Analysis

Portfolio Update

2010-01-03T05:59:00.000-08:00

2009 was a up n down year.

Overall , the counters i invested in, grew.

Global Invest (formerly known as Babcock ) $0.26
Cambridge $0.46
Fraser Commerial Trust ( adjusted for rights ) $0.145
First Ship $0.61
Indiabulls (adjusted for rights ) $0.26

My Portfolio of Business Trust

2008-11-26T19:23:00.000-08:00

Hi all,

This financial crisis has swamped round the whole world, no one is being spared of this.

I took a long term view on this and purchase some Business Trust.

Babcock $0.625
Cambridge Industrial $0.40
Fraser Commercial Trust $0.285
First Shipping Lease Trust $0.40
IndiaBulls $0.15
Lippo Maple $0.675
Macq Infra Industrial Fund $0.33

I am now building a portfolio of regular distribution.
I have purchased Babcock and Lippo Mapple too early this year. I will look to ave down in coming mths.

Why Inveset in REITs?

2008-11-11T22:07:00.000-08:00

Who Invests in REITs?

-Individual investors of all legal ages can invest in REITs directly or through REIT mutual funds. -Other typical buyers of REITs are exchange traded funds, pension funds, endowments.

Why Should I Invest in REITs?

REITs are total return investments.

They typically provide high dividends plus the potential for moderate, long-term capital appreciation.
Long-term total returns of REIT stocks are likely to be somewhat less than the returns of higher risk, high-growth stocks and somewhat more than the returns of lower risk bonds.

REITs are required by law to distribute each year to their shareholders at least 90 percent of their taxable income. Thus, REITs tend to be among those companies paying the highest dividends.
The dividends come primarily from the relatively stable and predictable stream of contractual rents paid by the tenants who occupy the REIT’s properties. Because rental rates tend to rise during periods of inflation, REIT dividends tend to be protected from the long-term corrosive effect of rising prices.

In SUmmary,

REITs offer investors:
• Portfolio diversification, which reduces risk
• Current, stable dividend income
• High dividend yields
• Dividend growth that has consistently exceeded the rate of consumer price inflation
• Liquidity: shares of publicly traded REITs are readily converted into cash because they are traded on the major stock exchanges
• Professional management: REIT managers are skilled, experienced real estate professionals
• Oversight: Independent directors of the REIT, independent analysts, independent auditors, and the business and financial media monitor a publicly traded REIT’s financial reporting on a regular basis. This provides investors with a measure of protection and more than one barometer of the REIT’s financial condition.
• Disclosure obligations: REITs whose securities are registered with
the authorities are required to make regular disclosures, including
quarterly and yearly financial reports.

2008-11-08T20:45:00.000-08:00

FAQ on REITS

THE BASICS OF REITS

1) What is a REIT?

A REIT is a company that mainly owns, and in most cases, operates
income-producing real estate such as apartments, shopping centers,
offices, hotels and warehouses. Some REITs also engage in financing
real estate. The shares of many REITs are traded on major stock
exchanges.

To qualify as a REIT, a company must have most of its assets and
income tied to real estate investment and must distribute at least 90
percent of its taxable income to its shareholders annually. A company
that qualifies as a REIT is permitted to deduct dividends paid to its
shareholders from its corporate taxable income. As a result, most
REITs remit at least 100 percent of their taxable income to their
shareholders and therefore owe no corporate tax.

2) Why were REITs Created?

Congress created REITs in 1960 to make investments in large-scale,
income-producing real estate accessible to average investors.
Congress decided that a way for average investors to invest in large
scale commercial properties was the same way they invest in other
industries — through the purchase of equity. In the same way
shareholders benefit by owning stocks of other corporations, the
stockholders of a REIT earn a pro-rata share of the economic
benefits that are derived from the production of income through
commercial real estate ownership. REITs offer distinct advantages for
investors: portfolio diversification, strong and reliable dividends,
liquidity, solid long-term performance and transparency.

3) How Does a Company Qualify as a REIT?

REIT must:
• Be an entity that is taxable as a corporation
• Be managed by a board of directors or trustees
• Have shares that are fully transferable
• Have a minimum of 100 shareholders
• Have no more than 50 percent of its shares held by five
or fewer individuals during the last half of the taxable year
• Invest at least 75 percent of its total assets in real estate assets
• Derive at least 75 percent of its gross income from rents
from real property or interest on mortgages financing real property
• Have no more than 20 percent of its assets consist of
stocks in taxable REIT subsidiaries
• Pay annually at least 90 percent of its taxable income in
the form of shareholder dividends

* Information taken from:
National Association of Real Estate Investment Trusts®
REITs: Building Dividends and Diversification®

Property Counters dip a fair bit

2008-08-12T03:42:00.000-07:00

Well, due to sub prime , property counters have came down quite a lot.

Counter that are on my watch list:

1) Heeton
2) Hongfok
3) Singapore Land
4) Superbowl
5) Capitaland

Courts Singapore to Privatise???

2008-06-03T04:57:00.000-07:00

On 7th June 07, Singapore Retail Group Limited has acquired 54.16% in Courts Singapore from Courts Group International Limited for S$0.645. This trigger a general takeover by SRG at S$0.645 (inclusive of dividend payable), else it will be S$0.608.

The offer ended on 16th Aug 07, with SRG acquiring a total stake of 69.07% stake in Courts Singapore.

From that day onwards, SRG has been buying stake from other shareholders and open market, and increased its stake to 86.99% as of 29th May 08.

So, what is the next move?

My guess is that

A privatization exercise will take place to delist Courts Singapore. Asia Retail Group Limited being the ultimate shareholder of Courts Singapore will benefit synergy economics of scale, by merging the business if they are able to take Courts private. To take Courts private, with only 3.01% more to hit the trash-hold of 90%, Asia Retail Group will attempt to take Courts private.
NTA of Courts is $0.7057, my take is that any attempt will be offering a price near to its NTA.

Babcock n Brown Infrastructure Fund

2008-03-10T16:32:00.000-07:00

Above is the FY07 results for Babcock & Brown Infrastructure Fund.
The board provided a guidance for dividend for 1H08 of 5.2cts
Based on current share price of 63cts, this represent a return of about 8% semi annually.
2H08 has yet to announced the dividend guidance.

Last yr , it gave a total of 10.2 cts of dividend, which represent a div of about 15% annually.

I would recommend investors to consider picking this up on a long term investment horizon.

BACKGROUND

Babcock & Brown Structured Finance Fund Limited is a mutual fund company incorporated in Bermuda on 24 April 2006 and managed by Babcock & Brown Structured Finance Management Pty Ltd. The Company’s key investment objective is to invest in a portfolio of assets and economic exposures which provide its Shareholders with an attractive yield and a competitive rate of return by paying regular dividends and achieving capital growth. The Company plans to achieve its investment objectives and policies through further acquisitions, active portfolio management as well as financing and risk management. The Company provides investors with the ability to invest, through the Company, in asset classes which are not readily accessible to most investors in a listed form.

The Company invests in assets in three target sectors: -
Operating Lease Assets;
Loan Portfolio and Securitisation Assets; and
Alternative Assets.

The Company intends to invest in assets in three target sectors to create a portfolio with predictable cash flows, potential for long term capital growth and diversity across each target sector and across geographies and currencies.

Fortress Financial Group

2008-02-06T05:20:00.000-08:00

Fortress Financial Group, Inc. - Update on Gold InterestsFriday January 11, 10:44 am ET
Company Confirms Transaction in Respect of Its Remaining Two Gold Mining & Exploration Projects

NEW YORK--(BUSINESS WIRE)--Fortress Financial Group, Inc. (PINKSHEETS: FFGO - News) is now in a position to confirm that it will be disposing of its interests in its two remaining Gold Mining & Exploration interests, those being Bouse Mining Holding Holdings plc (“the “Bouse Project”) and Copperstone Mining Holdings plc (“the South Copperstone Project”).
Fortress Financial Group, Inc. holds approximately 48% of these two Gold Mining & Exploration companies with the majority of the remaining outstanding shares being held by eligible Fortress Financial Group, Inc. (formerly Great West Gold, Inc.) stockholders.

Those eligible stockholders being “Stockholders on Record” on the below-mentioned dates:
Bouse Mining Holdings plc on November 7, 2005

Copperstone Mining Holdings plc on December 2, 2005
These stockholders will receive their “free trading” shares in the new USA quoted Gold Mining & Exploration Company; upon completion of this transaction.
It is expected that this transaction will complete; including the share issues; by no later than mid February 2008.

Fortress Financial Group, Inc. and the other stockholders in Bouse Mining Holdings plc and in Copperstone Mining Holdings plc will receive stock, in exchange for their stockholdings in both “Bouse” and “South Copperstone”; in a USA quoted Gold Mining & Exploration Company, with an existing Gold Mining portfolio; and with a very experienced and capable Management Team.
It is expected that Fortress Financial Group, Inc. will receive and retain close to 20% of this Company. Fortress Financial Group, Inc. has not sought, nor will it will receive Board representation in this Company.

Fortress Financial Group, Inc. will retain its stock in this Company, as a portfolio interest alongside its interest in Hunt Gold Corporation (HGLC.PK). It is intended to distribute a large portion of these two quoted stockholdings to Fortress Financial Group, Inc. stockholders; in the future.

Fortress Financial Group, Inc. will retain a significant but passive investment holding in the Gold Sector, the Company’s Management being of the opinion that the Gold price will continue to rise, given the underlying fundamental demand and supply globally, for the metal.

Upon the completion of this transaction, Fortress Financial Group’s direct interest in this Company and in Hunt Gold Corporation; will be valued at circa US$1billion. Needless to say, this creates an enormous strong foundation for the Company, to very rapidly expand its financial service interests.

Alan Santini, the Chief Executive Officer of Fortress Financial Group, Inc. commented “that given the explosive growth and activity in the Company’s MasterCard business, coupled with the Company’s Investment portfolio being exclusively in Gold Assets, with the Gold price at a new Record High, he was extremely optimistic that the Company would grow from strength to strength”. He added that “the strength of the Company’s Balance Sheet with no debt whatsoever, would enable the Company to expand at a far more rapid pace that was ever envisaged by the Company’s Management”. Alan Santini pointed out “that should the Gold price continue its upwards trend, as expected, the Company’s indirect passive investments in the Gold Sector could prove to be a huge unforeseen bonus in respect of our stockholder value.”
About Fortress Financial Group, Inc.

