Sing Holdings is undoubtedly undervalued vis-a-vis its RNAV. Whether it's a 30% discount or 50% or whatever, a discount typically persists, especially for boutique developers. It's too much to expect that Sing Holdings will double to close the gap between its stock and RNAV. The funds don't usually invest in small-cap developers like Sing Holdings -- instead they allocate their money to a certain % to Singapore property with beneficiaries being the likes of Keppel Land, City Dev, etc. After that, they look at other sectors (top-down approach). Sing Holdings will always be overlooked by these big funds. It's the retail investors who are mainly in & out of the stock -- in the past up to now, the retail investors don't know much about Sing Holdings because it's under-publicised. If Sing Holdings management thinks the world will one day discover it, the guys are just dreaming. They have to talk and talk to the analysts & media. The next set of quarterly result will be sterling -- they should trumpet the stock and then let's see if it can move up from 33-35 range that it has been stuck in.
Every shareholder wants a higher dividend payout -- in the case of Sing Holdings, the higher net profit expected in the coming quarters will probably not lead to a big jump, if any, in the dividend. Reason is, the company has to fund the construction of the new project at Robin site. However, if the management is pro-active in some degree, it should announcce a bonus issue to appease shareholders who have been holding this stock for a long period of time w/o the benefit of capital gain.
CEO
Open market purchases of 210,000 shares on 12 June 2012 at $0.305 per share.
F. H. LEE HOLDINGS (PTE) LIMITED
Open market purchases of (i) 104,000 shares on 8 June 2012 at $0.305 per share; and (ii) 146,000 shares on 11 June 2012 at $0.305 per share
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