LTC Corp (prev. Lion Teck Chiang)

[opmi]

Industrial zoning got GPR more than 2.5 meh?

[CY09]

Industrial zoning got GPR more than 2.5 meh?

Yes tai seng mrt area is 3.5

[TheMillennium]

Many big blocks of sellers..
Even the management also selling..
A negative sign? Or time to accumulate?

[GFG]

Many big blocks of sellers..
Even the management also selling..
A negative sign? Or time to accumulate?

Is management selling?
If that's true it's a big negative as it is currently undervalued

[GFG]

Many big blocks of sellers..
Even the management also selling..
A negative sign? Or time to accumulate?

Is management selling?
If that's true it's a big negative as it is currently undervalued

Hi Millenium

Management is not directly selling
One of the substantial shareholding companies is selling it's shares and the management's stake in LTC is indirectly reduced as a result
Sure, it could still indicate that management is paring his stale indirectly but I think this is more likely to be due to other reasons unrelated to LTC

[TheMillennium]

I thot at AGM, Board already said the current GFA already maxed out to GPR 2.5 already.

Yes, but markets were factoring in possible change of the site to commercial or a mixed commercial and residential development

quite hard. coz it is like living next to a factory and a big temple. not in line with general planning principles.

URA like to cluster zoning together. if rezone arumugan to resi, then must rezone the whole stretch along PIE. like Starhub Green to Boustead. Paya Lebar is an indu estate. likely to stay so.

my take on LTC is:-

GPR max out.
Not rezoning or increase in GPR.

Additional value can only be from from redevt. To capture additional value, LTC will have to acquire the roads and water basin from SLA to amalgate the whole land. This is not possible coz Singapore Warehouse just redevelop and lease out (irrevocable) to data centre for 15 years. and Sg warehouse need the access road. So LTC will be status quo for foreseeable future.

And LTC dividend not great. With the working capital -intensive steel trading arm.

MY view is that it is deep value stock without any catalyst to unlock value.

not vested.

Does "deep value stock without any catalyst to unlock value" = value trap?

Furthermore with the insiders' sale of shares, it is particularly worrisome.

[money]

please la... if management has a few million shares and tries to sell a few thousand shares on the open market every few days, there's a really retarded way to sell off its ownership in the company. So dont go around sounding so worried about insiders' sale of shares

[TheMillennium]

please la... if management has a few million shares and tries to sell a few thousand shares on the open market every few days, there's a really retarded way to sell off its ownership in the company. So dont go around sounding so worried about insiders' sale of shares

Agree with you that I may be overly worried. But it's my money so why shouldn't I be worried?
When should I start to worry then? When a crisis strikes? By then I fear it will be too late.

I know I am not as experienced as you, and that is why I try to seek opinions from others on whether LTC might be a value trap.

Anyway, sorry if you lost money in LTC. I hope it wasn't too much.

Nevertheless, enjoy your day.

[CityFarmer]

It seemed that there was "heated" moment here. Please stay calm for both of you

To money, the wordings used didn't make it conducive for a productive discussion. Let's refrain from making similar post.

Thanks

Regards
Moderator

[GFG]

please la... if management has a few million shares and tries to sell a few thousand shares on the open market every few days, there's a really retarded way to sell off its ownership in the company. So dont go around sounding so worried about insiders' sale of shares

Agree with you that I may be overly worried. But it's my money so why shouldn't I be worried?
When should I start to worry then? When a crisis strikes? By then I fear it will be too late.

I know I am not as experienced as you, and that is why I try to seek opinions from others on whether LTC might be a value trap.

Anyway, sorry if you lost money in LTC. I hope it wasn't too much.

Nevertheless, enjoy your day.

I think the question of a "value trap" is a good and a valid one. Is it necessary for a "Catalyst" to unlock value and if there isnt one, will the share price always reflect a huge discount to NAV for a prolonged period of time?
To answer this, IMO, there are several other factors to consider. Value traps happen in companies where the price is seemingly unreasonably low, but there are valid reasons for the low share price (eg. Macro economic factors, negative FCF, history of losses, concentration risk in terms of customer profile etc)
There can also be perfectly good companies that are overlooked by the markets for a prolonged period of time, but in such instances, the price will eventually reflect the fundamentals.
So the question is how long will that take before you consider it a "value trap"? It depends on individuals.
As someone famously put it: "the markets can remain irrational longer than you can remain solvent"

So the best thing is to view any investment in the long term, and be prepared to be in for the long haul.

<vested>