United Engineers Limited *Official* (SGX: U04)

[beefjerky]

Dropped 15% today as deal with Ocbc and thai billionaire fell through. Anyone has advice on whether this is the right time to enter for long?

 

[Tuckie]

Yep, if u think it won't drop further

 

[Obama486]

now long should be okay liao
all the fear pushes it down cheap

thai boss dun buy, maybe ocbc will sell to someone else

 

[Minx99]

Dropped 15% today as deal with Ocbc and thai billionaire fell through. Anyone has advice on whether this is the right time to enter for long?

It went up by 26% after offer by Thai godfather, now drop 15% you consider it cheap? If no one else made an offer for the company, do you think it will drop further? Consider also the downside before you pull the trigger.

 

[beefjerky]

That's some new perspective but after further enquiry I realised that it was ocbc that rejected the thai guy and not the other way. Doesn't this mean that they have a higher bidder somewhere else?

 

[dominion23]

really gambling liao lor... if u pay more than 1.7 which is the price before announcement means youre betting that there will be someone else willing to buy from ocbc... otherwise will be paying over the odds

 

[Tuckie]

That's some new perspective but after further enquiry I realised that it was ocbc that rejected the thai guy and not the other way. Doesn't this mean that they have a higher bidder somewhere else?

i thought it's known that it's ocbc who rejected and not chaoren walk away.. that's why i am shocked at the irrationality of the market.

 

[doody_]

It is at a very good price now, for those who are thinking of joining in... You can't compare it to the "original" price of 2.2-2.3 as it has been steadily disposing assets to reduce its portfolio and also gain some cash.

 

[beefjerky]

I think most are scared due to sudden drop for a bluechips. I believe next few days will continue dropping but in long run will be a good decision made today

 

[Keverus]

anyone vested?

 

[victorian07]

Was. Cut it short after last Fri's exclusivity agreement lapsed

Now the qns is, will the Riadys and Lippo Group join in?

 

[Tuckie]

anyone vested?

Me.. I am vested ..

 

[beefjerky]

Victorian, can I ask why u decide to cut it when it was ocbc who rejected the offer?

 

[Obama486]

UEM:Singapore Stock Quote - United Engineers Ltd - Bloomberg

UE now at 1 times book value, think its fairly priced already

I can't see why an acquirer would want to pay more than book value to take this private or even own a partial stake?

 

[Keverus]

i also found this puzzling. ocbc rejected the thai papa....means either they feel UE got room for more growth and want it themselves or got other higher bidders.

wonder why the market is reacting negatively to this.

can someone enlighten?

 

[Keverus]

OCBC is expecting a price around 3.50 to 3.70 range....

 

[Tuckie]

Because the more they strip the more value they find.

 

[Obama486]

OCBC is expecting a price around 3.50 to 3.70 range....

why u think this range?

I think maybe the thai boss's offer was around 1 times book that's why ocbc rejected

before the crash UE was trading at 1.15 times book, a price too high for the an acquirer to make an good offer

 

[Obama486]

Because the more they strip the more value they find.

are you sure?

more of UE business are in the old school industry, you look at small cap stocks on sgx with similiar businesses are all trading at discount to book value wor

UE also before all the hype was selling at 30-50% discount to book in the past...

 

[Tuckie]

are you sure?

more of UE business are in the old school industry, you look at small cap stocks on sgx with similiar businesses are all trading at discount to book value wor

UE also before all the hype was selling at 30-50% discount to book in the past...

that's my own take. feel free to disagree.. haha this is the stock market, u nv know what will happen next. i bought and held because this is my view.