Fortress Financial Group, Inc. is now primarily engaged in the issuing and marketing of prepaid debit and credit card and related payment solution activities. It has just announced the acquisition of Moneyworx, Inc., a reseller of MasterCard prepaid USA Domestic and International Prepaid Debit Cards.

Fortress Financial Group, Inc. will be launching its own label “Fortress” International Debit Card in the first quarter of 2008.

Fortress Financial Group, Inc. (formerly Great West Gold, Inc.), was a gold mining exploration stage company, engaged in the acquisition and exploration of mining properties in the United States. The Company has disposed of its interests in the “Ambassador”, “Golden Eagle” and “Mockingbird” Gold Mining Exploration properties to Hunt Gold Corporation (PINKSHEETS : HGLC - News); and holds approximately 48% of Hunt Gold Corporation shares of outstanding Common Stock, as an investment.

The Company is now disposing of its interests in the “South Copperstone”, and “Bouse” Gold Mining Exploration properties, in exchange for shares of Common Stock in a USA Gold Mining & Exploration Company, in and during February 2008.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a companies' annual report on Form 10-K or 10-KSB and other filings made by such company with the SEC.

Things to NOTE which purchasing an Investment Plan for Unit Trust

2008-02-03T06:45:00.000-08:00

Hi all,

i have invested in investment plan b4. Here are some of my personal experiences.

1) Underlying Assumptions

This investment product assumes that market will up in the uptrend in the long run. ( long run here i mean more than 5 yrs ). This also follows the Dollar Averaging Method.

Illustration:

In jan, the unit trust is $1, with a monthly contribution of $200, u can buy 200 units.
In feb, unit trust rises to $2, $200 will give u 100 units.
.
.
.
and so on. So in 2 mths, yr ave price is $1.33 and valuing at $400, with 300 units.

So when prices are high, u buy lesser units
and prices are low, u buy more units.
In the long run, ASSUME market is uptrend, u stand to benefit.

2) Bid - Ask Gap

Well, Not all unit trusts quote at NAV ( net asset value ) prices. That means the unit trusts Bid $1, ask $1.05. So yr monthly $200 contribution buy the unit trust at $1.05 per unit. So in the future, if u want to sell, u sell at $1. So using simple maths, an investment in unit trust cost u 10% of yr invested amount. Unless, yr unit trust rises more than 10% during yr invsetment period, it is unlikely that u will earn.

3) Misc charges

This is a headache. There R A LOT OF MISC CHARGES.
Management fees: usually 1 - 5% per annum depending on the funds u invest in
Policy Fees: $2 per mth for some companies, or $30 per yr for some companies.
Advisory Fees: ranging, can be a few hundreds depending which company u took up with.

Will update this when i got time....kiv first

Zero Certs vs Warrants | Zero certs vs ETF and Unit Trusts

2008-02-03T06:31:00.000-08:00

PISA Pac

2008-01-31T20:07:00.000-08:00

On 16th Nov, Pisa Pacific has proposed a delisting notice.

Offer price is S$0.44 ( Exit offer )

Conditions :

1) EGM to approve delisting proposal
2) At least 75% of nominal value of shares voted for the proposal
3) Delisting is not voted against by 10% of nominal value of shares.

Recommendations:
1) As this counter is highly illiquid, i would advice shareholders to accept the proposal.
2) Pisa SPA has 89.80 % stake in the company, therefore it is highly unlikely that more than 10% of shareholder will vote against the proposal.
3) Upon EGM, Pisa SPA will vote for the proposal as it was them who proposed the delisting offer. Condition 1 & 2 will go through, leaving remaining shareholder to vote for condition 3.

Current price of PISA PAC is $0.42, exit offer represent a 2cts profit or 2/42 = 4.76% return.
The exit offer is expected to be completed by June 08. Therefore annualise return is 19%

Asia Dekor

2008-01-31T19:26:00.000-08:00

On 18th Nov, Asia Dekor (AD) has reached an agreement to sell away all its assets for S$253.75 million.

Conditions:
1) 10% of the consideration or S$25.375 million must be kept in Escrow account until april 09 for the purpose warranties claim. The warranty claims are capped at S$60 million.
2) Shareholder approval ( resolution passed on 19th Jan 08 )

Proposed Distribution & Delisting:

AD has intended to distribute as much of the proceeds and as soon as practicable transaction in 1 tranches or several tranches to shareholders, by special div and capital distribution.

On 19th jan 08, AD has approved
1) a 18.8 singapore cents or approx S$178 million as special div to shareholders. The date will be announced at a later time.
2) The sale of assets to Asia Timber for S$253million
3) Cancellation of paid up capital from HK$0.15 per share to HK$0.00001, and amount of HK$142 million will be return to shareholder from time to time at such times the directors deem fit. ( thats abt 3 singapore cts )

Conclusion
1) A 18.8 cts special div will be distirbuted.
2) A HK$0.14999 capital reduction will be distributed.
3) The sale has been approved.

SO WHATS THE CATCH FOR ASIA DEKOR???!!!???

1) AD will be delisted in April 09. what will happen to the shares you have?
Remember that there is a S$253 million ( sales proceeds ) - S$178 million ( special div ) = S$75 million remaining. That works out to be about 5.5 singapore cts.
All remaining proceeds will be returned to shareholders, once CDP surrender yr share cert and cancel your existing shares.

Illustrations:

Every 10,000 shares you have now 1st Feb 08,
You are entitled to
1) S$0.188 x 10,000 = S$1880
2) HK$0.14999 x 10,000 = HK$1499.9 ( estimated depending on currency exchange at date of distirbution)
3) remaining cash est to be S$0.055 x 10,000 = S$550.

In total , u will get S$2729.98 ( estimated ) by April 09.

Current price of Asia Dekor is S$0.215,

every 10,000 shares will cost S$2150.

Estimate returns is $(2729.98 - 2150 ) / 2150 = 26.9% return in about 14 mths. ( annualise 23% )

As this is a relatively low risk investment, in view of current violitile market, i would advice investors to hold asia dekor, for the 23% return.

Buy defensive plays

2008-01-29T16:31:00.000-08:00

My take for 2008 is still:

1) Asia Dekor
2) Seksun
3) Ossia
4) Superbowl

Update on Eng Wah

2008-01-13T03:34:00.000-08:00

My previous posting on Eng Wah ....i recommend a buy at 62-65cts

Now, i call for a sell at $1.2, because it has raised almost 100% since my posting in sep 07.
And $1.2 is way above my target of $0.975 .

Seksun: Update

2008-01-01T02:03:00.001-08:00

Seksun has proposed a 13cts capital distribution.

Seskun: A rare opportunity to Hold and Profit

2007-12-22T18:59:00.000-08:00

On 19th Dec,

All resolutions were passed at the EGM held on Wed, namely
(a) the proposed sale of all the company’s assets;
(b) proposed name change to ENPORIS GREENZ LTD;
(c) proposed capital distribution of $50mln or 13 cents per share in cash to shareholders.

On 18 Oct 2007, Seksun agreed to sell its assets to Supernova for $295.1mln . The total amount expected to be received from Supernova translates to about 78.6 cents per share while management will endeavour to distribute about 72 cents per share to shareholders. According to management, the difference between the actual amount received and distributed to shareholders reflect provisions, deductions to be made for tax, $15mln to be retained pursuant to the share sale agreement, the costs and expenses incurred by the company in connection with the transaction, the costs and expenses required to be incurred for maintenance of the company’s operations subsequent to the closing of the transaction and any other liabilities.

My Recommendations:
1) Buy and hold if u got spare cash.
Current price is 73cts, distribution is abt 72cts. Effectively u are holding seskun for 1cts per share when they are expected to have 6.6cts cash after the sales and distribution.
Management has expressed their desire to acquire another new business, and to preserve the listing status. Therefore, the fair value of seskun, can only be determined after the proposed acquisation of company. BUT i strongly believe that, with the expertise of the management, a fair deal will be strike.
2) Time factor. Time is a factor. This is expected to take place over the next few months.

REITS Data

2007-12-22T18:32:00.000-08:00

NOTES :
Mkt Price is as on 21-Dec-07
LMIR : IPO Forecast - FY07 (Dec07) : 2.74ct (Annualised for 1-Jul-07 to 31-Dec-07) ; FY08 : 5.84ct ; FY09 : 6.27ct
CMT : Annualised DPU = 13.49ct ; Actual Payout 4.88ct for the Period 1-Jul-07 to 6-Nov-07
Saizen : IPO Forecast - FY09 (Jun09) : 5.65ct ; FY08 (Jun08) : 4.67ct (Incl. Bonus Div) / Annualised Yield 5.3% @ $1 (Excl. Bonus Div) / 6.51% (Incl Bonus Div)
Fortune : No Div Payout (Semi-Annual Policy)
CDL HTrust : Annualised DPU = 9.36ct ; No Div Payout (Semi-Annual Policy)
MMP : Annualised DPU = 6.11ct
Cambridge : Q307 - DPU 1.7ct ; Annualised DPU = 6.745ct ; Actual DPU Payout 2.01ct (for the period 1-Jul-07 to 17-Oct-07)
Suntec : Annualised DPU = 8.419ct
AllCo : Annualised DPU = 6.29ct ; No Div Payout (Semi-Annual Policy)
MI-REIT : Annualised DPU = 7.38ct
AscottREIT : No Div Payout (Semi-Annual Policy)
CapitaRChina : Annualised DPU = 6.80ct
CCT : Annualised DPU = 8.49ct ; No Div Payout (Semi-Annual Policy)
First REIT : Annualised DPU = 6.70ct
Cambridge : Equity Fund Raising Circular - DPU : FY07 5.357ct (Annualised) ; FY08 5.542ct ; Private Placement 276,973,000 New Units @ $0.70
K-REIT : Annualised DPU = 8.85ct ; No Div Payout (Semi-Annual Policy)
PLife : IPO Forecast - 2H07 : 3.3ct ; FY08 : 6.25ct ; FY09 : 6.39ct

High Dividend SHares

2007-12-20T21:28:00.000-08:00

1) M1: S$1.82

Dividend payout in 2006: $0.261 ( 14.3% )
Dividend payout in 2007: $0.146 ( 8.02% )

M1 has a track history of paying dividend, and its business is stable. At S$1.82, current price is attractive. Yr high was S$2.36, yr low was S$1.80.

My recommendation is to buy n hold, till it rise to S$2.10.

