SingHoldings    Last:0.5    -0.005

Sing Holdings - Grossly undervalued

0.6401

0.5874

0.5475

0.5625

0.5068

0.4141

0.3673

0.3489

The above is the growth of book value from 2009 to 2016. Latest for 2016 is $ 0.6401.

On average, book value grows like $0.0416 per year.

If the book value continues to grow at this pace, in 3 years time, the theoretical book value should be $0.7649 (this is quite a likely scenario, the patient investors can wait)

If the stock price then trades at current discount of 45% to book value like now, the share price will hit $0.42.

But when the market is good (like now), it will go to $0.42 pretty soon, one may not have to wait 3 years.

 

thanks. How about doing it for bund center? Is it possible?

lifeisgood      ( Date: 07-Mar-2017 10:28) Posted: I am not using book value. Book value measures what is in the book now. It does not look at future earnings potential of the company. If you use book value, almost every property stock in Singapore trades at a discount to book value, with no exception. Sing Holding is currently trading at 45% discount to book.  However, I am using net income per year to estimate the value of the company based on future profits. Why I am doing it for Sing Holdings is because it is supplementing property development profits with recurring income, like its Australian Hotel, and the BizTech Centre in Singapore. If I am not wrong, the company is also planning on managing property funds. This will also provide recurring income with low capital expenditure, making profits more sustainable.  alexchew      ( Date: 07-Mar-2017 10:16) Posted: how about some developers trading at 50% book value? What' s the discount to intrinsic value then?

 

For me, it is a beautiful stock, no curse. 

Just4win      ( Date: 07-Mar-2017 10:43) Posted: Is there a curse for this counter? Thought not long ago, it was trading above 36 cents ? Any CD coming soon ? lifeisgood      ( Date: 07-Mar-2017 10:32) Posted: Well, lets see this round whether it can break the curse?

 

Is there a curse for this counter? Thought not long ago, it was trading above 36 cents ?

Any CD coming soon ?

lifeisgood      ( Date: 07-Mar-2017 10:32) Posted: Well, lets see this round whether it can break the curse? HB8289      ( Date: 07-Mar-2017 10:22) Posted: NO offence!  Base on long term experience   this counter is ok if bought below 32cts otherwise it maybe a struggle ( Read with your own discreation)

 

Well, lets see this round whether it can break the curse?

HB8289      ( Date: 07-Mar-2017 10:22) Posted: NO offence!  Base on long term experience   this counter is ok if bought below 32cts otherwise it maybe a struggle ( Read with your own discreation)

 

I am not using book value. Book value measures what is in the book now. It does not look at future earnings potential of the company. If you use book value, almost every property stock in Singapore trades at a discount to book value, with no exception. Sing Holding is currently trading at 45% discount to book. 

However, I am using net income per year to estimate the value of the company based on future profits. Why I am doing it for Sing Holdings is because it is supplementing property development profits with recurring income, like its Australian Hotel, and the BizTech Centre in Singapore. If I am not wrong, the company is also planning on managing property funds. This will also provide recurring income with low capital expenditure, making profits more sustainable. 

alexchew      ( Date: 07-Mar-2017 10:16) Posted: how about some developers trading at 50% book value? What' s the discount to intrinsic value then? lifeisgood      ( Date: 07-Mar-2017 10:14) Posted: Using some free online discount cashflow calculator, I did a few iterations to calculate the intrinsic value of this stock using the Discount Cashflow model. The company has been making on average more than $0.05 profit per year over the last 5 years. I used a discount rate of 7%, and zero growth forever, I arrived at an intrinsic value of $ 0.71. Current price at $0.35 is 50% discount to its intrisic value !!! A Screaming buy !

 

NO offence! 

Base on long term experience   this counter is ok if bought below 32cts otherwise it maybe a struggle ( Read with your own discreation)

 

how about some developers trading at 50% book value? What' s the discount to intrinsic value then?

lifeisgood      ( Date: 07-Mar-2017 10:14) Posted: Using some free online discount cashflow calculator, I did a few iterations to calculate the intrinsic value of this stock using the Discount Cashflow model. The company has been making on average more than $0.05 profit per year over the last 5 years. I used a discount rate of 7%, and zero growth forever, I arrived at an intrinsic value of $ 0.71. Current price at $0.35 is 50% discount to its intrisic value !!! A Screaming buy !

 

Using some free online discount cashflow calculator, I did a few iterations to calculate the intrinsic value of this stock using the Discount Cashflow model.

The company has been making on average more than $0.05 profit per year over the last 5 years.

I used a discount rate of 7%, and zero growth forever, I arrived at an intrinsic value of $ 0.71.

Current price at $0.35 is 50% discount to its intrisic value !!! A Screaming buy !