Hafary

Will it be a good idea to do sale & leaseback ? I remember reading about Stamford Tyres being asked by some shareholders to do sale & leaseback of its HQ. But boss said he didn't want to be subject to rental increases all the time.

If the management think that next few years there will be crash or drop in property prices, then selling now is a good option. Find a cheaper place when lease is up.

Just like what they did to aljunied. Sell when price is high.

I think they are more concerned with warehouses. HQ can be anywhere, but warehouse is strategically more important to the business.

Anyway Friday price will be trading at 21 cents if I am not wrong. Let see how it performs.

If u look at Valuetronics, was 22 cents CD, after in Aug, adjusted to 20 cents, but bounced back pretty quicky. Within 2 weeks, back to CD price of 22 cents. Now 24 cents. Let see if Hafary will do the same.

Today is the last day for those contra players who bought last Thursday (last day of CD).

So I expect the last batch of selling from some contra players today (T+5). Once selling dries up, based on past trend, the price will move back to 22-23 cents again in about 1 mth time.

So best time to buy is now.. 19.9 to 20 cents Smile

Although housing sector is cooling since middle of this year, but as most Condos and HDB BTO construction have just started, for the next 2 to 3 years, most of them will be TOPing from 2014 to 2016. Titles are needed at the last stage of construction, ie: when the whole building has been build, then each unit will then be renovated and titles come into the pictures.

So Hafary will experience a surge in demand for titles at least for the next 3 years.

After 2016, there may be a slow down in constructions of Condos and HDB BTOs, but the up coming 3 new estates, Bidadari, Tampines North and Punggol Matilda will provide support to demand for titles, thus compensating the slow down.

Besides up coming new MRT stations also provide support for demand of tiles.

If u monitor Hafary price's movement, u will see that usually 19-20 cents is the support, it will then rise again to 22-24 cents in about 1 or 2 months time when support is reached.

I predict the price will go back to 23-24 cents again by Chinese New Year Smile

Let see if I am right

Mr. Low See Ching will step down as CEO of Hafary Group and will be re-designated as a Non-Executive Director with effect from 1 February 2014 and continue to be actively involved in key strategic initiatives of Hafary Group.

Mr. Low Kok Ann will be appointed as the CEO of Hafary Group. He will concurrently hold the position of Executive Chairman and CEO of Hafary Group.

Mr. Low Kok Ann is the father of the current CEO and substantial shareholder, Mr. Low See Ching, and substantial shareholder, Dr. Audrey Low Bee Lan.

How come Mr. Low See Ching step down as CEO and let his father take over?

Reminds me of See Hup Seng Thomas Lim (Old) vs Jimmy (Young)?

Maybe son wants to focus on Oxley but father wants to concentrate on tiles??

Then another majority shareholder , Oxley's CEO Ching having 28+% shares comes into picture..

hmm.. interesting..

or maybe son sees the business on track, after upgrading to mainboard, everything settled and smooth sailing already, can do what he wants to do?

Interesting development. Privatisation ??? Dun forget their 4 properties are worth quite a lot especially the Eunos Ave 3 HQ, take it private and dispose of the properties?