11-01-2011, 12:51 PM
Anyone of you guys invested in Wheelock Properties? I realised theres no discussion on Wheelock Properties.. .. i decided to contribute my share of things...
Based on some simple analysis done...it looks like a good pillow stock with potential to be privatised. Currently it has an NAV of 2.21 against the current px of 1.97 (about 10% discount).. It has a huge cash hoard of 872mil (73cents per share).
Basically Wheelock's income is derived from 3 components - Investment Properties, Development Properties , Equity Investments
Investment Properties:
Wheelock Place Valuation appx 750mil
Scotts Square Valuation appx 300mil
Total: 90cents per share
Development Properties:
Scotts Square (76% sold) Progressive Recognition
Orchard View (9/30 sold) Progressive Recognition
Ardmore 3 (Slated for launch in 2011)
Equity Investments: (My estimation will be grateful if someone can correct me and give me a specific amt )
15% stake in SCGlobal (worth $103mil)
XX% stake in HPL (worth about 235mil)
Total: 28cents per share
Based on the current price of $1.97 ... stripping its cash in bank account nett - bank loans as well as its equity investments.. effectively we are paying only a value of about $1.06 for its investment properties + income derived from its property developement business...most of their profits(90% are derived from this) .. eps from this 2 business is easily at least 10cents per share every yr....its already 17.7cents ytd... looks like a steal to me at this price......not sure what u guys think...
There are also risks/disadvantages associated to this stock
- Depleted Landbank (Left Ardmore 3)
- Lack of Liquidity (75% held by Wharf Holdings)
- Equity investment in SCGlobal and HPL (both dont really pay out good dividends for shareholders its stake in SCGlobal is loss making(paperloss) however its stake in HPL is sitting on a gain of about 55%)
Overall based on the pros and cons i think wheelock is worth buying...keep as pillow stock..haha..just got a niggling feeling they be paying some special dividends this yr..they pay a cash distribution of 2 bucks per share in 2006...so fingers crossed!!!
Based on some simple analysis done...it looks like a good pillow stock with potential to be privatised. Currently it has an NAV of 2.21 against the current px of 1.97 (about 10% discount).. It has a huge cash hoard of 872mil (73cents per share).
Basically Wheelock's income is derived from 3 components - Investment Properties, Development Properties , Equity Investments
Investment Properties:
Wheelock Place Valuation appx 750mil
Scotts Square Valuation appx 300mil
Total: 90cents per share
Development Properties:
Scotts Square (76% sold) Progressive Recognition
Orchard View (9/30 sold) Progressive Recognition
Ardmore 3 (Slated for launch in 2011)
Equity Investments: (My estimation will be grateful if someone can correct me and give me a specific amt )
15% stake in SCGlobal (worth $103mil)
XX% stake in HPL (worth about 235mil)
Total: 28cents per share
Based on the current price of $1.97 ... stripping its cash in bank account nett - bank loans as well as its equity investments.. effectively we are paying only a value of about $1.06 for its investment properties + income derived from its property developement business...most of their profits(90% are derived from this) .. eps from this 2 business is easily at least 10cents per share every yr....its already 17.7cents ytd... looks like a steal to me at this price......not sure what u guys think...
There are also risks/disadvantages associated to this stock
- Depleted Landbank (Left Ardmore 3)
- Lack of Liquidity (75% held by Wharf Holdings)
- Equity investment in SCGlobal and HPL (both dont really pay out good dividends for shareholders its stake in SCGlobal is loss making(paperloss) however its stake in HPL is sitting on a gain of about 55%)
Overall based on the pros and cons i think wheelock is worth buying...keep as pillow stock..haha..just got a niggling feeling they be paying some special dividends this yr..they pay a cash distribution of 2 bucks per share in 2006...so fingers crossed!!!