ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

(04-11-2015, 08:31 AM)AQ. Wrote: [ -> ]I like what they are doing to transform the biz but I think the valuation is insane. I had earlier sold my shares @ 2.05-2.10 with valuations @ PE 28 or so.

It's helpful to be associated with Alibaba but the biz models are completely different.

For Jack Ma to expand his biz - essentially (with a touch of triviality) he just needs to buy a couple more servers.

For Singpost to cater to the dirty biz of logistics, they need to buy warehouses, trucks, freighters - all highly CAPEX intensive and carries decent risks. With ROE dragged down by the low-margin logistics biz, coupled with such capex intensive developments and M&A, I will never pay such a high valuation for the firm.

the form looks nice now with all the hula loop of ali baba and spending cash to buy news, but is there substance?  i have learned to look deeper when companies are managed by ex-Goldman or Mck.

http://www.straitstimes.com/business/sin...tor=CS3-17

The Straits Times
SingPost outlines four pillars of growth, Business News & Top Stories - The Straits Times
Business News -Singapore Post is undergoing a shake-up to focus on four pillars of growth - e-commerce, postal, logistics and operations, and corporate services, it announced yesterday.. Read more at straitstimes.com.

Make no mistake as this the transformation for survival and not for growth

The CEO has resigned rather abruptly.

Post above #372 mentioned a 'shake-up'. Also mentioned the word 'survival'. Just wondering.

(10-12-2015, 06:42 PM)LionFlyer Wrote: [ -> ]The CEO has resigned rather abruptly.

What a surprise! The integration is on-going, after the recent M&As. 

(not vested)

SingPost board is under a spot-light, after the CEO resigned...

(not vested)

Don flags worries about SingPost
17 Dec 2015 09:00
By Grace Leong

The shock resignation of Singapore Post (SingPost) group chief executive Wolfgang Baier last week underscores the problems the firm has with corporate governance, according to National University of Singapore (NUS) Business School associate professor Mak Yuen Teen.

Prof Mak said the firm has seen CEOs come and go while being a laggard when it comes to board renewal. Dr Baier stunned market watchers last week when he resigned after four years at the post and after what many analysts praise as a radical transformation of the firm that has turned it into a global logistics force.

A check shows that Dr Baier's predecessor Wilson Tan was the third SingPost group CEO to resign in a five-year span when he stepped down in April 2010.

While Prof Mak noted that SingPost was named last month as one of the top 50 Asean publicly listed companies in terms of corporate governance, "there were certain practices that troubled (him)".

He pointed to the long tenure of some of SingPost's independent directors and questioned the relevance of the skills and experience of some of them in the light of the firm's transition into an e-commerce logistics player.

His other concerns include a possible lack of clarity between the roles of the board or executive committee and management and the experience of the transition team they have in place to oversee the integration process after several acquisitions, including that of e-commerce provider TradeGlobal Holdings.
...
Source: Straits Times

http://www.straitstimes.com/business/com...t-singpost

I have similar reservation with NOL that time as well. We seems to reject FT wholesale. Many of them are very talented. Look at NOL now ...

Local culture (not all of course) of management can besiege our future growth to World Class level. They do not have the vision and macro understanding.

(17-12-2015, 03:51 PM)corydorus Wrote: [ -> ]I have similar reservation with NOL that time as well. We seems to reject FT wholesale. Many of them are very talented. Look at NOL now ...

Local culture (not all of course) of management can besiege our future growth to World Class level. They do not have the vision and macro understanding.

IMO, the main obstacles aren't on lack of vision, and macro view, but the risk-aversion. 

(not vested)

Vested last Friday @ 1.665 because the stock I felt is Oversold !!! Should climb back up once there's news of New CEO !!!

More corporate governance issues..

http://infopub.sgx.com/FileOpen/SGX%20An...eID=383296

The Board of Directors of Singapore Post Limited (the "Company") refers to the
announcement dated 18 July 2014 in relation to the Company's acquisition of the entire
issued and paid-up share capital of F.S. Mackenzie Limited (the "Transaction").
Due to an administrative oversight, it was stated that none of the directors or controlling
shareholders of the Company had any interest, direct or indirect in the
Transaction. The Company would like to clarify that none of the directors or
controlling shareholders of the Company had any interest, direct or indirect in the
Transaction, save for Mr Keith Tay Ah Kee who, as disclosed in the announcement
relating to the Company's acquisition of Famous Holdings Pte Ltd on 18 January
2013, is a non-executive Chairman and shareholder of Stirling Coleman Capital
Limited. Stirling Coleman Capital Limited was the arranger of the Transaction.
Accordingly, Mr Tay, as reflected in Board minutes, had abstained from all voting by
the Board of the Company in relation to the Transaction.
Issued by Singapore Post Limited on 22 December 2015.