2) Babcock & Brown Fund

BACKGROUNDBabcock & Brown Structured Finance Fund Limited is a mutual fund company incorporated in Bermuda on 24 April 2006 and managed by Babcock & Brown Structured Finance Management Pty Ltd. The Company’s key investment objective is to invest in a portfolio of assets and economic exposures which provide its Shareholders with an attractive yield and a competitive rate of return by paying regular dividends and achieving capital growth. The Company plans to achieve its investment objectives and policies through further acquisitions, active portfolio management as well as financing and risk management. The Company provides investors with the ability to invest, through the Company, in asset classes which are not readily accessible to most investors in a listed form. The Company invests in assets in three target sectors: -
Operating Lease Assets;
Loan Portfolio and Securitisation Assets; and
Alternative Assets.
The Company intends to invest in assets in three target sectors to create a portfolio with predictable cash flows, potential for long term capital growth and diversity across each target sector and across geographies and currencies.

Price: S$0.95

Dividend payout in 2007 : $0.0528 (5.55%)
Dividend payout in 2008: $0.06 ( in jan ), the rest of the yr is expected to pay another 4-5cts. ( 6.3%)

I will recommend a buy for this Babcock & Brown fund. The fund is well managed and the manager has a track record of delivering results. Therefore the payout is fairly constant.

3) MACQUARIE INT'L INFRA FUND LTD
BACKGROUNDMacquarie International Infrastructure Fund Ltd (MIIF) is a mutual fund company that has been formed to own, operate and invest in a diversified group of infrastructure businesses around the world. It offers investors an opportunity to invest in the Macquarie Bank Group’s first listed infrastructure fund in the Asian region and to participate in the public ownership of infrastructure assets. Such infrastructure assets have traditionally been owned by governments or private investors, or have formed part of vertically integrated companies. It will invest directly in infrastructure assets as well as in securities that are issued by entities that have as their primary focus the management, ownership and operation of infrastructure assets.MIIF is managed by Macquarie Infrastructure Management (Asia) Pty Limited, a subsidiary of Macquarie Bank. Macquarie Bank has received global recognition for its expertise and experience in the management, acquisition and financing of infrastructure assets. The Macquarie Bank Group managed over A$31 billion (S$38 billion) of funds as of 31 December 2005 on behalf of retail and institutional investors. These funds are invested in infrastructure assets and businesses around the world, including, airports and airport-relatedinfrastructure, communications infrastructure, electricity and gas transmission and distribution networks, water utilities, rail and toll roads.MIIF's initial investments include direct investments in airport infrastructure in Belgium and communications infrastructure and renewable energy assets in the United Kingdom. In addition, it will own interests in one unlisted and four listed infrastructure investment funds that have ownership interests in, amongst other things, airports, communications infrastructure, utility and energy assets, water and gas distribution assets and transport infrastructure assets located in OECD countries, namely Australia, the United States, and certain European countries

Price: $0.97

Current price has reached 1 yr low, and is holding on well at the price of 96cts.

Dividend payout in 2006: $0.0705 (7.26%)DIvidend payout in 2007: $0.0815 (8.4%)

I will call for a buy with target $1.10

4) KYODO-ALLIED INDUSTRIES LTD

BACKGROUND
Founded in 1984, Kyodo-Allied Industries Ltd, a Singapore-Japan join-ventured company, is a turnkey designer, manufacturer, sales, and maintenance service provider of Clean Room equipment and systems.
The company's full range of services offers one-stop convenience for its customers. Its principle business activities comprise mainly in the:
1. Design, manufacture and sale of Clean Room equipment. 2. Design, manufacture and sale of air diffusion and ventilation equipment. In the nineteen eighties, following the rapid growth of manufacturer in the high technology, semi-conductor, chip and wafer fabrication, pharmaceutical and food production industries establishing their production operation in Asia, the demand for Clean Room equipment was greatly increased. To meet its customers' demand, Kyodo-Allied has since been actively involved in the design, production and distribution of air diffusion products and Clean Room equipment.Kyodo-Allied’s operations are headquartered in Singapore with manufacturing facilities based in Singapore and Malaysia. It has sales offices located in Singapore, Malaysia, Thailand and China. Some of the end users of its clean room equipment are MNCs and manufacturers of well-known international names such as IBM, Fujitsu, Seagate, Texas Instruments, Infineon, Fujitech, Fuji Electric, JVC, GlaxoSmithKline, Hitachi Chemical and Epson
Current price: $0.16
Dividend payout in 2005: $0.015 (9.38%)
Dividend payout in 2006: $0.018 (11.25%)Dividend payout in 2007: $0.025 (15.63%)

Current price represent a 15.63% yield based on last done price of $0.16. This is extremely attractive. Recommendation is a long term hold.

5) Food Junction

Current price is $0.51

Dividend payout in 2005: $0.04 (7.84%)
Dividend payout in 2006: $0.06 (11.76%)Dividend payout in 2007: $0.055 (10.78%)
Dividend payout in 2008: $0.01 ( there should be more dividend announcing as Food Junction declares dividend quarterly )

Type of Investments

2007-12-02T22:40:00.000-08:00

Investments like fruits have different kinds and forms. Over here i will share with u all some of investment tools available.

1) Equities Market ( also known as the Stock market )

The most popular investment is the equities market, namely the stock market. Buying shares is actually owning a small fraction of the company which u purchase the shares in. Should the company makes profit, u are entitled to dividends if the board declares any. However, there are fund managers and investors and spectulators around, therefore the shares that u purchase will experience changes in pricing, with the changing demand and supply of the investors.
In simple terms, one earn $$ when u buy the company at a low price and sell when it rises.

2) Unit Trust

Unit trust are a pool of resources namely cash, being managed by professional fund managers. They namely invest in equities market, bonds, teasury bills and other investment tools available. Investor need to note that there is a management fee usually about 1%, and there is a bid ask gap of 5% and lastly a sales charge of 3%. So by investing in unit trust, investor will lose 9% of his capital, thats y unit trusts are targetted at long term investors.

3) Bonds

Bonds are funds raise by managers and loan to corporates, who in turn will pay interest to the bond holders. Usually this form of investment will mature in 3-5 yrs times depending on the terms of the bonds. The interest will usually be 1-2% higher than fixed deposit rate., however, this is a highly illiquid form of investment.

4) Fixed Deposits

U place cash with banks and financial companies, then they will pay u interest rate. Investor need to know that usually this form of investment is unlikely to offset inflation.

5) Property Investment

This is a capital intensive investment. Investment will ride the industry waves in order to profit from it. Investors need to understand that property market in singapore move in a cyclic trend.

6) Land Banking

This is a newer investment tool available in Singapore. Investors will purphase plots of land in countries such as UK, Canada and US. Then once town plans etc paper works are put up and approved, the land prices will increase, and this is where investor will profit.

High Dividend Yield Shares

2007-09-19T17:12:00.000-07:00

On my current watchlist:

Food Junction: 5.5cts div payout this yr till date
William Array: HK$0.081 payout this yr
K1 Venture: Proposed 6cts payout this yr, last yr also payout 6 cts
Kyodo Allied: Proposed 2.5cts this yr, last yr 1.8cts was paid.

Eng Wah

2007-09-11T04:46:00.000-07:00

On 11th April 07, Eng Wah (EW) has sold its investment in Daikin Aircon for S$9.3 million. Below is the link to the announcement.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_D3497B442956B2E7482572BC001883A1/$file/AnnouncementSaleDaikin130407.pdf?openelement

On 24th May 07, EW has entered into a share exchange agreement with Transcu, that shares of EW will be exchanged with Transcu. ( 1 share of EW will be exchanged for 1 share of Transcu). On page 3 of the document, the conditions precedent 6(h) is that: EW must have no assets or liabilities except for S$10 million cash. And 6(i) says 75% of the shareholders must vote FOR the deal.

Attached Below is the document.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_AA872C8907AC6EEC482572E5000180A2/$file/EngWahRTO24MAY2007.pdf?openelement

Bearing these above conditions are requirements of the Reverse Takeover (RTO) deal, EW in theory ( what we predict ) will sell off all its assets namely its 4 cinemas and its office space at Orchard Towers.
Condominium unit Lot 208, Section 63, Jalan Binjai,Kuala Lumpur, Malaysia1,509sqf *

FreeholdOffi ce units 400 Orchard Road, Singapore 7,330sqf * Freehold

Empress Theatre 321 Clementi Avenue 3, Singapore 16,000sqf # 99 years leasehold commencing July 1978

Jubilee Entertainment Complex 61 Ang Mo Kio Avenue 8, Singapore 18,300sqf # 99 years leasehold commencing July 1979

Mandarin Theatre 535 Kallang Bahru, Singapore 15,000sqf # 99 years leasehold commencing May 1975

Toa Payoh Entertainment Centre 450 Toa Payoh Lorong 6, Singapore 15,000sqf # 99 years leasehold commencing August 1970

The 4 cinemas totalling 64,300 sq feet in land area, together with Orchard Towers 7330 sqfeet only registered S$17.9 million in book value. This is where all our interest come in. It works on to be abt $250 per sq feet, which is very very undervalued as compared to the market rate.

Assuming a $2000 psf for its orchard towers, and $1000 for the 64,300sqf cinemas,

Orchard towers = $2000 x 7330 = S$14.6m
Cinemas = $1000 x 64,300 = S$64.3m
Cash on hand = $11m ( as reported on 31st March) + S$9.3m ( daikin sales ) = S$20.3m

Total Estimated Worth = $99.2 million of cash SHOULD the cinemas can be sold at $1k psf.

Excluding $10m to be kept in account of EW, there is a POTENTIAL S$89.2m to be distributed to shareholders. EW has a 150 million shares float, so 89.2 / 150 = 59.5cts POTENTIALLY could be distributed to shareholders.

Also Transcu will be issuing new shares at 38cts to other investors, so we use a 38cts to add on to the 59.5cts = $0.975....that is what potentially u can get.

Risk Analysis:
1) Deal is likely to go through as EW holds 70%, they only need another 5% to vote FOR the deal.
2) Assumption for orchard tower is $2k psf, and $1k psf for the rest of the cinema. ( this is purely my assumption, maybe Dennis can provide the est psf of heartland prices) .My assumption is based on the fact that they are receiving S$4.8 m from rental income. And usually rental income is abt 6-8% yield of the asset, so assets should worth $60m - $80m.
3) Also we use the price of Tanscu placement price of 38cts to gauge the value of the new company.
4) The deal may or may not go through depending on the preceding conditions.

K1 Venture

2007-08-23T01:37:00.000-07:00

K1 venture has announced its latest FY07 results.

Net profit: $29m down from $179m as compared to FY06, this is due to the 1 time disposal gain of GASCO.

