Chuan Hup    Last:0.16    -0.001

Chuan Hup

Thanks, Shplayer. You are so well-informed...

 

headsets,

will be announced after resolution is passed by AGM. Last year, AGM was on 20 Oct. This year, no news yet.

 

Does anyone has any idea when would CH formally announce their "CD" status? It's been a while since their Aug 17 prelim announcement...thanks.

 

Given the new information you provided on CHH, I agree with your analysis. Thanks

 

headsets,

For some querky reason, final divvy proposal is tabled at the Co. AGM. After the AGM, provided the divvy is aproved....never heard of any case it has not been approved, then the stock will go cd.

Final divvy is 1ct tax exempt.

 

Also, I note that CHH is late in announcing their 'cd' status...wondering why? Just read the BT article that companies that announce their results later than 60 days are usually in trouble one way or another...even though I note CHH has announced their preliminary results in Aug.

 

Again, I think it would be a good opportunity to pick up some on Mon, assuming the counter also falls with the drastic fall in Dow Fri...CHH could pick up a cent or two when they formally announced their audited results...expected soon.

 

I agree with you, Shplayer, that CHH is a better long term investment...CHO has shot up too much these past 6 months...

 

limkt009,

Yes, when you compare CHH and CHO, for short term movement, CHO is definitely a better counter.

But, depending on your investment strategy and how you allocate your resources, you choose the stock suitable to your investment style.

As for me, I allocate the majority of my funds into long term investment. Under this category, I look for undervalued stocks with good to reasonable divvy yield. Of course, the business model must be sound and so do the management. So, on this basis, the price of CHH is a generous disc to its NAV whilst the price of CHO is a premium of 4X NAV. Given a long term outlook, I'd chose CHH for this part of my portfolio.

However, for my short term investments, I look for momentum plays.......mainly for punting.....and CHO, in the past week was not too bad a deal. However, there are others that perhaps did better........namely achieva, Sembmar..

As for your theory of Peh & son taking CHH private, I think it is not in their plans now. Why???

1. In the GO, they stated they do not intend to take it private.
2. The GO was a 'conditional' offer....which means they will reject acceptances if they fail to achieve >50%. If they wanted to take it private, then would they have reject the 4.67% acceptances at the close of offer? They would have made the GO 'unconditional'.
3. During the GO, if you observed the strategies applied, there was big 'Buy' lots (40+mil)at the offer price (presumeably by Peh) and big 'Sell' lots (40+mil) one bid up (also presumably by Peh). They did this so as to block any price movements during the GO. During the GO, they managed to acquire about 12+% off the open market.

 

 

A better bet is on CHO. Peh and Sons have large holding in CHH, they are probably accummulating more in such market to take it private.

 

headsets,

In FY06 AR, shareholdings are as follows:

10.001 - 1000 lots         36.72%

> 1000 lots                    53.53%

Total                             94.25%

Top 20 shareholders  - 53.49%

From the above figures, if we do a simple extrapolation and assume those owning 500 lots or more are long term investors, then about 18% fall into this group....which makes long term investors at 53.53 + 18 = 71.53%.

Also, from the GO, Peh & son increased their stake to about 42%.

So, yes, this is a pretty conered stock.

 

 

With the big drop in Dow Friday, could expect to pick some CHH Monday...

 

I have 2 concerns about CHH:

(1) the relative illiquid share due to large holdings by Peh and Son;

(2) the rather lethargic movements of its share (vs CHO).

 

Comments...?

 

 

Both are equally good, CHH looks very attractive @0.37

 

Sporeguy,

Both counters have its merits.

From FA point of view, yield and P/E are comparable for both counters.

CHO price movement is more active than CHH, which is rather slow.

But the factor that decided for me is the P/B. CHH is trading at 0.71X whilst CHO is 3.2X (based on close of 31 Aug of 35.5 ct and 82 c).

So, I feel there may be more % upside potential in the meduim to long term. 

Just my personnal opinion.

 

Hi shplayer, Have you compare which is better, investing in CHH for its NAV or CHO for its business ?

 

shplayer, you cherry picky here! Enjoy!

 

Thanks for the information, Shplayer...

 

I will also accoumulate on dips and hold them long term..

 

headsets,

CHH also paid out 0.5 ct interim divvy .....making FY 07 divvy of 1.5 ct. (tax free)

At Fri closing of 35.5 ct, yield works out to be about 4.2%.........this is nothing to shout about but not too bad yield....certainly better than what you can get from FD and CPF.

But if you look at NAV at 30 Jun 07 of USD 0.3284 (SGD 0.499), it is trading at a disc of  approc 30% of NAV.

Furthermore, CHH direct and deemed stake in CHO is 32.11%. As at 30 Jun07, CHO NAV is USD 0.1711 (SGD 0.26). CHO Fri closing price is SGD 0.82. This spread of CHO NAV and mkt price is worth about SGD 0.12 per CHH share.

CHH management have declared that the company is an investment holding company and all assets are 'available for sale'. Furthermore, in Mar-Jun 07, the Peh father & son made a GO at 36 cts raising their stake from <30% to about 42%. It is obvious they realise that CHH is grossly undervalued and it is a matter of time they will find ways to unlock the value of CHH.

This is a classical FA term investment and I am prepared to hold.  Who knows, like the sale of their marine business to SCOMI Marine, the unlocking of value was a pleasant surprise to patient share holders who were handsomely rewarded.

I am now waiting for the second pick of the cherry......meanwhile, I will continue to accumulate whenever the opportunity arises.

Caveat emptor. 

 

Thanks, Tiandi. I note their SGD0.01 final payout, which is a little disappointing. Worse, the share price is lagging the market performance too. Do you think it would be good to hold it long term? FYI, I have been monitoring CHH for many, many years and I like their dividend payout and steady rise in share price in the past...not so good lately.

 

sorry for my typo error on its unaudited NAV
it should be US cents 32.84.

also, interim dividend and final dividend is in Sing $.http://info.sgx.com/webcorannc.nsf/560dd4b031b97d27482571b20043d38c/0f58d809d9bc9cbc4825733a0022e689?OpenDocument

 

headsets, 

you may want to read their unaudited financial report in sgx website on 17 Aug.
its NAV US$32.8. high asset,share price is very low compare to nett asset.
dividend is 0.5 cents interim and final 1.0cent or total 1.5cents.

this counter had been slow in share price changes when the market is very bullish.