Superbowl -- grossly undervalued

  • crabcrab
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11 Feb 2014 17:22 - 11 Feb 2014 17:25 #19079 by crabcrab
Replied by crabcrab on topic Superbowl -- grossly undervalued
There is no doubt that Superbowl is undervalued and the offer price may seems to be too low in the view of most investors.

Drawing from the previous experience of CK Tang privatisation saga, my take for Superbowl is that shares will be thinly traded and may even fall back 5 to 10% from the current offer price due to low liquidity. If a shareholder are still holding large chunk of shares, selling at a price that match the current offer price may be challenging.

Like CK Tang previously, HH management may up the price eventually but another plan for delisting may be another 2 years down the road, unless it is compelling for them to act quickly. Opportunity cost for small retail investors and investors may not be as favourable especially as in elsewhere the ROI may be higher.

An investment strategy that one would be considered at this stage is to stay vested with the undervalued property of Superbowl by disposing off Superbowl and buy HH instead. (not an inducement for any action and at your own risk.)

Time is never on the side of small investors. Gd luck to all!

(Caveat Emptor. Crabcrab is no longer vested in Superbowl but had some interest in HH at the time of posting.)
Last edit: 11 Feb 2014 17:25 by crabcrab. Reason: grammar error

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19 Feb 2014 11:54 - 19 Feb 2014 11:55 #19155 by sumer
Hiap Hoe's offer for SB is now unconditional after HH Holdings yesterday sold its stake in SB to HH. HH now owns 81.3% of SB.

This means all SB shareholders who accept the offer via the Acceptance Form by the offer's deadline will not have to worry that HH calls off the offer.

I have and will be reducing my holdings in SB, and will continue to switch out to other RNAV discount stocks, including CES and Hiap Hoe, and a couple of non-Sg prop counters. I am still eyeing more Oxley but the run-up has been too sharp for comfort. I may keep much of the cash till I find better investment ideas.

I am not sure how SB shares will perform post-March 4 (the deadline), so I am taking some money (big portion actualy) off the table and moving on.
Last edit: 19 Feb 2014 11:55 by sumer.
The following user(s) said Thank You: yeng

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23 Feb 2014 01:04 #19184 by Rich

I believe Siah and the other bigger shareholders had deep pocket to challenge the takeover but I don't see any counter offer coming. I had already sold off my shares. Thank Sumer for your view point.

Francis Siah has sold out yesterday, ie Friday 21 Feb. It's game over, Superbowl will almost certainly be compulsorily acquired by Hiap Hoe.

On 21st Feb 2014, Mr Francis Siah disposed 1,112,000 shares via off-market transaction (married deal) with Hiap Hoe Strategic Pte Ltd. Mr Francis Siah was deemed to be interested in the SuperBowl shares held by his wife, Mdm Tan Wan Cher Geraldine (10,008,000 shares) and M/s Elinton Pte Ltd (6,500,000 shares) (by virtue of his share holding in the company).

All shares held by Mdm Tan Wan Cher and M/s Elinton Pte Ltd were disposed in similar fashion, on the same date.

The total disposal of 17,620,000 shares amount to approximately 5.41% of the total number of ordinary shares in SuperBowl Holdings Limited.

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28 Feb 2014 11:54 - 28 Feb 2014 11:55 #19258 by sumer
Hiap Hoe has garnered 90.18% of Superbowl shares as of yesterday.

Co stated clearly that it does not intend to keep SB's listing status.

Those who sold their SB shares to Hiap Hoe have already or are still in the process of switching to Hiap Hoe, to continue to be exposed to SB's undervalued assets.

Some money may also flow in to other undervalued property stocks.

The offers for Superbowl and SingLand shares recently go to show that property stocks are undervalued, despite all the pessimism in the physical property market.
Last edit: 28 Feb 2014 11:55 by sumer.

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01 Mar 2014 19:09 #19269 by Rock
I had sold off SB about 2 weeks ago and increased my holding on Chip Eng Seng.

Chip Eng Seng dividend yield of more than 5%. (4 cts on the way) Chip Eng Seng this year profit of about S$300m is probably the best 2nd liner property stock to hold.

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