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Hi Kawaiiboi,
Many many thanks for your sharing.
kawaiiboi ( Date: 24-Oct-2008 11:54) Posted:
Semb corp is one of the favourite by Huge fund managers... technically speaking due to its ability to weather the current recession with little financial problem, its investment should consider to be sound. But one must consider the fact that its share price is not free from collective pull out from Funds from overseas which is actively trying to cut losses in order to repay fund investors just like the case in many in SG.. Even if you buy at $2, i would still be brave to say you are not paying too much a premium as the risk of default of this firm is close to zero..
richtan ( Date: 24-Oct-2008 10:33) Posted:
Hi Bros & Sis,
Many thnks for all those valuable & constructive comments but of course, vice-versa, no thanks to those no value-added rubbish comments. |
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Semb corp is one of the favourite by Huge fund managers... technically speaking due to its ability to weather the current recession with little financial problem, its investment should consider to be sound. But one must consider the fact that its share price is not free from collective pull out from Funds from overseas which is actively trying to cut losses in order to repay fund investors just like the case in many in SG.. Even if you buy at $2, i would still be brave to say you are not paying too much a premium as the risk of default of this firm is close to zero..
richtan ( Date: 24-Oct-2008 10:33) Posted:
Hi Bros & Sis,
Many thnks for all those valuable & constructive comments but of course, vice-versa, no thanks to those no value-added rubbish comments. |
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Hi Bros & Sis,
Many thnks for all those valuable & constructive comments but of course, vice-versa, no thanks to those no value-added rubbish comments.
strict value criteria is actually half or a third NAV as buy.
because of the closed nature of our market though, it's difficult to reach that. you'd expect to pay a certain premium for blue chips, that's why you call them blue chips, after all.
Sembcorp's NAV is as idesa said. the thing to note is that, as of its last AR, sembcorp has free cash flow and no debts. Very rare for a large company. What this means is that, in a downturn, it is less likely to be affected by creditors, as it has its own cash to buy up distressed assets and/or expand if it wants to.
So on FA, this is a major plus. Which may account for why it hasn't fallen as much as other blue chips.
On technicals (which i much prefer to FA): Support at current zone of 170s-180s, next support goes to the 132-140s region. based on 5 yr history.
all this blue chip, just wait at $1.. they will come to you, make sure you grab them when the time come
Last closed price: $1.95
NAV: $1.57
Yield: 7.7%
Many counters are trading below NAV. Some are even trading 80% below NAV. Good and fundamental counters are being bashed down in this climate. There is no way to justify fair value at this moment. Take SIA for example, NAV @$13.60, and traded yesterday @$11.70 that is 15% below NAV. SPC is 30% below and SembMarine 24% below.
So for SembCorp currently trading 24% above NAV is still expensive IF compared with other value play counters. If use average yard of 80% below NAV, it must trade $1.26.
Could be redemption by foreign holders of foreign pension / hedge funds?
Anyone can obtain some statistics of foreign funds pull-outs frm Spore?
The whole world is irrational now!
Does anyone know the fair value and NAV for SembCorp.
The current price seems ridiculous & unjustified.
Some kind knowledgeable advice is appreciated.
