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cheong wee,
couldn't agree with you less. Benefited from singapore ship long ago when they sold their ships & declared massive divi.........some decent trading gains then too during the run up. Looks like Mr Ow repeating an encore of hat tricks with stamford land with the free valuation of his hotels. shplayer, tks for the intro after such a long time away from stocks.
cheongwee ( Date: 20-Apr-2008 10:25) Posted:
Got stamfordland , s'pore shipping and cougar logestic out of hai sun hup, so long ago using cpf. Have keep these for long since fundamental and dividend.Have make lot of money in hai sun hup long forgotten how much, but alot way back.
Really cannot believe my luck, first was ascott 50 cpf too, now this one.stamfordland 72 lots ready to unload.Long live Hai Sun Hup
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SGX is heading north. Good news. Perhaps may consider blue chips... trade with your own risk. bank stock o see
Got stamfordland , s'pore shipping and cougar logestic out of hai sun hup, so long ago using cpf. Have keep these for long since fundamental and dividend.Have make lot of money in hai sun hup long forgotten how much, but alot way back.
Really cannot believe my luck, first was ascott 50 cpf too, now this one.stamfordland 72 lots ready to unload.Long live Hai Sun Hup
Techwise, looks like it may test all time high of 80c set on 10 Jul 07?......still novice in tech.....can some techies please comment?
Tuan Sing and Morgan Stanley partner are looking to sell off 2 of their hotels downunder too as Australia is experienceing a supply crunch for rooms in key cities...maybe useful to keep watch.
Since the annoucement in last March on the rejection of the sale of OCK Hotels, the price has more ore less stabilise at 63c to 65c.
Most of the profit taking and traders activity has have share of the action in the last few weeks.
I wonder why should STL made annoucement about OCK and his brother still maintaining the same appointments in the company.
Normally, such annoucement is for resignation, new senior positions or promotions.
Its interesting........ definately something is brewing.
May be making the all important annoucement that " we have been waiting for!!
When Asia spending power increases more money would spend on traveling
Freehold properties would value higher..... When money value lower it would cause the price of freehold properties goes higher...
It is costly to build a new hotel as you know the price of raw materials are getting higher....
lausk22,
Yes, but that will be a happy problem....won't it? So, don't worry too much about it.
As I see it, the market is in the process of re rating STL. Given that, if the deal is done (sale of the hotels), the NAV can potentially be raised to about $1.15. Current NAV is about 50c. So, a share price at about 70c to 80c puts it 40% to 60% premium to current NAV and about 30% to 40% disc to 'potential' NAV.
So, my guess is the mkt will re rate STL up to between 70c to 80c. If and when the deal is done, it should move again.
Bear in mind, STL YE is 31 March 08........so more new expected when result is announced before end May?
caveat emptor
shplayer,
The next perennial problem is when to take profit....
lausk22,
Glad for you and all vested.
lausk22,
Cannot complain lah.
shplayer
I believe u must have reasons to smile or laugh to the bank....looking at the Stamford stampede....
Yes Mr Ow definitely knows how to unlock shareholder wealth.......
I am sure another offer must have came in ...thats why SL reject the extension of this current offer......
base on this current offer, and staying on the pessimistic side......the offer of $1.05Billion less 10%.....= 945Million......
minus maybe 150Million working capital for the development business....
SL will have cash hog of 795Million.......about 92 cents / share to be returned to shareholders......
even if on the veri pessimistic side ...no sales went thru......
NBV of hotel business is 450Million under value which work out to be about to be 0.52 / share add to NAV of 0.49...share of SL should be worth eaisly > $1.......
vested in sl years back and accumulating along the way........
have thot that Mr Ow will go into REIT...but who knows he is into selling his hotel business......
shplayer ( Date: 25-Mar-2008 07:40) Posted:
Report in BT today........looks like there should be another upward push to SLC price today.
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Published March 25, 2008 
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Waking up to the value of Stamford Land
By CONRAD RAJ
SAVVY investors appear to have begun to recognise that mainboard-listed Stamford Land is a very much undervalued stock, as the price of its shares surged 17 per cent yesterday to 52.5 cents apiece. Earlier, they had been traded to a high of 55.5 cents a share.
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Stamford's hotels in Sydney, Melbourne, Adelaide and Brisbane are among the best in Australia and have won numerous accolades there and from abroad.
