Second Chance Properties

If you are a holder of Second Ch warrants expiring this month, make sure you exercise the warrants -- or sell the warrants on the open market. If you don't do either, the warrants will lapse and there is ZERO value left.

The warrant exercise price is 32 cents, which makes it attractive to convert them into shares (which are now trading at 45.5 cents). My kakis all have just converted! Huat ah!

I have been monitoring this stock since 2010, this is definitely a solid stock with strong dividend yields. My question is always what are the future groth drivers. It has benefited from the rising property prices and increasing rental from its property portfolio. Given that Singapore property price is already at an all time high, what's next?

NextInsight will carry an article on the AGM (held today). Look out for it over the next few days.

A key question asked at AGM was: Will Second Chance sell some properties to lock in profits in view of the possible downturn in the property market?

Second Chance Properties is going to sell en masse a lot of its properties.

infopub.sgx.com/FileOpen/SCPL_Ann_Propos...cement&FileID=273640

First take is, the dividend to be paid from the proceeds is approximately 6% only, ie S$10.5 million for dividends.

On a share capital of 634.5 million shares, the dividend = 1.65 cents a share.

What do you all think of the unusually huge divestment?

Not a massive dividend yield, as the stock was 44 cents yyesterdayy

On 2 Jan 2014, NextInsight carried an article on the AGM where Second Chance CEO was asked : "Will you sell some properties?"

www.nextinsight.net/index.php/story-arch...ell-some-propertiesq



Just 5 weeks later, the company has announced a massive sale of properties!

Not too beneficial for shareholders in the short term at least. That's why the stock price cannot move.

.....proceeds from the Proposed Disposal will be used in the following manner:-

(i) approximately 39% of the proceeds from the Proposed Disposal will be used to repay debts
of the Group;

(ii) approximately 6% of the proceeds of the Proposed Disposal will be used to distribute as
dividend; and

(iii) approximately 55% of the proceeds from the Proposed Disposal will be used to redeploy into
operating business or to fund business expansion in the region in order to generate higher
return.