Nam wrote: Stamford Tyres shares are now priced at 33.5 cents by the market. Trading cum dividend of 1.5 cent a share.
It is still a substantial discount to the NTA which I reckon is in the 60s. The NTA will creep up in the years to come from the profitable tyre business. The real NTA will get boosted by jumps in the value of the industrial properties Stamford owns. All in, an undervalued gem
hi Nam, if the NTA is in the 60s, then current price of 44 cents looks grossly undervalued. Currently profitability is v weak --- I think they need a bit more time to work down their high-priced inventory and then profit will normalise.
The Group has sold one of its commercial properties in Balestier for a big gain. It is expected to record a net gain of approximately S$5.5 million over the book value.