EPS is 1.31cts

Therefore K1 is trading at PE 21x, which is rather high at the momnet.
However, company is announcing a 6cts cash distribution from its share capital account.

Currently, K1 has entered an agreemtn to sell its Mid Pac Petroleum whereas K1 is holding on to Helm Holding Corporation. With S$310million cash reserve, k1 venture will persue any investment that will enhanced shareholder value.

Khong Guan

2007-07-23T07:24:00.000-07:00

Khong Guan Flour Milling Limited

The Company was incorporated as a private company on 19 August 1960. It obtained public status on 21 January 1969. Established as a milling company, it has now ceased the milling of wheat flour and corn grit and is now principally engaged in the trading of wheat flour and other edible products. It is also an investment holding company.

Net income has in 2007 to 2005 has increased over the 3 years. Profit was up 270% in 2007 as compared to 2005. United Malayan Flour (1996) Sdn Bhd, a 30% equity held associate, reported a profit after tax of S$3,671,000 (2006 : S$2,650,000) on a turnover of S$78,882,000 (2006 : S$86,251,000). The higher profit was substantially due to the upward revision of the controlled wheat flour price for non-general purpose flour. This was augmented by the lower cost of wheat grains purchased through forward purchase contracts.

Valuation

Scenario 1

From 2001 to 2007, Singapore economy has experienced a change in economic growth, from the economic recession in 2001 to the recovery in 2003-2004 and the boom from 2005 to 2007. The average result is indicative of the result expected in future business cycle.

As of present, based on current economic characteristics, the estimated worth of the company is S$4.30 per share.

Scenario 2

Allowing for a conservative growth of about 4% for next 3 years may not seem too speculative.
Using the above conditions, the company will be estimated to worth about S$ 5.00 per share.

Recommendation

Valuation

Khong Guan has achieved an EPS of 33.74cts. As of 20th July 2007, at S$3.60, Khong Guan is trading at a PE of 10.66x.

If Khong Guan is to trade at PE of 15, Khong Guan will worth $5.07.

If we were to assume a growth of 5%, then Khong Guan will worth $5.40.

Moreover, Khong Guan is able to achieve a positive cash flow of S$5 million in 2007. This is also possible in coming years.

Conclusion
It is recommended to have buy rating for Khong Guan for now.

Ultro Tech

2007-07-22T22:02:00.000-07:00

Rights Cum Warrants Issue

Ultro is proposing a 2 rights@$0.01 for every share held, and 1 free warrants for every 4 rights successfully applied.

Based on the last done price of $0.175 on 20th july 2007, after the issue
ave price will be $((0.175+0.01+0.01)/3)=$0.065

Assume a price spike to $0.25 ( which may not seem to speculative ), the theortical price is $((0.25+0.01+0.01)/3)=$0.09 which is still relatively ok.

However, Ultro did not indicate details of the usage of the funds raised. THerefore , there may be a certain risk involved here.

But , i will call for a spectulative BUY with target at least $0.25

Yoma acquires Zhong Bei Building in Dali, china

2007-06-21T05:08:00.000-07:00

Yoma Strategic Holding (YSH) is a leading property group in Myanmar. Its range of businesses includes property development, construction and piling services, and project management and design services in Myanmar.
It is an affiliate of the Serge Pun & Associates Group (SPA Group) which has various other businesses including financial services, manufacturing, services, trading and distribution, agriculture, management consultancy, and IT.
YSH aims to become a multinational corporation with strategic businesses beyond the real estate sector and in more than one market.

Acquisition of Zhong Bei Building in Dali , China

For the Acquisition of Winner Sight Investments Limited (“WSI”), YSH has entered into a conditional sale and purchase agreement to acquire from Allied Win Group Limited (“AWG”): 75% of the issued and paid up share capital of WSI; and estimated total purchase consideration of S$47.85 million.

This will be funded by a right issue of 425 million shares at 12 cents each, raising approximately S$51.1 million.

Zhong Bei building is located in the heart of Dalian Economic & Technological Development Zone and Comprises of two towers each of 22-storey high, with a 3-storey retail podium and one level of basement car park.

Total Site Area: 21,635.50 sq. m
Total GFA: 104,154.20 sq. m
(i) Retail Podium: 34,817.63
(ii) Tower Block (Office & Apartment): 58,499.52
(iii) Basement Car Park: 10,837.05

The estimated leaseable GFA after 18 mths is as followed:

• Serviced Apartments: 18,498
• Offices: 23,159
• Retail: 18,203

The rental for Office Grade A is RMB$4.75-6.6 per sqm per day.
The average rental for service apartment is RMB$5 per sqm per day with a 78% occupancy rate.
The average retail rental is abt RMB$3.4 per sqm per day with a 91% occupancy

Therefore after 18 mths,

YSH will be able to get abt RMB$87 million from rental on an annual basis.
This work out to be about S$17.4 million contribution. This will translate to an EPS of S$0.02 on an enlarged share capital of 850 million shares.

The above analysis excludes contribution from other segments from the company.

Using a PE ratio of 20x, this works out to be abt S$0.40 for YSH shares.

GeoVic....The Cobalt mine

2007-05-13T03:04:00.000-07:00

Who is GeoVic ?

Geovic Mining Corp.(Geovic) aims to be the world’s largest primary producer of cobalt by 2010 through its 60% ownership of Geovic Cameroon PLC (GeoCam). GeoCam has the exclusive development and production rights to seven large cobalt-nickel laterite deposits in southeast Cameroon.

Cobalt and its compounds have many diverse applications: 1) batteries for cell phones, computers, portable tools and hybrid electric vehicles, 2) super-alloys, mainly for jet engines , 3) chemicals, 4) wear resistant alloys, 5) catalysts 6) magnets Global cobalt use in 2005 was 55,000 tonnes and has grown 129% during the previous ten years.

A 2007 Canadian National Instrument 43-101 Technical Report estimated that the first deposit delivers an after-tax cash flow of US $1.6 billion, a 10% NPV of $529 million, an IRR of 77.5% and a payback of less than 1.3 years. Capital costs estimated at $129 million are deemed to be the lowest in the cobalt-nickel industry in total and on a cost per pound of annual metal production. Pre-tax cash operating costs are negative after by-product credits for nickel prices above $6.35 per pound. Such strong financial performance is attributed to the unique characteristics of these Cameroonian laterite deposits:
1. Mine is less than 16 meters deep – no need for blasting
2. Ore is relatively high grade and amenable to simple pre- concentration – cobalt is further upgraded by a factor of three
3. Concentrate is inexpensively leached under atmospheric pressure with low acid consumption
4. Process plant produces high-purity, versatile and readily marketable products – no need for costly third-party refining
Proven and probable ore reserves of 53 million tonnes allow average annual production rates of 3,300 tonnes cobalt (6.6 million pounds) and 2,800 tonnes nickel (6.2 million pounds) during the first 21 years of operation. An additional 145 million tonnes of inferred resources is adjacent to the first process plant. The project development schedule includes completion of final feasibility and environmental permits by July 2007; start of major construction in April 2008 and initiation of production by mid-2009, all in an environmentally sensible manner. The management, technical team and Board of Geovic have a successful and extensive track record of corporate and project generation, acquisitions, financing, development, operations and environmental management throughout the global mining industry. The attributes of the GeoCam deposits and the political and economic stability of Cameroon will enhance Geovic’s ability to provide greater stability to global cobalt prices and supplies while building value for stakeholders and creating long-term sustainable development in southeast Cameroon.The Company is based in Grand Junction, Colorado and, in addition to its common shares, two series of warrants (GMC.WT and GMC.WTA) are traded on the TSX Venture Exchange.

Devil in a Blue Dress
One would have know that commodities and natural resources have entered the bullish phase for the last few years. In fact, CRB index ( a measure of commodity prices ) has hit its highest level since 1980.Well, in most cases, it's a simple matter of supply and demand, which one will not appreciate it, as it does not affect us directly.
The world is consuming up more natural resources at an amazing rate that the supply of natural resources is depleting. Everything is running low from crude oil to gas to iron to aluminium to copper to uranium.Of course, everyone wants to enter commodities before others do so. They will have made a fortune if they predict the prices of the commodities accurately. However, a relatively unknown natural resource is slowly made known to us.
This resource is cobalt, a transition metal closely related to nickel.
The word cobalt is derived from the German kobalt, meaning "goblin" or "devil," a term that gold miners used because they thought that the bluish metal was worthless.
But cobalt is far from worthless... For centuries, cobalt has been used to create beautiful blue glass, ceramics, pottery, and tile. In fact, traces of cobalt were found in Egyptian artifacts dating back to 2,600 B.C.
Of course, today, cobalt is used for much more than color and oriental.
Essential to Modern Society!
Chemical & Engineering News reports that cobalt has recently undergone a significant transformation from an "ugly duckling" of no interest to miners... into a "swan" of strategic industrial importance.
It might surprise you to learn the countless ways cobalt is essential to our daily lives. From cobalt's applications in health, communications, and national defense... modern society could not function without cobalt.
The U.S. Geological Survey (USGS) reports that for many commercial, industrial and military applications, there is NO SUBSTITUTE for cobalt.
Cobalt is used in cell phones, rechargeable batteries, hard-disk drives, memory chips, radial tires, drill bits, paints and inks, satellites, turbine blades, and even solar panels.
And get this: Because cobalt has an unusually high melting point (2,723 Fahrenheit), it's able to withstand extreme temperatures that would destroy conventional metals like steel and aluminum. This makes cobalt absolutely essential in the production of jet engines and guided missiles.
New applications for cobalt are being discovered constantly, and some of them are starting to radically transform whole industries. Eg, hydrogen cells.
Hybrid cars for example...
According to Booz Allen Hamilton, hybrids are spreading like wildfire, and could account for more than 20% of new cars by 2010. That's 4 million new hybrids coming out every year. Cobalt is a key ingredient in hybrid vehicles. In fact, hybrids use five pounds of cobalt in nearly every car.
Not only is cobalt important to the U.S. military... it's a matter of national security.
Cobalt is critical to the production of military aircraft, defense satellites, guided missiles, tanks, and even submarines. Without cobalt, it would be virtually impossible to produce many defense products such as jet engines, missile components, or electronic components. In fact, cobalt is so vital to US national defense that the United States government has classified it as a "strategic material." Cobalt received its "strategic" classification under the Strategic and Critical Stockpiling Act (50 U.S.C. 98-h-2).
According to this law, a "strategic material" is a commodity whose lack of availability would seriously affect the economic, industrial, and defense capability of the United States. Further, this law requires that cobalt be stockpiled at 20 locations throughout the country so that the United States is not dependent on foreign sources of cobalt.
Problem is, despite the Stockpiling Act, the United States is almost completely dependent on foreign sources of cobalt. According to the U.S. Geological Survey, the United States DID NOT mine or refine cobalt in 2006. The domestic production was ZERO. That means the United States must rely on foreign sources for nearly all its cobalt needs. And here's the worst part: As the demand for cobalt is soaring, the world is facing a severe supply shortage that could be devastating to the United States. That's because Russia is moving to dominate the cobalt market for its own political gain.
As it turns out, the most lucrative source of cobalt is not in Russia. It's in the tiny country of Cameroon... on Africa's rugged West Coast.
Good news for U.S. industry and military operations. And even better news for early investors who could ride this CAD$2 stock listed in Canada since 6th dec 2006 till CAD$3.90.

