Longcheer Holdings

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10 years 4 months ago #20238 by SWN
Longcheer Holdings was created by SWN
Yesterday announced proposed sale of subsidiary and distribution of special dividend payments amounting to 25 cents per share. The NTA of the remaining business after the sale is about 11.6 cents per share according to one local brokerage. However, market price only goes up by 2 cents today. Not many investors aware of this good deal?

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10 years 4 months ago - 10 years 4 months ago #20239 by Poh
Replied by Poh on topic Longcheer Holdings
Implied discount to NTA is 43% after ex-dividend. Quite high but not unusual among S-chips.

Have you looked at SunVic? Post-divestment, its NTA will be $1.50. But the share price now is only 53 cents. Huge discount of 67%.

CIMB highlights SunVic Chemical's low price/NTA valuation.

www.nextinsight.net/index.php/story-arch...sitive-analyst-call-
Last edit: 10 years 4 months ago by Poh.

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10 years 4 months ago #20240 by SWN
Replied by SWN on topic Longcheer Holdings
Fully agree with your comments. I am also vested in Sunvic where the situation is similar except Longcheer's deal is just proposed whereas Sunvic's deal has already got the shareholder's approval. This is typical of singapore market's reaction to any deals from a S-chip company, just like those previous cases involving China Animal Healthcare, Sound Global, etc.

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10 years 4 months ago #20243 by Joshua
Replied by Joshua on topic Longcheer Holdings
The reason why Sunvic is trading at a huge discount is because the cash from the sales proceeds will be used to repay loans and set up new businesses. There is no mention of any special dividend for the shareholders. Given that Sunvic is an s-chips, investors typically are more wary of such companies that does not share the gains with the shareholders.

All these gains from the sales are meaningless to the shareholders if they are not going to receive a single cent.

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