2nd Chance Properties

[CityFarmer]

The management did share buy-back today again, total 527,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The last four (4) buy-back total 8,022,000 shares

This is done before the final AR on the new financial year end. Any clue to take away here?

Either they are deliberately hinting that they are giving away huge dividend or they are buying because of the final dividend

(not vested)

Hi shanrui_91,

You did not post actively lately, Busy?

I do share the same. The company definitely pending for good news, whatever it is.

(vested)

[shanrui_91]

The management did share buy-back today again, total 527,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The last four (4) buy-back total 8,022,000 shares

This is done before the final AR on the new financial year end. Any clue to take away here?

Either they are deliberately hinting that they are giving away huge dividend or they are buying because of the final dividend

(not vested)

Hi shanrui_91,

You did not post actively lately, Busy?

I do share the same. The company definitely pending for good news, whatever it is.

(vested)

I have been busy with school and camps, can't believe that I am starting school next week...

Here's a question to ponder about - given that it is pushing its FY back by a few months, will the company actually have slightly more profit to pay out as compared to only 12 months of profit and cashflow?

[camelking]

The management did share buy-back today again, total 527,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The last four (4) buy-back total 8,022,000 shares

This is done before the final AR on the new financial year end. Any clue to take away here?

Either they are deliberately hinting that they are giving away huge dividend or they are buying because of the final dividend

(not vested)

U mean they spend 38.5 cents to save dividend of say, 3.2cents???
I will start to get worried if this is indeed the case....

How about this reason?

It is one year away from expiry of 147m warrant with exercise price of 32cents. Warrant holders will only convert their warrants into shares if and only when the existing price is above 32cents. The next dividend announcement is in late October (60 days from Aug 2012).
We will support the price above certain range till we annouce the routine 3cents plus dividend which will support the share price till say, Feb or Mar 2013. From Mar to Sep 2013, we will see how thing goes then.

Make more sense?

[CityFarmer]

The management did share buy-back today again, total 527,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

The last four (4) buy-back total 8,022,000 shares

This is done before the final AR on the new financial year end. Any clue to take away here?

Either they are deliberately hinting that they are giving away huge dividend or they are buying because of the final dividend

(not vested)

Hi shanrui_91,

You did not post actively lately, Busy?

I do share the same. The company definitely pending for good news, whatever it is.

(vested)

I have been busy with school and camps, can't believe that I am starting school next week...

Here's a question to ponder about - given that it is pushing its FY back by a few months, will the company actually have slightly more profit to pay out as compared to only 12 months of profit and cashflow?

Cerebos Pacific had changed their financial year-end years ago, their 1st AR after the change carried 15 months of dividend by proportion, instead of regular 12-months dividend.

It is feasible to assume the same.

[CityFarmer]

The management did share buy-back today again, total 651,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it continue till the new financial year-end? I guess so.

[VestedInterest]

The management did share buy-back today again, total 651,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it continue till the new financial year-end? I guess so.

It's the Hari Raya season, I see a lot of people in their First Lady shops in Malaysia. They should do well in Indonesia, think of it; but margins may be lower.

[CityFarmer]

The management did share buy-back today again, total 651,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it continue till the new financial year-end? I guess so.

It's the Hari Raya season, I see a lot of people in their First Lady shops in Malaysia. They should do well in Indonesia, think of it; but margins may be lower.

Yes, the margin of the First Lady shops are much higher in Singapore than in Malaysia. The shops in Malaysia are just started, and probably may take time to become more efficient. The improving tread is observed in the latest FR.

I believe the expansion into Malaysia had taken most of the management bandwidth in the near future. IMO, Venture into Indonesia will not serve as good idea, at least in the near future.

---

The management did share buy-back today again, total 651,000 shares @ 0.385

http://info.sgx.com/webcorannc.nsf/Annou...endocument

Will it continue till the new financial year-end? I guess so.

The share buy-back occur almost on daily basic since 13 Aug i.e. 2 weeks ago.

So far the shares been bought back accumulated to approx 17 mils share. Definitely a good news to shareholders

[KopiKat]

The share buy-back occur almost on daily basic since 13 Aug i.e. 2 weeks ago.

So far the shares been bought back accumulated to approx 17 mils share. Definitely a good news to shareholders

The problem is, number of shares had gone up a lot due to warrants conversion,

FY10 (Jun) : 331,554,249 ; Wrt13 = 162,457,625
FY11 (Jun) : 458,184,969 ; Wrt13 = 199,413,377 (Increase due to 1-for-4 Bonus Issue)
FP12 (Jun) : 553,559,203 ; Wrt13 = 146,625,036
16-Aug-12 : 564,411,825

* Wrt13 : Exercise Price = $0.32 ; Expiry = 27 Sep 13

If you were an old shareholder, who'd been getting the warrants for free and exercising them, then, no problem, as the total dividends you're going to get will be at a good yield.

But, new shareholders will suffer if their earnings are unable to catch up with the new nett increase in number of shares. For eg., DPS,

FY10 = 3.8ct (331,554,249 shares)
FY11 = 3.2ct (458,184,969 shares)

For the coming FY (Aug), despite a 14mths period, the DPS may be hard to hit even 3.2ct, unless they increase the payout ratio.

Due to their aggressive Shares Buy-Back lately, it's also hard to buy at a lower price... Still, I just got vested today @ $0.39 after queueing in vain for the past couple of days at a lower price. Have to Q before they start their buying, even at this higher price...

I do have some concerns about their 'Financial Management' ie. low cash - free cash used for REITs, shares buy-back, buying distressed retail shops,... short term loans,... but have convinced myself to take a small position 1st and either sell all or buy more depending on what other data I manage to dig out in the coming days, weeks, months..

[Nick]

But, new shareholders will suffer if their earnings are unable to catch up with the new nett increase in number of shares. For eg., DPS,

FY10 = 3.8ct (331,554,249 shares)
FY11 = 3.2ct (458,184,969 shares)

The increase in shares was due to a 1 for 4 bonus shares issue. This have negligible impact on the absolute dividends collected by shareholders. If not for the bonus issue, the DPS for FY 11 would have been 4.0 cents ie an increase.

(Not Vested)

[KopiKat]

But, new shareholders will suffer if their earnings are unable to catch up with the new nett increase in number of shares. For eg., DPS,

FY10 = 3.8ct (331,554,249 shares)
FY11 = 3.2ct (458,184,969 shares)

The increase in shares was due to a 1 for 4 bonus shares issue. This have negligible impact on the absolute dividends collected by shareholders. If not for the bonus issue, the DPS for FY 11 would have been 4.0 cents ie an increase.

(Not Vested)

Yes, you are right. Old (loyal) shareholders would be reaping their rewards in terms of higher absolute dividend payout from both the bonus issue and the exercise of Wrt13.

The point I wanted to highlight to new shareholders (like me) is that the DPS is likely going to be lower. Even in FY11, there was a 10% increase in the number of shares from exercise of Wrt13. For FY12 todate, >20%. So, unless the earnings can catch up (with the share base increase), there's a very high likelihood that DPS will be lower. That's one of the risk any potential shareholder need to consider and not just rely on prior years DPS...