IPC Corporation Ltd *Official* (SGX: AZA)

[Debron]

Latest report on IPC Corporation:

"The recent decision by SGX mainboard listed IPC Corporation Ltd to dispose of its remaining Japanese hotel assets (the “Divestment”) warrants a closer look at the stock by value oriented investors. Although its share price has risen by 26% since the announcement was released, it still remains grossly undervalued.

Assuming the successful completion of the Divestment, we estimate that the company will have a balance sheet stuffed with net cash and fairly liquid bond fund holdings amounting to S$1.769 per share, which by itself is already more than the last traded price of S$1.750 per share. Even if we further assume very conservatively that the remainder of its assets consisting mainly unsold Chinese property developments are written down by as much as 40% in value, the shares would still be worth S$2.311 per share or 32% above its last traded price."

Link to full report here:

http://stockresearchasia.com/1/post...d-oei-hong-leongs-undervalued-asset-play.html

 

[Debron]

Up 9%+ in a week with little fanfare

 

[Asphodeli]

My concern is what will IPC have after the sale. If they have nothing left, Oei might take this company off the exchange.

Sent from Sony D5833 using GAGT

 

[chowck]

Yes, that's would be even better.

After $1.60, get delisted & get back another lumpy sum since NTA is still $1.20 (read somewhere) after cap reduction.

 

[winorlose]

OHL trying to low ball everyone with the previous offer?

 

[Asphodeli]

OHL trying to low ball everyone with the previous offer?

Previous offer was before share consolidation. After consolidation...who knows?

 

[aoptionwriter]

He has the patient by leaving the current status unchanged for many more years, but I just don't want to get my money stuck there to wait for the durian to fall.

 

[aoptionwriter]

Interesting.

NTA per Share (S$) 2.44 Before ----- 1.21 after

Current share price is 1.93. P/NTA is about 80% now, post reduction, it is by theory 27% only.

If the share price adjusted to 20% discount as of now, it is by theory 0.96, or 193% upside potential.

Did I missed something in the 'theory' or the market missed price it?

 

[aoptionwriter]

I maybe wrong but I am going ahead and bought 2000 shares to have a ride.

 

[aoptionwriter]

The game come out pretty well and someone seems to accumulating the share slowly in the open market.

Good experiment!

 

[Asphodeli]

Something is stirring...not vested

Sent from Sony D5833 using GAGT

 

[manutd08]

Something is stirring...not vested

undervalued will remain undervalued
NV

 

[Asphodeli]

SG market has lots of value traps and stocks trading at discount to NAV

Ya this is one weird and storied company if you ask me...

 

[Debron]

after 9 years of investing

i have learnt to avoid asset plays as there are too many value traps on sgx

I rather focus on value stocks, look at earnings and dividends and track record

LOL

I think you have to look at it in the overall context. This was a special situations play when I started the thread. At the then $1.75 per share, which is less than just the cash and liquid assets combined and with the promise of big dividend payout (intention was already announced back then), it was a no brainer.

If you had invested then, you would have recycled much of the capital you put in already after 3 months, and still sit on good gains. Your cost would have been $0.15 per share now ($1.75 less the $1.60 payout) vs the market price of $0.415 today. I do not think that sounds like a bad deal at all considering the overall market actually stagnated or even declined over the same period.

 

[Debron]

I not saying this stock no good
I just saying in general sgx a lot of value traps
Cheers

Oh I see. Since you posted on this thread, I thought you are referring to IPC. It's all good.

Anyway, just to to be clear, I am not trying to justify anything. You can see I have not posted here for more than 3 months even after the value had been realised. Just wanted to clarify because I thought others might have the misconception that this had been a dud.

 

[aoptionwriter]

Further value unleashed in the last few days, or last few weeks if you asked me.

The pace moving from none, to slow and fast now.

Regret not buying more.

Oh I see. Since you posted on this thread, I thought you are referring to IPC. It's all good.

Anyway, just to to be clear, I am not trying to justify anything. You can see I have not posted here for more than 3 months even after the value had been realised. Just wanted to clarify because I thought others might have the misconception that this had been a dud.

 

[wahkao3]

this one good? now buy liao can huat?

 

[aoptionwriter]

This is a low profile stock and shall keep it as such.

I can see a lot of punters jump on board last few days, which is not good.

this one good? now buy liao can huat?

 

[aoptionwriter]

In play again today. Impressive!

 

[Jupiter2017]

http://www.shareinvestor.com/news/news.html?source=sg_stbt&nid=148700
IPC soars, fuelled by proposed hotel, robot firm deals
21 Sep 2017 09:00 By Stephanie Luo Business Times

SHARES in IPC Corporation surged as much as 71 per cent on Tuesday on news of a hotel disposal and the purchase of a majority stake in a robot development company.
The stock, which resumed trading on Tuesday following a trading halt the previous day, kicked off at S$0.47 - also its intra-day low - and hit a high of S$0.64 before closing at S$0.525, up 15 cents or 40 per cent. Some 549,000 shares worth S$297,000 changed hands. It was one of the top five absolute gainers, alongside Great Eastern and Yanlord Land. The stock was also the second biggest percentage gainer after Asti. On Monday, IPC, an investment company, said in an after-market announcement that it had signed a non-binding heads of agreement to sell its Grand nest HOTEL zhuhai to Xinyuan (China) Real Estate for an indicative consideration of about 200 million yuan (S$41 million).
IPC said: "The proposed disposal is subject to, amongst others, the requisite regulatory approvals, board approval and/or shareholders' approval being obtained (if applicable), as well as due diligence being conducted on the property. The parties will continue to negotiate in a commercially reasonable manner with a view to finalising and executing definitive agreement(s) with respect to the proposed disposal within 30 days from the date of the heads of agreement."
IPC separately announced that it had signed a non-binding heads of agreement with the same subsidiary of Xinyuan Real Estate to acquire a 51 per cent equity interest in Beijing iJourney Technology Development Co for an indicative price of about US$5.1 million, which is likely to be satisfied through the issue of new shares at S$0.40 each.
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