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Something is brewing, is it? Sudden movement for this left behinf guy.
Anyone any comments?
Vat's happening? Seems like it is really left behind, tho we do get vol to buy, albeit pushing price downwards.. Any TA comments?
This is one properties counter that is left behind. Don't knoe when is the next move?
Strongly agree. Am vested considering its good fundamentals.
I wouldn't be too concern at this juncture, prices has gone up quite abit, nevertheless Ascott assets are well diversified. Its a very safe property play with the possibility for selling their asset to ART. I would like to pick up some below 1.80 if it happens. Vested
prices might not surge just because there is an upgrade. Look at Gems TV, how many pp had fallen prey to the Broker's buy call and over optimistic valuation?
Despite of the upgrade, the price of this counter still fall. Any comments? anyone?
| BROKER CALL - Singapore's Ascott Group's, ART's target prices raised - JP Morgan |
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| 6/11/2007 10:19:00 AM |
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SINGAPORE (XFN-ASIA) - JP Morgan has raised its target prices for the stock of
Ascott Group and unit Ascott Residence Trust (ART) because it expects their
earnings to strengthen.
The brokerage firm said it had increased its fair values for Ascott Group to
2.46 sgd per share from 2.08 sgd and for ART to 2.18 sgd per share from 2.07
sgd.
"We have revised our earnings and income estimates for both the Ascott Group
and ART to reflect updated operational data, divestment gains and recent
acquisitions," JP Morgan said in a note to clients.
It said Ascott Group's current share price did not reflect value from the
serviced residences the company was developing, worth 750 mln sgd.
The brokerage firm said that in the the medium term it expected Ascott Group to
gain from the restructuring of its European and Chinese portfolios, including
divestments.
JP Morgan said it expected inorganic growth for ART, boosted by better pricing
in its key markets, such as Singapore, the Philippines and Vietnam.
"Accretive acquisitions made by ART from third parties and from the trust's
sponsor, the Ascott Group, should propel [distribution per unit] growth for the
trust at between 4-5 pct per annum," JP Morgan said.
It has "overweight" ratings for both Ascott Group and ART.
At 10.04 am, Ascott Group was down 0.01 sgd at 1.88, on volume of 448,000
shares. ART was down 0.03 sgd at 1.94, with 103,000 shares traded.
(1 usd = 1.53 sgd) |
JPMorgan raises target prices for Ascott Group (A07.SG) to S$2.46 from S$2.08, for Ascott Residence Trust (A68U.SG) to S$2.18 from S$2.07 after raising earnings forecasts to reflect updated operational data, divestment gains, recent acquisitions. Remains Overweight on both. Says market not factoring in value for group''s S$750 million pipeline of service residence development, but expects stock to reflect such value as completed projects get injected into funds or sold to ART. Adds accretive acquisitions by ART from third parties, Ascott Group should propel DPU growth at 4-5% per year
Appreciate a TA reading on this counter.
Midday, BU 4,411 lots, SD 482 lots, married 3,370 lots @ $1.847
Total vol at mid day - 8,263 lots
My non TA gut feel is its poised for a breakout soon?
I don't know if the mood will prevail tomorrow, if it continues, it may drop further, I think there was a gap from abt $1.70 to $2.00. So I guess a good re entry level could be $1.8+ , Just a guess.
Ascott was probably affected by the general mood today. The volumes today were quite thin actually and I feel that the selling a little overdone. My humble opinion only.
How happen to Ascot today ? Is the bullish sign still intact ?
Support is at $1.80. But with std & poor's report, it may bottom at higher price, may be say $1.90. The next wave could end at at least $2.19. If it is ragging bull, it may reach $2.66.
Yep, sold mine XD. Sigh. Maybe when it come down more, then I will start accumulating for long term investment.....
Perhaps some announcement coming up............or probably a rerating of this counter.
Company has been very agressive in its expansion....India, China,vietnam, Phillipines, Russia and new field ME.....not to mention Spore.
The bullish regional economy will yield strong operational performance....as shown in 1Q07 results eps of 0.24 cts vs 0.11 for 1Q 06.
2Q 07 will also include one off gains from the sale of the Guanzhou Golf Resort and Asia Hotel i n Spore. This will translate to about 7.1 cts per share.
Today, the Ascott Group with the brand names - Ascott, Stamford and Citadines - is a world leader in the serviced apartment business.
Very bullish TA signs. Acc/Dist and Chaikin all shooting up.
Wow.. Suddenly up so much..
What the good news? Sigh sell off too early..
This counter really spring in terms of price.....all in a matter of a couple of hours......not for the faint-hearted......
Article in BT 1 May 07
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Guangzhou govt acquires Ascott's country club
By ARTHUR SIM
ASCOTT Group's Masters Golf & Country Club has been compulsorily acquired by the Guangzhou Municipal People's Government for $198.7 million.
In a statement released on Sunday, Ascott, which is part of CapitaLand, said the compulsory acquisition arose as a result of the planned construction of the Guangzhou Wuhan public railway lines over part of the 934,498 square metres of land occupied by the country club.
The acquisition includes a 6,000-sq-m club house, and an 18-hole golf course with a 64-bay public driving range.
Ascott said the compensation amount was based on the valuation carried out by independent valuers appointed by the Guangzhou Land Office, and will be paid out in stages with the entire sum expected to be received by June 30.
The club was developed in the mid-1990s by one of the merger entities before the formation of The Ascott Group and was financed mainly by shareholders' loans. Ascott said that as provisions were made in the past to write down the shareholders' loans, the transaction will result in an estimated write-back of $91 million.
The write-back is expected to be booked in the Ascott Group's accounts for the financial year ending Dec 31, 2007. As at March 31, the net asset value of the country club was $29.1 million - constituting 2.7 per cent of the net asset value of the Ascott Group of $1.07 billion.
For the three months ended March 31, the net profit attributed to the country club was $600,000, or about 5.7 per cent of the net profit of the Ascott Group of $10.4 million.
On the back of Ascott's Q1 performance and the announcement of the Ascott Residence (China) Incubator Fund, Macquarie Research rated the stock 'outperform' in a note released last week.
Macquarie Research adjusted FY2007 earnings by 30 per cent to account for portfolio gain from the sale of Hotel Asia. Macquarie Research's 12-month price target for the stock was $2.25 per share.
UBS Investment Research rated Ascott Group stock 'Buy 1'.
It said that Q1 2007 revenue was 3 per cent above its forecast but Ebitda margin fell from 26 per cent in Q1 2006 to 20 per cent in Q1 2007. As a result, EPS was around 34 per cent below its forecast.
'We expect margins in Asia to stay at 20-25 per cent given that mature assets would be divested to Ascott Residence Trust (ART),' UBS said.
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