2Q Stock Picks

There is a S-chip trading way below its net cash and NTA position. Volume has picked up over the past week. Wondering if there\'s any interesting development going on.

how real is the cash in the first place? And is the company generating cashflow and its business is sustainable? My friends told me about Cacola, which has S$37 m cash and a market cap of only S$15 million. Unfortunately, the business continues to bleed : Q1 was loss making. And god knows what survival plans they have. So would you kindly tell us what the name of the Schip is, so we can share ideas on it?

Changtian is worth a consideration. Net cash is S$103 million. Market cap (@ 22 cents stock price) is S$145 million. Annualise the 1Q10 net profit you get about S$45 million. PE is 1X ex-cash.

thank you to neontet for the info on Changtian. in view of \" Hyper-inflation will set in 2-3 years from now...\" , does it means that commodity and property related companies are good buys for few years? For commodity companies, maybe initially gold producing companies, later, oil producing company - i guess ??? Btw, with hyper-inflation, how the property developer will perform with consideration on interest cost and appreciation of asset? thank you and good night.

when asset prices are rising rapidly, as is happening in China, land cost can be prohibitive to property developers. So those property developers already with big landbank reserve and which they obtained cheap will make better margins. For example, Panhong.

Eagle, This is provided the Company got money to ride thru the trough of the cycle. In China, you cannot leave the land idle. You have to develop the land within 2 years after winning the tender. Otherwise the govt will take back the land. In the past, many property companies hoarded land cos they wait for \"land appreciation\". Now, the Chinese govt is trying to tighten the property market in the wake of the public\'s outcry. I would think this tighening will carry on for a while, probably into August or Sept, then the government will soften the policy again. The reason -- local municipal govt depends on selling land for revenue. Hence, they definately need to encourage property sales and development. In the case of property market in China -- All I can say is, yes there are a lot of vacant units in China esp Shanghai and Beijing. Then again, there are also many units in River Valley and Orchard property developments which are left empty. Does this mean that it is a property bubble? My SG banker is telling me that they are trying to push more mortgage promotions but the property buyers are not biting. What does this tell you? People who bought previously, got financial muscles to hold. People who have not bought, are waiting for prices to soften, and these people got cash on hand. They don\'t have to reply so much on bank loans. Don\'t listen to all these ang mo experts telling you about China market lah... most of them probably never step foot into China before. Take a walk in China and you will know yourself what is going on. Cheers.