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With dividend yield of around 7%, NAV of US$0.91 (0.91 times of NAV), is this counter neglected or not worth investing?
I have invested in this counter since 2011, buying prices between US$0.65 to US$0.85, still trading at paper loss as at yesterday closing price. From hindsight, despite paper losses since day 1 of purchase, I have been receiving dividends of at least 6% since, and all dividends are reinvested, I think it is a good investment from dividend yield...
Any comments from fellow VB members?
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30-07-2014, 08:47 AM
(This post was last modified: 30-07-2014, 08:56 AM by corydorus.)
I do not know there is a S$ counter now. Remember it was first listed US$ which turn me off, the other being LKS is shrewd business man.
If your average is 95 for current 75. And your dividend 16 (rough est.) total across 3 years, is still a loss after dividends,
plus opportunity cost for the 3 years bull about 6% if you invest in apr 2012.
If you have invest around Sept '12 at STI low, opportunity cost using STI current is at least 15%. Seems a bad deal.
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Unfortunately for this counter, those who bought at IPO probably haven't recovered their investments yet! I bought after it first came down, at US 78.5 cents. Since then I have sat on my investments and collected my dividends. I also found that its price does move up and down, but its tradable volatility is measured not by days or weeks but by Quarters or even half-years; so I managed to make some trading gains. But to do that, you've got to bite your lips and let the share price come down, then buy some more, and later sell at a higher price. I am a value investor, so this is not my specialty, but I did make some money doing this. Currently, my average cost of investment per share is S$0.61. So if you are patient, this counter is not bad. The only uncomfortable thing about this counter is that its DPU value is higher than its EPS! At first, I was very worried and tried to find out how a company can sustain this phenomenon. Then I discovered that Mr LKS (old fox) extracted a lot of money out of HPH's IPO by "selling" off his stake at a very high price - you can see this in the huge goodwill on its balance sheet. If you strip off this amount from the NAV (you then get the NTA), the ROE based on NTA is actually not bad (if I'm not mistaken, around 18%). For his (LKS) own reputation sake with his first listing on SGX and because Temasek is a shareholder, I really doubt that HPH will go under. Just my 2 cents worth of comments; hope it helps.
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(30-07-2014, 09:40 AM)sykn Wrote: Unfortunately for this counter, those who bought at IPO probably haven't recovered their investments yet! I bought after it first came down, at US 78.5 cents. Since then I have sat on my investments and collected my dividends. I also found that its price does move up and down, but its tradable volatility is measured not by days or weeks but by Quarters or even half-years; so I managed to make some trading gains. But to do that, you've got to bite your lips and let the share price come down, then buy some more, and later sell at a higher price. I am a value investor, so this is not my specialty, but I did make some money doing this. Currently, my average cost of investment per share is S$0.61. So if you are patient, this counter is not bad. The only uncomfortable thing about this counter is that its DPU value is higher than its EPS! At first, I was very worried and tried to find out how a company can sustain this phenomenon. Then I discovered that Mr LKS (old fox) extracted a lot of money out of HPH's IPO by "selling" off his stake at a very high price - you can see this in the huge goodwill on its balance sheet. If you strip off this amount from the NAV (you then get the NTA), the ROE based on NTA is actually not bad (if I'm not mistaken, around 18%). For his (LKS) own reputation sake with his first listing on SGX and because Temasek is a shareholder, I really doubt that HPH will go under. Just my 2 cents worth of comments; hope it helps.
Thank you for your input. US$0.61 average price is an excellent price, your dividend yield is >8%! I think it is a good investment...
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Actually, it's S$0.61; I only monitor the S$ shares although the high volumes are the USD trades. My dividend yield should be around 10%, but this is only achieved after doing some trades and lopping of my purchase price each time I receive my distributions over the years.
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hpht is dropping like a rock!!!!!
can buy at current levels ?
I think dpu of 41 hk cents is the lowest you will ever see.
at least 4800 million hk dollars to distribute every year.
3200 mil from depreciation and 1600 mil from profits.
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Will it drop to > 9% yield base on assumption of 41 HKD DPU?
If it drop to such level, i.e. around 70 SGD cents, I think I would be interested with it...
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70 cents ?
I don't think you will be so lucky man.
I am going in at 80 cents.
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It is at 70 cents usd, now and chances are it will rise to around 81 cents by the time the next dividend is declared.
My guess is that the steep fall last year was because of the port strike, which is resolved, plus fears of china slowing down.
HPH Trust tends to fall on it ex-dividend date and then slowly rise from its ex-dividend date to its dividend announcement date.
In the last one year, we have seen a fall from 67 cents to 62 cents, a fall of 7.5% on its ex-dividend date and a fall from 75 cents to 67 cents , a fall of 11%.
Currently, it is slowly trending up from 67 cents USD and is at 70 cents right now.
Assuming history rhymes / repeats (please use as per your preference), chances are that it will hit 81 cents USD by Feb 2015.
http://sgx-stocks-sti.blogspot.sg/2014/0...trust.html
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
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http://www.businesstimes.com.sg/companie...to-hk4907m
HPH Trust Q3 profit falls 9% to HK$490.7m
Revenue rises 1.7% to HK$3.42b; group optimistic about its outlook
By
Malminderjit Singhmsingh@sph.com.sg@MalminderjitBT
hphtrustyr2810.jpg Hutchison Port Holdings Trust (HPH Trust) reported a 9 per cent drop in its third-quarter net profit on Monday to HK$490.7 million (S$80.7 million). PHOTO: HUTCHISON PORT HOLDINGS (HPH) TRUST
28 Oct5:50 AM
Singapore
HUTCHISON Port Holdings Trust (HPH Trust) reported a 9 per cent drop in its third-quarter net profit on Monday to HK$490.7 million (S$80.7 million), from the HK$539.2 million it earned during the corresponding quarter last year.
This was despite the port operator seeing
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