2nd Liner Prop Stocks

Hi Yeh, Sana and Wiki,
 Having written a bit about Hiap Hoe on this forum previously, I thought I could add a few points here on both Hiap Hoe and Superbowl.
My own latest calculation of Hiap Hoe's RNAV is $1.30 and Superbowl, above $1.00, based on estimates of market values of assets and future profits from project sales. Stock price movements, however, are due to many reasons apart from RNAV.
 
Zhongshan Park when completed in early 2013 will be worth about $625m, perhaps $350m more than its land and construction cost because of the low price of $172 psf paid for the land in 2008, compared to $789 psf paid by Chip Eng Seng for its hotel site last year, and the $1,078 psf by RB Capital for the Farrer MRT site this week.
 
Divide the $350m by 2 (50% stake each), and you get a surplus valuation of 37 ct per share for Hiap Hoe and 54 ct per share for Superbowl. All this is hidden value not captured anywhere in the 2 companies' current NAV.
 
Superbowl is also sitting on big potential revaluation gains from its shop units at Parklane, Orchard Towers and Orchard Plaza - all projects with en bloc potential.
 
I believe Hiap Hoe is now trying to sell its Kallang Pudding site, which is made up of a piece of land it bought last year to combine with its own CEH Building site to boost the value of the CEH site (which is too small for redevelopment on its own).
 
Whatever the outcome of the family feud, the values for the 2 companies will remain intact.
 
However, one possible scenario of the family feud that may have a good impact on the stock prices is if Hiap Hoe Holdings (the company that owns about 70% of Hiap Hoe and Superbowl) is dissolved and Teo senior gets his share of Hiap Hoe and Superbowl shares and sells them off to a party outside the family (perhaps because he will get a higher price?) who will then gain big stakes (about 19.5% each) in these 2 undervalued stocks. If other members of the family (who now own HH Holdings stakes) also choose to sell off their direct stakes in the 2 listed companies, then even more shares will be available to this new substantial shareholder. However, this is just one possible scenario out of many.

Thank you sumer for your sharing. Hiap Hoe and Superbowl shareholders deserve to be richly rewarded for buying into true blue value stocks. Pity there isn't much publicity on the project at Zhongshan Park -- at least not yet until nearer completion. In any case, just to share this link:
Zhong Shan Park at Balestier Road & Jln Ah Hood | keithyip.com
 

At the closing price of 50.5 cents today, Hiap Hoe is on offer at a price that would look downright cheap when things start to happen.  

Very high honour for exec chairman of Stamford Land

Published on Apr 24, 2012 in ST


Stamford Land executive chairman Ow Chio Kiat with Australian PM Julia Gillard at the ceremony yesterday after he was bestowed a medal. He is honoured for developing commercial ties and identifying business opportunities between the two nations. -- ST PHOTO: ALPHONSUS CHERN

STAMFORD Land Corporation executive chairman Ow Chio Kiat has been awarded one of Australia's highest honours.

The 67-year-old has been made an Honorary Officer in the General Division of Order of Australia for developing commercial relations and identifying business opportunities between the two countries.

He was bestowed the medal by Australian Prime Minister Julia Gillard in a private ceremony at the home of Mr Doug Chester, Australia's High Commissioner to Singapore, yesterday.
'I feel very honoured that the government of Australia has given me this high honour,' said Mr Ow, whose career began in cargo handling and port services company Hai Sun Hup.
He expanded it into an international shipping and property group. It was renamed Stamford Land Corporation in 2001.

From its initial investment in Australia in the early 1990s, the company has grown to be the largest owner-operator of luxury hotels in Australasia. Beyond hotels, it has developed several iconic commercial and apartment towers in Australia.

Mr Ow has also been involved in a number of business groups, including the Singapore Australia Business Alliance Forum.

The Order of Australia, which recognises outstanding achievement and service, has four levels: Companion of the Order, Officer of the Order, Member of the Order and Medal of the Order.
The Officer of the Order of Australia is awarded for distinguished service of a high degree to Australia or humanity at large. The 'honorary' title is given to non-Australians.
Former police commissioner Khoo Boon Hui was also given the Honorary Officer of the Order of Australia award, in 2007.

Dear sumer, sana, yeh, wiki, Joes and everyone: NextInsight will publish an article on Hiap Hoe's AGM tomorrow at 8 am. Look out for it!

Gist of Hiap Hoe case in my view is, old man wants to dissolve investment holding coy, so he can sell his stake away to whoever and get cash.

Whoever buys the stake would want a controlling stake and this can be achieved by accumulating in the market either before the  buyout or after the buyout.
Interesting times ahead, right?