Eastern   

Eastern Holdings Ltd

Any advice on this one?
How much is per share worth now, after the XD (stock split/divident)?

 

Eastern Holdings Ltd

be redeveloped into a 5-storey low rise apartment block which target consumers with desire for quality life at

affordable prices. Located along Jalan Loyang Besar, Loyang Terrace has a 999-year leasehold tenure with a

land size of approximately 23,158 sq ft. At a purchase price of S$12.5 million, the property was acquired at a

value of S$540 psf. Eastern intends to develop a 5-storey low rise apartment block with at least 25 apartments.

The total permissible gross floor area is about 32,421 sq ft.secures first enbloc project for S$12.5 million. A 999-year leasehold site in Pasir Ris to

 

ffyyss, yes. tech-wise post split, eastern shd be able to rise to max of 20% above its highest price, whatever that might be in the coming days. you see consistent patterns amongst such stocks.

note, the techs only hold true if macros are unchanged tho. even if not, a rerating of PE would send eastern higher, as the market comes to realise it's a proxy prop play. am actually considering vesting in this counter again. but might do it the day after the split, since that's when prices are low. will see how it goes.

and thanks for raising AP oil as another eg! :)  

 

Think all stocks have further gains after splits,rts,bonus,etc.Not just innovalues,allgreen.  They also tend to have very good news out with the most recent example AP oil. When announce bonus issue rose about 50% and after bonus another 50% with gd news out just yesterday. At 40cents, it more than doubled compared to results announcement 3 months ago. Can this stock also doubled at least from its announcement too? Both have very low PE before rise. Comments ???? 

 

Hey Mei mei,

Didnt do anything lah.....all I did was ask you to look at it.....and you did all the rest.

Anyway, glad you had a good one here.

 

 

oh and btw, may i just highlight here that i was not the one who spotted this stock. shplayer was the one who raised it to me. i merely called the techs to decide entry/exit. he's been very kindly helping me along with my FA, which is weak.

thanks to you, da gege! :)  

 

Hullo,

elf just played eastern, so perhaps i could shed some light on the counter?

FA-wise: EH is a publishing company. However, it owns 11 properties for rental and leasing. In other words, this counter is an unnoticed proxy prop play. Not covered by brokerage houses. Likely to receive coverage soon tho, since it was in top gainers. haha.

Extremely small float of only 100 mil shares, of which at least 70% is sewn up in the top shareholders' hands. which is why when EH moves, it only takes a few lots to move the price by a lot. (which is also why i had hell selling it yesterday. >~<...traders need to be careful of such stocks, since selling might prove a problem)

Tech-wise, the run up from 42c showed count to 63c. Day before yesterday showed further upside to 72-73c possible, of which it hit 72c intraday high. it is consolidating now. Stock does not do a fibo retracement, so i expect it to rest at about the 63-65c range, depending on general market sentiment. Short term, tmrw might have some slight upside possible.

But back to stock split: for EH, this is a good thing as it improves the liquidity to 200 mil shares. It also makes it more affordable for retailers. As abc2xyz noted, you'll expect the price to split commensurately. I'd put fair value at approx 30c support level post split, which is what the BBs in this counter seem to be aiming for.

Normally, stock splits for such counters only occur when they are expecting good news. If you've seen the AR of EH, they have quite solid cash flow, EPS has been constant/going up. And proxy prop play, which is why the px can potentially rerate higher, even with the stock split.

Perhaps your best comparative tech/FA wise for stock split is innovalue. 1:2 split, previous target value given was 1.50. Upon split, the new target is now 90c. (ie, at original undiluted = 1.80 fair value. A 20% upside from the first target). Allgreen is another example. The counter last traded before split at ~1.85, dropped to ~1.5 after split (can't remember what the division was), but it's now at ~$2.

Basically, if you should like to keep this counter for the long term (ie, to end dec), it's a good one to keep. Esp if you had vested at below 0.52c. It's certainly not one of the suspect counters like gems, starcruises, etc.

good luck!

PS: i know the stock is cornered, but do still keep out a look on macrotrends yea. :)   

 

The price does not drop because of a share split.  Players will adjust the price similar to how they adjust the price after ex-dividends, or ex-bonus or ex-rights. In a one for one bonus, the new bonus will also affect the number of shares floating.  After the initial adjustment, it will go up or down according to market sentiments at the ex-date.  For a one for one bonus or split, a cum bonus/split  $1 will become .50 cent ex-bonus/split, but because you now have 2 shares instead of one, any price increase will be double increase based on your orignal investments to calculate. Of course the reverse is also true, so it all depends on how good the track record of  the company is earning.  If it has been good, it shold not be bad.  share investment has its own risks whatever bous or no bonus, dividends or no dividends. Share splitting is a reward for every stockholder..

 

But after a stock split the share price will drop due to the increased number of shares floating around isn't it? Stock split to lower the share price so as to attract new investor to the stock is part of stock splitting intention? Afterall some investors go for under $1 stocks mainly.

 

Hi, in western markets stock split is something that a share investor yearns for.  Whenever there is a stock split, the share price will surge.  This is like giving you additional shares free of charge.  Therefore it can be equated to a bonus of sort.  Normally a company splitting up their shares do so to reward share holders and to also increase their share holdings.  On the financial side, only the ratios change; for instance, the NTA, market capitalization, EPS,etc.  The purpose of a split is to enlarge the company's number of issued shares for further course of actions with good things in mind.

For the shareholders, it is a plus, plus. So whenever you hear a stock split, go for it.

 

There is lots of news about stock split at other forum, this is my first time experiencing it, is it confirmed yet or still awaiting approval? Generally speaking, the split is a good thing?

Any news ??