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Stamford Land
18-08-2018, 11:46 AM. (This post was last modified: 18-08-2018, 11:55 AM by cfa.)
Post: #1801
RE: Stamford Land
(18-08-2018, 08:36 AM)ACTIVIST SPEAKS Wrote: Excerpts from Stamford Land Circular on share buyback program:

"Obligation to make a take-over offer Under Rule 14 of the Take-over Code, a person will be required to make a general offer for a public company if:
(a) he acquires 30.0% or more of the voting rights of the company; or
(b) he holds between 30.0% and 50.0% of the voting rights of the company and he increases his voting rights in the company by more than 1.0% in any six (6)-month period.
If, as a result of any purchase or acquisition by the Company of the Shares, the proportionate interest in the voting capital of the Company of a Shareholder and persons acting in concert with him increases, such increase will be treated as an acquisition for the purposes of Rule 14 of the Take-over Code. Consequently, a Shareholder or a group of Shareholders acting in concert could obtain or consolidate effective control of the Company and become obliged to make an offer under Rule 14 of the Take-over Code"


As declared on SGXnet as Ow and concerted parties' holdings, the number of share is  393m or 46%.


Thought I just throw my 2 cent worth.... I had Hai Sun Hup in the 90s.  I cannot remember how I ended up with Stamford Land, Singapore Shipping and Cougar Logistic.  Also cannot remember what happened to Cougar Logistics.....but I know the entire investment with Ow Chio Kiat is very profitable and rewarding through the years.  So.... there are other shareholders who may not share the same sentiments as those opposing him.  The same shareholders may also feel share buyback is just as good as the higher dividend payout.

There are many different batches of investors , not all are from the day of HSH . Some only went in few years ago .
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

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18-08-2018, 01:36 PM.
Post: #1802
RE: Stamford Land
That is exactly my point....

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18-08-2018, 01:43 PM.
Post: #1803
RE: Stamford Land
I’ve never been interested in this company but after seeing so much discussions, I decided to do some analysis.

Assuming you Invested in this company 8 years ago:

Stock: Stamford Land Corp

Year: 2011 (8 years ago)

Price: About $0.70 in January 2011

Amount Invested: $70,000 ($0.70 x 100,000 units)

Divided Collected On:

23rd  Aug 2011  $0.03
23rd  Aug 2012  $0.04
22nd Aug 2013  $0.03
18th  Aug 2014  $0.03
21st  Aug 2015  $0.03
22nd Aug 2016  $0.005
23rd  Aug 2017  $0.01
13th Sept 2018  $0.01

Total Dividends paid from 2011 to 2018 = $0.185

Current Price: About $0.49 in Aug 2018

Current Value: $49,000 ($0.49 x 100,000 units)

Dividends Collected: $18,500 (From 2011 to 2018)

Lost: $2,500 (Current Value + Dividends Collected- Amount Invested)

E & OE.

After digging out the past 8 years history I can understand why some Value Buddies are so upset.

They lost money after 8 long years while the company made money and reward themselves handsomely.

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18-08-2018, 01:53 PM.
Post: #1804
RE: Stamford Land
(18-08-2018, 01:43 PM)Retired@52 Wrote: I’ve never been interested in this company but after seeing so much discussions, I decided to do some analysis.

Assuming you Invested in this company 8 years ago:

Stock: Stamford Land Corp

Year: 2011 (8 years ago)

Price: About $0.70 in January 2011

Amount Invested: $70,000 ($0.70 x 100,000 units)

Divided Collected On:

23rd  Aug 2011  $0.03
23rd  Aug 2012  $0.04
22nd Aug 2013  $0.03
18th  Aug 2014  $0.03
21st  Aug 2015  $0.03
22nd Aug 2016  $0.005
23rd  Aug 2017  $0.01
13th Sept 2018  $0.01

Total Dividends paid from 2011 to 2018 = $0.185

Current Price: About $0.49 in Aug 2018

Current Value: $49,000 ($0.49 x 100,000 units)

Dividends Collected: $18,500 (From 2011 to 2018)

Lost: $2,500 (Current Value + Dividends Collected- Amount Invested)

E & OE.

After digging out the past 8 years history I can understand why some Value Buddies are so upset.

They lost money after 8 long years while the company made money and reward themselves handsomely.

