what is the pt of waiting 10 years for apprecipation of NAV Hupsteel? if u need exposure to property markets, buy REITs, developer counters, etc
with its steel business in doldrum, it is a matter of time that dividend is cut further... rental from Kim Chuan will take at least 2 yrs from now to kick in. And are we assuming the occupancy will be 100%? (quite unlikely)...
(21-10-2013, 01:05 PM)Stockerman Wrote: [ -> ]what is the pt of waiting 10 years for apprecipation of NAV Hupsteel? if u need exposure to property markets, buy REITs, developer counters, etc
with its steel business in doldrum, it is a matter of time that dividend is cut further... rental from Kim Chuan will take at least 2 yrs from now to kick in. And are we assuming the occupancy will be 100%? (quite unlikely)...
Are you vested? long or short or none?
<not vested>
No one went to AGM for briefing to share?
23-DEC-2013 _ CEO brought 122 lots at 21cts.
In a Straits Times on 7th Jan 2014 articles entitled "Industrial property sales plunged 50% last year: DTZ", it was stated that:
"A freehold industrial redevelopment site in Tai Seng went on sale by tender yesterday. The indicative pricing for the 34,729 sq ft site is around $44 million to $46 million, said joint marketing agents Colliers International and Jones Lang LaSalle. This works out to $506 to $529 per sq ft (psf) per plot ratio for the site at the junction of Kim Chuan Drive and Kim Chuan Lane.
The parcel is zoned for heavier industrial use and can be redeveloped into a multi-user factory or warehouse of around 49 strata units of about 1,500 sq ft each. Colliers and Jones Lang LaSalle said the units could probably be sold at $1,000 psf or higher."
The site is very close to 6 Kim Chuan Drive.
(09-10-2013, 10:46 PM)NTL Wrote: [ -> ]I am using LME website to look at steel price.
http://www.lme.com/metals/steel-billet/#tab2
Can also check out the prices of other metals in the website.
Over the past one month, the price of steel has increased by 50%. I wonder how this will impact Hupsteel. Very eager for the coming quarter result to come.
(21-10-2013, 01:05 PM)Stockerman Wrote: [ -> ]what is the pt of waiting 10 years for apprecipation of NAV Hupsteel? if u need exposure to property markets, buy REITs, developer counters, etc
with its steel business in doldrum, it is a matter of time that dividend is cut further... rental from Kim Chuan will take at least 2 yrs from now to kick in. And are we assuming the occupancy will be 100%? (quite unlikely)...
REITS borrow extensively to fund their purchases. They get loaded with higher credit risk in exchange for potentially higher returns (n possibly mkt risk if rates are not fixed).
Hupsteel is almost always net cash.
ROE is crappy because of
1. strong competition in the steel products business
2. its inability to control steel prices(it is a price taker since it is not up the value chain), and,
3. a lack of financial leverage on its balance sheet since it has very little liabilities (higher financial leverage = higher ROE and some companies utilize financial leverage for the purpose of ROE magnification)
However, the management has shown itself to be pretty prudent over the years. It
1. does not do smoke and mirrors like offering dividends in the form of more units instead of cash
2. manages its balance-sheet conservatively
3. controls its expenses pretty well
4. offers a stable yearly ~4% dividend
5. buys back its shares from the market
6. has so far not done stuff that wrecks shareholder value like granting its BoD stock options as bonuses (REITS do this --> throw options at their fund-managers as a form of compensation)
The directors are basically signalling the market that they are as vested as common shareholders are in the company.
In the last year, its annual report stated that fund managers were hired to manage its excess cash. I hope these fund managers are not another cash-sink like so many have proven to be. The only other fear I have is that they will take the company private in a stock market collapse.
Vested for a pretty long time liao.
Since the dividend from hupsteel is not that much, and the steel market is now pretty much collapsing in China from overproduction, it will take some time for the global market to soak up all that excess capacity.
Looks like tough times still ahead for steel and commodities industry.
I will keep on my radar though, and start buy in at a cheaper price, or unless some good news that increases trading volume and starts moving this counter.
I like this company because of the reasons listed by Tritium. I was vested for few months, after reviewing the steel industry, I've decided to forgo it for the time being and put my money into offshore-related stocks.
(21-03-2014, 08:25 PM)BlueKelah Wrote: [ -> ]Since the dividend from hupsteel is not that much, and the steel market is now pretty much collapsing in China from overproduction, it will take some time for the global market to soak up all that excess capacity.
Looks like tough times still ahead for steel and commodities industry.
I will keep on my radar though, and start buy in at a cheaper price, or unless some good news that increases trading volume and starts moving this counter.
Hupsteel's dividend is quite decent at 4.9% (1 cent / 20.5 cents), but I guess depending on your yardstick, there are of course better yields but not necessarily at the same level of comfort offered by Hupsteel.
What comfort? I say, (a) long track dividend paying track record, including bad market cycles, (b) level of cash on books, © negligible debts.
P/E not great but the current price appears to be well-supported. I may load up on further price drops.