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Sing Holdings - Grossly undervalued Post Reply Rate topic
runaway Senior	08-Aug-2019 14:46        runaway About Contact  Quote this Post!
x 0   x 0  Alert Admin	A debt is a leverage. A leverage, in layman terms, is to make use of the debt to earn more than what you pay to get the debt. If you borrow $1,000 and pay $40 a year for interest, the debt works against you if you earn less than $40 from the leverage. SHs interest cover is 4, so it has no problem paying the annual interest for now, But with Debt/Equity at 90%, the question is whether it has the means to pay for $160+ mil long-term debts when they fall due. A collapse in the property market would bust the company. There is a reason why it fell from $1.20+ from 2 years ago, and trading below NAV today. The market is concerned, what else?
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paul1688 Veteran	08-Aug-2019 12:07        paul1688 About Contact  Quote this Post!
x 3   x 0  Alert Admin	I am not interested in personal ideological debates. But just wish to comment in the name of open forum sharing on one salient point.   Of course there is such a thing as &ldquo good debt&rdquo .  Debt management is one of the most powerful financial engineering tool since the modern money system and equity markets as we know it existed. Why do companies issue bonds? Why do government issue Treasury Bills and Government Bonds? Even Fiat money used as currency by most governments today is a debt paper. Why do many people deliberately take on mortgage loans on their property when their CPF and disposal cash in bank are more than enough to buy? Why do many large and medium companies take on more loan or issue more bonds when they expand or make investments?  Using debt smartly is an important leverage mechanism for individuals, companies, institutions and government. Borrowing money with clueless purpose or poor investments lead to &ldquo bad debt&rdquo - but debt in itself is a tool. Not good or bad. If a high debt (how high is high?) is a straight bad, then you rule out investing in most companies and almost all Reits on SGX. Having said, looking at Debt to Equity ratio, future Earnings per Share and Cashflow are also important analysis. Hence my earlier comments on SH. Nothing is sacred and no company is worth permanent love or hate unless it ceases to be a going concern.    Remarks : Just sharing. Perfectly ok to not understand anything I wrote or agree to disagree. No problem. Our money, our choice, our wins and losses. We all want to put money in a winner and make money. Have a good long weekend. runaway      ( Date: 08-Aug-2019 07:59) Posted: Is there such thing as Good Debt? A debt is a debt. You owe money. When the money owed is due for payment and you cant pay, The lenders can liquidate you.
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runaway Senior	08-Aug-2019 07:59        runaway About Contact  Quote this Post!
x 0   x 2  Alert Admin	Is there such thing as Good Debt? A debt is a debt. You owe money. When the money owed is due for payment and you cant pay, The lenders can liquidate you.
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stockinvestor Master	07-Aug-2019 23:35        stockinvestor About Contact  Quote this Post!
x 1   x 0  Alert Admin	banks r not happy that singholdings has upped the pace of repayment to almost 60m this quarter lol.    iinvestor      ( Date: 07-Aug-2019 23:31) Posted: Aiyah..no property developer in this world will use cash to finance development and then collect later lah. This is good debt which will be repaid eventually when the sales are progressively collected. In fact the banks want to lend more to Sing Holdings... !!!
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iinvestor Veteran	07-Aug-2019 23:31        iinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	Aiyah..no property developer in this world will use cash to finance development and then collect later lah. This is good debt which will be repaid eventually when the sales are progressively collected. In fact the banks want to lend more to Sing Holdings... !!!
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runaway Senior	07-Aug-2019 22:35        runaway About Contact  Quote this Post!
x 0   x 1  Alert Admin	If you  dont understand the significance of this ratio: Long-term debt/Equity = 90%, You obviously dont understand equity.
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investshare Supreme	07-Aug-2019 19:30        investshare About Contact  Quote this Post!
x 0   x 0  Alert Admin	Only conclusion is you don?t understand what equity means. runaway      ( Date: 07-Aug-2019 16:12) Posted: I have never looked at this counter, but the title &ldquo grossly undervalued&rdquo invited me to look at it. I believed that the market is near perfect so there is no such thing as grossly undervalued stock. One glaring point stands out when I look at the financials. Long-term debt of $231 Mil is 90%, yes 90% of Equity. This is a red flag. If tomorrow the company is asked to sell all its assets to pay off all of its long-term debt, its Equity is left with $25 mil, or $0.063/share. Scary!
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paul1688 Veteran	07-Aug-2019 17:30        paul1688 About Contact  Quote this Post!
