Boustead Projects

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Hi dreamybear,

Just to answer some of your questions here.

(03-02-2024, 03:27 PM)dreamybear Wrote: - is it a viable privatisation route for majority SH to use "selective EAO(where only minorities participate)" to wipe out more issued shares in the mkt before an eventual voluntary offer down the road, since if controlling SH also participate in EAO, it might trigger mandatory offer immediately ? 

Controlling shareholder can have an exemption to avoid this trigger, by stating that shareholders are waiving their right to a general offer at the required price from directors and parties acting in concert with them who, as a result of the company buying back its shares, would increase their voting rights to 30% or more, or, if they together hold between 30% and 50% of the company's voting rights, would increase their voting rights by more than 1% in any period of 6 months; and the names of such directors and persons acting in concert with them, their voting rights at the time of the resolution and after the proposed buy-back to be disclosed in the same circular. They have to abstain from voting for and/or recommending shareholders to vote in favour of the resolution to authorise the share buy-back.

So, it is not an issue that they cannot participate in the EAO. 

As to whether EAO is a viable privatisation route, it really depends on how you price it. If you price it low, normally the acceptance rate will be low as well. To attract participation, you would have to price it at above market price, as seen in some case studies recently.

(03-02-2024, 03:27 PM)dreamybear Wrote: - cld selective EAO be alternative (of "returning cash to minorities SH") to dishing out dividends ?
- is this an especially attractive idea for a cash rich company with low capex requirements ?

It is another way of capital management, and I won't say its an alternative to dividends. However, do take note that dividends can only be paid out of profits from a company but EAO can be executed even if the company do not have profits or retained earnings to pay out dividends.

(03-02-2024, 03:27 PM)dreamybear Wrote: Sidenote : EAO is more efficient than SBB spread over the entire FY but at the same time, will increase financials per share(BVPS, EPS). So there r pros and cons.

EAO will have to be priced at above market price to attract acceptance, while SBB can be done at market price. So, it might be a more expensive way and not necessary more efficient in my view.
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In the bustling world of investments, where every move counts and every opportunity is scrutinized, one company stands out as a beacon of consistency and value: Boustead. While many may overlook it, those who delve deeper unearth a hidden gem, a stock counter that has been quietly delivering impressive returns and demonstrating resilience through market fluctuations. Boustead isn't just another stock; it's the real dividend king.


With a remarkable track record of paying dividends for seventeen consecutive years, Boustead's commitment to rewarding its investors is unparalleled. But it's not just about the numbers. It's about the strategic moves and unwavering dedication that have solidified Boustead's position as a reliable investment choice.


"..............Paying a total of 80.9 cents in dividends over seventeen consecutive years, when factoring in the dividends in specie of Boustead Projects’ and EasyCall’s shares................"

https://boustead.sg/dividends...

The recent developments within Boustead further highlight its potential. The consistent buying by the CEO speaks volumes about confidence in the company's trajectory. Moreover, the delisting of the Boustead Projects segment and the subsequent increase in ownership to nearly 100% by Boustead's parent company signal a shift towards consolidation and focused growth strategies.


Analyzing the numbers unveils an intriguing story. With a net asset value (NAV) and earnings per share (EPS) set to strengthen substantially, Boustead's intrinsic value is on the rise. Even considering the delisted price of Boustead Projects at $1.18, the adjusted value per share stands at an impressive $0.77. ($1.18 x 313 mil / 477 mil). But that's just the tip of the iceberg.


When we factor in Boustead's own cash holdings, along with its robust Geo-spatial and Engineering segments, the picture becomes even clearer. The combined value far surpasses the current market price. However, a closer look suggests that the RNAV could soar well beyond $2.0, presenting a significant upside potential for investors.

Yet, despite these promising indicators, Boustead's current share price languishes at just $0.90, representing a serious undervaluation in the market. This glaring discrepancy between intrinsic worth and market perception presents a unique opportunity for savvy investors to capitalize on Boustead's undervalued status.

‌In a world where volatility reigns supreme and uncertainty lurks around every corner, finding stability and reliability in investment choices is paramount. Boustead offers precisely that—a steady stream of dividends coupled with untapped potential waiting to be unlocked. As the real dividend king, Boustead invites investors to join its journey towards sustained growth and prosperity.
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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Smile Curiousparty - just curious, given that BP already delisted (gotten the paper scripts last week), does it make sense to keep BP or swap to BS?
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BP RNAV is probably close to $2 or beyond.

Boustead parent share = $2 x 313 mil /477 mil = $1.3...

This is only BP. Boustead also has its own cash + Geo-spatial + Engineering arm + healthcare...

if we add everything together, RNAV of Boustead is easily more than $2.5....

Boustead is only trading at $0.92 as of today... Severely undervalued by Mr Market!
[I am not here to promote any stocks. Please always do your own research before embarking on any investment decision. I will not be liable for any of your own decisions. Your use of any information or materials is entirely at your own risk. It is your responsibility to ensure that any products, services or information meet your specific requirements. I do not produce material which meets the objectives of any specific financial and risk profile of investors.]
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