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This followed its announcement last Thursday that it had terminated an exclusive agreement with a prospective buyer who had made an unsolicited offer of A$850 million (S$1.06 billion) for the group's portfolio of eight hotels - seven in Australia's key cities and one in Auckland, New Zealand.
It did not name the buyer but said it was a 'substantial public group with a diversified international portfolio of investment and residential properties and hotels'.
Stamford said it had entered into an exclusive agreement with the prospective buyer 'as the offer of A$850 million was at an acceptable valuation and offered an option to unlock shareholders' value'.
Yet at the same time Stamford said it was not keen to sell and had demanded an 'unusual and onerous non-refundable deposit' of A$1.3 million. Its founder and single largest shareholder Ow Chio Kiat explained his reluctance to part with the hotels: 'I feel very passionate about my hotels because I chose and built the portfolio up myself since 1994.'
The company also noted that: 'The hotel portfolio with a total net book value of approximately A$382 million, has always been the Group's core business, producing a steady stream of recurring income. Due to the high and continually rising cost of hotel development in Australia and New Zealand, the Group will not face much competition as there is unlikely to be an oversupply of room stock in the foreseeable future.'
The hotels in Sydney, Melbourne, Adelaide, Brisbane and Auckland are among the best in Australia and have won numerous accolades there and from abroad. The hotels - five purchased in the mid-1990s and the remaining three in 2000 - were bought for a total consideration of about A$480 million. Yet, because of strange accounting rules, shareholders cannot really comprehend their true worth, and as they have to be depreciated annually, their book value is still heading south.
But Mr Ow, who started life as a bumboat operator, seems to be in no hurry to sell as there appears to be no shortage of suitors. The company has disclosed that it has received 'approaches from other parties for the purchase of the Group's hotel portfolio'.
According to one observer of the stock, Stamford's rooms in the books are valued at about A$237,000. By comparison, the Orchard Fund recently purchased the Diamant Hotel in Sydney at a cost of about A$390,000 a room, while the Sheraton Noosa Hotel near the Gold Coast went to other buyers for A$535,000 a room, and the Park Hyatt Sydney was sold at a whopping A$1.25 million a room.
Mr Ow has also been talking of placing the hotels in a real estate investment trust (Reit), where properties are revalued annually.
The company also has a profitable property development arm which is into high-end residences.
Commenting on its property development arm, which leverages on the Stamford brand name and is not part of the recently proposed sale, the company said: 'This aspect of the development and sale of luxury apartments has done well and will be further expanded upon. Currently, the property development portfolio includes The Stamford Marque in Sydney; The Stamford Residences and The Reynell Terraces in The Rocks, Sydney; The Stamford Residences in Auckland; and a commercial development in Perth.'
At the price ascribed by the just- snubbed buyer of the hotels, net of long-term debts of about $314 million, the company, which has a cash hoard of over $70 million, would have had $800 million in cash or about 94 cents a share.
The property development arm is said to be worth about another 20 cents a share, giving the company a total value of about $1.14 a share.
Yet, despite yesterday's price spike, the shares were going for less than 56 cents each, and at the closing price of 52.5 cents, Stamford was worth only just over $450 million. A bargain, it appears.
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Report in BT today........looks like there should be another upward push to SLC price today.
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Published March 25, 2008
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Waking up to the value of Stamford Land
By CONRAD RAJ
SAVVY investors appear to have begun to recognise that mainboard-listed Stamford Land is a very much undervalued stock, as the price of its shares surged 17 per cent yesterday to 52.5 cents apiece. Earlier, they had been traded to a high of 55.5 cents a share.
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Stamford's hotels in Sydney, Melbourne, Adelaide and Brisbane are among the best in Australia and have won numerous accolades there and from abroad.
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This followed its announcement last Thursday that it had terminated an exclusive agreement with a prospective buyer who had made an unsolicited offer of A$850 million (S$1.06 billion) for the group's portfolio of eight hotels - seven in Australia's key cities and one in Auckland, New Zealand.
It did not name the buyer but said it was a 'substantial public group with a diversified international portfolio of investment and residential properties and hotels'.
Stamford said it had entered into an exclusive agreement with the prospective buyer 'as the offer of A$850 million was at an acceptable valuation and offered an option to unlock shareholders' value'.
