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14-07-2012, 02:06 PM
(This post was last modified: 14-07-2012, 08:43 PM by CityFarmer.)
(14-07-2012, 12:59 AM)pianist Wrote: how did u derive that instrinc value?
The valuation is simple and straight-forward, the only "tricky" part is the valuation of the China investment
- Cash ex-expense is 61 Mils for the diposal
- 2 Senoko Way property. If the property is sold together with disposal, the CMV is S$9.3 Mils. Although the property has higher valuation before disposal, but let's take the lowest i.e. S$9.3 Mils
- China investment. It bring in S$2.5 Mils in FY2011, Feed-mill market is a high-growth biz with double-digit growth in the past few years. It can easily value at PE of 15-20, but let's do it as PE 5 (since it is S-Chip
), the valuation is S$12.5 MilsTotal approx S$83 Mils. Mr Market valuation now is approx S$67 Mils @ S$0.495
The deterrence factor is on the risks involved, both real and perceived risks. I had done my assessment, and managed to convince myself to invest
I assume Mr market will price it to (or higher than
) intrinsic value when the deal is closing in due courseYMMV
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