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For those vested in BP,
Wong Yu Wei did a share buyback at 90 cents 325,200 shares. Though shareholdings haven't cross 5%.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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04-06-2015, 08:53 PM
(This post was last modified: 04-06-2015, 09:19 PM by Curiousparty.)
Insider buying is much better than company share buyback because the person is "risking" his own money, whereas company share buyback is using "shareholders' money" to consolidate the "controlling family"position (e.g. Low Keng Huat, CES, etc, etc)
Hence, I would regard this as a much stronger signal that the shares of the company are undervalued. Well, the insider could be wrong.
But if I am insider, I will not want to risk my money (even a dime or cent) for something which I have no confidence in...
A few possibilities here. Maybe a big tender contract win? Or some further strategic partnership with XXX, YYY, etc
(04-06-2015, 08:24 PM)vesfreq Wrote: For those vested in BP,
Wong Yu Wei did a share buyback at 90 cents 325,200 shares. Though shareholdings haven't cross 5%.
[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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insiders have just emerged from the trading blackout period... be ready for Thomas Chu, a working director to make his announcement of open mkt purchase...
(04-06-2015, 08:24 PM)vesfreq Wrote: For those vested in BP,
Wong Yu Wei did a share buyback at 90 cents 325,200 shares. Though shareholdings haven't cross 5%.
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04-06-2015, 10:24 PM
(This post was last modified: 04-06-2015, 10:53 PM by Curiousparty.)
By paying a market cap ONLY of $286.4 mil, one gets 2 mil sq ft of industrial space or roughly 16 properties. This means Mr Market's current valuation is only ~$143 PSF!!!.
Next, look at the chart above to see how much is 30-year leasehold worth? In fact, many of the 16 properties have leasehold of > 50 years. (Pls read Annex G of prospectus to double confirm)
________
But the above is not the end. BP also has the following Joint Investments.
Item (i) has included as one of the 16 properties. The additional items are from (ii) to (iv).
Furthermore, BP has book order of >$200mil of Design and Build contracts!!!
Pls read FY2015 results again. BP secured record book order in FY2015. These profits will flow into FY2016/2017 results based on POC method
This means steady development profits on top of recurring income.
_______________
Valuers always tend to be very conservative. The reason is to avoid "professional liability". Hence, my personal take is the valuation given in the prospectus is definitely on the low side. The figures are just too low compared with market $PSF.
[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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(04-06-2015, 08:53 PM)Curiousparty Wrote: Insider buying is much better than company share buyback because the person is "risking" his own money, whereas company share buyback is using "shareholders' money" to consolidate the "controlling family"position (e.g. Low Keng Huat, CES, etc, etc)
Hence, I would regard this as a much stronger signal that the shares of the company are undervalued. Well, the insider could be wrong.
But if I am insider, I will not want to risk my money (even a dime or cent) for something which I have no confidence in...
A few possibilities here. Maybe a big tender contract win? Or some further strategic partnership with XXX, YYY, etc
(04-06-2015, 08:24 PM)vesfreq Wrote: For those vested in BP,
Wong Yu Wei did a share buyback at 90 cents 325,200 shares. Though shareholdings haven't cross 5%.
Its no small money from common folks perspective. Good start for BP. Hopefully FF Junior can live up to the senior's reputation.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
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(04-06-2015, 10:24 PM)Curiousparty Wrote: By paying a market cap ONLY of $286.4 mil, one gets 2 mil sq ft of industrial space or roughly 16 properties. This means Mr Market's current valuation is only ~$143 PSF!!!.
Next, look at the chart above to see how much is 30-year leasehold worth? In fact, many of the 16 properties have leasehold of > 50 years. (Pls read Annex G of prospectus to double confirm)
________
But the above is not the end. BP also has the following Joint Investments.
Item (i) has included as one of the 16 properties. The additional items are from (ii) to (iv).
Furthermore, BP has book order of >$200mil of Design and Build contracts!!!
Pls read FY2015 results again. BP secured record book order in FY2015. These profits will flow into FY2016/2017 results based on POC method
This means steady development profits on top of recurring income.
_______________
Valuers always tend to be very conservative. The reason is to avoid "professional liability". Hence, my personal take is the valuation given in the prospectus is definitely on the low side. The figures are just too low compared with market $PSF.
Dear CP, market cap is only the market value of the equity component. Per the accounting equation, Equity = Asset - Liabilities, and your analysis only factors in the asset valuation of the properties and not the liabilities of the BP Group. The gap between market cap and valuation will not be that great if u offset the liabilities against the valuations.
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Tks. You brought up a good point.
But how do u explain the following?
Valuation = ~2mil sq ft x $377 PSF = $754 mil
Carried on books = investment properties + assets held of sales + investment in JVs = ~$200mil.
There is a valuation gap of $554mil or $1.73.
(05-06-2015, 02:37 PM)r0n Wrote: (04-06-2015, 10:24 PM)Curiousparty Wrote: By paying a market cap ONLY of $286.4 mil, one gets 2 mil sq ft of industrial space or roughly 16 properties. This means Mr Market's current valuation is only ~$143 PSF!!!.
Next, look at the chart above to see how much is 30-year leasehold worth? In fact, many of the 16 properties have leasehold of > 50 years. (Pls read Annex G of prospectus to double confirm)
________
But the above is not the end. BP also has the following Joint Investments.
Item (i) has included as one of the 16 properties. The additional items are from (ii) to (iv).
Furthermore, BP has book order of >$200mil of Design and Build contracts!!!
Pls read FY2015 results again. BP secured record book order in FY2015. These profits will flow into FY2016/2017 results based on POC method
This means steady development profits on top of recurring income.
_______________
Valuers always tend to be very conservative. The reason is to avoid "professional liability". Hence, my personal take is the valuation given in the prospectus is definitely on the low side. The figures are just too low compared with market $PSF.
Dear CP, market cap is only the market value of the equity component. Per the accounting equation, Equity = Asset - Liabilities, and your analysis only factors in the asset valuation of the properties and not the liabilities of the BP Group. The gap between market cap and valuation will not be that great if u offset the liabilities against the valuations.
[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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Another 120 lots bought by insider on 4 June.
I suspect today too, insider was buying up.
[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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(05-06-2015, 06:30 PM)Curiousparty Wrote: Another 120 lots bought by insider on 4 June.
I suspect today too, insider was buying up.
SGX announcement. Wong Yuwei did another purchase. But, sum not sizable enough. Make it big big.
The thing I am scared most is not nightmares or market crashes..... Its my greed that I fear the most.
When people ask what is my target price, I never have any good answer for it because Philip Fisher said before (in Common Stock Uncommon Profit) that the best time to sell is never. Equity investment is buying into ownership, not betting slips.
The path to greatness and wealth is necessarily dangerous.... because greed is a fearsome fore that threatens your success at every step.
Posts: 3,956
Threads: 5
Joined: Mar 2011
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I think it is skilful accumulation. Let the sellers throw down and accumulate patiently. No need to push up the price too much
(05-06-2015, 10:43 PM)vesfreq Wrote: (05-06-2015, 06:30 PM)Curiousparty Wrote: Another 120 lots bought by insider on 4 June.
I suspect today too, insider was buying up.
SGX announcement. Wong Yuwei did another purchase. But, sum not sizable enough. Make it big big.
[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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