LafeCorp: Worth a look

Lafe has done 10.3 million shares by 11 am today????
What's happening? The stock price trying to break through 9 cents but not successful yet

I have just noticed the price of Lafe is 7.5 only - down from 9 cents. What happened Wiki?
I remember this was a stock that you recommended.... and i remember there was strong director buying.

Puzzled man.

Lafe Corp is now rolling in cash after selling its land in Panyu for around S$110M. 
NTA went up by 1.9 US cents.

Also sold subsidiary in HK which owns factories  for US$20.3 m.

NTA went up by another 0.6 US cents

Now NTA is 10.6 (as at end of Sept 2010) + 1.9 + 0.6 = US13.1 cents, which is 17 Singapore cents.


The share price last traded at 8 Singapore cents, which is a 53% discount.

If its NAV is 17 cents, then there is great upside potential. The stock seems tobe coming up ahead of its full yr results. Just noticed that nNow at 9.5 cents. Missed buying this babe.

Not too late to buy at 9 cents?

While I had liked the counter previously, the company's latest announcements on the sale of its Panyu land and its HK subsidiary have made me wary of the stock.
Note the details of the deals. In the case of the Panyu land, the price sold seems to be 20% of comparable land bought by another SGX-lised company. However, as the land details are scanty, it's hard to make an accurate comparision. Nevertheless, I am concerned about a few facts: (1) no open tender for the sale, hence it's not easy to see if it was underpriced (2) the deal allows the buyer to pay in 40 monthly instalments, which is not in the interest of Lafe. What if the payments stop? (3) Lafe had said it wanted to go into property development. Why then sell this huge piece of land; why not develop it?
In the case of the HK subsidiary sale, (1) again there is no open tender, so how can shareholders be convinced it's sold at a good price? (2) the payments is in promissory notes. That's not cash. What happens if buyer defaults?
The common term for sale of land is cash. The fact that both sales are not is rather worrisome.
As such, I have sold off my holdings in this stock. There are many other undervalued property counters I am more comfortable with.
Shareholders who still like the stock should query the company during its AGM on the details of the deals.