Back in 1981, the United Nations launched a development program in Cameroon. The idea was to use local mineral resources to help fight poverty in the African country. And the project initially proved promising. In fact, the U.N. found a large nickel mine. But because nickel prices were so low at the time, the discovery didn't draw much attention. But in 1994, a veteran geologist became aware of the Cameroon nickel discovery. After reviewing samples, he realized that the mine had an unusually high level of cobalt. Further investigation revealed that the Cameroon site held the single-largest cobalt supply on the planet!
GeoVic was formed and began feasibility studies on the Cameroon cobalt mine.
It quickly became clear that the mine was an absolute fortune just waiting to happen. Not only was there a massive supply of cobalt at the location, but the cobalt was very close to the earth's surface. This meant that mining costs would be minimal... and profits would be mind-shattering.
Of course, news of Cameroon's lucrative cobalt mine spread, and every mining outfit on the planet was watering at the mouth for a piece of the action. Finally, the U.S. government decided that the Cameroon cobalt reserved needed to be in U.S. hands.
Cameroon's President Biya was invited to a private meeting at the White House with President Bush in March 2003. It was the first time the presidents of the two countries had ever met. What did Bush promise President Biya? No one knows for sure...
But days after the meeting, GeoVic was granted an exclusive contract to develop the Cameroon cobalt mine.
A $10 Billion Fortune!
With cobalt prices soaring... and Russia holding back supply... These are great news for GeoVic. In fact, it is estimated that the mine has $10 billion worth of cobalt!
It has exclusive rights to the entire region.
In effect, GeoVic has joined forces with the Cameroon government to form a cartel over the most lucrative cobalt source on the planet.
The Cameroon mine is so rich with cobalt that you can practically scoop it out of the ground with a toy shovel.
That means mining costs are very low. In fact, they are lower than anywhere else in the world... only 96 cents per pound.

Cobalt is currently selling for $30 per pound. With Russia restricting supply, cobalt prices could easily soar to over $50 per pound over the next few months.
And GeoVic can pull it out of the ground and process it for a mere 96 cents per pound.
Its profit margins are enormous. And with exclusive rights to $10 billion in cobalt, GeoVic is now in an extremely position to ride the wave.
The only question: How high will it go?
In addition to the initial site, GeoVic also has the rights to SIX ADDITIONAL MINES that could be even BIGGER.
Realistically, it could be sitting on over $60 billion in cobalt. If that's the case, GeoVic could be worth up to $120 per share.
But let's be conservative, and put those additional mines aside. Let's just focus on the initial mine... worth $10 billion.
Analysis of GeoVic: How much is it worth?
Calculations:
Cameroon government gets 40% of the reserve ( according to the agreement signed). Therefore US$6 billion goes to Geovic.
And although the production costs are very low, estimated at US$0.96 per pound, If I were to assume mining cost is US$15 per pound ( which is very high), it will worth US$3 billion.
At CAD$3.90 per share, CobalCam has a market cap of just USD$290 million.
(By the way, the "market cap" is just a measure of a company's market value. It's the value of all outstanding shares of stock, and basically determines how much the company would sell for on the open market. In this case, the company could be purchased for $290 million.)
That means the company is trading at 10% of its reserve value!
That means, GeoVic could realistically trade up to CAD$39, and still be fairly valued.
If we assume its reserve is US$1.5 billion, it is worth CAD$19.50, which is still way higher than CAD$3.90 as of 16th April.
Risk Factors:
1) You must be comfortable with micro caps. The "prospector" stocks are small and without operations at the moment. The share price is very volatile by nature. The share hast the potential to rise tenfold BUT they can also experience rapid declines should the mining did not materialise.
2) You must be prepared to lose the amount you have invested as mining exploration is a high risk investment by nature.
3) The above analysis is based on reserve reports by the company and a 3rd party report on the assumption that they are true.

Below are some examples of successful mining companies who have managed to “extract” the reserve from the ground. Do note that there are also a lot of companies going bust with failure to extract the reserve or the reserve are not up to their expected yield.

Frontier Development Group (FRG.TO:TORONTO) This uranium miner went from 75 cents in September 2004 to $8.23 in April 2006. That's nearly 1,000% in 18 months.International Tower Hill Mines (ITH.V:CDNX) This junior gold miner went from 34 cents in May 2006 to $3.40 in September 2006. That's 900% in four months. Strata Oil & Gas (SOIGF.OB:OTC BB) This Canadian oil exploration company went from 79 cents in September 2005 to $7.95 in July 2006. That's over 900% in 10 months.Katanga Mining (KAT.TO:Toronto) This copper company went from 80 cents in June 2005 to $8.45 in April 2006. That's 956% in 10 months.Peru Copper (CUP:AMEX) This copper miner went from $1 in July 2005 to $6.90 in June 2006. That's 590% in 11 months.U.S. Gold Corp.(USGL.OB:OTC BB) This gold company went from $1 in August 2005 to $10.30 in April 2006. A 930% gain in eight months.

Guangzhao Forest

2007-03-26T23:27:00.000-07:00

Guangzhao is principally engaged in the production and sale of Guangzhao Fast Growing Poplar, a variety of poplar with fast growing characteristics.

The business is divided into 3 segments:-
1) sale of Guangzhao Fast Growing Poplar propagated seedlings
2) sale of Guangzhao Fast Growing Poplar grown saplings
3) planned sale of timber from their Guangzhao Fast Growing Poplar*

* the cultivation of grown saplings for eventual sale as timber.

The first batch of trees will be harvest in starting of 2008.
With a total land area of 200,000 mu of land, 20,000 mu of land is due for harvest.
DBS has estimated each tree is worth RMB$50-60 and 1 mu of land consists of 110 trees.

Initial conservative estimates:

20,000 mu x 110 trees per mu x 90% ( assume 10% trees are damaged ) = 1.98 million trees
1.98 million trees x RMB$50 = RMB$99 million or S$19.8 million.

This will greatly improved the cash flow of Guangzhao in 2008.

Another 180,000 mu of land are due for harvest periodically till 2010. So by 2011, almost
180,000 mu or abt S$178 million worth of trees will be harvest.

Almost S$200 million of trees will be harvest by 2011. This represent S$200m/512m shares = S$0.39 per share without dilution, or S$0.285 assuming all warrants are exercised.

With cash flow set to increase, this will enable the board to purchase more land, and start to grow more trees for domestic consumption.

I will call for a buy with a min target of S$0.30 by 2008.

Dividend Stocks

2007-03-02T00:02:00.000-08:00

With the steep correction of the market, we have witnessed how fragile the prices may be.
However, i will urge investor to set aside a portion of $$ on high dividend shares.

Challenger $0.25 div of 2 cts per yr ( 8% yield )
Autron $0.095 div of 1 cts ( 11%)
Sing Finance and Investment $2.03 div of 10 cts per yr (5% )
this yr Sing Finance announce a special div of $0.366....which represent a 18% returns.
Action Asia $0.10 div $0.005 or 5%

Do take note of high divdend shares

Genting Int : Head n Shoulder formation

2007-02-15T21:53:00.000-08:00

Usually such Head n Shoulder formation in charts, i will advise ppl to avoid until there is further development. Genting seems to lose steam with decreasing vol and sharp drop in prices after hitting peak of $1.20++.

ASA: Huge discount over its NTA

2007-02-01T16:28:00.000-08:00

ASA is trading at 13cts vs its NTA of 71cts which is a huge discount

2007-01-31T02:13:00.000-08:00

What’s up for Lion Asiapac?
New Businesses
During the financial year, Lion Asiapac diversified into the limestone processing business. After the year end, Lion Asiapac also announced plans to embark on two other new business areas – automotive component trading and scrap metal trading.
Limestone Processing

Following the setting up of a limestone processing subsidiary in Malaysia, construction of a new plant in Banting, Selangor has commenced. The plant is expected to be operational by first quarter of 2007. It will produce and supply quicklime, which can be used in various industries. It will house a kiln with the production capacity of 600 tons of quicklime per day, or approximately 210,000 tons per year. Raw materials will be procured mainly from limestone quarries in Kinta Valley, Perak.
The Group’s strategy is to focus on supplying quicklime to Malaysian steel mills and the construction industry, which are experiencing tremendous growth to keep pace with the needs of industrialised cities for new buildings, facilities and infrastructure. However, there are also opportunities to extend supply to other quicklime consumers such as paper mills, water treatment plants, incineration plants, aqua farms and the agriculture industry.
Automotive Component Trading
Lion Asiapac will purchase automotive chassis and components from Anhui Auto for supply to a third party plant located in Kota Kinabalu in Sabah, Malaysia. There, the components will be assembled into vehicles such as light trucks for local distribution.
Lion Asiapac also intends to enhance its value of investment in Anhui Auto by assisting the company to expand its market coverage outside of the PRC. Anhui Auto is a major player of left-hand drive trucks in the PRC. By developing trucks for the right-hand drive market, there is potential for Anhui Auto to penetrate the Malaysia market and subsequently, other markets across South East Asia.
Scrap Metal Trading
In this business division, Lion Asiapac will act as a middleman, sourcing for scrap metal suppliers and arranging for scrap metal to be shipped directly from suppliers to buyers.
The investment in these businesses will provide fresh platforms from which to improve Lion Asiapac’s future profitability. However, during this period while Lion Asiapac establish their position and seek to secure contracts, the profit for financial year ending 30 June 2007 is expected to be substantially lower than in 2006.

Based on my research, quicklime is selling US$60-75 per tonn. Therefore with a annual capacity of 210,000 tonns, Lion AP will generate a US$12.6 million revenue. Using a gross margin of 50%, Lion AP will have a US$6 million profit. After misc expenses , Lion AP is expected to earn S$4 million or EPS of $0.01 based on this quicklime plant. Based on this, the quicklime plant is worth S$0.16.

