(07-11-2012, 02:16 PM)wozhaodaole Wrote: [ -> ]to be honest, his recent track record is pretty poor. all the cash flushed down into poor investments rather than being given to shareholders. you probably have to assume that 50% of the cash pile is not there when valuing this stock. investors are not going to see the cash in their pockets.
Well my outlook is slightly different perhaps. If it takes 5 tries to find a winner, I'm fine with that. That's what entrepreneurship and business is about. If the money wasn't there, these attempts would not be possible. I'd rather Boustead maintains the cash pile so that it can strike when liquidity disappears, or when opportunity knocks. And besides, I'm not convinced that OMH is a bad deal for the long-term... not for now at least. We may be facing economic headwinds now, but I believe the long-term China commodity-demand story remains intact.
another one bites the dust.
relying on the acumen of 1 man is key man risk in Boustead.
(08-11-2012, 09:16 AM)l0nEr Wrote: [ -> ]OMH is down AUD0.025 today at this moment, a 11.9% decrease...
http://investing.businessweek.com/resear...ker=OMH:AU
Earnings is coming up, which makes Boustead interesting for me. Have to see how small this investment is...
it's a disaster of a result.
you strip out the one-off divestment gain and the tax rebate, it's almost a loss making quarter.
there was also an afs loss. will this be the last of the afs loss we will see?
hmm....
The Group’s revenue is derived largely from project-oriented businesses and as such, quarterly
results would not accurately reflect the full-year’s performance. Full-year to full-year comparisons
are more appropriate for analytical purposes.
Boustead is certainly a tough nut to crack. After investing in this company for over 10 years, I have to admit that I still dunno how to analyse and have a good feel on the earnings of the company.
That said, its track record remains there and overall their guidance on what to expect has been reliable. Dividends payout has been reasonable and has been growing over time.
FF Wong has always reminded shareholders to look at his track record. Its a statement that only shareholders who have been long term will appreciate.
To be fair, Boustead has its fair share of misses over the years but somehow, perhaps its Boustead's conservatism that helped it sustained through these rough seas. Cash pile remains there and is still growing. Ex cash hoard, cashflow generating assets like industrial properties has been built up and even non equitable listed investments such as Hankore and OMH have been seeded (of course with these submarine investments, shareholders are far from happy since a company should only embark on winning investments).
Back to short term focus, Boustead did say that they expect earnings this year to be better than last year so shareholders should be at ease on this year's outlook. However, with quiet contract flows for months, there remains uncertainty as to where earnings will be flowing through for next FY. Honestly with an uncertain world like we have today, there will be less corporate bosses that dares to commit to another blue sky outlook. Hence perhaps as shareholders and potential investors, we should continue to diligently watch out for indicators that will provide leads on Boustead's outlook.
As a long term holder, I am definitely more confortable with the Boustead of today compared to even 3 years ago. Recurrent earnings is easily S$40m pretax (about S$30m from ESRI and S$10m from its small but stable industrial property portfolio) without the project based businesses. Bear in mind that these two businesses are cash generating business and keeps adding to the growing cash hoard in Boustead.
With a growing cash hoard, property holdings and small leaders in some niche engineering field, there are plenty of options in which Boustead can unlock shareholders wealth if they so wish to pursue. In addition, there is also transformation that Boustead and FF is always talking about in potentially creating new earnings stream. So the choice is yours - in it or look for other fishes in the ocean.
(14-11-2012, 11:03 AM)Salty Wrote: [ -> ]The Group’s revenue is derived largely from project-oriented businesses and as such, quarterly
results would not accurately reflect the full-year’s performance. Full-year to full-year comparisons
are more appropriate for analytical purposes.
let's agree on this: their quarterly earnings could be lumpy due to lumpy revenue recognition from the engineering and construction division.
if you look at this current quarter, the revenue contribution from this division was fantastic. it was a positive contribution and should have pulled up earnings substantially.
however, despite the good showing from the construction division, core earnings was abysmal. margins went down the drain. the other divisions were also poor.
the stock will only rerate if the cash is returned to shareholders and not treated like someone's personal investment money.
Anyone going Retail Investor Outreach Programme on 12 Dec? Wonder what the programme will be like for the 2 hours. Lets hope there's not as many participants given that lunch is not provided
(03-12-2012, 06:31 PM)shanrui_91 Wrote: [ -> ]Anyone going Retail Investor Outreach Programme on 12 Dec? Wonder what the programme will be like for the 2 hours. Lets hope there's not as many participants given that lunch is not provided
Where did you get this info from?