Frasers Property (formerly: Frasers Cpt (FCL))

I am not sure if MAS or SGX would take actions against any IPT which is not fairly priced or involved transferred pricing?

removed from topic.

(12-02-2014, 11:27 AM)valuebuddies Wrote: I am not sure if MAS or SGX would take actions against any IPT which is not fairly priced or involved transferred pricing?

MAS/SGX can only ensure full disclosures and compliance to rules, on the IPT. MAS/SGX will not interfere on pricing or valuation, which is right. Pricing and valuation is highly subjective.

There have been many instances of parent company extracting cash out of the subsidiaries, especially if the parent listed company is not in Singapore. Because the parent is not listed in Singapore, SGX/MAS rules does not have a hold over them. In an event of corporate exploitation, the best SGX can do is to force a buyout of minority shareholders (but given SGX and MAS records, the rulings are generally too late and the buyout price are way below purchase price). As for how to extract cash, there are many legal and not so legal ways of extracting cash and it is dependent on the parent company public exchange to enforce the rules.

Now that FCL is in the midst of selling out assets to FCT, FCL will likely be cash rich, leaving it very vulnerable to exploitation. Again, I am unclear of what is FCL future plans for the next decade. Thus, by buying into FCL, you are indirectly buying a vote of faith. No doubt the financials of FCL looks extremely attractive and there are huge potential upside to go but it holds hidden risk that goes beyond financial statements.

(12-02-2014, 11:38 AM)flinger Wrote: removed from topic.

IPT = Interested Person Transaction means means a transaction between an entity at risk and an interested person.

http://rulebook.sgx.com/en/display/displ...48&print=1

Thanx Cyclone. Much appreciated.

I was searching high and low and couldn't find it until I got that it meant " Interested Person Mandate" and that the link to the SGX.

Appreciate the help greatly.

(12-02-2014, 12:08 PM)cyclone Wrote:

(12-02-2014, 11:38 AM)flinger Wrote: removed from topic.

IPT = Interested Person Transaction means means a transaction between an entity at risk and an interested person.

http://rulebook.sgx.com/en/display/displ...48&print=1

when you purchase any shares, always best to look beyond numbers, integrity of management is very important.

like warren buffett said

“Somebody once said that in looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if you don’t have the first, the other two will kill you. You think about it; it’s true. If you hire somebody without [integrity], you really want them to be dumb and lazy.”

if management doesn't have integrity to reward shareholders, you can lose value very fast.

That is also why blue chips that have a track record of management constantly rewarding shareholders tend to have a premium, such as a higher PE ratio.

CL’s 1Q14 core net profit was in line with expectations at 26% of our FY14
estimate. The strong set of 1Q14 results showed yoy gains in all segments.
Overseas development was the key driver and is expected to remain so in FY14,
backed by strong sales. Unbooked presales remained robust at S$3bn.
Average commercial rents rose and the new hospitality segment began
contributing. We keep our target price (30% discount to RNAV) but adjust our
FY14-16 core EPS by +1%/-6% for changes to our launch schedule assumptions.
The successful launch of a hospitality REIT could be a re-rating catalyst. Even
without the REIT, FCL should be able to maintain its strong operational
numbers, with the revitalisation of its property portfolio. Maintain Add.

12% FL with solid fundamentals still unable to stop the sellers.

(12-02-2014, 11:58 PM)cfa Wrote: 12% FL with solid fundamentals still unable to stop the sellers.

It's possibly due to the small public float/ thin trading volume that magnifies potential uptrends and downtrends.

If a few more houses issue 'buy' calls and the hospitality reit comes to fruition...