With a net cash in postition, i believe Lion AP is worth much more than the current trading price of $0.185

PDC

2007-01-27T07:47:00.000-08:00

PDC Corp

The Company was incorporated in Singapore on 4 September 1999 and converted into a public limited company under the name of Hong Lai Huat Group Limited on 23 May 2000.The Group is a diversified investment group with interests in construction of residential, industrial & commercial properties, property development & investment, trading of construction equipment & maintenance services, consultancy & business development and technology product, such as multi-media accessories, wireless surveillance system & multi-ledia accessories, wireless surveillance system and intelligent wehicle digital system (IVDS), businesses.The Group has set up companies in Malaysia and East Timor. In East Timor, makepeace Enterprise Pte Ltd was set up to deal in construction and property development and investment. As part of its diversification efforts, the Group acquired regional distribution rights for products dealing in IVDS.The Group subsequently changed its name to PDC Corp Ltd wef 31 July 2002.

Proposed Development of Corn Plantations

On 6th Nov 06, PDC has entered into a cooperation agreement with Regency Government of Toba Samosir for the proposed development of corn plantations, to promote, market hybrid corn seeds in TOba Samosir and to sell and export corn or other type of plants specie on approximately 40,000 hectares of arable lands. The tenure f the land will be not less than 20 years with the rights to renew another 20 + 20 years without payment.

PDC in return shall invest and fund the development of the project to cultivate corn on the land. Also, PDC need to introduce modern agriculture technology and resources, design and construct agriculture infrastructure such as roads and offices and to generate employment opportunities for the locals.

PDC will invest US$50 million over a period of 18 months starting from 2nd quarter of 2007. This is expected to be funded by bank borrowings and equity fund raising.

New Revenue Streams for PDC

This new cooperation to develop agriculture will enable PDC to access new markets. This is in line with PDC’s diversification strategy to reduce its reliance on construction and property development in Singapore.

Corn has been a track proven record as a biofuel. PDC has chosen corn as a focus as the matured period of corn plants are within months.

New Contracts Secured as a kick start

PDC has signed a contract to deliver US$111 million worth of prilled fertilizers over a period of 24 months. The board expects this contract to have a material impact on the earnings for the next financial FY ending Dec 07.

Singapore’s First AgriAcademy / R&D Centre at Lim Chu Kang

PDC has unveiled plans to develop a R&D Centre with F&B and retial outlets, spas operations and chalets for integrated farmstays and experience and educational tours.

Super Coffeemix to sign a MOU to set up a Coffee Academy. PDC will cultivate coffee plantations and supply to Super Coffeemix at a discount price for its coffee beans. This marks a milestone for PDC.

Future Prospects for PDC?

Although PDC will be issuing new equities to fund the projects, but I believe the dilution of shareholders’ stake is worthwhile. PDC has diverse its reliance on the construction and property development business in Singapore. By opening up a new revenue stream in the agriculture, PDC has secured a US$111 million contract over the next 24 months. This has kick start PDC intention to venture into new business. The success of this delivery of this contract will instill confidence in new clients. This might draw in more client base for PDC.

The development of R&D will enable PDC to enhance its hybrid corps. Should there be a breakthrough, PDC will benefit greatly from it.

Lim Chu Kang’s Agri Academy will enable PDC to generate revenue from F&B outlets, educational tours and spa etc. However, the revenue will only come in around 2008 when they are operational ready.

Risks
The usual risks are diseases that affect yield of the land, overstrain on the land resources without replenish of its nutrients, bad weather…etc. That’s always the traditional risk associated with agriculture.

My personal take will be a profit of US$6.5 million for FY08 or EPS of S$0.008 per share assuming that no further dilution of current share capital and no other contributions from its construction and property dev business. I would expect share to trade at 20 times PE ratio, or at S$0.16.

Technical Analysis

2007-01-14T03:43:00.000-08:00

Charts

2006-12-27T04:12:00.000-08:00

TA Charts

2006-12-26T04:01:00.000-08:00

2nd Chance

2006-12-09T23:00:00.000-08:00

i did my article in PDF format. those interested pls leave yr email behind, then i will email u all . Thanks

Action Asia

2006-10-26T22:27:00.000-07:00

The Group was incorporated in Singapore on 2 August 2002 under the name of Action Asia Limited.

The Groupdesigns, manufactures and assembles mobile audio and video entertainment products.

Its products are broadly classified into mobile entertainment products and portable indoor/outdoor products. Incorporating thelatest innovations in Thin Film Transistor-Liquid Crystal Display (TFT-LCD) technology, its mobile products are installed mainly in automobiles and commercial vehicles. Its other portable products are targeted at homes, hospitals and outdoors.

Action Asia's products are marketed chiefly to automobile manufacturers / dealers, automobile accessories dealers andhypermarkets worldwide.

Action Asia's revenue has increased 50% to S$43.9million in 1HFY06. A turnaround from previous yr of losses S$4.9million to S$1.9 million profit.

Cash and cash equivalent stands at S$33.2million or $0.083 per share.

EPS stands at $0.004.

At current price of S$0.075, it represent a PE ratio of 8 times ( projected FY06 of EPS $0.009). With a div of $0.01, this rep a 13% yield. At current price, it seems attractive however, it is subjected to the new orders for TLF screens.

As such, i will call for a BUY with moderate RISK.
12mth target of $0.14 with a expected PE of 15 times.

Update on SIngtel , Hyflux and Rotary

2006-10-26T22:22:00.000-07:00

Singtel has reached my target of $2.60. Recommend a trading sell, and buy back at pullback

Hyflux has recovered from post $2 to $2.69 lvl to date. Expect a pullback to $2.50 before next movement.

Rotary still remains stag at $0.59

S44 credit shares

2006-10-26T22:18:00.000-07:00

Engro has abt S$1.43 of tax credit unutilised.
With a cash of abt $0.30 in hand, i would expect a div of $0.10 being declared.

GrandBanks: it did not disclosed any figures but its yrly div of $0.04 is also attractive.

MIT: Has a cash hoax of $0.12. No information was given on its tax S44 credit, but an expected div of $0.015 is reasonable.

Singapore Food Industries

2006-10-26T22:13:00.000-07:00

I believe Food Industries is always the best industry to invest as people always eat.
But with a better management, SFI has been exploring its market overseas.

SFI has invested in UK. The returns can only be seen a few yrs down the road.
So i advise a long term buy of SFI at $0.95 given a dividend of $0.055 per yr, it is still attractive.

GV

2006-08-25T06:53:00.000-07:00

Yoma Strategic

2006-08-24T19:24:00.000-07:00

A Mymamar Property firm listed in Singapore via Seaview takeover.
Current market cap is 425 million shares.
A profit warranty is given by Yoma.
It stands at US$10million for FY07 and FY08.

This represent a $0.036 earning per share, and translate into a PE ratio of 8.44 times.
I would expect Yoma to trade near 15 tims PE ratio, or $0.55

UIC ( Done by Master Chen )

2006-08-10T19:40:00.000-07:00

United Industrial Corporation (UIC) UIC is the holding company of Singapore Land and via it involved heavily in property development. Much of its revenue, more than 80%, comes from property related business. The remaining revenue is derived from its technologies division. As the Singapore economy continues to be strong, office occupancy rate of its property portfolio will remain at high level. In addition, there is a recent increase in demand for residential properties that will positively impact UIC earnings. Beside the property portfolio of its subsidiary company Singapore land, UIC property portfolio includes UIC building and SGX centre as well.

Net income has in 2003 to 2001 has been negatively impact by deficit in revaluation. However, situation has improved as the economy recover in 2004 to 2005. Revenue has fallen dramatically as the company has sold off a substantial amount of its non-property business.

*UOL equity investment Pte Ltd deemed interest is derived from the shares it held Through United Overseas Bank Nominees.
United Overseas Land Limited deemed interest is derived from both shares it held through United Overseas Bank Nominees and its stake in UOL equity investment.
United overseas bank deemed interest is derived from share it held via Tye Hua Nominees.
Mr. Wee Cho Yaw deemed interest is derived from the 700,000 shares he held and his stake in Haw Par Capital Limited, Straits Maritime Leasing Private Limited, UOL equity investment and United Overseas Land Limited.
Telegraph Development Limited deemed interest is derived from shares it held via United Overseas Bank Nominees, CIMB-GK securities and Oversea-Chinese Bank Nominees.
JC Summit Philippines Limited, JG Summit Holding Inc.and Mr. John Gokongwei Jr all derive their deem interest from their direct and indirect stake in Telegraph Development Limited

Valuation

Scenario 1
From 2001 to 2005, Singapore economy has roughly experience one business cycle, from the economic recession in 2001 to the recovery in 2003-2004. The average result is indicative of the result expected in future business cycle
As of present, based on current economic characteristics, the estimated worth of the company is S$1.67 per share.
Scenario 2
Allowing for a conservative growth of about 4% for next 3 years may not seem too speculative.
Using the above conditions, the company will be estimated to worth about S$ 3.65 per share.

Recommendation
Valuation
From the DCF analysis, UIC is a worthwhile investment in both scenario.
Specific Trends
The major trend that is happening in property market in Singapore is Real Estate Investment Trust (REIT). REITs have been well received by investors in Singapore and are a good way to unlock shareholder value. Recently, Ascott group offer its REIT to its shareholder at a discount price of S$0.68. The REIT is now trading at about S$1.08. If this were to happen to Singapore Land then the investment will be very profitable. In addition, recently major shareholder John Gokongwei Jr. tries to takeover the company in order to implement its REITs plan. This increases the likelihood of the implementation of REITs for UIC. UIC has a larger property portfolio than Singapore Land and possibility of REIT implemented via UIC is higher than Singapore Land.

Conclusion
It is recommended to have buy rating for UIC for now.

