Which stock do you wish would be privatised? I wish..... it would be .... Eratat Lifestyle (offer 35 cents lah, quite fair imho cos stock can't move despite solid profits), China Fibretech (offer 14 cents can already), and Cacola (offer 10 cents, hahaha....)
So far, privatisation plays have been rewarding. If not for the takeover offers, the stocks would have continued to trade way below their fair valuation.
a. Sinomem
b. Map Tech
c. Time Watch
d. China Angel
e. Allgreen Prop.
Kim Eng Research has its own list published today:
Looks like everyone is looking for the next bargain that can be privatised at 50% or so premium to crazily undervalued price:
In the Kim Eng report, the cheapest (by PE & P/B valuation) stock is Sinopipe.
It's also the easiest to privatise as its market cap is S$42 million --- except i have not checked how much is already controlled by the management. In any case, the implication is that they need relatively little cash to privatise the company.
I was looking for another comfort factor -- insider buying. The management has not been buying but a fund manager was buying! He has stopped for some time already but that's ok .....
One fella by the name of Kwek had this posting in another forum:
These are the 5 candidates, taking into account various intrinsics such as of yearly cashflows, profit history, revenue growth and consistency, worse case recessionary profitability/ profit margin, shareprice-to-NAV.
1. CM Pacific
2. GP Batteries
3. MTQ
4. QAF
5. Guthrie
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