Frasers Property (formerly: Frasers Cpt (FCL))

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The following are my thoughts on FCL after DBS V issued a post HK roadshow reports:

- Its a part of the planned profiling by Towkay himself. The introduction of FCL without public offering is an direct way to breakup F&N conglomerate structure,
- Its a transition period to gauge where market values both totally different entity before planning for next moves for both,
- So far F&N appears to have been accorded the rich F&B valuations that it deserves and hence there could be potential M&A between Towkay's Thai F&B interests before free float there is being enhanced,
- On FCL, the property arm is of the right size and platforms. However as FCL was delisted back in early 2000, the track record has been hidden within F&N and hence market is not willing to accord a fairer valuation. Hence, there is an obvious need to keep profiling FCL (asset light strategies via existing REITs and new hospitality REIT), development arm and landbanking,
- To enhance market's confidence in Towkay (not merely viewing him as another asset stripper due to the high profile leverage buyout of F&N), Towkay has self imposed a 6 months moratorium on his 88% holdings post listing to reiterate his commitment in FCL notwistanding his intention to eventually dilute at a fairer price.

Having said all the above, one thing is certain - Towkay is a good strategist and with a good asset base to work with and a good team of professional, time and patience is simply what is needed on part of investors to allow the process to unfold and fairer value to emerge.

Vested
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Greengiraffe, Well said, good points raised.
“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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(06-03-2014, 10:36 AM)greengiraffe Wrote: Having said all the above, one thing is certain - Towkay is a good strategist and with a good asset base to work with and a good team of professional, time and patience is simply what is needed on part of investors to allow the process to unfold and fairer value to emerge.

Vested

I might not agree with all your points, but I do strongly agree with the last point. Big Grin

A good write-up, and thanks.

(vested)
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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Towkay is not ranked #141 in Forbes world's richest for nothing.. Wink

[Image: 602537.jpg]

http://www.bangkokpost.com/business/news...h-in-world
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Towkay just wanna make himself rich, why would he wanna make minority shareholders rich too?
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(06-03-2014, 01:30 PM)ForeverAlone Wrote: Towkay just wanna make himself rich, why would he wanna make minority shareholders rich too?

Probably can be explained by Maslow's hierarchy of needs ? Esteem, Self-actualization.
Specuvestor: Asset - Business - Structure.
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(06-03-2014, 10:14 PM)cyclone Wrote:
(06-03-2014, 01:30 PM)ForeverAlone Wrote: Towkay just wanna make himself rich, why would he wanna make minority shareholders rich too?

Probably can be explained by Maslow's hierarchy of needs ? Esteem, Self-actualization.

I think we may have touched on some fundamentals of equities. There are many reasons why owners look to list a company:

i) funding needs - both from co perspective and owner's perspective (cashing out etc)
ii) getting a better profile.

The basic one that I look at on top of the valuation and fundamentals of the listed co is the motive behind the owner. As long as the owner's interests is aligned with the minorities, no matter how long it takes, minorities will not be short changed (dividends + capital gains).

So long as you do your homework and remain comfortable with the risks that you are taking, it is an easy way to own and "run" a business (simply because there are professionals shedding the blood and sweat to run the business).

GG
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FCL makes a good rally today now its 1.6x already

huat to all VB who bought cheap at 1.4x and 1.5x ^^

any idea what the dividend yield would look like for 2014 and 2015?

Is it reasonable to expect like 4% or better?
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Went up to 1.615 this morning, this forum really ''move'' the market. Smile
“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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There is no doubt that this forum creates a buzz for stocks being discussed. However one has to bear in mind that FCL is a situational counter that has conspiracy theory that is unfolding as time progresses.

Fundamentally FCL is under-appreciated given that it has been under F&N's wings for more than a decade. Moreover on the part of the substantial holder, he has been progressively working with his team of professionals to educate the institutional community that FCL is a stock that should be accorded ratings closer to Capitaland and Keppel Land.

All the execution of the corporate strategies requires "blood and sweat" of employees within FCL. Only with strong fundamentals can attract institutional investors with holding power and hence resulting steady share price appreciation. We must also not forget analysts that write good reports that enable investors to better appreciate FCL's latent value.

Everyone in the investment ecosystem has a part to play. More importantly for us as investors - we must be convinced that FCL suits our risks and returns profile before we commit our hard earned $ to take advantage of short term market mis-pricing.

Vested
GG

(07-03-2014, 05:51 PM)cfa Wrote: Went up to 1.615 this morning, this forum really ''move'' the market. Smile
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