Hong Leong Asia

Hi Propertyinvestor, would you mind sharing the analyst's report on the sum of the parts valuation?

(20-01-2015, 12:44 AM)butcher Wrote: Hi Propertyinvestor, would you mind sharing the analyst's report on the sum of the parts valuation?

Its my own research. I did not base my valuation on other analyst report. Im wondering if any fund managers right now will be bold enough to mount a takeover offer for this company and strip of their assets and sell them piece meal to unlock value

How is the fund going to get >50% control to asset strip?

Don't count on any fund mgrs to unlock value by activism.
Most are passive. Won't do anything until forced to.
Only one that is relatively more activist is
Third Ave Mgt.

Then there are PE funds like NAVIS. These guys captured the full undervaluation
for themselves only.

(30-01-2015, 08:20 PM)thefarside Wrote: How is the fund going to get >50% control to asset strip?

By launching a takeover offer. Even if the offer is not successful, it would probably be good enough to shock the management into doing something.

(31-01-2015, 08:50 AM)propertyinvestor Wrote:

(30-01-2015, 08:20 PM)thefarside Wrote: How is the fund going to get >50% control to asset strip?

By launching a takeover offer. Even if the offer is not successful, it would probably be good enough to shock the management into doing something.

later, Hong Leong just unload the company to that mutual fund who made the offer.
That mutual fund cannot operate one. No sane fund will do that just to push mgt to something.

If want, just do 'trial by media'. It is cheaper. Sway the rest of shareholders. like Ackman and Icahn. You think they so free if they dont want to influence other shareholders/funds.

(31-01-2015, 09:35 AM)opmi Wrote:

(31-01-2015, 08:50 AM)propertyinvestor Wrote:

(30-01-2015, 08:20 PM)thefarside Wrote: How is the fund going to get >50% control to asset strip?

By launching a takeover offer. Even if the offer is not successful, it would probably be good enough to shock the management into doing something.

later, Hong Leong just unload the company to that mutual fund who made the offer.
That mutual fund cannot operate one. No sane fund will do that just to push mgt to something.

If want, just do 'trial by media'. It is cheaper. Sway the rest of shareholders. like Ackman and Icahn. You think they so free if they dont want to influence other shareholders/funds.

I dont think the Kweks will give up their crown jewels so easily. One of them is a golden share in China yuchai.

I have been holding undervalued Kwek stocks like Hong Leong Asia and Hong Leong Finance for awhile and kind of just gave up any hope of them realizing the true value of these counters. The problem is that the Kweks have no need for money and don't see the need to sell off assets. I think passing down the businesses from generation to generation is more important to them and they are happy to just give out dividends year after year.

I still remember the time when there was speculation of Hong Leong Asia being divested and the price shot up to $5! Just imagine...at that time there was a lot of promise about Xinfei but i think Xinfei is clearly not as valuable now...

(31-01-2015, 05:34 PM)sgpunter Wrote: I have been holding undervalued Kwek stocks like Hong Leong Asia and Hong Leong Finance for awhile and kind of just gave up any hope of them realizing the true value of these counters. The problem is that the Kweks have no need for money and don't see the need to sell off assets. I think passing down the businesses from generation to generation is more important to them and they are happy to just give out dividends year after year.

I still remember the time when there was speculation of Hong Leong Asia being divested and the price shot up to $5! Just imagine...at that time there was a lot of promise about Xinfei but i think Xinfei is clearly not as valuable now...

This is the reason why you need an asset stripper to come into the picture. Although xinfei is not as valuable now, their stakes in Tasek and China Yuchai has become much more attractive.

Yes an asset stripper coming in would certainly be nice. I have been sitting on losses for HL Asia for a long time...Question is who?

Another thing I do not like is their investment in HL Global. HL Global is in my opinion a junk stock that has been suffering losses year after year yet HL Asia has been steadily accumulating shares in this counter for whatever reason. I believe sometime back a shareholder also complained about this issue.