2nd Chance Properties

[ashparagon]

I wonder why the price is so resilient knowing that future yield will be bad. Is the company paying any special dividend or capital reduction from the proceeds?

market not efficient one coz 99% dont read annual reports or corp anncs.
(fund mgrs included)

Pardon my ignorance as I am new to this, but why should the price fall even if everyone else knows about the news?

Looking at it,

1. Prior to this, there were concerns about the property market cooling off and the properties will not appreciate further. Thus finding opportunity to sell the properties when the time and price is right seems like a sensible move.

2. The disposal is valued at S$175,376,412, while the book value is only S$134,773,500. That's 30% above valuation. That seems like a really good price. If the sale does go through, doesn't this actually increases the NAV of the company?

3. Since the company has great business sense and is making good decisions shouldn't we buy more instead of selling?

4. Another point to note is that this is an option agreement, the proposed disposal will only go through if CM exercise the call option or 2nd chance exercise the put option, by 29 Aug 2014. So nothing is finalised yet.

Am I missing something here?