Singapore Shipping Corp

[guru]

Price is now at 21c, 2c or 11% since the deal was announced. Is this a case of the price rising as the general market or that the deal is viewed favourably by the market?

[greengiraffe]

The pending deal is to rebuild Sing Ship following the well timed cashing in of vessels at the peak of the previous cycle. The cream of the deal is the ability to buy back a family founded business for a song.

For Ow, it is a strategic move - I personally do not think that he is bothered by the short term fluctuation in share price.

Conversely, it is also frustration for St****** shareholders after repeated failed attempts by Ow to unlock value. I do not think that the inability to sell any of the hotels at his targeted prices bothered him either since he knows that at some point in time, he will be able to realise his targeted price.

Price is now at 21c, 2c or 11% since the deal was announced. Is this a case of the price rising as the general market or that the deal is viewed favourably by the market?

[guru]

With his companies has got to be patient. You got to be real patient with his counters, and be happy with the 4-6% dividend yield. I'm a long-term holder of St******. It's my "inflation-linked savings account."

The pending deal is to rebuild Sing Ship following the well timed cashing in of vessels at the peak of the previous cycle. The cream of the deal is the ability to buy back a family founded business for a song.

For Ow, it is a strategic move - I personally do not think that he is bothered by the short term fluctuation in share price.

Conversely, it is also frustration for St****** shareholders after repeated failed attempts by Ow to unlock value. I do not think that the inability to sell any of the hotels at his targeted prices bothered him either since he knows that at some point in time, he will be able to realise his targeted price.

Price is now at 21c, 2c or 11% since the deal was announced. Is this a case of the price rising as the general market or that the deal is viewed favourably by the market?

[camelking]

price went up to 25 cents...
25% jump from 20cents a while ago

More likely to be riding on market sentiment..

Vested

[greengiraffe]

From a fundamental perspective, there is still room for Sp Ship to rerate.

Sp Ship is paying out S$0.01 on earnings of US$0.0139 implying at payout ratio of around 59% (60% if one round up).

Given the earnings accretion from the acquisition and the stability of the acquired earnings; assuming a similar payout, there is every reason to expect a hike in DPS to S$0.015.

Using 5% div yield on the potential higher payout, S$0.30 is not a wild target for Sp Ship.

Vested

[guru]

Hi GG,

Up 3.5c (15%) as I was typing this....
I was thinking that the recent acquisition will be used to fund the S$ dividend payments while the FCF generated from the 2 RO-RO charters will be used to fund further ship purchases.

OCK has stated that he intends to build up the fleet after his earlier divestment in '05-07 if memories serve me right.

My feel is that the dividend will be kept at 1c while he continues to build up the fleet to increase the revenue and profit.

Appreciate forumers' comment on this counter too. Cheers

From a fundamental perspective, there is still room for Sp Ship to rerate.

Sp Ship is paying out S$0.01 on earnings of US$0.0139 implying at payout ratio of around 59% (60% if one round up).

Given the earnings accretion from the acquisition and the stability of the acquired earnings; assuming a similar payout, there is every reason to expect a hike in DPS to S$0.015.

Using 5% div yield on the potential higher payout, S$0.30 is not a wild target for Sp Ship.

Vested

[Nick]

3Q results released yesterday - http://info.sgx.com/webcoranncatth.nsf/V...80030A0DB/$file/SSC311212.pdf?openelement

Seems the drop in 3Q NPAT may have resulted in the small dip in share price to 24.0 cents.

(Not Vested)

[Nick]

http://info.sgx.com/webcoranncatth.nsf/V...0002316D4/$file/SSC_CompletionAnnc.pdf?openelement - The M&A of the former Cougar Logistic assets has been completed and should contribute positively to the FY 2014 figures.

(Not Vested)

[greengiraffe]

Final results due sometime this week:

Last Final results announced 23 May 12, Wednesday

[camelking]

Final results due sometime this week:

Last Final results announced 23 May 12, Wednesday

Good company under the stewardship of Senior Ow.