x 1   x 0  Alert Admin	Your analysis is straightforward but flawed. SH RNAV is approximately 64 cents and that is the starting point in potenrial market (hence the often used phrase of undervalued).   One legacy issue why SH seems to trade at significant discount to NAV is its tradtional lumpy earnings. conservative dividend, and management resistant to share buy back. Management clear move into hospitality and business space for recurring income is a move well received by shareholders.   The debt of 200+ million has never been an issue on paper as PB earnings alone amounts to 35 cents a share, almost at its market cap value. Including cash on hand, SH potential RNAV rises to almost $1 by 2021. This of course does not mean SH should be trading at $1. Earnings visibility is always important. What most analysts agree is SH ROE will be high in next few years. If they do their landbanking strategy right, coupled with the other financial metrics, then SH is legitimately undervalued at current 40 cents. As always, good management execution is key and so far the conservative prudence (some sharehlders prefer them to be more aggressive but I am not sure is a good thing in current times) of SH management will be interesting to watch.  Remarks : I am vested. Not enticement to buy. Never put money in a stock you are mot comfortable with, DYODD. Just sharing.  l runaway      ( Date: 07-Aug-2019 16:12) Posted: I have never looked at this counter, but the title &ldquo grossly undervalued&rdquo invited me to look at it. I believed that the market is near perfect so there is no such thing as grossly undervalued stock. One glaring point stands out when I look at the financials. Long-term debt of $231 Mil is 90%, yes 90% of Equity. This is a red flag. If tomorrow the company is asked to sell all its assets to pay off all of its long-term debt, its Equity is left with $25 mil, or $0.063/share. Scary!
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stockinvestor Master	07-Aug-2019 16:43        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	For the record, they started the year at $231m debt.  They paid down $13.9m in Q1 and $58.7m in Q2.  The long term debt is now 158.4m.  They also paid out $4.8m as dividends.  Despite all this, Equity has actually gone up to $270m at the end of Q2. runaway      ( Date: 07-Aug-2019 16:12) Posted: I have never looked at this counter, but the title &ldquo grossly undervalued&rdquo invited me to look at it. I believed that the market is near perfect so there is no such thing as grossly undervalued stock. One glaring point stands out when I look at the financials. Long-term debt of $231 Mil is 90%, yes 90% of Equity. This is a red flag. If tomorrow the company is asked to sell all its assets to pay off all of its long-term debt, its Equity is left with $25 mil, or $0.063/share. Scary!
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stockinvestor Master	07-Aug-2019 16:31        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	i don' t think you quite understand the financials.  There is $536m of Sales Revenue that is yet to be recognized.  They will be collecting cash from the buyers while Parc Botannia is being built at each stage. runaway      ( Date: 07-Aug-2019 16:12) Posted: I have never looked at this counter, but the title &ldquo grossly undervalued&rdquo invited me to look at it. I believed that the market is near perfect so there is no such thing as grossly undervalued stock. One glaring point stands out when I look at the financials. Long-term debt of $231 Mil is 90%, yes 90% of Equity. This is a red flag. If tomorrow the company is asked to sell all its assets to pay off all of its long-term debt, its Equity is left with $25 mil, or $0.063/share. Scary!
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runaway Senior	07-Aug-2019 16:12        runaway About Contact  Quote this Post!
x 0   x 0  Alert Admin	I have never looked at this counter, but the title &ldquo grossly undervalued&rdquo invited me to look at it. I believed that the market is near perfect so there is no such thing as grossly undervalued stock. One glaring point stands out when I look at the financials. Long-term debt of $231 Mil is 90%, yes 90% of Equity. This is a red flag. If tomorrow the company is asked to sell all its assets to pay off all of its long-term debt, its Equity is left with $25 mil, or $0.063/share. Scary!
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stockinvestor Master	06-Aug-2019 21:17        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	They are also rapidly repaying the debt used to finance this project.  Since the new accounting rules made them recognize all the interest costs up front, it can only mean that future profits will be at even higher margins.
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helloisme Veteran	06-Aug-2019 18:47        helloisme About Contact  Quote this Post!
x 0   x 0  Alert Admin	Parc Botannia- approximately 88% ofthe units have been issued options to purchase,  sales value  about S$635.2million. Revenue from sales will continue to be recognised progressively over time based on construction progress.This project is undertaken by a 70:30 joint venture with Wee Hur
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stockinvestor Master	25-Jul-2019 06:46        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	nextinsight reported on Sing Holdings being one of Terence Wong' s stock picks for 2H2019
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stockinvestor Master	19-Jul-2019 15:40        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	at least it finally crawled to the top of the channel.  lol. Cadence88      ( Date: 19-Jul-2019 15:21) Posted: Seems to be stuck in a channel ~ 0.375 - 0.41.
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Cadence88 Veteran	19-Jul-2019 15:21        Cadence88 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Seems to be stuck in a channel ~ 0.375 - 0.41.
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stockinvestor Master	19-Jul-2019 15:17        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	Piermont Grand EC preview last weekend seems to have caused the spike in interest in Parc Botannia.
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stockinvestor Master	19-Jul-2019 15:14        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	625/735 caveats lodged = 85% sold.  Average Selling Price of all the units inches up to 1291.82psf.
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stockinvestor Master	12-Jul-2019 15:31        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	609/735 caveats lodged = 82.9% sold for Parc Botannia average selling price of all the units is 1290.34psf.
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stockinvestor Master	07-Jul-2019 12:28        stockinvestor About Contact  Quote this Post!
x 0   x 0  Alert Admin	agree that dividend payout is lower but because of the sheer amount of profits that are upcoming, the dividend yield at the current price is attractive.  the company tries to maintain the 1c dividend even in the dry years when the company made very little profits.  so they will also need to store up some fats in the upcoming good years. Qanghoo      ( Date: 06-Jul-2019 19:48) Posted: Out of the last four yrs, last yr' s div payout was the 2nd lowest.
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