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Chip Eng Seng
07-11-2017, 04:56 PM,
Post: #1061
RE: Chip Eng Seng
(07-11-2017, 08:43 AM)Sumeria Wrote: Many stocks have their admirers and detractors, and CES is no different. But with SBL and other shorting methods, we don't really know if negative prognosis of a counter is with or without vested interest.

I don't think CES' rise and fall was due to TM alone. There could be perhaps some effect but I think the positive side of it has already come and gone a couple of years ago. The recent surge in CES looks like genuine accumulation and for good reasons (none of it is due to TM): its clearing of old stock Fulcrum, sales at Grandeur, potential of Woodleigh site, revaluation surplus at Park Hotel Alexandra, and of course proven management's acumen in the business and generosity in sharing profits.                       

Add to all that, a RNAV of about $1.80 and a dividend yield of above 4% certainly explain CES' price trend. TM has been a written off story for a while now and I don't think CES' current share price has any of its glitter or dust on it.

You can rationalise how fantastic the RNAV, dividend yield, etc etc is, but CES is still quite a mainstream property counter and will reflect general sentiment in the sector. It has gone up not due to all those "good reasons" but rather general sentiment.

Some observations :

CES is up more than 30% in the past couple months from 73c level.

Other property counter since Sep 15 (using this date as starting point, as it seems most property counter was trading sideways but started tracking up after this date : )
Tuan Sing 35c->44c (25% up)
Wee Hur 24->29c (20% up)
Sing Holdings 39 -> 51c (30% up)
Oxley 56-> 72c (28% up)
Of course not all property counter is up so much but generally quite a few counter have benefit from recent run up in the sector..

So CES going up is very possibly due to  "rising tide lifts all boats" phenomena rather than investors suddenly realising it has value or accumulating.

We will have to wait and see for TM story, it has probably been reflected in the share price somewhat, but there is possibilty some investors are waiting to see if CES can successfully offload it, like it did for the other site in melbourne. Unit market is already showing some slowdown on the ground in Melbourne so this time round CES could be stuck with the site for a while and I am not sure how much debt they still have on the books. Should things get bad in Melbourne like in Perth, some impairment may have to be made in the future.
"I love Taiwan"

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12-11-2017, 09:57 AM,
Post: #1062
RE: Chip Eng Seng
Termination of Tower Melbourne leaves Chip Eng Seng unscathed; may turn out to be blessing instead


CES announced on 2 November that it will commence the termination of sale contracts for its Tower Melbourne ™ project entered by its wholly-owned subsidiary in Australia, CESQ. This has been widely anticipated given that construction has been delayed indefinitely by ongoing legal proceedings since 2013 and as the sunset date for underlying sales contracts is set to kick in from 2018 onwards.

The termination process for the 556 outstanding contracts would entail the return of the initial deposit (10% of purchase price) together with the interest accrued on the deposit. The necessary funds have already been set aside and managed under a trust. CES also disclosed that they will be exploring other viable exit options for the TM site concurrently, including offering the property for sale.

Termination of Tower Melbourne leaves Chip Eng Seng unscathed; may turn out to be blessing instead

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12-11-2017, 03:27 PM,
Post: #1063
RE: Chip Eng Seng
Never let bitter feud interferes with opportunities to make money

"But in a surprise twist a little more than a week later, the two developers have set aside their differences and joined forces to offer their combined Queen Street sites for sale for up to $150 million."
http://www.theage.com.au/business/proper...zgjll.html

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13-11-2017, 09:02 AM, (This post was last modified: 13-11-2017, 09:17 AM by BlueKelah.)
Post: #1064
RE: Chip Eng Seng
CES have no choice lah. Who is gonna buy a half demolished building with a lawyer happy neighbour? Can't make money if you can't build on the site.

In addition, Sydney property market started downturn liao, melbourne will soon follow, better chance to sell off "en bloc" to hopefully snag a big buyer. Possibly sharp correction coming for the oversupplied apartment market there if not crash for next few years.

And for their joint sale, other than cashed up ah tiong company, i dun see any developers wanting this block at that price. I think many developers are trying to get out of the Melbourne apartment market and move up north to the GoldCoast/Brisbane market where it is slated to next boom.

The previous approval happy land minister also gone liao, so even anyone wanna buy they might have big trouble getting approved for any Tower sort of big development, really don't see any buyer interested. But who knows.

Sent from my SM-T800 using Tapatalk
"I love Taiwan"

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