now sabana is trading below book, time to buy? or is management a big red flag?
they sold out their shares twice before doing a placement and dooming the share price... claps claps
Institution "investors" ( Speculators ) who took up the share @1.00 can sell immediately ( Borrow shares ) with instant profit of 7/8% at the expense of retail investors, must attend next agm to whack the management.
sorry just to check does those placement shares get the cum dividends too???
(13-09-2013, 10:19 AM)felixleong Wrote: [ -> ]I think sabana management is making any shareholders angry
2 years ++ since ipo and it seems to be going back to where it started... $1.05
Close to 3yrs actually. The IPO investors who held on should be collecting 8% dividend for 3yrs. Not that bad actually considering STI is actually lower now than the time Sabana IPO.
(13-09-2013, 10:47 AM)felixleong Wrote: [ -> ]sorry just to check does those placement shares get the cum dividends too???
No, they dont. Only for the dividend from 24-30Sep
(13-09-2013, 10:21 AM)felixleong Wrote: [ -> ]now sabana is trading below book, time to buy? or is management a big red flag?
they sold out their shares twice before doing a placement and dooming the share price... claps claps
All REITs managers sell their units. ARA sold so much until I blur....
Did a quick calculation.
I use the lower 2.7 million increase in distribution due to acquisition. (Refer to earlier post 274). I use the lower estimated figure.
I account for the acquisition fees of 670k already, performance fees, they are not going to get it as my final calculation of DPU after dilution is 9.5 cents. (As compared to 9.6 cents now, without acquisition.)
So net net, given I cannot participate in this discount YET, (I think market will punish this counter), we are worse off with this deal.
But then, at 1.080, yield will will be 8.7%.
So I willl keep my cool, let the price drop further and accumulate after the placements unit come into play.
At $1, yield will be 9%.
Ok, not sure angry now. BUt what the F***, issue rights la, whats the rush!!
Other numbers:
They are still 27 million short for their acquisition, they do not have 27 m in cash, so most prob still need 20 m loans. But it does not make a big difference to gearing, its within 1% point.
NOTE: Income for distribution increase is from my conservative estimates only. IF they champion and buy a property that is more than 10% vacant, then the figures will be wrong.
(13-09-2013, 10:20 AM)KopiKat Wrote: [ -> ]This 40Mil @ $1 placement won't make much dent to the NAV, ~$1.0565
Will not make a dent to the gearing ratio too. So going forward, they will raise more funds when they are buying more properties.
The discount to the last trading price is huge , compared to other private placements.
This type of private placement I also want. Agree they should do a rights issue.
Disappointing management, do lousy acquisition, sell their mgmt fee units, private placement instead of rights issue... haiz no wonder the market price this stock badly.
When they bought the property at serangoon north, it was funded by a sukuk, this 1 now they using stock placement which is yielding 9+% plus to buy something crappy..
The chai chee lane prop now if i am not wrong is not even fully lease under jtc hands and its charging abt 1.6$ per psf with a quick check on propertyguru, with 11 years remaining.