Superbowl -- grossly undervalued

sumer
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9 years 9 months ago #18344 by sumer

Replied by sumer on topic Superbowl -- grossly undervalued

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.

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ateo
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9 years 9 months ago #18351 by ateo

Replied by ateo on topic Superbowl -- grossly undervalued

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.

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ateo
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9 years 8 months ago #18528 by ateo

Replied by ateo on topic Superbowl -- grossly undervalued

HH EGM today approved. did they mention that they will not raise the price ?
So, how will it pan out from here?

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sumer
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9 years 8 months ago #18558 by sumer

Replied by sumer on topic Superbowl -- grossly undervalued

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.

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ateo
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9 years 8 months ago - 9 years 8 months ago #18559 by ateo

Replied by ateo on topic Superbowl -- grossly undervalued

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: 9 years 8 months ago by ateo. Reason: Update.

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Rock
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9 years 8 months ago #18594 by Rock

Replied by Rock on topic Superbowl -- grossly undervalued

Superbowl
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?

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