But the Chairman openly said in recent AGM they did not reward themselves,  though the company has been making profits or has made record profits .
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

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18-08-2018, 02:40 PM.
Post: #1805
RE: Stamford Land
(31-07-2018, 05:17 PM)karlmarx Wrote: Apart from not fostering open communication with minority shareholders, and behaving in an antagonistic manner, causing minority shareholders to feel discomfort and anger, I don't think SL has done anything to cause financial harm towards the minorities. This is unlike Asiatic and Sabana where management's actions caused the company's value to decline over many years.

The long-term record of SL has shown that management is prudent in managing its loans, astute in timing its major purchases, and generous in rewarding shareholders. Not many companies are able to do this. In terms of generating returns for minorities, I will say it has done pretty well. In terms of PR, it certainly has much area for improvement. But I'm not in the stock market to be PR-ed. Will you prefer a company that smile and placate you during AGMs, but produces unsatisfactory (or *gasp* fraudulent) results?

I wish to offer my 2 cents on some issues that has been highlighted by fellow VBs:


1) Should SL antagonise minorities by threatening legal actions against them?

Ideally, directors are patient and responds to the best of their abilities to all the queries from shareholders, even those queries that are unrelated to business. Wouldn't it be great if all directors are as candid and open like WB and CM during BRK's AGM? Of course. But not all directors are the same. Just as not all employees are the same. There are those that are both productive and polite, we like these best. But if the choice is between an unproductive and polite employee, and a productive but unkind employee, which will be better for your company?

SL may have had certain negative past experience that cause them to behave in this way, or maybe its just their personality. It doesn't matter. Sure, as a shareholder, its a terrible feeling to be treated like you're the enemy. But this is something that minority has to try to accept if they wish to attend SL's AGM. Personally, I will tolerate management being rude towards me if they can deliver results. But to save myself the agony, I will probably avoid the AGM altogether. Or avoid owning SL shares in the first place. After all, my top priority is to make money, not to make friends with directors.


2) Should SL have lowered its dividend payout?

Of course, investors will always prefer a higher payout, (sometimes even when it isn't sustainable and detrimental to the company). But this is a business decision and since management is in charge. Minorities will have to trust that they are going to do what is best. The past record has also shown that management has been capable of producing earnings, and paying them out. Besides, the present payout ratio, while lower than previous years, is still comparable to other dividend-paying companies.


3) Should SL have so many EDs and pay them so much?

Over the past 10 years, management compensation ($46m) is 15.8% of NPAT ($344m). This isn't low, but certainly it isn't very high. Dividends totaling $198m is 4x times of management compensation. Of course, it will be great if the OCK took only $100k a year like WB, and not have his brothers on the board as well. But not all directors care about being known for such generosity. As for family being on the board, well, most Asian businesses are like that, and it is something minorities has to accept if they choose to invest in such a company.

Tat Hong also had 3 family members (1 MD, 2 EDs) on their board, and more in non-management. I don't recall seeing complaints from VBs about Tat Hong's management compensation and family members on the board, even though Tat Hong has had a poorer record of delivering shareholder value compared to SL.

...

To be clear, I am not saying that minorities should not be fighting for what they think are their rights. My point is that most of the issues raised are not critical to SL blowing up and causing huge financial losses to minorities. And since most of the facts regarding SL are freely available, investors should study them carefully before considering whether this is a company they want to be a part of. You may try to influence management towards certain decisions, but they are not obligated to act upon your wishes. If you are looking to make changes to the company which you own shares in, it isn't going to be easy unless you're the largest shareholder, or your argument wins public support.

Karlmarx's assessment best described the situation.  A 10 year total returns will yield very different result from a 8 year comparison.  And rightfully pointed out by cfa, your entry price greatly influence how you feel about the current saga.

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11 hours ago. (This post was last modified: 10 hours ago by cfa.)
Post: #1806
RE: Stamford Land
In Chinese MSM Z-Bao today .

       
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

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4 hours ago.
Post: #1807
RE: Stamford Land
Stamford land is consistently and seriously buying-back from open market since this August. The buy-back prices started from 48 cents and increased to 48.5 cents. Today, the buy-back price is again increased to 49 cents. Therefore, Stamford land share price will be at up trend , as the share price is strongly supported by company share buy-back.

go along with the trend, and don't be against it.

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