Straco -- gem?

Next catalyst will come from disclosure of strategies for Flyer. I expect announcement to be soon.

I have a question about CIMB forecast of $7m profit for SG Flyer. If Dec 14 PBT was $1.4, the net profit was ~$1.1 m.

Multiply by 12 months, we get $13 million. Even discounting the Dec peak period, how come CIMB forecast only $7m? It's almost half discount.



Re: www.nextinsight.net/index.php/story-arch...ve-factors-says-cimb

Straco’s 4Q14 results revealed that the Flyer contributed S$1.4m in PBT in Dec alone. Since Straco took ownership of the Flyer, it has improved the asset’s yield by:
1) lowering discounts given to tour groups,
2) channelling more walk-in visitors, and
3) streamlining costs (e.g. switching to an in-house marketing team).

We now expect the Flyer to contribute S$7m in net profit annually in FY15-16, based on flat visitor arrival growth (1.4m visitors)

Singapore Flyer according to Tim Reid, partner at Ferrier Hodgson:
"If we can improve Ebitda, with tenants paying less than 50% of the market (price), and function halls that people are wanting to take which we have left sitting idle, (then) this place has enormous upside.

When the Flyer able to optimise the 65.000 square foot, three-storey commercial complex, I expect the Flyer can contribute much more than S$7m in net profit annually in FY15-16 from CIMB analyst's report.

Today Straco trade as high as 85 cts and close at 84 cts same as previous high of 84 cts on 6/8/2014. Today Straco trade on high volume of 969,000 shares. Out of this 954,000 shares or 98.5% are done at 84 cts and higher.(Straco average volume about 110,000 shares daily) I believe Straco is building it's support at 84 cts before the next climb. The catalyst may come from disclosure of strategies for Flyer. So cheer more upside ahead.

STRACO has touched 90 cents, a record high, company now worth 763 SGD million. Investors are turning bullish because of reports that Singapore Flyer was profitable in Dec 2014, contrary to the widespread belief that the Flyer would bleed. The other cause of the improved sentiment --- CIMB's hint/forecast/expectation that Straco is about to increase admission ticket prices to its aquariums in China.

www.nextinsight.net/index.php/story-arch...ve-factors-says-cimb

The giveaway on the prospect of Flyer were the comments by Reid.
Other views were pure speculation.

Now is the case of letting the "winner run".

Clearly, a classic small cap growth play.

Zouk founder Lincoln Cheng announced Zouk will not be moving to the Singapore Flyer.

Straco today again closed at new high of 92 cts. Out of 782,200 shares traded 681,400 shares were at 90 cts and able or 87%. So cheer more power ahead.