Rotary Eng

2006-08-10T19:28:00.000-07:00

Hyflux

2006-08-10T19:26:00.000-07:00

Singtel

2006-08-10T19:24:00.000-07:00

Global Voice

2006-07-30T17:14:00.000-07:00

Sun Business Updates

2006-07-14T18:46:00.000-07:00

From the auditor's report:

1) the limitation of scope in obtaining evidence concerning the intangible assets (advertising
rights) amounting to $11.0 million (or equivalent to HK$52.5 million) of The Observer Star
Global Publishing Holdings Limited and its subsidiaries (the “OSGPH Group”) and
consequently the appropriateness of the financial statements of OSGPH Group that had
been included in the consolidated financial statements of the Group for FY2004;

2) the limitation of scope in obtaining relevant information and the absence of alternative
audit processes available on the carrying value of the intangible assets of Asia Network
Technologies Limited and its subsidiaries (the “ANTL Group”) amounting to US$368.7
million which were included in the consolidated balance sheet of the Group.
Consequently, the Preceding Auditors were unable to obtain sufficient evidence to
ascertain the fair value of the underlying assets recorded as investment in associates
amounting to $89.8 million and the recognition of the negative goodwill amounting to
$83.5 million in the consolidated statement of profit and loss of the Group;

3) the on-going investigation by the Commercial Affairs Department (“CAD”) regarding
accounting irregularities on the financial statements of Auston International Group Ltd.
and its subsidiaries (the “AIGL Group”) for the financial periods 2002, 2003 and the first
half of 2004. The outcome of the investigation might uncover other information, which
might require adjustments to be made to the FY2004 financial statements; and

4) the uncertainty regarding the ability of the AIGL Group to meet their financial obligations
and to continue as going concern for the foreseeable future.

Comments:
1) Sun Business is in the process of engaging an international firm of valuators to conduct an
independent valuation of the intangible assets owned by OSGPH Group and the valuation is
expected to be completed by 28 July 2006. Therefore, it is unwise for us to spectulate the nature of the report.

2) The auditors are unable to determine the US$368.7 million of Book value of ANT, which represent S$89million in Sun Business's balance sheet. Sun Business has received
49,068,758 STV Plc shares at an admission price of 20p each, valuing the Company’s stake in STV Plc at about S$28.71 million. Accordingly, Sun Business has made an allowance for impairment loss of associates of about S$61.1 million for the financial period ended 31 March 2006. Therefore, there will be a loss of s$61million off its balance sheet.

Bearing all these in mind, the NTA of Sun Business still stand at $0.09 as of 31st March 2006.
There will be an increase in NTA after march due to the disposal of magazine rights to SNMD.
Long term buy is my recommendation.

Global Voice

2006-07-02T09:10:00.000-07:00

Global Voice has been trading in a range of $0.13 - $0.215 since Oct 2005.
GV has rebounded from a low of $0.13 in early june to $0.16 on 30th June 2006.
Immediate target is $0.18, if $0.18 resistance is broken, a test of $0.215 is in the pipeline.
Should there be a break above $0.215, a target of $0.35 should be achievable.

Total Automation Updates

2006-07-02T09:07:00.000-07:00

After disposal of core business, TA will be suspended until there is an acquisation of new business with the approval of shareholders.
Meanwhile , company will process with the distribution of $90 million with the approval from shareholders.

Jaya Holdings: What price will Sime Darby offer?

2006-06-25T07:46:00.000-07:00

The put / call option will expire around sep/oct 06. This will allow Sime Darby to acquire an additional 15% in Jaya holding at $1.20.

If the price of Jaya Holding stays above $1.20, Sime Darby will exercise the call at $1.20. This will trigger a takeover offer for existing shares as they are holding 29.9% stake currently.
Well, if price stays below, chances are Sime Darby will still exerice the option. Because, Jaya has a growth prospect for the next 3 years. Also , the market will not have 15% stake for Sime Darby to acquire.

The question is: How much will Sime Darby offer for Jaya's share?
With its ability to generate postive cash flow, and its current cash holding, i predict Sime Darby will offer $1.30 - 1.50 for jaya.

IPCO Update

2006-06-25T07:03:00.000-07:00

IPCO has completed the sale of 120,000,000 ordinary shares in the share capital of Magnus Energy Group Limited (formerly known as Strike Engineering Limited) (the "Sale Shares") to Powerlite Ventures Ltd (the "Purchaser") on 6 April 2006. This is in line with IPCO 's direction to streamline its business and dispose those that are not reaping returns.

Empire Holding
IPCO has not expected Empire to contribute to revenue and earnings for this FY.
As natural gas industry is into the energy sector, the performance greatly depends on
the demand of usage. Therefore, i view this investment as a long term investment on IPCO part, as infrastructure of this need time to construct.

Asia Plan
I would expect more revenue and earnings to contribute from Asia Plan.
This is due to the fact that the prices of properties in US has risen over the last few years.
With the investment of properties in 2003, now is a great time for IPCO to sell some units under devlopement.

ESA
ESA should be able to fulfil the profit guartnee of $7 million b4 tax.

In summary, i expect the performance of IPCO of 2H to be better than the 1H.
Therefore, IPCO should be able to restore confidence in shareholders after close to 3 yrs of restructuring.

Excess Cash to return to shareholder: Is it good?

2006-06-15T07:02:00.000-07:00

We have witnessed many cash distribution back to shareholder after disposal of subsidary or other assets. Is it a good sign?
Well, you can argue that the management has no other uses for the excess cash. Therefore it is returing to shareholder. As a shareholder, u will want the board to reinvest the cash to reap more profit for the company. But we got to bear in mind, whether the company has enough resourses to reinvest, and the market condition then.

However, usually companies return excess cash to shareholders to "beautify" their financial ratio. Their ROE will be higher, as there is lesser cash in the companies' book and there are other indicators too.

It really depends on how you look at it. One may view it as a reward to shareholder, and deemed that a return of excess cash is logical since they are also part of the company.

Below is a list of companies returning cash back to shareholder:
1) Integra2000 : $0.12 cash to shareholder
2) Jacks International: Proposed $0.105
3) Total Auto: Proposed $0.53-$0.55

Raffles Holding: A clean exit for shareholder

2006-06-15T05:56:00.000-07:00

Raffles Holdings Limited with the proposed sale of 45% of the "Raffles City" complex from associated company, Tincel Properties (Private) Limited, to CapitaCommercial Trust has proposed a capital reduction exercise and capital distribution to provide a clean exit for the shareholders of the Company ("Shareholders") from their shares in the Company and the cash to be distributed to Shareholders.

Raffles holding wishes to announce that up to S$0.70 in cash per Share will be returned to Shareholders in the fourth quarter of 2006. This amount will be returned to Shareholders through the Capital Distribution of S$0.37 in cash per Share pursuant to the Capital Reduction, and up to S$0.33 in cash for each Share by way of a special dividend (the "Special Dividend") payable as an interim tax exempt (one-tier) dividend for the financial year ended 31 December 2006 ("FY2006"), after the Company has received the proceeds of the Sale and the necessary regulatory approvals, including but not limited to, the sanction of the High Court for the Capital Reduction and after making provisions for tax and other liabilities.

Existing shareholder will receive abt S$0.70 after the exercise.

Recommendation:
Share is expected to trade below S$0.70, should it rise above S$0.70, take profit.
Else recommend to accept the cash distribution and special dividend, to reduce expenditure for brokerage fees.

A start on Investment

2006-06-09T03:56:00.000-07:00

Some friends have approached me and asked me, how to invest?

I will give a brief summary of what to take note and how to start.

Analysis yr objective:
Ppl invest for various reasons. The below 3 are the most common reasons:
1) To preserve cash
2) For regular income
3) To grow yr $$

Why do ppl want to preserve cash?
They work and strive hard to earn a regular income monthly. However, they lack the disclipline to save themselves. They tend to spend $$ with minimal savings. So fixed premium of insurances plans "force" them to save accordingly.

Some ppl fears lost of capital upon investing. They cannot afford to take any risk. Therefore they will place their savings in Fixed Deposit to earn that mere 2-3% interest yearly.

For regular income
Of course, ppl will like to have regular income on top of their existing monthly salaries. Therefore, they will invest in equities that pays dividends. By choosing these companies that pay out dividend, it can ensure that they have income coming in at all times of the year.
Also, their capital are subjected to market valuation.

Real Estate Investment Trust ( REITs ) and some other listed trusts may it appealing to investors. They generally generate higher returns than Fixed Deposits & some dividend yield company. The latest trust is Pacific Shipping Trust that offers a annual distribution of 9% base on a listed IPO pricing of US$0.45

Some Unit Trusts also offers fixed dividend payout. All these available investments instrument in the market, enable one to ride on the wave and enjoy regular income.

Growth
This seems to be the most common investment objectives. I got to say that investment objectives change throught the whole of yr life. When u are young, u tend to aim for growth investment, whereas as u grow older, u tend to preserve yr cash.

The equity market seems to be the most attractive tool for investing for growth. The disadvantage of this is that the person lack the knowledge to choose a company to invest. This hinders their investment objectives.

There are also other market instruments such as Property Investment, Energy Resources Investment, Options and Futures, Forex and many others.

One need to know, to grow $$, it is usually associated with risk.

Next in line will be How to invest?
Dont ever plunge into any brochure that promise HIGH returns or projected returns, chances are there are footnote to it.

Invest wisely

Update on Sun Business FY05

2006-05-29T22:17:00.000-07:00

Update on Sun Business FY05
The 15mth FY ended on 30th March has a revenue of $14.06 million , which is a slight drop of 4.4% compared to 12mth FY last FY. However from other revenue, Sun Business continue to experience gain on disposal of its assets. With a $46 million on others revenue, this brings total profit after tax to be $31.5 million.
What’s is install in Sun Business?
Management continued to streamline and recognise its business operation to shed off non-core / non profitable business in which Sun Business has no long term interest in.
entered into an Equity of Credit Agreement with US-based Cornell Capital Partners Offshore, LP for $10 million;
disposed off the entire stake in Auston International Group Limited (“Auston”), held by its subsidiary, Auston Technology Group;
entered into a sale and purchase agreement with Sun New Media Inc (“SNM”), a NASDAQ listed OTCBB company to divest the following:
- 2 properties in Beijing in exchange for 399,160 shares of SNM common stock;
- 53,000,000 shares in Asia Premium Television Inc in exchange for 757,143 shares of SNM common stock; and
- a licence for the digital publishing of certain magazine titles in exchange for 13,900,000 shares of SNM common stock, of which 50% were satisfied at completion date and the remaining 50% when the digital publishing business meets the profit guarantee of US$2.415 million for the financial year to December 31, 2006.

