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is today depressed price due to the comment from the chinese paper that calls for a sell?
Any idea what's the trading range for this counter? Thanks
Thks iPunter for sharing of insight...I have good news to share. LIAN BENG CHEONG AH...........
Asean: Portfolio Strategy
GOLDMAN SACHS, March 28
SINGAPORE remains our core holding and preferred market in Asean. We believe the potential turnaround in the mid-income segment of the market has yet to be priced in.
In our view, market participants continue to underestimate the endogenous growth momentum in the economy and the domestic demand 'kicker' as Singapore's mid-income segment shifts from deflationary (negative growth trend in consumer loans) to reflationary expectations.
Business loans (domestic banking units) have been posting double-digit growth for the last eight months (average year-on-year growth of 12.1 per cent from June 2006 to January 2007). In our view, the business sector is a lead indicator for the household sector and positive developments in employment and wages have been coming through - 176,000 jobs were created in 2006, which is the highest increase in the last nine years.
We continue to hold the view that Singapore is in the early stages of its current economic expansion cycle, with our main yardstick being the mid-market housing cycle and the state of mortgage lending.
The construction sector has seen deep recession post the Asian financial crisis and we believe is a big potential swing variable for local economic sentiment.
We have highlighted in previous reports that the growth outlook for the construction sector is very strong for the next few years. Our research supports this claim and reassures us of the visibility and strength of Singapore's domestic demand for the next few years.
It is important for investors to note that Singapore is embarking on a plan to reshape its economy.
We believe that the Singapore government plans to reshape its trade-dependent economy and solidify its position as a major financial, trading, research, and high-value-added manufacturing centre, and improve its attractiveness as a global hub for business and investment.
Note also that the government's long-term population parameter of 5.5 million has been recently revised upwards to 6.5 million. Singapore is 'bulking up'.
We believe contracts awarded will grow by at least 20 per cent in 2007 and 2008. At minimum, we see construction spending of $50 billion for the next few years with the progress payment cycle likely peaking in 2009/2010; this is important as payments = revenue = income!
This is consistent with our Asean economist's (Adam Le Mesurier's) view that Singapore is at the cusp of a multi-year economic growth cycle. While all the Asean countries have been 'showcasing' infrastructure investments, we believe Singapore has the lowest execution risk.
We believe that the solid recovery of the construction sector will have a significant positive effect on 'crowding in' Singapore's middle income population via its stimulatory impact (output multiplier) on employment and income as a result of its extensive backward linkages with other sectors of the economy.
A study by Singapore's Department of Statistics suggests that a $1 million rise in final demand for construction activity would lead to a rise in employment of 20.3 persons for the whole economy - the construction sector has the highest employment impact among all industrial sectors.
Direct exposure to the burgeoning construction cycle in Singapore is limited in terms of investability.
Companies with direct involvement in this sector have relatively small market capitalisations and many have veered from the construction path over the last couple of years (many have become quasi property developers) given the post-crisis recession.
For investability, we remain focused on exposure to this positive economic growth trend via second-order plays, that is, banks and property companies. We currently have 'Buy' ratings on DBS Group, Oversea-Chinese Banking Corp, CapitaMall Trust, CDL Hospitality Trusts and K-Reit Asia.
With individuals/organisations willing to pay high prices for properties, sand ban, granite ban or whatever matters not that much... the most obvious 'solution'simply passing the increased cost to the property buyers... construction companies are really not affected much...
Lian Beng crossing 40 cents soon.... Lian Beng Cheong Ah......
Be wise! Like me!!! Hahaha....
Dreamer...
Do you still remember that I asked you not to cut loss? See! Lian Beng is coming back!!!!
It will be going to 40 cents soon....
These days, its price varies from about 0.24 to about 0.255. The highest so far is 0.26
With the ban of sand and aggregate from Indon, it is quite impossible the price will push back to $0.335.
For the 25lot of lian beng that I bought at $0.335 has already cause me to lost $2125 (-25%) taking today last done price at $0.25.
1) Should I cut lost? Seems like the price that I bought is far too high, will it ever go beyond this price again?
2) What is the fair price for lian beng?
What would you do if you are me my position?
Any advice.
Thanks