Low Keng Huat (Singapore)

[davidoh]

Thank you all for sparing me the shame. You all have been very kind with lots of good forward suggestion and advice. I am eternally grateful to you all. I really you guys are a great mature bunch and I am appreciative.

I have read all your comments and will read again and take action on your advice as I believe you wrote with sincerity.

Please try not to hang me up in the Hall of Shame. Whenever you see my posting (or rather my name, please please appreciate don't equate me as a loser. I am really trying to learn.

I am really trying but it is so difficult. I started learning the technical analysis and it almost sent me IMH. I nearly book an appointment. I was learning using a particular stock as an example. Follow signs tell that it is selling and not time to buy but today shot up and no chance to buy.

Lastly, I am very grateful to all. I am not whining but I am a willing student. I been reading VB and found the contributions many are of quality and moderators really solid to keep everybody in check ensuring no nonsensical postings that will cause others to suffer.

Thank you very much.

[CityFarmer]

Please try not to hang me up in the Hall of Shame. Whenever you see my posting (or rather my name, please please appreciate don't equate me as a loser. I am really trying to learn.

"Hang you in the hall of shame"? Now?

My mum ever told me. The invisible isn't the one never fail, but the one never give up. Those able to learn, stand-up and try again, may become the last winner.

For me, I am not afraid of strong opponent who has never fail, because he may be gone upon his first failure. I am afraid of those persisted and never give-up. Wow...it scares me even though of that.

[NTL]

That was a nice read.

I guess it's a very "defensive" way of investing for me - mainly looking at discount from liquidation value to derive a margin of safety. I consider the property sector a core industry for me in terms of portfolio allocation, because it's rather suited to my philosophy - it's very easy to derive a rather accurate conservative RNAV, by taking into account sold units vs cost. And I keep rotating into the ones with the best MOS, with a slight preference for those with obvious "catalysts" coming up (though MOS is by far the top most consideration).

I see a couple of risks with this strategy - forced liquidation due to 1) personal finance issues and 2) corporate actions (GO by majority shareholders). For 1), I try my best to keep a good control over it, never over extending. For 2), I guess this is just a risk I have to accept.

Honestly, it's quite a "chicken" strategy lol

To me, as long as I didn't lose, it's a win. Question is win by how much.

(Hey! It's better than leaving the money in the bank!)

[slowandsteady]

Any bros or sis have RNAV estimates for Low Keng Huat?

[BlueKelah]

Any bros or sis have RNAV estimates for Low Keng Huat?

Read back the older post, has been mentioned before already, should be around +-$1.48

[greengiraffe]

LKH RNAV is way above current value. However, it is highly unlikely that it will be realised given that the Low family will continue to keep LKH as a listed concern. LKH being a Singapore listed company is of strategic value to the Low family as it serves as a legitimate avenue for the family with substantial Malaysian interests to stream out RM as funding purposes for LKH. (Note that exchange control remains in place for Malaysians and Malaysian companies).

I have no doubt that LKH is well run and will continue to be well run given the Low family's substantial interests.

The upcoming results will be the "last hurray" in terms of earnings and possibly special dividends for shareholders due to the booking of development profits.

However, going forward earnings will be very stable due to substantially higher residential development landbank costs - mainly redevelopment of Balestier Towers and the strata title landed developments in Bukit Timah and the lacklustre outlook for residential development.

This is the main reason why LKH has recycled the locked in cashflow into Westgate and AXA building with other property funds. Being a partner in commercial building forays represented a lower risks way for LKH to seek recurrent cashflows in the absence of lucrative development profits that is likely to be absent for a prolong period. As for AXA building, LKH could also be positioning its construction arm for the asset enhancement plans that Perennial Real Estate have in place to extract more underlying value eventually.

It is quite obvious that many buddies here have vested interests in the special dividends that will be declared within a week. However beyond the largely anticipated excitement, how many are prepared to accept a largely unexciting dps of 3 cents and substantially lower reported earnings after this FY?

I have previously stated that LKH mgt has astutely benefited from Singapore and to a limited extend Malaysia's asset inflation cycle in the last decade. Their changed focus of seeking stable but substantially lower recurrent income may have been overlooked by many buddies in terms of what a conservative mgt is doing and seeking out a more defensive return profile in a tough operating environment.

Odd Lots Vested
GG

[vesfreq]

Hi David, I had downloaded the China Oil Fields Prospectus.

Some prelim ratio,
http://chinaoilfield.listedcompany.com/misc/ipo.pdf

based on FY2006
IPO price SGD0.60
NAV RMB0.91
EPS 13.4 (post IPO)
PE 22

My personal opinion is that it is difficult to justify that this is a value stock at all.
Value investing is both quantitative and qualitative. However, if quantitative figures are not enticing, I will prefer to give it a miss.

One of the principles well emphasised in "common stocks and uncommon profit" is to understand the biz model. And, failing which, the investment can be exceptionally risky.

Another principle from the above is the belief in the biz model. Not forgetting management quality. Good products and services can only go so far, but outstanding management makes for a big difference between fail and pass in the long term. Like ff wong and boustead, which always reminded me of the need also to agree and belief in the management's quality, competence and capabilities. Did i mention that integrity is important too?

[sykn]

FY results are out; 5 cents dividends; makes my day!

[memphisb]

Something new and note worthy.

The Group has executed a letter of participation on 2 February 2015 for the acquisition of a 20.0 per cent equity interest in an entity which will be acquiring AXA Tower located at 8 Shenton Way, Singapore 068811. The total acquisition price is about S$1.17 billion, translating to $1,735 per square foot based on the existing net lettable area of 674,000 square feet. AXA Tower is on a site with a balance lease term of about 66.5 years.
The acquisition will be undertaken by a consortium of investors led by Perennial Real Estate Holdings Limited.

[greengiraffe]

(i) 3+2 wasn't any surprise considering a record profit year that will not be repeated for a long time.

(ii) dps of 3 will be safe as LKH shifted the model to that of investment prop owning with the gains chalked up during the last decade of asset inflation

(iii) surplus cash largely committed

(iv) 65% committed lease for a newly top Westgate does sounded a little eerie for comfort

Overall, safe company but the recent surge in expectations for a bumper special appears to be well in the price with dull earnings starting next year...

Odd Lots Vested
GG