Second Chance Properties

Joes
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12 years 7 months ago #6992 by Joes

Second Chance Properties was created by Joes

The market is anxious and many stocks are down. The outlook is less than optimistic. In this climate, I am looking to safe and steady counters. One of them is Second Chance Properties, whose dividend payout has been excellent in consistency. Better still, the dividend has been rising every year.

And the latest announcements by the company has been reassuring and convicing. U can read it all on SGX website, but I just want to quote : "The plan includes the continuation of its high dividend policy unless the situation becomes more serious than the last financial crisis. It also includes a much more aggressive share buy-back of the Company’s stock."

Any shareholder who can share some insights / views on Second Chance? Much appreciated

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Dongdaemun
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12 years 7 months ago #6998 by Dongdaemun

Replied by Dongdaemun on topic Re:Second Chance Properties

One of the more stable businesses around and it seems to be displaying unusually strong corp governance. Closed at 40 cents yesterday.

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yeng
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12 years 7 months ago #7018 by yeng

Replied by yeng on topic Re:Re:Second Chance Properties

I agree it is one of the better plays among the safe + conservative stocks. DMG has a BUY with TP S$0.53. At current levels, stk's attractive dividend yield is 7.6%. Second Chanceâs stable operating cash flow will ensure that this can be sustained.

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yeng
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12 years 7 months ago #7077 by yeng

Replied by yeng on topic Re:Second Chance Properties

If the property market falls significantly in the next 2-3 years, Second Chance would be in an unusual position. It will have to recognise a fall in the value of its properties, while at the same time, it would seize opportunities to buy distressed properties.

By 2013, ( i dont know which month ), the warrants will have to be exercised. Now it's in the money, so I think the warrants have a good chance of being exercised. Total funds to flow into Second Chance is about S$64 million. So you can imagine, Salleh will be cash-rich and will buy and buy.

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yeng
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12 years 1 month ago #8496 by yeng

Replied by yeng on topic Re:Second Chance Properties

Daiwa has a report after speaking with Sim Lian management on Mar 7. Residential property market is on the verge of a soft downturn. No money to be made from investing in properties if you are not already in it.
Management articulated a candid and cautious view on the state of the residential-property market. It has noticed that the recent take-up of launches (with the exception of sites near MRT stations or with shopping malls) has been weaker (compared with the past two years) and that buyers are now just 'shopping around', with some waiting for prices to correct.

Developers have also cut unit sizes and offered more one and two-bedroom units in their projects to make them affordable, at S$500-600k per unit. There are cash-rich buyers in the market, but management is uncertain about the level of pent-up demand.
Management also highlighted the longer-term uncertainties, such as the state of the rental market in two years' time when completions in the central region might create vacancy risks at a time when the government is tightening its immigration policy.
A correction in central area rents will indisputably affect suburban rents, according to management. Management also expressed concern on the rental demand of one bedroom units for those suburban projects not located near MRT stations, and whether shifting from a government housing-development board (HDB) flat to a private suburban one-bedroom unit reflects genuine upgrading demand.
Management suggested that the government might restrict the allowable proportion of small units in new developments if the government were to clamp down on the sector further.

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Mat
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11 years 8 months ago #10167 by Mat

Replied by Mat on topic Re:Second Chance Properties

eh, why no final dividend for fy2012?

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