ARA Asset Management

based on the cimb report, it seems like ara is not cheap at current price.

Suspended... Higher volume past 2 days...

ARA is a very good company, high ROE, strong cashflow, good growth rate.
last time I missed the chance to load this at $1.00
now valuations too high for me liao, haizzz

(07-02-2013, 09:46 AM)Contrarian Wrote: Suspended... Higher volume past 2 days...

Huh ? Since when suspended ? Don't see any announcement.

(Vested)

ARA at this price ROE is only 5.5%
Given 36% ROE / 6.9times PB.

Expensive

(07-02-2013, 01:27 PM)Salty Wrote: ARA at this price ROE is only 5.5%
Given 36% ROE / 6.9times PB.

Expensive

And yet people have no qualms paying 4.5 - 5.5% for some of the leveraged REITs which they manage (despite carrying more operational risk) ?

(07-02-2013, 09:46 AM)Contrarian Wrote: Suspended... Higher volume past 2 days...

Contrarian, u posted in a wrong thread?

Sorry, my eyes blur... I thought I saw SUSP on my top holding...

But there was a married deal of 500,000 shares past 2 days...

Even if we were to be optimistic and take into account a $80 million performance fee in 2014 and 2 reits coming out of ADF, ARA is certainly not cheap at the current price. It is possible for 2 reits to come out of ADF since they have to divest by 2014 and they have 3 Malaysia Assets worth at least RM 1.4 billion which seemed too much for AmFirst Reit to swallow. REIT is always the easiest divestment route for their property fund.

Something that investor should be concerned about is the sponsorship of Dynasty by ARA which will reduce the shine of its attractive business model. Hopefully, we will see a different deal when it comes to the market again

Hi Shanrui,

Would you mind going into detail on what you mean?

Something that investor should be concerned about is the sponsorship of Dynasty by ARA which will reduce the shine of its attractive business model


Are you referring to them taking a stake in their REITs, which is a change in direction from their current model?