Very good, Time to cash out Hai Leck and switch over to PEC
(26-08-2013, 09:06 PM)propertyinvestor Wrote: [ -> ]Very good, Time to cash out Hai Leck and switch over to PEC
So early to cash out? Some thought it's still a screaming buy at current price?
Good results. Rock-solid B/S with a large/growing cash reserve and additional reserve in industrial property assets. Experienced/dedicated management already proven in marketing prowess and meeting safety standards required by the oil and chemicals majors with a good track record todate. Positive business and profit growth potential..
Yes, good results indeed but not many interested despite a 2 cents proposed final dividend.
Finally it is starting to move, 35 cents target??
0.32 should be fair value because HL do not have new EPC project. Base on usual maintenance works will only give HL little profit. Moreover 2012 profit consists of writing back some doubtful debt from previous year.
with a div of 2c, wouldn't the wrt holdings all be motivated to convert ? its constantly trading at a slight discount so there's really no leverage incentive to hold onto the wrts.
if most of them converts, then wouldn't Hai Leck's cash coffers increase even more ?
Hai Leck skip dividend in FY2012 despite having 47m net cash. The result of 2012 wasn't that good due to completion of all construction of project ( EPC or ECP ? ).
FY 2014 will be a repeat of FY2012 if no new construction project , which is expected. After XD, share price will also be adjusted accordingly.
(27-09-2013, 09:57 AM)paranoid Wrote: [ -> ]with a div of 2c, wouldn't the wrt holdings all be motivated to convert ? its constantly trading at a slight discount so there's really no leverage incentive to hold onto the wrts.
if most of them converts, then wouldn't Hai Leck's cash coffers increase even more ?
Yes, I think you are right. One of the directors recently converted 68.1 million warrants based on the filing with SGX on 24 Jul 2013. Their holding now stands at 86.7% after this conversion. Not many investors seem to be aware of this fact.