Chip Eng Seng

[specuvestor]

I was referring to developers as a business model. I wasn't specifying CES as this applies to all developers, so ya this is the "norm". The issue I am highlighting is forumers are trying to peg CES to RNAV.

When you talk about cost being capitalsed we know you are not talking about cashflow. Working Capital is not a number that is in a B/S (pun intended), it is real hard cold cash being tied up related to generating activity for the real world business. It should be part of the ROIC analysis

In such situations, a "high" working capital is obviously the norm as all costs relating to the project are capitalized under the development properties account, which is the inventory of the developer.

As for cash companies with no business I think recently Memstar comes to mind but that one is a bit more complicated that maybe CityFarmer can chime in more. There are quite a few cash companies in the past including a hotel business which I cannot remember now, which I'm sure some VB can refresh our memory. Nonetheless as discussed in other thread there is a floor price for shell companies of around $15m as that seems to be the price for an unencumbered mainboard listed shell.

The only time I can remember stock trades significantly higher than a cash shell with no business is during the dot coms.