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(17-04-2012, 04:09 PM)Musicwhiz Wrote: [ -> ]Shanrui,

Thanks for your thoughts and observations. Nice summary for Managnese and OM Holdings.

I guess only time will tell if this is a good investment decision on the part of FF Wong. He mentioned 5 years time horizon, but it seems many are already judging him based on 5 months LOL!

Jokes aside, I guess he is betting on the Sarawak Project being massively profitable and also having a deep competitive moat. These, plus the upswing in prices in the years to come, would benefit once Bootu maximises output and Tshipi Borwa comes on-stream.

Since you are vested, perhaps you will be attending the upcoming AGM? It's really refreshing to speak to the man himself as well as the very friendly IR Mr. Keith Chu. Smile

This is indeed a 5 years project since output will only start in late 2014.

I am just recently vested (few hours back) though this coy keep showing up in my screen for months due to its high cash and high roe undervalued play. reason why i am not vested earlier on as each time i see its engineering and geo-spatial segment, I will give up trying to understand what it is. only recently then that i discover that geo spatial technology is actually a software called esri, that I decide to dig deeper. while esri global market share is around 30-40%, esri australia has a much higher market share at close to 60-70%.

agm wise, I will wish to attend though I have 3 companies reporting FY in May and july might be a busy month for me.
Hi Shanrui,

Welcome to the (shareholder) club, LOL! It's a bummer that Boustead's share price refuses to collapse and allow us to purchase at a significantly lower price. I've been waiting for the last 6 months in a futile attempt to increase my position further. Undecided

Please continue to share your thoughts on the business. Big Grin
let me ask a simple question, if it was your money, would you invest into OMH at the price Boustead paid?

if yes, then no doubt, you should buy OMH yourself, when it was around the same price as what Boustead purchased. You enjoy the absolute benefit of OMH's growth rather than through Boustead since the conviction of OMH is so strong.

just like the case of SembCorp Marine vs. SembCorp Ind, if you believe in offshore & marine, which one would you buy?
indeed, i have asked the question about whether should i be vested in omh instead. but boustead's esri and dbl are really attractive. OMH still has its own risk, this is undeniable. but should the project fails, the impact to boustead will not be as much as an impact to omh.

I like boustead not so much for its omh investment but for its cash holding, high roe(despite having dbl asset and high cash), and for its current price. the success of omh will be a bonus but will not be critical to the future of boustead. For its growth wise, the dbl looks quite tempting as leasing profit should be coming soon. I have always preferred companies with strong recurring income that has the potential to grow.
(17-04-2012, 05:20 PM)freedom Wrote: [ -> ]let me ask a simple question, if it was your money, would you invest into OMH at the price Boustead paid?

if yes, then no doubt, you should buy OMH yourself, when it was around the same price as what Boustead purchased. You enjoy the absolute benefit of OMH's growth rather than through Boustead since the conviction of OMH is so strong.

I've thought about this before, but it's not that simple.

I don't understand OMH's business and Managanese industry as well as I should, therefore I would rather own part of OMH through Boustead.
1st of all, I would like to thank shanrui_91 for his comprehensive research on manganese. I have posted many links on Boustead with regards to OMH. However, I have not been able to link up all the facts. Its a fantastic piece of work.

As to the choice of Boustead vs OMH, it is not a straight forward simple choice.

Boustead is a proven cash generator after so many years and hopefully they may have bottom fish a bargain in OMH. To give credit to Boustead mgt, the ability to generate so much cash over the years via a portfolio of contractual based engineering business is by no means a small feat. The main objective in mind view going forward for Boustead is the ability to generate adequate returns on the cash hoard that is retained within the group. This is on top of the annual return of cash via healthy dividend income to shareholders.

OMH on the other hand is a minor metal miner that is embarking on an ambitious path to pursue value added in which the company thinks is lucrative. With a typical mining company, to be a long term investor, it pays to buy when it is the darkest. A strategy that Boustead has pursued and appears to have been rewarded after a short term. However, given the substantial amount of capex that OMH is committing, one can never be certain if the calculated risks will pay off - hence at this stage it remains a high risks high return play.

Boustead VS OMH - its anyone's call depending on individual risks preference.
No one is proposing Boustead vs OMH. The point is that if you believe that Boustead is going to benefit greatly from OMH, I would suggest direct exposure to OMH. Otherwise, let's just say that we all have our own fair share of skepticism about the prospects of OMH, not mentioning the possibility of Boustead benefiting from OMH. We are investing into Boustead because it is Boustead, not because Boustead bought some stake in OMH. after all, OMH is just a small investment for Boustead, not anywhere near to Boustead Salcon Water.
(17-04-2012, 07:31 PM)freedom Wrote: [ -> ]No one is proposing Boustead vs OMH. The point is that if you believe that Boustead is going to benefit greatly from OMH, I would suggest direct exposure to OMH. Otherwise, let's just say that we all have our own fair share of skepticism about the prospects of OMH, not mentioning the possibility of Boustead benefiting from OMH. We are investing into Boustead because it is Boustead, not because Boustead bought some stake in OMH. after all, OMH is just a small investment for Boustead, not anywhere near to Boustead Salcon Water.

I fully agree with you given that the stakes are not high enough for it to even enjoy the profits from OMH other than through increase in share prices. I just want to demystify OMH to clear up all the doubts once and for allWink
(17-04-2012, 07:31 PM)freedom Wrote: [ -> ]No one is proposing Boustead vs OMH. The point is that if you believe that Boustead is going to benefit greatly from OMH, I would suggest direct exposure to OMH. Otherwise, let's just say that we all have our own fair share of skepticism about the prospects of OMH, not mentioning the possibility of Boustead benefiting from OMH. We are investing into Boustead because it is Boustead, not because Boustead bought some stake in OMH. after all, OMH is just a small investment for Boustead, not anywhere near to Boustead Salcon Water.

Given the state of Salcon, should OMH take off, it will be easily bigger than Salcon. After all these years, I have long written off Salcon. As long as Salcon dun bleed and can be part of integrated engineering solution to Boustead's total engineering solution, I am already happy.

You have also raised a valid point - OMH is a small investment. Do you seriously think Boustead will park with its hard earned cash for a insignificant minority stake of 8% (unable to equity account, just dividend account and unlikely to receive much dividends till 2015/16). I m more to incline that there could be bigger rabbits on the horizon.

Anyway, company well run, just sit and patiently wait for durian to drop. But make sure u wear yr helmets while waiting ok.

http://info.sgx.com/webcoranncatth.nsf/V...300330D68/$file/Boustead_Announcement-Incorporation_of_a_Subsidiary_in_India-17.04.2012.pdf?openelement

Looks like Indian refineries are calling... anyone know of substantial investments in Indian refineries on the horizon?
why would you not say if Salcon Water takes off, it will be worth much more than OMH. I bet that Boustead knows more and better about Salcon Water than OMH. Diworsification normally start with investment into something you might not know well. Not that I am suggesting OMH is diworsification.