objectively speaking, with the increasing large sharebuyback recently, ur guess is as gd as mine as to wat the management thinks the true value of hup seng huat is or would be.
(11-06-2013, 11:39 AM)BlueKelah Wrote: [ -> ]I would think best way to unlock shareholder value would be to get those analyst to initiate coverage...
or use the cash to do some take-over or buy-in of other more productive companies..
paullow : any chance this counter delist?
I think another way could be seeking another way to an independent valuer to do a report and publish it on SGX. I reckon any analysts would want to cover HupSteel. They always prefer to do coverage on 'sexy' stocks, can they convince retail investors with such a high P/E?
Diversifying business is bad, if one doesn't have the management expertise or lack of synergistic goals. Can you think of any good acquisitions?
Paullow already adequately explained why this counter has a slim chance to delisting. He understands HupSteel with depth and breadth.
(11-06-2013, 04:05 PM)kelvesy Wrote: [ -> ] (11-06-2013, 11:39 AM)BlueKelah Wrote: [ -> ]I would think best way to unlock shareholder value would be to get those analyst to initiate coverage...
or use the cash to do some take-over or buy-in of other more productive companies..
paullow : any chance this counter delist?
I think another way could be seeking another way to an independent valuer to do a report and publish it on SGX. I reckon any analysts would want to cover HupSteel. They always prefer to do coverage on 'sexy' stocks, can they convince retail investors with such a high P/E?
Diversifying business is bad, if one doesn't have the management expertise or lack of synergistic goals. Can you think of any good acquisitions?
Paullow already adequately explained why this counter has a slim chance to delisting. He understands HupSteel with depth and breadth.
paullow said cash bank almost market cap?
from what i see from last AR the cash on hand ~35millions is only ~25% of market cap. Namlee, techwah and spindex all have higher %
Cash + redeveloped value of building/land is approx market cap. Not just cash.
(12-06-2013, 12:20 PM)psolhawk Wrote: [ -> ]Cash + redeveloped value of building/land is approx market cap. Not just cash.
well then that is cash + asset to me...
since its cyclical, instead of being value trapped, will it be better to put on watchlist and jump in when marine steel start showing turnaround?
At the moment it looks like still downtrend for shipping industry...