Lum Chang Holdings

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#21
Today (2Dec11, Fri), LCH bought back another 115 lots at an average price of $0.2813/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [2Dec11]

This is on top of the 70 lots bought back at $0.285/share yesterday (1Dec11, Thur).....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [1Dec11]

Todate, LCH has bought back 6,214,000 shares, or approx. 1.64% of the total issued shares.
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#22
Today (5Dec11, Monday), LCH bought back another 114 lots at a higher average price of $0.28715/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [5Dec11]

Todate, LCH has bought back 6,328,000 shares, or 1.665% of the total issued shares.
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#23
Today (13Dec11, Tuesday), LCH bought back another 40 lots at $0.285/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [13Dec11]

This is after buying back another 110 lots at an average price of $0.28546/share yesterday (12Dec11).....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [12Dec11]
and another 109 lots at an average price of $0.28546/share on 9Dec11.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [9Dec11]
and another 96 lots at an average price of $0.28969/share on 7Dec11.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [7Dec11]
and another 105 lots at an average price of $0.28738/share on 6Dec11.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [6Dec11]

Todate, LCH has bought back 6,788,000 shares, or 1.786% of the total 380,029,604 issued shares. Awesome!
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#24
Today (14Dec11, Wednesday), LCH bought back another 104 lots at an average price of $0.28289/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [14Dec11]

Todate, LCH has bought back 6,892,000 shares, or 1.814% of the total 380,029,604 issued shares.
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#25
Today (19Dec11, Monday), LCH bought back another 155 lots at an average price of $0.27277/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [19Dec11]

Todate, LCH has bought back 7,047,000 shares, or 1.854% of the total 380,029,604 issued shares.
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#26
Please educate me: When the company or analyst says that they (i.e. Lum Chang) have an 'order book' or 'a total outstanding value of projects under construction' of $1 billion, does it mean that the potential revenues to be recognized in the future would sum up to that amount?

Would sincerely appreciate the guidance. Thanks!
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#27
(29-12-2011, 08:38 AM)secretinvestors Wrote: Please educate me: When the company or analyst says that they (i.e. Lum Chang) have an 'order book' or 'a total outstanding value of projects under construction' of $1 billion, does it mean that the potential revenues to be recognized in the future would sum up to that amount?

Would sincerely appreciate the guidance. Thanks!

Yes but they are subjected to progress payment, so you won't see a sudden $1 billion sales for a single FY.

Of course, there is also the factor of margin. It is one thing to earn $1 billion contract but also another thing to earn only 1% margin from it.
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#28
(29-12-2011, 08:41 AM)dzwm87 Wrote:
(29-12-2011, 08:38 AM)secretinvestors Wrote: Please educate me: When the company or analyst says that they (i.e. Lum Chang) have an 'order book' or 'a total outstanding value of projects under construction' of $1 billion, does it mean that the potential revenues to be recognized in the future would sum up to that amount?

Would sincerely appreciate the guidance. Thanks!

Yes but they are subjected to progress payment, so you won't see a sudden $1 billion sales for a single FY.

Of course, there is also the factor of margin. It is one thing to earn $1 billion contract but also another thing to earn only 1% margin from it.

Fair, but if one looks at the track record of LC, its order book has always been good in the last few years and dividend good. This is a better construction/developer company.

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#29
I differ. I believe LC is just an ordinary construction/developer company which doesn't have an edge to provide a proper catalyst to revalue its stock.

Historical price has been trading sideways ever since the slight recovery from 2008 GFC.

Construction industry by itself is very price competitive. Contract bidding set a price ceiling on how much each project can be earn. Construction is also labour-intensive which means that in the past, foreign construction companies were able to compete with throat-cutting price bidding by suing its foreign workers "cheap labour" advantage. Of course, now that foreign worker levy increases, this will just provide a double whammy from both price & cost pressures.

Also, you have to look at the nature of the contract. Public construction contract, though huge in numbers provide very narrow margin, which means construction companies thread along a thin line of project execution. Any delay or miscalculation can result in a loss-making.

Such is also why construction companies slowly shift toward property developing. As for property prospect? It is no doubt the industry is on the down trend.

I was once vested in LC for a short period of time at 30c but realised my fundamental analysis for them is flawed.

*not vested*
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#30
LCH has contracted to sell its 5% stake in a Grade-A office tower - Twenty Anson, located at 20 Anson Road - to CapitaCommercial Trust for $8.9m in cash, and the proposed sale is expected to bring in a gain of approx. $6.3m....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Upon completion, based on the latest 370.884m outstanding issued shares (as at 30Jan12), the $6.3m gain will add $0.017 to LCH's EPS in FY12 (ending 30Jun12).

This is a pleasant surprise to me, as I am totally unaware that LCH has a 5% stake in Twenty Anson!
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