Healthway Medical

www.nextinsight.net/index.php/story-arch...7-healthway-medical-

Q&M is buying 72.6% of Singapore Medical Group (SMC) at 13.23 cents a share, after which SMC's NTA will be 7.19 cents a share. Healthway has a NAV of 7.3 cents. If we use these figures for rough estimates, should not Healthway have a value of about 13.5 cents?
Disclaimer: Don't use this as a guide as I'm not sure if this rough method of calculation is correct. Can someone who knows better please advise.
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[Another background reading 27-12-2012]:

www.nextinsight.net/index.php/story-arch...7-healthway-medical-

valuation is hard to compute - depends on buyer and seller but from this, does it mean that healthway shares have good upside? but seems like NAV is more used for unit trusts? not sure...

(1) According to a 28 May 2012 filing by Healthway to the SGX, this is its board list:
  Board of Directors Fan Kow Hin (Executive Chairman) Lam Pin Woon (President and Executive Director) Dr Jong Hee Sen (Non-Executive and Non-Independent Director) Siew Teng Kean (Independent Director) Kuek Chiew Hia (Independent Director) Pee Tong Lim (Independent Director) Syed Abu Bakar Bin S Mohsin Almohdzar (Independent Director) (2) Then Lam Pin Woon resigned on 30 November 2012. But how come the board list shown on Healthway Medical website is just four persons? (i) Mr Fan Kow Hin Executive Chairman (ii) Dr Jong Hee Sen Non-Executive & Non-Independent Director (iii) Mr Siew Teng Kean Independent Director (iv) Ms Kuek Chiew Hia Independent Director
 

Signs are good for Healthway judging by the recent surge in trading activity:
(a) Price is showing sign of getting out of its rut, recovering from 8 cents to as high as 10 cents;
(b) the recovery was accompanied by heavy volume;
(c) the heavy volume, while suggesting accumulation, also meant that the weak holders were selling out;
(d) announced results show that up to the 2012 third quarter, Healthway was in the profit zone;
(e) when a big player wants to get into the healthcare scene, Healthway is a potential stepping stone. if the player is a hospital player, Healthway with its big clinic network will act as a patient referral conduit.
(f) Healthway also has dental expertise, so it can easily become a combinded GP-cum-dental player;
(f) the caveat if of course that the healthcare industry is a high cost, competitive industry, but at its current low absolute price, the upside potential for the stock appears to be high.
Disclaimer: this is just an opinion
 
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[Guest 27-12-2012]:
valuation is hard to compute - depends on buyer and seller but from this, does it mean that healthway shares have good upside? but seems like NAV is more used for unit trusts? not sure...

I think it will really take off once the redistribution of HMD shares to HMC shareholders takes place - assuming the distribution is evenly spread out among the 2.2B shares on hand now. cos valuation of HMD is really promising with 3.5m for 1% share. that means, 35m for 10% and assuming its one time reallocation, not overtime. heard it should be mid-2013 for HMD listing....added stake to my HMC shares (already the biggest counter in my portfolio but holding the biggest paper loss to date). fingers crossed.