SingPost *Official* (SGX: S08)

[endlssorrow]

she bought famous holding. goin to hoot 10 lot with personal saving liao. for super long run.

 

[homedriver]

she bought famous holding. goin to hoot 10 lot with personal saving liao. for super long run.

What u mean?

 

[Paul Lee]

Singpost just announced another acquisition for an eye-popping S$60 million for a 62.5% stake in Famous Holdings, an established Singapore-based sea freight consolidator and freight-forwarder.

Press Release: SingPost Strengthens its Logistics Business with Acquisition of Freight-Forwarding Company
Announcement: ACQUISITION OF SHARES IN FAMOUS HOLDINGS PTE LTD

"A further consideration of up to S$50,000,000, to be determined based on the final valuation of the FHPL Group..... Accordingly, the aggregate consideration (consisting of the Sale Shares Consideration and the Option Shares Consideration) for the entire share capital of FHPL, is up to S$110,000,000, subject to certain earn-out adjustments."

I'm a little concerned that Singpost has overpaid for Famous. Famou's NAV is S$12,276,873, so its paying a big premium to NAV. Is it justified? And why even buy? Sure, there will be some synergy to its logistics business but does it really need to buy a company that is primarily a NVOCC (Non Vessel Operating Common Carrier) operator? NVOCC is a highly competitive business with low margin, so contributions to its bottomline may be unimpressive. And of cos with acquisitions come integration issues which will need to be managed.

Singpost has been buying companies left, right and center. Can they really manage the integration process for all these companies so that everything falls into place nicely? Debatable but let's see what happen (vested)

 

[homedriver]

Singpost just announced another acquisition for an eye-popping S$60 million for a 62.5% stake in Famous Holdings, an established Singapore-based sea freight consolidator and freight-forwarder.

Press Release: SingPost Strengthens its Logistics Business with Acquisition of Freight-Forwarding Company
Announcement: ACQUISITION OF SHARES IN FAMOUS HOLDINGS PTE LTD

"A further consideration of up to S$50,000,000, to be determined based on the final valuation of the FHPL Group..... Accordingly, the aggregate consideration (consisting of the Sale Shares Consideration and the Option Shares Consideration) for the entire share capital of FHPL, is up to S$110,000,000, subject to certain earn-out adjustments."

I'm a little concerned that Singpost has overpaid for Famous. Famou's NAV is S$12,276,873, so its paying a big premium to NAV. Is it justified? And why even buy? Sure, there will be some synergy to its logistics business but does it really need to buy a company that is primarily a NVOCC (Non Vessel Operating Common Carrier) operator? NVOCC is a highly competitive business with low margin, so contributions to its bottomline may be unimpressive. And of cos with acquisitions come integration issues which will need to be managed.

Singpost has been buying companies left, right and center. Can they really manage the integration process for all these companies so that everything falls into place nicely? Debatable but let's see what happen (vested)

So this good or bad news?

 

[Carnesir]

The market will decide tml. =)

 

[Departure81]

Neither good nor bad. Neutral.

 

[homedriver]

Neither good nor bad. Neutral.

So neutral is consider good or not

 

[nothinisimpossiblewiftime]

Singpost still flat

 

[mikelmikel]

but the huge sell queue in dwindling at 1.18 and the strong buy queue at 1.175 is gradually building up....
Feel like buying more at 1.18... Any advise?? Should buy more now???????
With consistent div, even when the share price reaches 1.25 there is still 5& div yield!
Should buy more? Or wait for correction?

 

[Carnesir]

Buy buy anything above 5 percent yield must buy!

 

[Departure81]

So neutral is consider good or not

Depends. If you want to buy, didn't come down, its considered bad. If you want to sell, share price went up, its considered good. If you keep for long term, then these kinda things shouldn't affect you, so neutral.

 

[killer]

ever since they did the perp bond and said it will be funding for future acquisitions, i've been looking at what fantastic deals they will be making. can't say any of the deals are good, but they do have some more cash to throw around. these few years will be critical if singpost will be able to make it big, or fall into the pits, since their mail business are falling every year.

at least i believe their acquisitions are somewhat better than singtel. holding them atm, but won't be adding into it unless they drop back to under $1

they could have done better aei on their hq. the last agm i went, the space they have there could have been put to better use

 

[Departure81]

Fyi, I just sold off Singpost today at $1.18. Can't see much upside left for this stock.

 

[homedriver]

Fyi, I just sold off Singpost today at $1.18. Can't see much upside left for this stock.

But this is very good deposit stock to earn dividend.

 

[Carnesir]

Fyi, I just sold off Singpost today at $1.18. Can't see much upside left for this stock.

Agreed. I sold back at 1.15. Accumulating to maybe get sph or one of the telcos

 

[Departure81]

Agreed. I sold back at 1.15. Accumulating to maybe get sph or one of the telcos

Waiting for SPH to drop below $4.

 

[homedriver]

Up up up....

 

[Arsene_Wenger]

I think i bought at 1 bucks. Alrdy up capital gain n earning divdend.

Even dropped has no regret cos still generating dividends

 

[mikelmikel]

Tomorrow results will be out!!
Without any surprises, should get $0.0125 per share dividends! With the recent rally, can have a huat huat happy cny!

 

[Steyr69]

Glad to see the uptrend....vested 10 lots at $1.14 2 years ago......think I will sell away 5 lots.

divest in other REIT stocks.