Singapore Shipping Corp

[CY09]

Only works if you are going to pass it down for generations to come. This is because your actions have to be aligned to the controlling shareholder.

To them, this is a family run business and the accumulated wealth can remain in the company's balance sheet perpetually. So yes your interest has to be aligned to them where you continue to hold the shares with little dividends given but NAV growing. Similar to the idea of berkshire albeit with little share buybacks done and market being doubtful that Opmi will ever realize the full NAV

[fallscushion]

That I agree, it's a long grinding game, isn't that the same for most investment in business (except high tech? fast boom quick bust?).

If it's not listed (and no share price movement), we'd be looking mainly on BS, Profit and Cashflow.
In that case, are they doing badly?

IMO, our mind is being guided by Mr Market's manic depressive mood (being thinly traded magnified the impact).
If in alternative scenario whereby its share price has been up and up for the past few years, we'd be thinking it's a great investment, but the business numbers remain the same?

Their RORO business is largely operating like a 20-30 years bond.
To be exact, bond with step up interest, as the debts are being pared down over the years (reducing finance expense, adding to bottom line).
The long term visibility is there.

However with strong-minded (or you might say stubborn) Management "purging" out short term speculative opmi,
share price kept depressed for their "allies" (those opmi with interest aligned to them) to benefit upon.
If they want to hike the price, it's not difficult, considering the buyback controls most trading volumes?

<vested and definitely bias>

[¯|_(ツ)_/¯]

100% agree, and that's why this counter is where I stashed my spare cash. 

It was under radar and so far so good.

Now, with share buy-back, no much chance to buy below 25cents; with dividend cut by half, I felt the pinch too, but what to do?

I just hope that dividend could be re-instated bar.... otherwise, I don't mind a de-list offer. 

Gratitude.

[fallscushion]

This cashcow has net cash of about 35% of Market cap (at price S$0.25-0.26).
If I were the substantial shareholders, I'd definitely be darn tempted to give a lowball offer.
I bet S$0.28-0.29 might even be enough to get the long duration "enduring" shareholders to bow out.
Worst case, I up the offer to S$0.3?
Since dividend is so low, cash abundance and no new ships coming soon (presumably, as the interest rate is high), why not?