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800 Super
26-10-2011, 11:33 AM.
Post: #1
800 Super
Anyone has any thoughts about this company?
Recently listed on Catalist at $0.22 but current price around $0.14. Giving it a PE of between 4-5. NAV per share about $0.13. Dividend yield at 14 cents would be 0.55/14= 3.9% (payout of about 21% of profits). Recent announcements since listing include a JV to provide waste management services in UAE, winning a contract at the wholesale market in Pasir Panjang and an MOU to develop an integrated waste to energy project in Singapore.
One does see their vehicles on and off on the roads but not as prevalent as Veolia or Sembwaste. With the government's aim to manage the environment better, this must be a sunrise industry.
This is a small company but is sure to give Sembwaste a run for its money. Any opinions for or against this company would be welcome.

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26-10-2011, 11:49 AM.
Post: #2
RE: 800 Super
a high capex business operating in an intensely competitive environment.

veolia is scaling down most of its worldwide operations given their huge build-up of debt over the past few years when they went ballistic on expansion. i don't understand why they are in singapore's market; it is so darn small for them.

sembcorp is too big a player in this market. i don't see how 800super may pose even the slightest threat to them. the smaller players are just picking the leftovers.

800super's performance should be somewhat similar to colex's.

nevertheless, waste management is an enduring business. given its heavy reliance on capital equipment, i will be keen if and when this is selling at a significant discount to book.

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27-10-2011, 09:45 PM.
Post: #3
RE: 800 Super
Yes, don't think it will pose a threat to Sembcorp at all. This is David and Goliath. But think the pie is big enough for this David of a company to grow. It appears to me that a lot of the local companies know already that they have to go abroad to make the big bucks. The Singapore market is just too small. However, it is a good place to start or list a business. And the leftovers could be cigarette butts, good for a puff or two more (borrowed from Philip Fisher who used this analogy on companies).

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26-01-2012, 09:48 PM.
Post: #4
RE: 800 Super
Wonder why the price seems to be moving up of late albeit at low volumes. But the spread is quite wide. Is there something that some people know that the rest don't? Dividend coming perhaps.

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21-02-2012, 12:28 AM.
Post: #5
RE: 800 Super
Just released their half year result on 13 Feb. Revenue increased 17.1 per cent, Net profit increased 66.9 per cent. EPS 1.86 cents. NAV 15.49 cents.

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15-08-2012, 11:14 PM.
Post: #6
RE: 800 Super
Price of this counter is gradually increasing but liquidity is rather low. News that might affect it lately are the increase in service and conservancy charges of HDB flats, consolidation of waste collection sectors from 9 to 6, standardisation of fees for waste collection and contract renewal in 2013 (they have to tender for this, I think). This NEA webpage should be relevant:
Looks like the area allotted this coy remains the same- smallest geographical area of coverage but probably the most densely populated sector.

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03-12-2012, 02:13 PM. (This post was last modified: 03-12-2012, 02:19 PM by karlmarx.)
Post: #7
RE: 800 Super
Price is trading at about 15% premium to book, and not more than 6 times past FY earnings. With the future growth prospects from nea's latest policy changes -- as mentioned above -- 800super has the potential to be worth a lot more in a few years. Balance sheet is healthy but is expected to be weighed by their recent purchase of land at tuas.

Given the defensiveness of their business, plus growth prospects, their current p/e is undervalues the business too much. One reason for this may be the low free float; about 15% only. Their public waste collection contract for bishan-toapayoh will end next year. March 2013 is a good time to watch for contract renewals.

It is a pity that free float for this business is so low, and that makes any meaningful accumulation, at a good price, difficult.

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04-12-2012, 12:20 AM.
Post: #8
RE: 800 Super
I get the feeling that they might issue new shares or rights to help finance the land that they recently bought in Tuas. This may help improve liquidity as well. Just a guess.

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04-12-2012, 04:36 PM.
Post: #9
RE: 800 Super
I had the same thoughts as well.

I thought they should have raised more money during ipo, since they must have a rough estimate of the cost of their expansion plans.

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04-12-2012, 10:10 PM.
Post: #10
RE: 800 Super
why did they buy the land?

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