Chip Eng Seng

Thanks. I like to exchange the info with the "know" people. Especially the area i don't really know.

I fully agreed on your last part. When the Gem is discussing, there is no longer called a Gem. Just to follow up on this and understand more about it. I have bought enough for this counter.

Great to talk to you. I learn a lot.

I replied to a couple of readers who commented in the article that NI reposted of the notes on this thread.

In case some readers miss that, I would like to share my comments here:

"Hi Joseph, CES had a fantastic 2009-2012 period which I had thought was not quite sustainable.

Nevertheless, based on pre-sales figures, it looks as if CES is going to repeat its 2009-12 performance come 2014-16, which to me is amazing. So it would appear that 2013’s smallish $40m is now becoming an aberration, and an average net profit of $80m per year could actually be sustainable.

Hi Chan, CES shares are about 35% (not 21%) held by major shareholders and their relatives. Tan Yong Keng is the biggest non-family shareholder with about 7%. Not having tight control has both pluses and minuses. I do not think that just because a stock is held by retail investors it would tumble on the slightest bad news. There are sophisticated retail investors and those who buy on whims. The second group would have exited CES long ago as the stock price had a good run. Those who have kept faith with the company know a sufficient amount of the maths of the company: the constantly high dividend payout, the good ratios like RNAV and PE, and the almost assured high profits over the next 3 years.

Those who go beyond the maths would also have attended CES’ AGMs and felt for themselves how humble and genuine the major shareholders are (the founder personally walk to seated shareholders whom he does not know to shake their hands), and decide to put their money with whom they feel comfortable with. They would also have seen how CES has constantly replenished land at the right price, sell off their projects quickly, and practices “letting go” (Grange Infinite and City Vista) instead of hoarding (which leads to value trap).

Another plus side of shares not being too tightly held is the possibility of a takeover. In fact, CES’ figures appear so attractive that if I were another developer company, instead of bidding for overpriced land, I would rather take over CES, with all its pre-sales and guaranteed profits.

Meanwhile, there are now instruments like CFDs and SBL that allow shorting. So, it does not mean that retail players are only on the buy side of CES. Perhaps there are short positions, and just like any bad news would dampen a share price, good news would push it up by a bigger margin as a result of short-covering. While it is true that bigger floats mean attracting more traders, this also has the benefit of allowing someone who wants to get in big to amass a meaningful quantity, unlike other family-owned small-float developer stocks.

From my observation recently, I do detect attempts to “close the stock low” on several days. Perhaps it’s a work of bears or perhaps it’s just a silly wish, but that’s another story for another day."

RT Knight – No worries. I have friends who are in the property sector and I listen them like a little boy as my background is running factories, marketing and distribution. There was one time I bought an overseas investment property ( got carried away in a stylo launch - dangerous place to be in when you have a cheque book with you ) without consulting them. When I told a property friend that I have paid a deposit, I was berated by him. I could have forfeited the deposit, but I was too proud/stubborn. A decade later, I sold at abt 50% loss. We can’t be experts in every field, so having a humble and objective attitude is crucial in investments.

Here’s a good article re overpriced properties. In China cities, it’s difficult to assess as it is in process of urbanization. In a city state like S’pore , its not too difficult to assess private condo demand/supply, which is basically population growth ( ie birth/death + immigration) plus on stream housing supply. S’pore is also unique that 85% already own/live in HDB. IMHO, there will be up to 20% correction in condo prices within 3 yrs. This could wipe out an investor’s 20% deposit, and banks will ask for top up. I have sold all my investment properties here and overseas except my own resident. Just wait for chance to buy back cheaper, same like shares. No hurry, take it easy. Not vested.

PS: “ Don’t ask your barber if you need a haircut “ – W Buffett.

www.todayonline.com/singapore/facing-imp...ty-market-correction

Once Again. Thanks for all the advices here.

Agree. The founder is humble. I like that. He surprised me when he came forward and greet me.
But, i don't have the good feeling on the current CEO (his daughter husband) or so called his 2nd generation.

Yes, Chip Eng Seng is a gem at a bargain price of 70 cents. Looking forwrd to the day it marches up to at least $1.10 with Sumer waving the flag.