There was an announcement by Lafe Corporation on the disposal of their investment property in China.
http://info.sgx.com/webcoranncatth.nsf/V...C00070812/$file/DisposalInvestmentpropertyPanyu.pdf?openelement
With this disposal, the NTA per share would have gone up from US8.9cents to US10.8cents, based on the financial year end (Dec 2009) balance sheet.
Any views from forummers on this company?
(25-09-2010, 10:13 PM)ngcheeki Wrote: [ -> ]Here is the view of Kevin Scully on Sing Holding land bank replenishment.
"Given that Sing Holdings has utilised most of its land bank with the bulk of the Laurels and BelleRive sold, the key to unlocking the discount to its NAV from the profits of these projects is the rebuilding of its landbank. I mentioned this many times to investors in various investment seminars and conferences. This purchase while small at $77.3mn compared to the Laurels is in a prime location and even after adding S$300-400 psf for contruction is still able to generate a decent profit for Sing Holdings given that recent transactions in the same area are selling today at S$1900 to S$2200 psf."
see the following for his full view
http://www.netresearch-asia.com/netresea...log_no=584
By the way, one of the readers make an interesting comment on "Lafe" as an undervalued property counter. Besides, he also mentioned about Heeton and Hiap Hoe.
Lafe just announced the selling of its land in Panyu, but for around s$100M, much less than the S$300-500M figure estimated. NTA after disposal is US10.8c. Lafe currently trading at 8.5c.
http://info.sgx.com/webcoranncatth.nsf/V...C00070812/$file/DisposalInvestmentpropertyPanyu.pdf?openelement
Any interest in this counter? I noticed that the prices are rather weak. Margins are pretty poor too.
And, the revenues are stunningly low. Perhaps, its a representative of weak economic outlook, both locally and regionally.
With share consol on the way, would liquidity disappear completely, if any existed in the first place?
Got into this company recently. Seem like it will be filled with cash in a few years time. Just wondering what are their plans moving forward...
http://tubinvesting.blogspot.sg/
Corporate governance issue. Many interested party transactions.
I wont touch it.
(01-04-2016, 08:57 AM)TUBInvesting Wrote: [ -> ]Got into this company recently. Seem like it will be filled with cash in a few years time. Just wondering what are their plans moving forward...
http://tubinvesting.blogspot.sg/
A value trap for many many years........... besides the governance issue mentioned by opmi earlier.
Was lucky to get out with a tiny profit many years ago.
Regardless of their plans, gd luck to you if you think they will share any cash with the minority shareholders.
I have to concur about it being a value trap.
My take on this. There are various good reasons not to touch this stock:
1. Property market still down in Singapore and it is hard to tell when will it rebound.
2. Lack of visibility in terms of future earnings. (any idea what their order book size is?)
3. I am doubtful over the commitment of the management to try to jump start their real estate biz in Singapore. Not much news (correct me if i'm wrong).
The following read up doesn't help with the pessimism surrounding Lafe.
http://www.straitstimes.com/business/com...hill-units
There are honestly better developers out there and delivering shareholder value, even in tough times. A familiar name is Ho Bee. While many were still launching new developments, Ho Bee built up recurring income. If one is looking to buy Lafe, he or she should have a look at other property counters which easily offer much better value. Just my 2 cents worth.
PS: I'm not holding Lafe. Nor am I holding Ho Bee. Views are those of my own and do not represent any brokerage or bank's opinions.
(01-04-2016, 08:57 AM)TUBInvesting Wrote: [ -> ]Got into this company recently. Seem like it will be filled with cash in a few years time. Just wondering what are their plans moving forward...
http://tubinvesting.blogspot.sg/
Pardon me. Just speaking my mind.
1. If you are "wondering what are their plans moving forward", then you shouldn't be investing in this stock. There is a clear issue with visibility in terms of earnings. A google search on their order book revealed.... nothing. Order book is a good reflection of potential future earnings and it is one of the more reliable measures of near term plans.
2. When you mentioned "seem like it will be filled with cash in a few years time", there are many other companies with solid cash holding today. I'm quite puzzled regarding the basis of your statement. It will surely help fellow board members, if you share your insights about how Lafe would build up this cash balance.
3. Have you attended the shareholder meeting? Perhaps, you should attend before coming to your conclusion. The quality of management matters a lot more than our own personal biased views and should also readily confirm to you their plans moving forward. Just my suggestion.
Sharing some of my thoughts.