Thanks Sumer for your sharing. There are a couple of questions from readers posted below your article SUMER: My (conservative) estimate of RNAVs of some property stocks

Could you take a look and respond accordingly? Much appreciated. 

SIAS Research has a report today. Anyone seen it? Pls post the relevant recommendation here.

Any views on which companies will benefit from the budget 2013?

china economy turnaround in Q3 2012 . So World precision will benefit

Somehow their cash balance is RMB 100 million more than same time last year now

Still holding! But feeling nervous at the height.

Have more confidence in your other recommendation, Sino Grandness. Think this one can reach $2.00. Hahaha. 

I hope those of you who bought China Minzhong in the middle of last year have continued to hold onto it until now. 

With an entry price of just below 60 cents, I'm now sitting on almost 100% gains on Minzhong.

Indofood's entry into China Minzhong is very good news. Despite the dilution via placement, the potential synergies involved between Indofood and China Minzhong are a big boost to Minzhong's prospects. 

Indofood, which also owns Indo Agri, is now the largest shareholder in China Minzhong. As the largest shareholder, there's also a reasonably good chance that it will continue to increase its stake in future, to enable it to become the controlling shareholder. Indofood's entry into Minzhong also gives it a more international profile, giving Minzhong access to South East Asian markets, and in particular, Indonesia, the largest economy in South East Asia. 

Hi, Joes – Towards the end of last year, Soros was asked about his outlook for Gold in 2013. He does not think gold will reach US$2,000. According to him, Gold is the ultimate bubble; its price can go in either direction. It was the ultimate safe haven, but funds had to liquidate their positions to cover some losses in the stock market. On the other hand, he does not expect gold to pull back much and doesn’t consider US$1,000/oz probable either.

Unlike Jim Rogers, Soros is a hedge fund opportunist. I would not be surprised if he jumps back into Gold again should the price drops to a level that he is comfortable with. With the current massive printing of money in the world system, inflation is a certainty and Gold can be expected to rise higher eventually before its bubble can burst.

I am aware of its huge cash pile, no debts and good operating cashflow. As of FY2012, the operating cashflow should be enough to cover both the dividends payout and share buyback. What i am implying is if straco continues its frequent daily share buy back, it will need to pay more cash from its operating cashflow assuming it buys the same amount of shares. Usually share price will go higher due to daily share buy back and if straco keep on frequent share buy back means paying more as the stock price goes higher and higher. Of cos this will depends on how many shares were buy back for the year (max 10%) and the price when it was buy back at. If straco also gives a higher dividend, there will be lesser operating cashflow added to the cash pile. Why do straco keeps such a huge pile of cash? Are they planning something big? (Bold assumption:Including taking private). If straco does have big plans and have a target amount of cash to be added to the cash pile each year, then the dividend payout will be lesser assuming frequent daily share buyback is ongoing and huge amount of shares were buyback. I do hope straco do not do "frequent" daily share buy back and save the cash for acquistions, make acquistions or buy into other company shares in order to boost its cashflow thus giving better dividends and adding growth to the company. But without the share buyback, i wonder if this stock has liquidity. Perhaps the stock price need to be push higher to lure the major bulk of shares that are transacted at S$0.355 out so as to improve the liquidity of this stock.

Reporting season is on, every quarter results of S-Chips are unpredictable. If they are unexpectedly bad, their shares will drop. If they are good, most investors will not believe the financials anyway or trust the Mgt to continue the good work. A no win situation. A good example is Ducang which release a set of solid result but the share price stay grounded. The market know what we don't know. Yet I notice hopeful people still loading up the stock. A few S-Chips share price are trading below the cash per share value of the companies. Why is this so? Remember, chinaman are no fool.

This bull market already having a good run for 3 months, we should review our pofolios. Better to sell when the share prices run ahead of fundamentals and wait for dips to buy. Market correction or crisis create the best opportunity.

Not a good idea to chase shares when markets run up too quickly .When following tips blindly, the tendency is to buy at higher prices than the tipsters and worst, you don’t know when to sell ?

There are many people speculating in stocks & shares don't even know the value of the stocks. To them share trading at 5 cents is cheap & another stock trading at $5 is expensive. The popular penny stocks tend to be financially strapped companies that are hardly worth the price investors are paying them. Re: speculating pennies is a zero sum game. Someone will win & someone will loss. Who will usually loss? It's just an advice. Remember history will also repeat itself

Hi GEO, did you take into account the free cashflow of Straco? This annual cash inflow will easily cover the dividends and the share buyback.  Easily. 

I have just checked the 3Q statement, & can point to you  that in the preceding 12 months, Straco increased its cash by nearly S$12 million. This was after paying the dividend and after some share buyback.

For the 9m 2012, the operating cashflow was S$15 million. Straco spent S$540,000 on share buyback, which actually is peanuts.

And take note : They spent only$336,000 on Property, Plant & Equipment. It's so low capex for maintenance. And this was more than amply covered by the interest income on their cash in the bank. The interest income for 9m2012 was S$748,000.

 

9m 2012 net profit was 73 m rmb versus 144 m rmb in 9m 2011.

I therefore won't expect World Precision to dish out a final dividend like 2011.

I am looking at only 3% yield, or 1.25 cent a share in div. Just my view.  

Of course if you are a fund manager invested in company B, you would curse WTF! and you would pull out your investment in no time. 

I heard this story of a fund manager who visited XMH Holdings and was surprised by a simple thing he saw in the office. It was a clock on the wall -- he recognised it as an IKEA product which sells for S$1.80 each. (He had this clock in his own house too.)
 

Sometime back, I heard of a company that chartered a PRIVATE JET for its top management to fly to a (non-urgent) scheduled meeting. I think the cost was 7-figure and it was far far ahead of what it would cost to fly even 1st class on SIA. This one, I don't know its name. Anyone does? 

  

Hi Alvin, thanks for yr feedback. It's a matter that has been around quite a long time. We have had other readers gv similar feedback but we couldn't do anything abt it. In any case, it has not been an obstacle to reading and posting on the forum.

Now, we have decided to migrate to another platform. We should not have such an issue in thenew place, in a week or 2.

Cheers, Admin.

Does anyone here has any take on Meghmani SDS? It has been giving consistent div since its listing and price seemed to be reversing from bottom.