Aspial

well, it gets complicated with lee hwa, goldheart and citigems. the question should be how do we value companies with property + regular business?

As for property company like OUE that hardly develops property but has office and retail rental as well as hotel profits, should not we use P/E?

Aspial is geared to the eyeballs. If they can trade at 3x P/B, a cashup property owner like Metro will be worth $4 and there is no worries of it having any gearing since cash and liquid investments made up almost 60% of book value.

Buddies get ready to hoot... (anything but Aspial)

(20-04-2012, 08:45 PM)Behappyalways Wrote: Bulk of earnings last year came from property so a good gauge is to compare it with property counters......The NTA for 2011 is 14 cents if i remembered correctly while what the NTA reported by the company was much higher because of weighted average of shares.....hence right now it is trading at more than 3x NTA while its peers like Hiap Hoe, Sing Holdings and etc.....some are trading below 1x NTA

(20-04-2012, 08:45 PM)Behappyalways Wrote: Bulk of earnings last year came from property so a good gauge is to compare it with property counters......The NTA for 2011 is 14 cents if i remembered correctly while what the NTA reported by the company was much higher because of weighted average of shares.....hence right now it is trading at more than 3x NTA while its peers like Hiap Hoe, Sing Holdings and etc.....some are trading below 1x NTA

Fully agree.
The retail business is so so.
Same for the financial services business.
If i have to explain the jump in prices, it will be the below factors
1. Majority shareholders have been mopping up the shares since so many years ago. (That's why i bought in)
2. They start reporting good profits from the property business 1 year ago
3. They announced the listing of financial services arm
4. Good sale from their property launches such as Parc Rosewood and East village.
5. Lastly, the share price is "well managed"

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(20-04-2012, 08:39 PM)shanrui_91 Wrote: well, it gets complicated with lee hwa, goldheart and citigems. the question should be how do we value companies with property + regular business?

As for property company like OUE that hardly develops property but has office and retail rental as well as hotel profits, should not we use P/E?

For property rental company, a good way is to use the free cashflow.

(24-04-2012, 03:37 PM)Behappyalways Wrote: Sky the limit?

Buyer Beware......but pls continue to cheonggggggggggggggggggggggggg

set a profit recognition limit at each interval
eg. 42.5 when it reaches 45 cent...
this way, u get to participate in THE AMAZING RUN while putting aside profit at each interval.

Time will tell if Yau Lee turn out to be another aspial.....:-)

Time will tell if Yau Lee turn out to be another aspial.....:-)

(30-04-2012, 06:53 PM)Behappyalways Wrote: lol another bonus issue....

http://info.sgx.com/webcoranncatth.nsf/V...0003B5D45/$file/BonusIssue.pdf?openelement

hahahaha
I was suspecting right issue.......

(02-05-2012, 09:14 AM)Behappyalways Wrote: NTA $0.14 using weighted average number of shares......now share price is $0.50.....amazing...

it is a "well managed" company....
They have yet to spin off the financial services arm.....more upside?

The stock was highlighted by its partial spin-off launching yesterday

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Prior to the partial spin-off, there are already 4 bonus issues over the last 2 years. Two (2) bonus issue in 2011, another two (2) in 2012.

It seem it is a promising company. I am yet to dig-in further for more detail in AR, any buddies have further comments?

I don't really think this is a promising company, maybe you want to look at 2nd chance properties which imo is a much better company than aspial.

aspial can hardly survive with its jewellery business which has very low margin + turnover rate. neither does the maxi-cash business looks very enticing, boasting only 1 profitable year from 2009-2011 claiming "Maxi-Cash turned profitable in FY2011 with a net profit of S$3.1 million, up from a loss of S$4.7 million in FY2009 and loss of S$1.3 million in FY2010 due to the high set up cost of the business in the early years." While they are unlikely to go bankrupt from default, I believe banks are more profitable than a pawning business. What that pulls aspial up in FY 2011 is its property development business, which seemed to be a favourite choice of diversification for many companies out there.

2nd Chance has a much more profitable gold and apparel business that's catered to a niche group. In terms of their property business, they have a track record of purchasing at the right timing. They first started buying rental shops in 1998 during the AFC when price of property fell off the cliff. They also bought during the GFC 2008 where price was once again much cheaper. While they have some debt in their balance sheet, their properties are providing them with very stable recurring rental income that's higher than interest of their debt. As for its dividend yield, there's not many companies out there offering a higher yield than second chance.

Hence, you might want to give 2nd chance properties a second chance instead of aspial

(not vested with aspial or 2nd chance)