Yet at the same time Stamford said it was not keen to sell and had demanded an 'unusual and onerous non-refundable deposit' of A$1.3 million. Its founder and single largest shareholder Ow Chio Kiat explained his reluctance to part with the hotels: 'I feel very passionate about my hotels because I chose and built the portfolio up myself since 1994.'
The company also noted that: 'The hotel portfolio with a total net book value of approximately A$382 million, has always been the Group's core business, producing a steady stream of recurring income. Due to the high and continually rising cost of hotel development in Australia and New Zealand, the Group will not face much competition as there is unlikely to be an oversupply of room stock in the foreseeable future.'
The hotels in Sydney, Melbourne, Adelaide, Brisbane and Auckland are among the best in Australia and have won numerous accolades there and from abroad. The hotels - five purchased in the mid-1990s and the remaining three in 2000 - were bought for a total consideration of about A$480 million. Yet, because of strange accounting rules, shareholders cannot really comprehend their true worth, and as they have to be depreciated annually, their book value is still heading south.
But Mr Ow, who started life as a bumboat operator, seems to be in no hurry to sell as there appears to be no shortage of suitors. The company has disclosed that it has received 'approaches from other parties for the purchase of the Group's hotel portfolio'.
According to one observer of the stock, Stamford's rooms in the books are valued at about A$237,000. By comparison, the Orchard Fund recently purchased the Diamant Hotel in Sydney at a cost of about A$390,000 a room, while the Sheraton Noosa Hotel near the Gold Coast went to other buyers for A$535,000 a room, and the Park Hyatt Sydney was sold at a whopping A$1.25 million a room.
Mr Ow has also been talking of placing the hotels in a real estate investment trust (Reit), where properties are revalued annually.
The company also has a profitable property development arm which is into high-end residences.
Commenting on its property development arm, which leverages on the Stamford brand name and is not part of the recently proposed sale, the company said: 'This aspect of the development and sale of luxury apartments has done well and will be further expanded upon. Currently, the property development portfolio includes The Stamford Marque in Sydney; The Stamford Residences and The Reynell Terraces in The Rocks, Sydney; The Stamford Residences in Auckland; and a commercial development in Perth.'
At the price ascribed by the just- snubbed buyer of the hotels, net of long-term debts of about $314 million, the company, which has a cash hoard of over $70 million, would have had $800 million in cash or about 94 cents a share.
The property development arm is said to be worth about another 20 cents a share, giving the company a total value of about $1.14 a share.
Yet, despite yesterday's price spike, the shares were going for less than 56 cents each, and at the closing price of 52.5 cents, Stamford was worth only just over $450 million. A bargain, it appears.
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OCK made the annoucement on 20th March when the Exclusive Deal has lapsed on 7th March....
Today's volume is good.
Hopefully, BBs will start paying attention to this counter.
Current share prices still way below potential NA V of >$1.
If the volume continues to hold over the next few weeks, I'm quite sure this counter will shoot pass the $1 price.
Vested
shplayer ( Date: 24-Mar-2008 10:11) Posted:
At current price of 53.5c, its still trading at >50% disc to its 'market' NAV.
If you consider what OCK has done for Spore Ship a couple of years ago, he sold almost his entire fleet at its peak....when container rates were the highest and cost of new builds were did not judtify the ROI. A year later, he sold off the logistic portion of Cougar ....reaping good gains.
In the recent news report on the aborted Stamford Land deal, he was quoted as saying he's reluctant to sell cos of his 'passion' for the hotels. This could be part of his 'wayang' to extract a higher price - willing buyer; reluctant seller. Also, as a shrewd businessman, I don't think he would have rejected the exclusivity extension if he did not think he could get a better deal from the buyer or others.
Note - The rejection of the extension of exclusivity does not mean discussion with the buyer has ceased........it means STL can talk to any interested buyer/s.....which can only benefit the company.
I declare I am vested.....so my views may be slanted towards optimism......so do take care with your investment decision. |
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Congrats shplayer. May I know whether you have offloaded since price shot up this morning or are you holding on for longer term ?
No worries, caveat emptor :)
More often than not, the market is driven more by sentiments than fundamentals, regardless of whether we are in a bull or bear phase. This is the rationale why people use technical analysis to decide buy/sell, ie trying to read trends. But then, even technical analyses can fail, when irrational sentiments sets in. Hence, making decisions based on sound fundamentals appears more rational in volatile markets.
