Superbowl -- grossly undervalued

26 Dec 2013 11:09 #18344 by sumer
Dear ateo, yes, different valuers/investors use different methods to value commercial/residential property assets.

One way to value assets is based on rental yield. So, if one assumes market expects a 5% yield for a space, then the value is simply the product of annual rental divided by expected yield.

This method of valuation can have these “flaws”: 1. opinion on what is the right yield is subjective; 2. annual rent may be based on past contracts which could be renewed as early as the following month, at substantially higher rates; 3. a shop unit’s true market value may include other components such as en bloc premium, possible change of use (from recreation to restaurant for eg), etc; 4. it assumes the shop is kept solely for rental yield, and not disposal value.

Other methods of valuation therefore take into consideration the factors mentioned above.

Hence, while SB might have valued its shops at $80m, another person could have valued it, at the same time and not further down the road, at $130m, for eg.
The following user(s) said Thank You: Garak

Please Log in or Create an account to join the conversation.

26 Dec 2013 13:42 #18351 by ateo
Thanks Sumer for the reply. In that case, does or will HH after permission from SB, show some legal documents or property valuator reports on such mentioned properties. Therefore, establish better creditability on this account.

So somehow, the world is not always so black and white when come to this.

Please Log in or Create an account to join the conversation.

06 Jan 2014 19:31 #18528 by ateo
HH EGM today approved. did they mention that they will not raise the price ?
So, how will it pan out from here?

Please Log in or Create an account to join the conversation.

07 Jan 2014 22:39 #18558 by sumer
It has been highlighted during Hiap Hoe's EGM that its NTA after acquiring SB should be $1.51 instead of the $1.90+ initially indicated. There was an oversight of acquisition cost (ie, the cost of buying SB) that resulted in the adjustment.

Meanwhile, the co said it would launch 2 of its apartment projects in Melbourne around mid-2014. One of the projects has about 700 units, which is significant.

HH also hints that the offer price for SB will not be raised. It's up to investors to decide if they want to bet otherwise. There is also uncertainty as to whether HH will garner 90% of SB, and whether HH will waive this pre-condition in the takeover exercise.

My bet is as good as anyone else's at this moment.
The following user(s) said Thank You: ateo, jackphang

Please Log in or Create an account to join the conversation.

07 Jan 2014 23:06 - 08 Jan 2014 16:28 #18559 by ateo
So for now, all SB shareholders will receive the acquisition document and submit their acceptance? Those who want to bet, will have to wait on and see if SB shares rise above $0.75 or HH to raise its offer if they did not get 90%.

In addition, Mainboard-listed Hiap Hoe also said it planned to make SuperBowl its wholly-owned subsidiary and to delist SuperBowl, as a separate listing would incur another set of compliance costs. (Source: Business Times). Does this mean 90% is way to go? so SB shareholders should hold out?

interesting lei.
Last edit: 08 Jan 2014 16:28 by ateo. Reason: Update.

Please Log in or Create an account to join the conversation.

10 Jan 2014 00:57 #18594 by Rock
Francis Siah Ooi Choe today bought 100,000 superbowl shares average price @ 75.2 cts. This raised his holding from 17,320,000 shares (5.32%) to 17,420,000 shares (5.35%).

Today 86,000 shares were done @ 75.5 cts & 13,000 shares @ 76 cts. These 99,000 shares are bought by Francis Siah.

The question is what Francis Siah motive?
Sumer what is your view?

Please Log in or Create an account to join the conversation.

Share Prices

Counter NameLastChange
AEM Holdings3.840-0.010
Avi-Tech Electronics0.275-
Best World1.760-0.020
Broadway Ind0.118-
China Sunsine0.405-
Food Empire0.650-0.010
Fortress Minerals0.330-
Geo Energy Res0.3750.010
Golden Energy0.7800.005
GSS Energy0.046-
ISDN Holdings0.405-
IX Biopharma0.126-
Jiutian Chemical0.0780.001
KSH Holdings0.3500.005
Leader Env0.056-0.002
Medtecs Intl0.140-0.002
Meta Health0.025-0.001
Nordic Group0.4800.005
Oxley Holdings0.149-
REX International0.235-
Sinostar PEC0.170-
Southern Alliance Mining0.380-0.060
Straco Corp.0.405-
Sunpower Group0.260-
The Trendlines0.088-
Totm Technologies0.105-0.002
UG Healthcare0.195-
Uni-Asia Group0.830-0.005
Wilmar Intl4.1200.020
Yangzijiang Shipbldg1.4200.020

NextInsight RSS

rss_2 NextInsight - Latest News

Online Now

We have 2352 guests and no members online