Boustead Singapore

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http://www.pwc.com/en_US/us/industrial-p...ssance.pdf

The above link is a dated PWC report. Personally, I think the shale led US industrial revival is in its infancy stages.

The discovery and extraction of abundant shale gas in US is slowly changing the facade of US economic structure. While there are plans to export cheap shale gas out of America to take advantage of higher international prices, the eventual export prices out of US may be substantially higher than domestic levels (due to logistics to ship gas out in LNG form and the associated huge capex in LNG trains).

When one mentioned about SGX listed oil and gas plays - the fundamental ones are the rig builders and to a lesser extend the support industry players like deep water service providers.

Boustead has long had a presence in the oil and gas sector via Boustead International Heaters and C&E. BIH has a well established track records in supplying heaters that help recycle waste heat to oil refineries and other chemical plants.

If my understanding is correct, any process that required heaters to aid in energy efficiency (such as waste heater recycling) will provide BIH with potential business.

After working with many top notch energy and engineering companies, BIH is potentially well placed to reap the potential of new manufacturing plant construction in US.

I am merely extrapolating the shale gas revolution in US to BIH. However, given the lead time associated with big manufacturing plant constructions and BIH's usual tailend involvement (since heaters are likely to be installed towards the end of mega plant constructions), the potential earnings kicker could easily be another 2 years off.

Apart from merely equating BIH's earnings potential to traditional oil and gas facilities, investors in Boustead should be keeping an eye to new contract awards for BIH in shale related plants.

Vested and Wildly Imagining
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Anyone knows what's going on with Boustead ever since the start of the week or year? Seemed like it's getting harder to deploy any excess cash in the stock market.

(vested)
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Hi Shanrui,

To borrow a famous quote - "Your worries are my worries too".
It is indeed getting harder to deploy excess cash. Not that we should be complaining but it appears that the massive global liquidity is seeking any harbour that they can find now.

Boustead share price is about to challenge its all-time high of around $1.25 (on a post split basis) that was last seen back in 2007/08.

There are no fresh developments (at least officially) from Boustead. I can only hope that the recent movement is that of accumulation by some smart money and not simply attributed to laggard buying as a result of broad based market out-performance.

I would also appreciate any buddies' input should they be aware of any fresh factors that we are not presently alerted to.

Vested
GG



(10-01-2013, 09:01 PM)shanrui_91 Wrote: Anyone knows what's going on with Boustead ever since the start of the week or year? Seemed like it's getting harder to deploy any excess cash in the stock market.

(vested)
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Incidentally, Boustead's highest closing price post split is $1.19 (I checked my records which date back to 2006 when I first bought it). This was on Nov 9, 2010.

My view is that some of the value is being realized at the moment, but of course it is not a good thing if we wish to accumulate more.

Still, Boustead's land bank is probably worth a lot more than what Mr Market used to price it at, so perhaps this is the re-rating.

It remains to be seen if the business is growing steadily, and we should all get a better idea with the upcoming 3Q 2013 results to be released mid-Feb 2013.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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Boustead Projects has been awarded an industrial property contract on Jurong Island by BASF. This raises order book for Boustead to $340 million.

http://info.sgx.com/webcoranncatth.nsf/V...C00305033/$file/Boustead_Announcement-Boustead_Subsidiary_Awarded_Building_Contract_for_BASF_on_Jurong_Island-23.01.2013.pdf?openelement

Boustead's 3Q 2013 results will be released on February 13, 2013 (Wed) after the CNY holidays.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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Boustead Projects just bagged a new contract. Value was not disclosed on its announcement but revealed by AIMS' presentations.

If there is no further difference, the contract value is S$25.6m.

http://info.sgx.com/webcoranncatth.nsf/V...100253BDE/$file/AIMSAMPIREIT_103_Defu_Lane_10_Redevelopment_Presentation.pdf?openelement
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http://info.sgx.com/webcoranncatth.nsf/V...500370097/$file/Boustead_Announcement-Incorporation_of_Subsidiaries-01.02.2013.pdf?openelement

After a long break, Boustead is once again embarking on new development - both in Ubi.

Wondering if one of them is for housing a pre-sold development in Ubi?

Anyway, its good news.
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Usually does boustead incorporate the holding companies before or after the announcement of DBL contracts?
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Typically, Boustead would have incorporated a project company before commencing the development.

In any event, I think one of the Ubi companies incorporated yesterday could be a project company that has been presold for S$38m way back on 8 Jul 2011:

http://www.boustead.sg/Boustead%20Announ...idiary.pdf

The other one is a new development. If it is along Ubi Avenue 1, it is likely to be the empty plot of land sandwiched directly in front of Starhub Green and the two temples right at the end of Arumugam Road.

On streetdirectory.com, I can;t find any empty plot around the vicinity.

Any inputs from buddies will be greatly appreciated.

(02-02-2013, 04:08 PM)wee Wrote: Usually does boustead incorporate the holding companies before or after the announcement of DBL contracts?
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Boustead share price has been moving up steadily over the last few days.

Today it has breached the $1.20 level, one that was last seen during the week ending 12 Nov 2010.

The next technical level to watch is the double top of $1.25 that was seen during weeks ending 11 and 18 Jul 2008.

Once the all-time high double top levels is breached, using fibonacci retracements the first target will be $1.625 on the charts (expected within the next 27 months) and $2.10 (expected within 37 months).

Note: I am merely using my surface knowledge on technical analysis - caveat emptor.

Vested
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