The Group had on 1 March 2006 announced that its 20.5% owned Asia Network Technologies Limited (“ANT”), through ANT’s subsidiary, BVI-listed Guide TV Ltd (now known as Sun TV Shop Limited, “STVS”), had entered into a non-binding Heads of Agreement with Global Voice plc (“GV plc”), an Irish based shell company unrelated to SGXlisted Global Voice Network. Under the Heads of Agreement, ANT will sell the rights of use of the fibre optic network in perpetuity to GV plc for £60 million, to be satisfied by the issue of 300 million new GV plc shares. The deal is conditional upon the GV plc’s admission to AIM (Alternative Investment Market), in London.
The Group has an investment cost in ANT amounting to $89.8 million. At the date of this announcement, Sun Business have decided not to revalue their investment in ANT as the admission price of the shares has yet to be determined. And, as such they were unable to ascertain the ‘fair market value’ of our stake in ANT. However, as stated in their earlier announcement, the share price upon admission to the AIM is expected to be no less than 20 pence Sterling. The proposed transaction with GV plc, and subsequent admission to the AIM is expected to be completed prior to the release of the Company’s Annual Report for the 15-month period in July. The Group will at that time revalue their investment in ANT, and reflects its value accordingly in the Annual Report.
What Can Shareholder Expects???
Possible disposal of shares in SNM:
Sun Business is cash tight at the moment, and has been working with Cornell for the issue of equities for exchange of cash. With the swap of assets for SNM shares, Sun Business is now rich is assets and might dispose some holdings for exchange of cash.
Possible Unlock of shareholder Value via Cash Distribution or Share distribution
As of 30th March, Sun Business has $78 million of holding in SNM and $89 million of investment in ANT. As such , Sun Business as of 30th March holds abt 8 million shares of SNM and 300 million shares of GV plc. Management might consider a distribution to reward shareholders.
Continual Disposal of non-core business
As Sun Business has investment of S$89 million in ANT, it might consider paring down the stake for other acquisition or use this asset for other acquisition via asset swap.
Valuation
Shareholders are expecting management to provide some form of rewards given the huge amount of assets held in hand. As of 30th March, NTA stand at 19cts. The current share price of 6.5cts represent a 66% discount of its NTA. With more SNM shares to come into account this December IF SNM fulfils the profit guarantee if US$2.415 million, there will be an increase in NTA following this.
As such, excluding growth or premium upon disposal of assets, I will expect Sun Business to be trading close to its NTA value of 19cts.

Total Automation

2006-05-21T23:08:00.000-07:00

Core business divested for cash
Total Automation announced that the company has entered into a conditional sale and purchase agreement with Wartsila Corp (Wartsila) to dispose of its entire business that is mainly in the control, engineering and manufacturing business for a cash consideration of approximately SGD120m. The company is expected to reap net proceeds of about SGD116.5m. This works out to cash of approximately SGD0.72 per share. Following the completion of the proposed disposal, the group would not have any business and its assets would mainly be in cash. Under Rule 1018 of the SGX Listing Manual, if the assets of a listed company consist wholly or substantially of cash or short-dated securities, the securities of the listed company will normally be suspended by the SGXST.

Taking this into account, it is the intention of the board to look for new assets/ businesses to be acquired through cash or otherwise, and to maintain value for TAL shareholders.

Proposed Capital Reduction via Cash Distribution
The board has proposed a cash distribution of S$90 million back to shareholder. That works out to be $0.53 -$0.55 per share.

Future Development for Total Auto
In order to maintain the listing requirement, the board will continue to seek new business or asset acquisition. With a cash consideration of $26.5 million, I believe this amount is adequate to acquire a reasonable business or asset.

As such, on a personal tone, I will call for a buy as the shares is trading at a 16% discount to its cash asset.

TPA

2006-05-09T08:57:00.000-07:00

TPA Strategic Holdings Ltd has agreed to dispose the following subsidiaries and associated company of TPA Pte Ltd:
· 29.5% shareholding interest in Telair International Services Pte Ltd;
· 70% shareholding interest in TPA Air Tech Korea Co Ltd, to be acquired by TPA Pte Ltd prior to completion (“Completion”) of the Share Purchase Agreement; and
· 75% shareholding interest in TPA Middle East FZCO, to be acquired by TPA Pte Ltd prior to Completion.
Via the following:
· payment of S$39,750,000 by cash, to be paid upon Completion; and
· payment of S$13,250,000 by the issue by the Purchaser, upon Completion, of shares of Satair A/S,
After the disposal, NTA of TPA will increase from 15.96cts to 36.71cts. This will comprise of approximately $0.20 in cash. The board has intention of distributing part of the cash to shareholders while preserving the rest for new business acquisition and repaying bank loans.
On 19th April, TPA has increased its investment in Starmo from 40% to 90%. However, I do not forsee that acquisition will stop here. The board will not be satisfied with a $1 to $3million profit annually from Starmo.
I estimated that a possible $17.6 million cash will be distributed as dividend to the shareholders. This represent about $0.10 cash, or 38% returns of cash with TPA trading at 26cts at the moment.
I will call for a trading buy with a target of 36cts, or a value equivalent to its NTA. Any further catalyst will depend on the management’s ability to invest in new business. Meanwhile, I would expect the price to reach at least 36cts.

Global Voice: Riding the new horizon

2006-05-04T01:51:00.000-07:00

Global Voice

Global Voice has entered into an MOU with Viatel Holdings (Bermuda) Limited, allowing for GV to purchase the inter-city fibre assets of Viatel for 25m euros. This agreement has made GV the operator of one of the largest infrastructure assets in Europe.

Who is Viatel?

Viatel owns a long-haul intercity fibre network across the UK, Holland, Belgium, Germany, Switzerland and France. Although Viatel has 6,800 km of network linking towns and cities in these six countries, it has a minimal metropolitan network within each city. In contrast, GVG has a dense network of metropolitan fibre network in the cities it operates in. GVG has an average of six ducts in each pipe in each city, in contrast to Viatel’s two ducts running inter-city. GVG’s duct network in its 14 cities only amounts to 1,330 km.

Reason for Viatel to sell
Viatel’s intercity assets were built by a US company in 1999-2001 during the dot-com boom days. These assets were sold to a private equity fund (run by Morgan Stanley) when the US company went into Chapter 11. There is limited development for the last few years, as it does not have connections. The investment fund sees the value of GV’s metropolitan network and is willing to work along with GV.

Issue Of Convertible Bonds Due 2011
€35 million in principal amount of the convertible bonds due 2011 was issued, and with an additional subscription up to €5 million, with an initial conversion price of $0.20 per share. This will enable GV to have cash for the Viatel ‘s deal, and an excess cash for working capital or other acquisition.

Emerge of New shareholders
Peter Cundill & Associates (Bermuda) Ltd. - Mackenzie Cundill Recovery Fund has become a substantial shareholder with 200 million shares or 8.35%. JP Morgan Chase and Co and its affiliates also join in the team with 145 million shares or 6.08%.

According to Kelive.com, with a mere 5% utilization of the cable, the cable is underutilized. GV being a young company has set its objective to increase its client base first. So for the near future, GV will expand its cable utilization.

The cable was purchased at €135 million euro which is at a huge discount of its building price of €600 million. This is a great asset backing for GV.

Business Analysis

High Barrier of entry
High costs are incurred for the construction of the network infrastructure, which also must be extensive to cover city area. This will deter any potential entry of new player in this market.
Next, this whole project of laying the infrastructure will take years to complete. During this period, the player will not register any revenue income or any other form of income; this will keep a boundary for potential player to enter this industry.

Bargaining Power
As GV has acquired its assets at a relatively low cost as compared to its peers, therefore GV can afford to offer services at a competitive price over its peers.
Technology Limits
It is almost not possible to find a cheaper and more efficient substitute for fiber optics cable. As different materials exhibit different character and will affect the bandwidth, so it is not viable to replace with other substitute at the moment.

Net Cash and Low Gearing
GV through the reverse takeover of Horizon Education, has bring the company to a net cash and low gearing position. This will enable GV to achieve financial backing for any further acquisition.

From Figure 1, ( Source from Kelive ), the estimated fair value is $0.27 without factoring in Viatel’s deal and other future growth. Also the utilization of the cable is expected to rise, and the management of GV has targeted to break even in FY 2006.

Potential Takeover target
With a net cash and low gearing, and un-utilized cable, its peer might be interested to buy over GV so as to monopolies the industry or remove any upcoming competitor.

Bearing all these factors in mind, I will consider GV to be a safe bet for long term investment.

Global Voice Charts

2006-04-26T08:08:00.000-07:00

Global Voice has recovered from 13.5cts in mid march to 19cts in early april. Recent months there exist 2 new shareholders, with purchases in the open market. Current price of 17cts may be attractive for long term investors, however price might hover between 16-18cts in coming weeks.
A $40 million bond was issued to raise funds. The exercise price of $0.20 suggests a fundemental value for the company.

Watch out for the detailed report next week. I will prepare one after my exams on 2nd May.

Global Voice: Rising the next horizon??

2006-04-25T09:13:00.000-07:00

Look out for the research report by next week.

Analysis Report: Sun Business Network

2006-04-22T01:33:00.000-07:00

Market Float: 980 million shares ( after the share swap on 20th April )
Assets in Hand: Several Magazine in hand eg Smart Investor

In the announcement via SGX, SBN has expressed 1)the possibility of returning SNMD shares to shareholders or 2) Diversivation of SNMD shares and return cash via special dividend to unlock shareholder's value.

Assumation:
1) Full return of shares to shareholders:

13 m / 980m = 0.01326
Or 13.26 shares of SNMD for every 1000 share Sun Business share held

On 21st April, SNMD was US$6.05. So ( 13.26 x 6.05 x 1.59 ) = S$127.60 will be return to shareholder. That's represent a 159% return based on closing price of S$0.08

2) Partial Return / Or diversivation

It will enhanced the asset of SBN, via cash or other form of assets.

3) Possible of a yearly Dividend policy

SBN also possess other assets, that is generating business. Plus the asset of SNMD it has, it is more than the current share price of SBN. As such, i will call for a buy for SBN, with a min target price of $0.15.

Soon Fong

Sun Business Network

2006-04-21T07:23:00.000-07:00

Sun Biz will hold 105,700,000 shares of SNMD.
With a simple maths calculation, thats abt 15 cts per share of Sun Biz.

Currently traded at 8cts, worth a look at this company. Details analysis will be released in the meantime.

Following the completion, the Company will hold 13,098,320 shares of SNM’s common stock,
representing approximately 13.29% of SNM’s enlarged share capital. Sun Media Investment Holdings
Limited (“SMIH”), who holds 105,700,000 SBN shares (approximately 13.55% of the Company’s issued
share capital), is a majority shareholder of SNM holding 33,733,869 shares of SNM’s common stock
(approximately 34.21% of SNM’s enlarged share capital).
SNM (ticker: SNMD) was last traded on 20 April 2006 at US$5.95 per share. The Company’s holdings in
SNM, based on the last traded price, is worth US$77.9 million (approximately S$124.64 million)