Boustead Singapore

Boustead just made an announcement on going into a JV for its first foray into commercial/residential property development in China.

(24-10-2012, 06:07 PM)Share Investor Wrote: Boustead just made an announcement on going into a JV for its first foray into commercial/residential property development in China.

Is this a good thing? This is their first venture into commercial properties?

But the OMH investments doesnt seem to be performing (in the short term). Something seems amidst, particularly with the weak steel prices in China.
http://investing.businessweek.com/resear...ker=OMH:AU

OMH appears to be experiencing the "when it rains, it pours" experience:

i) there is a clear shortfall in recently concluded rights issue - not many holders participated in a wrongly priced rights issue. Hence, OMH did not raise the required capital that is badly needed for the equity portion of its greenfield smelter project in Sarawak;

ii) the hope of sale of main non-core assets Northern Iron (NFE.AX) that will raise another critical source of funds for the smelter has also fallen through with potential suitors walking away from due diligence as a result of a combination of factors that included soft global iron ore prices.

While OMH is a small but hopeful investments that Boustead has seeded, it appears to have fallen into the category of a long term hard grind type of investments similar to that of Hankore.

Hope that Boustead have better fortunes with its core divisions in the current tough global economic climate.

Thanks for the update on OMH, GG.

Apparently, Boustead hasn't been too successful in venturing out with its cash hoard to invest in companies like Hankore and OMH. Which goes to show that sometimes, simply returning the cash to shareholders is a better idea!

Let's see what Boustead has to say about OMH next Monday when it releases 1H FY 2013 results.

I wish Boustead would have invested in HR Glass and Kingsmen!

(06-11-2012, 04:23 PM)Salty Wrote: I wish Boustead would have invested in HR Glass and Kingsmen!

or share buy-back.

Hi MW,

Mr Wong always pride that Boustead pays good dividends and generate good cashflow to build a cash hoard so that it has flexibility to take advantage of opportunities as it arises.

I do agree with you that simply returning cash could well be a better initiatives in terms of enhancing shareholders' wealth.

However, life is always a package. Its our choice to keep faith with Boustead and hence just have to tough it out.

GG

(06-11-2012, 03:48 PM)Musicwhiz Wrote: Thanks for the update on OMH, GG.

Apparently, Boustead hasn't been too successful in venturing out with its cash hoard to invest in companies like Hankore and OMH. Which goes to show that sometimes, simply returning the cash to shareholders is a better idea!

Let's see what Boustead has to say about OMH next Monday when it releases 1H FY 2013 results.

No business deal is without risk. Doesn't bother me if OMH doesn't work out. Besides, it ain't over till the fat lady sings

Looking at his track record, I'm still confident in FF Wong's ability in managing Boustead.

to be honest, his recent track record is pretty poor. all the cash flushed down into poor investments rather than being given to shareholders. you probably have to assume that 50% of the cash pile is not there when valuing this stock. investors are not going to see the cash in their pockets.

(07-11-2012, 02:16 PM)wozhaodaole Wrote: to be honest, his recent track record is pretty poor. all the cash flushed down into poor investments rather than being given to shareholders. you probably have to assume that 50% of the cash pile is not there when valuing this stock. investors are not going to see the cash in their pockets.

I do concur with your view. Though I still believe Boustead can at least maintain their 2c/share interim dividend come next Monday Nov 12.