If you have followed this forum about Gallant Venture would have grabber it when it hit low. This morning hit high of $0.46 wit a gain of $6.5 cts alone! Bintan Island here I come!
First Kim Eng, now DBS Vickers also support Gallant! I have not been to Bintan in a long time .....Hmmmmmm....
Gallant Venture (BUY, TP $0.88): Gallant Venture is looking to
unlock substantial value from more land sales sparked by its
1,505 ha Lagoi Bay development, where major infrastructure
works and Lagoi Bay Mall are close to completion. The launch
of a big-name project nearby, Treasure Bay by Landmarks, is
likely to raise the visibility of Bintan internationally and we
believe will likely to spur interest by investors and developers in
investing in Bintan. The group is also looking to book in
substantial windfall gains from its opportunistic investment
projects in the medium term. Stock currently offers >75%
upside to our SOTP-TP of S$0.88.
Is Gallant really a good business? Their industrial parks keep losing money and their land bank takes forever to realise its 'intrisinc value'. Will look out for its 3Q results to see what is up .
The stock was 45 cents about 6 months ago -- now 30 cents. If anyting, there is some margin of safety.
TigerMel, are you still in the stock? What do you think of its direction?
Tough one to understand. Whatever happened to the landbank that is supposed to be the jewel in its crown? the 3Q result was not too good
Gallant Venture Ltd, developer of industrial estates in Batam and Bintan controlled by Salim Group, posted net loss of S$4.4 million in the first nine months of 2011 on lower sales and higher financing costs.
According to the company's financial statement, it recorded sales revenue of S$140.5 million in Jan-Sep 2011, down 19.4% from the same period last year, while cost of sales only declined 9.2%. As a result, Gallant's gross profit slashed 50% to S$21.7 million. Higher operating expenses and finance costs cut its profit before tax by 78% to S$3.67 million, while tax expenses down slightly to S$8.1 million.
Gallant Venture had total assets of $1.68 billion as of September 30, 2011, with equity of S$1.27 billion.
"The industrial park business remains price competitive, but there are renewed interests in industrial spaces located in Batam, Indonesia. The group is confident on future land sales in the next 12 months, but the land sales recognition may not be realized in the current financial year," Gallant argued.
pay heed to what ivanignatius said in sharejunction.com:
In my experience over the last fifteen years, Gallant is the 'canary in the coalmine'. When every other stock has risen, and the brokers have nothing else to write about, they drag out the whole 'Singapore tourism, next stop Bintan/Batam, Gallant trading on 0.1x revised NAV'. I've seen it each cycle. And then what happens? Within months, the stock market craters, and Gallant is forgotten for the next few years. The tough reality of it is that Singaporeans and expats are never going to use the Riaus for more than an occasional game of golf and a massage. Who wants to schlep across on that sick-making ferry every weekend, to go to an ugly island with very limited infrastructure. The best thing to do when you find yourself itching to buy Gallant is to recognise that it is calling the top of the market, and that you've run out of better things to buy. Take this test: Compare Gallant to UOB over any time period. One pays a decent dividend, and hits higher highs each cycle, the other is Gallant.
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