SPH Clementi Mall

In late 2009, SPH together with NTUC FairPrice and NTUC Income made a bid for Clementi Mall at a hefty price of $541M, a cool 41.9% above the next highest bid of $382M. SPH share price immediately took a hit as everyone unanimously conluded that the bid price is way too high. It is probably still true today that SPH overbid for Clementi Mall at the expense of shareholders.

The consolation however is the recent asset evaluation done by Knight Frank for SPH three properties (includiing site at Sengkang). KF valuated Clementi Mall at $598m based on current market conditions.Hopefully this make those shareholders feel vindicated. However, it could have been a MUCH BETTER deal if SPH had been more prudent in its bid of Clementi Mall.

Problem Of Being Not Invested

I just went to the Bank recently to create a new fixed deposit account for amount I received recently from some third-party organizaion. I did not want to invest this sum as the market has gone up a bit recently. I was quite surprised that the rate is 0.15% for 6 months and 0.25% for 12 months. I thought to myself what would have happen if I am totally in cash in the kast few years or have gotten out due to the volatility in 2010 and 2011???? What much would I have lost without being keeping myself invested??? By keeping myself invested, I would still be better than if I had been in cash even if the market got to go down by 20-30% in the next few months. The current environment simply do not reward but instead penalise heavily those who stay 100% in cash.

SembCorp 2QFY2012

Revenue                       = $2,668M
Net Profit                     = $191M
EPS                             =  10.7 cents

Profit From Operations
Utilities                         = $155.2M
Marine                         = $170.8M
Urban Dev                   = $9.6M
Other Businesses          = $4.5M
Corporate                    = ($3.8M)
Total                            = $336.3M

NAV                            = 2.30
Interest Cover               = 13
ROE                             = 17.1%
Gearing Ratio                = 0.04
Free Cash Flow            = $35M (1HFY2012)

LMIR 2QFY2012

Results released on 2/8/2012.

Gross Revenue                                    = $45,799K
NPI                                                    =$30,737K
Distributable Amount                           =$17,121K
EPS                                                   =0.93 cents
DPU                                                   = 0.79 cents
Total Assets                                        =$1,586,115K
Total Liabilities                                    =$370,558K
NAV                                                   = 55.74cents
Gearing                                               = 9.3%