handsomeinvestor8 says: For those still dont understand why CNT's shares is DIRT CHEAP, read this. An extract from the annual report.
LAND DEVELOPMENT FOR SALE
Land development for sale represents cost of land development within the districts of the new town development projects. Though the Group does not have ownership title or land use right to such land, the Group is given the right to carry out construction and preparation works in respect of land infrastructure and ancillary public facilities in those new town development projects. When the land plots are sold by the local governments, the Group is entitled to receive from the local authorities a proportion of the proceeds from land sales (including related public utilities fees, if any).
My analysis:
This means that the item "land development for sale" in the asset column of the company's balance sheet is just the "cost of land development". And we know that the true economic value of the land after it has been developed and ready for auction is so much more. That is why the "book value" or the NAV ("net asset value"} of the company GROSSLY underestimates the TRUE MARKET VALUE of the company.
So we know that the TRUE MARKET VALUE should be GREATER THAN NAV
Today the CURRENT market stock price is 9.5 cents which is less than the NAV (abt 16 cents).
So, like i have said many, many times CNT's stock price is way undervalued.
The company should do a massive share buybacks now before price shoots up. I believe many smart investors are accumulating the shares.
handsomeinvestor8 wrote:
I REPEAT, HERE ARE MY PERSONAL PRICE TARGETS:
SHORT TERM PRICE TARGET - 22 CENTS
MEDIUM TERM PRICE TARGET - 83 CENTS
LONG TERM PRICE TARGET - $2 - $3
You actually believe this guy?? hahaha... please do a diligent check on all his posts.. all nonsense. He has been saying this share will rise since last year at a recommended buying price of 20 cents!!!..
Last edit: 13 years 7 months ago by harry_yap. Reason: amend
SGLD and the People’s Government of Shanghai Baoshan District have reached new agreement regarding the Proceeds Percentage that SGLD is entitled to on the land sale proceeds in the Luodian New Town. As a result, the percentage that SGLD is entitled to on the land sale proceeds in the Luodian Project will be reduced by 15% to approximately 50% from 1 January 2011 onwards. The foregone proceeds will be retained by the local government to help finance construction of affordable housing in line with policies of the country.
To counter the bad news, here is the ok news:
The Lake Malaren Silicon Valley Office Headquarters Project is an additional revenue source to SGLD on top of its long established business of new town land development. We believe that, the profit and cash flow stream generated by the Project in the next few years will minimise the impact of downward adjustment in the Proceeds Percentage that we are entitled to on the land sale proceeds in our Luodian Project.
