2nd Chance Properties

[changwk]

the deputy CEO/chairman has bought 200,000 of shares in the open market on 14 Feb 2013.
it was purchased at an average price of $0.415. it brings his direct interest to 5,913,688 shares, approx 0.9%

a sign of good confidence on the company?

[CityFarmer]

the deputy CEO/chairman has bought 200,000 of shares in the open market on 14 Feb 2013.
it was purchased at an average price of $0.415. it brings his direct interest to 5,913,688 shares, approx 0.9%

a sign of good confidence on the company?

I noticed it too.

The timing is probably due to excess cash from most recent dividend payout, which is paid in cash, rather on scrip

[piggo]

Previously it was 150 lots @ 0.405. Anyway considering the net worth of these guys, it's like pocket change. Don't think worthwhile to read too much into it. Though it seems like they form quite a significant portion of buyers... Wonder what will happen when they stop buying =P

[CityFarmer]

Previously it was 150 lots @ 0.405. Anyway considering the net worth of these guys, it's like pocket change. Don't think worthwhile to read too much into it. Though it seems like they form quite a significant portion of buyers... Wonder what will happen when they stop buying =P

My concern is on sustainability of value creation, less concern on existence of buying activities.

(vested)

[CityFarmer]

The company announced its Q2 and Half year reports today

http://info.sgx.com/webcoranncatth.nsf/V...B00385B34/$file/SCPL_SecondQuarterFinancialResultsForThePeriodEnded_28022013.PDF?openelement

Summary of Half year result:
- Revenue increased +4.7%. All segments revenue except the properties contribute positive growth. Highest growth is on securities (+34.4%) and apparel (+11%). Properties is -2.7%
- Net profit reduced by -28.8%. Apparel's profit increased +42.9% and securities (+103.8%), while Gold (-25.8%) and Properties (-40.6%)
- Apparel business continue to grow with more outlet opened in M'sia. Gold business suffered from drop in retail sale price, thus lower margin.
- Properties business lower due to lower rental after disposal of few properties
- Securities profit increases after surplus fund is kept in fixed income securities and equities.

In general, the strategy remains intact. Keeping fund ready for a opportunities in property market, while continue to grow the apparel business.

One point to note, EPS drops from 1.74 cents to 1.04 cents, largely due to increase share base from 515 million to 610 million, after warrants been exercised.

Dividend guidance is 3.4 cents in FY2013, which is approx 8% base on share price of 41.5 cents

http://info.sgx.com/webcoranncatth.nsf/V...B003935A7/$file/SCPL_DividendGuidance_27March2013.pdf?openelement

(vested)

[jim_city]

thanks for pointing out that the reduction in EPS was also due to warrants being exercised... i had assumed that it was mainly due to the lower gain of fair value of investment properties and higher operating expenses...

on a side note, it seems like most of the counters i have invested in are finding it harder to make money nowadays due to higher opex and lower margins.. sigh...

(vested)

[AlphaQuant]

on a side note, it seems like most of the counters i have invested in are finding it harder to make money nowadays due to higher opex and lower margins.. sigh...
(vested)

i've came to the same conclusion after the spate of firm earnings.
and that's the problem with the stock market valuation now, i think.

local firms with biz overseas are getting screwed on the strong sgd
local firms with biz locally are getting screwed with the rising labor/rental costs

valuation cannot rise faster than earnings sustainably
earnings cannot rise faster than productivity sustainably.

says a lot abt my view on local equities...

[safetyfirst]

last year was a better year to invest in stocks.. The moment i draw my salary, i can always find something to buy immediately. Starting this year, i have difficulties finding something to buy.. i guess i will just allow my cash to build up slowly.

[CityFarmer]

thanks for pointing out that the reduction in EPS was also due to warrants being exercised... i had assumed that it was mainly due to the lower gain of fair value of investment properties and higher operating expenses...

on a side note, it seems like most of the counters i have invested in are finding it harder to make money nowadays due to higher opex and lower margins.. sigh...

(vested)

Labour crunch seems has no impact on the company, with reference to recent 2Q report. It may due to its uniqueness as a Malay company IMO.

[jim_city]

last year was a better year to invest in stocks.. The moment i draw my salary, i can always find something to buy immediately. Starting this year, i have difficulties finding something to buy.. i guess i will just allow my cash to build up slowly.

Yup! Me too! I find it's getting much harder.. I guess it's better to sit and wait as well.. Hmm.. But speaking of which, it makes you think how Second Chance managed to build up so much available for sale securities since last year... Are they buying overvalued companies?