Benjamin Graham believes that a stock offers great margin of safety when it is trading below two-thirds of the difference between its Current Assets and Total Liabilities. He calls this Net Current Asset Value or NCAV in short.
The CEO of the company has also been buying Sing Holdings Shares regularly.
Yes, VS, I have looked at Sing Holdings quite some time ago. However, I was concerned about its Robin Road site as it falls into the higher end prop category which was not expected to do well for some time. I also noted shareholders’ unhappiness with the major shareholders in some forums, and the co’s focus on the Singapore prop market alone. As such, I left the stock alone in favour of other stocks which I thought had more interesting angles like large unbooked profits, for eg.
However, I have the stock within my radar screen and I acknowledge that the recent insider buying is positive. I am still watching the stock for now as the general market is weak, and I would like to be prudent by keeping a higher cash level in my portfolio, and I also do not see a need for me to switch out of my other prop counters for now. I note your NCAV point, which I have never seen before, and I thank you for it.
KSH reported Q2 results yesterday. While the figures are down, I am not too worried as it’s probably due to slower % of completion in its various JV projects. It proposed an interim dividend of 1.25ct, unchanged. Full year dividend should be maintained at 3ct, giving the stock a 5.7% yield at 52.5ct.
The stock’s trading range is very tight over a long period of time, perhaps a sign that the bears and bulls are even in strength. No sign yet of who is winning, but the stock’s positive fundies remain intact, with the bigger contributions from its lucrative JVs yet to come in.
Its main winners of mostly-sold (but profits mostly not booked yet) JV projects are KAP, Newest and Trio but outside Singapore, I am hoping that successful launches in GaoBeiDian next year will give the stock a fillip.
Does anyone follow Koh Brothers? Would like to hear some sensing from y'all.
Currently trading at ~0.55x P/B (0.305/0.542) and a dividend yield ~3%. Going forward, the fully sold project, Parc Olympia @ Pasir Ris will see it record a gross profit of ~50m assuming construction costs is 350 psf. RNAV by then will be about 0.65 cents.
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