Boustead Singapore

[Musicwhiz]

Boustead still has other engines for growth in its other business divisions, and they are a globally diversified company operating in many diverse areas of the world, so the Middle East may be a blip, but I do not think it will significantly affect overall growth.

Take Geo-Spatial for example (the cash cow division I call it), the demand from Govt agencies in Singapore, Australia and SEA will still remain strong as this technology is needed for city planning and other uses. Revenue has been growing strongly over the years and cash generated also very healthy.

For its Real-Estate Solutions, their portfolio of D&B as well as DB&L is also growing, both locally and overseas (Vietnam, for example). This can boost their recurring income and cash flow streams. Boustead has also bought over the remaining stake in Boustead Projects recently announced, so they will own 100% of Boustead Projects come FY 2012.

Salcon has just managed to turn around in FY 2010, and looks set for another profitable year in FY 2011.

As for their O&G Division, I still maintain that higher oil prices (as a result of the Libyan crisis) will benefit them over the long-term, as their upstream and downstream divisions capture more business. Waste to Energy is always popular, and Boustead Maxitherm comes in for this.

So overall, I do not see a big "dent" in the Group's ability to continue slow but steady growth, at the same time generating healthy cash flows and paying out decent twice-yearly dividends.

[Musicwhiz]

Note that Boustead has resumed buying back its own shares today, on March 2, 2011. The last share buy-back was conducted about 15 months ago on December 15, 2009 at an average price of 72.7 cents/share (68,000 shares). Today, 231,000 shares were bought back at an average price of 93.5 cents/share. Total treasury shares now stands at 10.77 million shares, and issued shares less treasury shares stands at 504,975,524 shares.

[Jon-san]

Am interested to buy as well... But my capital now is reserved to accumulate another counter... Sad... So many choices, so little cash.

[Musicwhiz]

It is worthwhile to note that a Director, Mr. John Lim Kok Min, has purchased 30,000 shares at 94 cents a piece on March 3, 2011, bringing his stake up to 506,000 shares. His last purchase can be traced all the way back to November 2009, of 50,000 shares at 73 cents per share. This coincides nicely with the Company's share buy-back timing, which was done last in Dec 2009!

[valuestalker]

I am wondering what is SDV from Boustead's new subsidiary BP-SDV refer to?
Maybe a good idea for them to buy more share back with their current war chest.

[Musicwhiz]

I am wondering what is SDV from Boustead's new subsidiary BP-SDV refer to?
Maybe a good idea for them to buy more share back with their current war chest.

No idea.

Well there are two ways they can make use of the cash if they cannot find a suitable M&A opportunity:-

1) Pay it back to shareholders in the form of higher dividends,
2) Buy back more shares from the open market if they perceive the shares to be "cheap".

[valuestalker]

I am wondering what is SDV from Boustead's new subsidiary BP-SDV refer to?
Maybe a good idea for them to buy more share back with their current war chest.

No idea.

Well there are two ways they can make use of the cash if they cannot find a suitable M&A opportunity:-

1) Pay it back to shareholders in the form of higher dividends,
2) Buy back more shares from the open market if they perceive the shares to be "cheap".

SDV Logistic came to my mind when i saw it.
But yah, very unlikely as it is not jv.

I prefer they buy back share when it is "cheap", although it might even more illiquid the counter (not really my concern though).

[freedom]

I am wondering what is SDV from Boustead's new subsidiary BP-SDV refer to?
Maybe a good idea for them to buy more share back with their current war chest.

possible the joint bid by BP and Salcon? Jurong Island thing?

[Musicwhiz]

It is worthwhile to note that a Director, Mr. John Lim Kok Min, has purchased 30,000 shares at 94 cents a piece on March 3, 2011, bringing his stake up to 506,000 shares. His last purchase can be traced all the way back to November 2009, of 50,000 shares at 73 cents per share. This coincides nicely with the Company's share buy-back timing, which was done last in Dec 2009!

And as of today, John Lim Kok Min added another 30,000 shares at 93.5 cents, upping his stake to 536,000 shares.

[mightyreds]

I bought in at 93.5 after seeing John Lim do a director buy-in last week. The market seems to be reacting positively to the Coy and director purchases now.