Hong Fok

[bear]

Winfoong (00063.HK) is a property company with NAV of only HK$0.11 .

If you can get $0.92 by selling now, just sell and take your profit. Don't trust the directors of HF.

Hi soros

Thanks for your reply.

http://quotes.wsj.com/HK/XHKG/0063/financials

From the balance sheet and cash flow of Winfoong International over the last 2-3 years it seems that the company isn't doing so well,what's the fundamental reason for the sharp rally of winfoong over the last three months?

Given the sharp discrepancies between the NAV and current share price why it is possible for a possible purchaser to want to take over Hong Fok share of Winfoong?

[soros]

Winfoong has not paid any dividend during past 15 years. I think it had a rights issue back in 2009 - 1 for 10 @ HK$0.07 and offered a 1 for 1 @ $0.195 in 2002.

When rumours fly around in the market place , you can get buyers for the shares even if there has been no dividend record for many years or even when there is no serious buyer around.

[soros]

At today's closing price of HK$0.90, the market cap for Winfoong is HK $ 2.36 Bil.

However in the quarterly results released on 15 May 2015, the NAV is HK$285 Mil.

So public investors must sell and capture the profit.

[knightrid]

My mum has this counter in her portfolio.  When I reviewed the 2015 AR I came up with $17.1 million or so compensation for management.  I want to sell this in favor of another one that offers better dividend yield and more shareholder friendly.  Does anyone have any suggestion?  Is Far East Orchard a better choice or a value trap?

Thanks

[BlueKelah]

ROFL... My mom also has a small stake stuck in this classic value trap. Their handsome pay to mgt. Is well known but opmi can't do anything about it. Div payout sucks too.

My favourite prop. stock is Low Keng Huat

Many property stock been chased up 10 to 20% this past few months though so do expect risk of further paper loss if the positive sentiment from trump rally fizzle out and fed increases interest rates if u are going into this sector. General outlook for prop in next year or so is not encouraging either.

It may be a good idea to check with ur remisier, if they are any good should be able to give u a few solid options alternatives.

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[opmi]

^^ mgt who are family. Even IF Jiat Liao Bee also can keep job.

[knightrid]

ROFL... My mom also has a small stake stuck in this classic value trap. Their handsome pay to mgt. Is well known but opmi can't do anything about it. Div payout sucks too.

My favourite prop. stock is Low Keng Huat

Many property stock been chased up 10 to 20% this past few months  though so do expect risk of further paper loss if the positive sentiment from trump rally fizzle out and fed increases interest rates if u are going into this sector. General outlook for prop in next year or so is not encouraging either.

It may be a good idea to check with ur remisier, if they are any good should be able to give u a few solid options alternatives.

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Thanks for the info, coz I could not figure out why she was holding this counter and I expect 2016 results to be worse without the one time gain from Winfoong and the revaluation gain they had in 2015.

I'm thinking of maybe putting money into KSH as they won't announce their results until next month or so.  Maybe AF Global if the 2 brothers know what they are doing with the company.  LKH looks great as they pay good dividend and still below NTA.

[BlueKelah]

Most uncle auntie investor usually ends up with stocks due to general market gossip and 'my friend recommend me leh'... But by then usually stock has run up and after they buy at highs end up ' holding the baby' when sentiment flips.

U will have to dydd and decide one which company u like. My advice is skip property and OnG counters.

As u can see in recent GDP report, semiconductor and biopharmaceutical sector is resilient, I'd be lookin=for undervalued counter operating in these sectors.

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[knightrid]

Thanks for the advice BlueKelah. I took a small position in Hi-P and waiting for Valuetronics to drop lower before taking a position. Barely bought 1000 shares of (not lots) CEI before it moved up beyond my price point so kena full brokerage fee.

You are right about property and OnG counters as they will likely take a few years to recover, unlike electronics manufacturing. Don't even get me started on the shipping counters that she owns

[BlueKelah]

insider buy-in past few days triggered a run in the share price and query from SGX

Market is Soooo speculative nowadays, hope the interest rate rise next week will knock some sense into investors