Stamford Land    Last:0.43   -

Time for Re Rating?

need a little patient...the invisible hand is moving and will strike soon.. 

 

This morning from a brokerage house: 

*Executive Chairman Ow Chio Kiat said in his latest Chairman?s Message: the company is studying the feasibility of unlocking shareholders? value through the establishment of a hospitality reit in Singapore?.

*The key issue is obviously the value of Stamford Land?s 8 hotels in Australia / New Zealand. (A Business Times columnist recently bandied a figure of A$700-800 mln, which would have implied RNAV for Stamford Land of >$1.10 per share.)

*Shareholders should therefore remain patient, and wait for the value of their investment to be further
?unlocked?.

 

Just re read my last post.......there is a typo error

"As of 31 Mar06" should read as "As of 31 Mar07"."As of 31 Mar07"

 

 

hmmm3101,

As of 31 Mar06, SLL cash position was about $70 mil.

The 3.0 c div payout will cost about $26 mil......so, this will leave SLL with about $44 mil cash (assuming all thing remaining unchanged).

Bank borrowings is about $271 mil. So, a cash position of $44 mil against its borrowings isn't exactly being flush with cash.

Furthmore, its finance cost is $16.9 mil.....vs net profit of $33.35....giving an interest cover of  about 2X....which is ok but not an indication of a company flush with cash.

 

trust the Ow, I don't think any co. with a huge cash willing to let it sit miserably in the vault and earn low interest. Deducing from the last FY low dividend declared could mean something is brewing and waiting to explode very soon..... happy investing... 

 

Cool...

THks Shplayer... I learn something new today.. thks thks... just find it puzzling... in Singapore, land is not depreciated in computing the Financial Statement.. but Oz and Nz do... hmm.... strange.. haha..

Cheers,

Anything.

 

shplayer, Thanks for your info. - vested.

 

Chinchye,

Aussie and NZ accounting policy requires companies to treat their properties as depreciating assets. SLL hotels bought in the 90s have been depreciating all this time.

The difference between the current depreciated book value of its hotels and the market value (the value it can fetch if the hotels are sold) is estimated to be in the region of A$300 to 400 milion.

Convert this amount to S$ and divide it by the issued shares, you will see how undervalued SLL is compared to its NAV of 48c.

My estimate is NAV, if based on revaluation of its properties, will be in the range of 95c to 110c.  

 

Hi hi....

Everyone keep saying that the OZ property is not revalued for this stock... can i know how do u calculate the NAV after it revalue the property? Based on what figures to calculate the current NAV?? (current means after revaluation of the land)... so that i can know whether now at 76cents , is it still undervalue or overvalue..

THks thks.. pardon me for my ignornance...

Cheers,

Anything.

 

I hv revised my target price of stamford land to $1.10 fm previous target price of  0.84.....

Hv been vested in this baby since 0.33 since Nov 06, added on at 0.415, 0.555... My lastest purchase was in May 07 at 64.5...... Hope to see my $1.10 soon.....

 

 

Company has cash hoard of S$90mil and is on the prowl for expansion. In addition, it has yet to revalue the hotel in Australia due to Aus$ appreciation against S$. If that happen, the share values is definitely above S$1.00.

 

I also regretted. Bought at 65 and sold at 68 on 5 July 07.....

 

CDL hotel REIT is at $2.41per share closing on 13.7.2007. Stamford closing at 78cents is well below in comparsion especially a REIT-to-be. Let's see how CDL subscription response to see its potential .

 

Look like u r still very bullish on this. I am still holding on to this, vested when it was 40ct.
 

 

Have been accumulating this counter from the time I started this thread.....when it was about 30c.

My last purchase was 64.5c level.

Stamford Land's property asset in Spore is one floor of the Southern Building which the Ow stable of companies (incl Sp Ship, Cougar Log) use as their offices.

A correction in the spore property market (i.e. property prices) is mutually exclusive to property prices in Au and NZ. However, a correction in the spore stock market will affect most counters.

Whilst St Ld is a core holding, I do trade some of it from time to time. When its gone up too fast, I sell some hoping to pick it up again when it dips.......but I must admit, I have made mistakes and had to buy back at a higher price.

 

Hi shplayer You have an excellent investment in Stamford Land. Unfortunately I sold off my lots too soon. But like sohguanh, I am waiting for the price to come down alittle before buying again. If it doesnt, I'll just move on to some others. Regards

 

agesis: if you are worried about the imminent correction then you can wait for the price to drop BUT wat if the drop neber materialize? you would have incurred opportunity cost. buying shares is always a dilemma. no1 can predict the future direction. they can only estimate the trend based on current and past trading pattern volume. imagine if every1 can predict the future then the whole share market will be in total chaos :)

for me I intend to wait. if I'm proven wrong on my move I juz move on to other counters. this is wat share trading is all about isn't it?
 

 

 

shplayer, what is your view on this counter? I feel that the properties that Stamford have in OZ and NZ are still undervalued.
But with the S'pore property market heating up, there is likely an imminent correction on the SG property counters which may have some spillover effect on Stamford.

 

Strong vol and price uptrend. Looks like its is finding its 'true value'.....see my post 19 Jun07.

This is one of my core holdings.

 

Volume is surging up.