Boustead Singapore

(06-01-2011, 09:12 AM)Nick Wrote: CSE announced US$11 million contract wins for telecommunication solutions in an oil-field and LNG plant. With Boustead current win also related to energy, I guess the high oil prices will be a catalyst for a sharp boost in order-book this year for energy-related companies ?

Yes, I'd expect so. Though I must mention a popular cliche - not all companies are made the same, so some will probably be more successful than others in clinching contracts.

Price targets
Kim Eng - $1.39
DBS - $1
Std Chart - $1.39

Who will be right? hehe

Sounds suspiciously like the brokerages are drumming up trading interest in Boustead, as usual. Rather insidious I would say, but it is to be expected.

My usual advice stands - read the facts and analyze the business, but IGNORE the target prices.

I wonder the latest design build and lease for the hawker pacific is a operating or finance lease. Have not checked the past history of previous leases. Wonder MW have such info on hand?

(01-02-2011, 08:25 PM)mrEngineer Wrote: I wonder the latest design build and lease for the hawker pacific is a operating or finance lease. Have not checked the past history of previous leases. Wonder MW have such info on hand?

I think it should be operating, but maybe you can ask during AGM or during the Management Q&A session? Alternatively, maybe the AR has some info. Will help you check there as well when I have time.

RESTRUCTURING OF JOINT VENTURE FOR AL MARJ TOWNSHIP PROJECT

http://info.sgx.com/webcoranncatth.nsf/V...A005BED47/$file/Boustead_Announcement-Restructuring_of_Joint_Venture_for_Al_Marj_Township_Project-01.02.2011.pdf?openelement

I guess Boustead is simply trying to recover the monies sunk into this project, and FF Wong did mention he did not anticipate the project would give so much problems, not just in terms of agreeing with the consultants in Libya but also in terms of cash collections!

So Boustead learnt a very good lesson from this - projects in far-flung remote countries may sound lucrative, but teething problems may make it far less attractive than it seems!

I like reading FF Wong. But Boustead has got some exposure in MENA. Hope Egypt's contagion not going to derail his efforts.

Musicwhiz Wrote:So Boustead learnt a very good lesson from this - projects in far-flung remote countries may sound lucrative, but teething problems may make it far less attractive than it seems!

This no-progress-followed-by-restructuring reminds me of the China-Singapore Suzhou Industrial Park. Hopefully, like the Suzhou project, it will miraculously succeed after the minority local partner becomes the majority partner. Even the 65/35 shareholding structure and proposed change to 35/65 are identical. With some luck, perhaps the turnaround will occur in substantially similar fashion.

(01-02-2011, 10:40 PM)Musicwhiz Wrote: I think it should be operating, but maybe you can ask during AGM or during the Management Q&A session? Alternatively, maybe the AR has some info. Will help you check there as well when I have time.

Yeah I have done a cursory check on the FY10 AR, seems like nothing is mentioned on finance leases. So I assume that most of the leases taken up are operating in nature. So it seems Boustead will be laden with more assets which could artifically lower the ROE on its own businesses.