Boustead

[Musicwhiz]

well... try it out...

for starters...pay a small fee to get your musicwhiz.com domain...or whatever u like to call it...

leave some of your analyses there.... get people interested...and if they want more... they pay a subscription of some sort... kinda like porn site... they give u clips...and want more...pay lor...visa/ amex/jcl cards all accept...

wat u think?

anyways..if you go down this path and make it... dont forget me hor...

Sounds like an idea! Thanks, I may explore it in the near future.

[Musicwhiz]

Dear all, Part 1 of Boustead's 1H FY 2010 Analysis and Review has been posted on my blog. Please feel free to visit and leave comments. Thanks!

A small snippet as follows:-

"One would immediately notice that gross margin has weakened considerably for 1H 2010, as the 10.8% rise in revenues was more than offset by the 17.2% rise in COGS, resulting in a decrease in gross profit of 3.3% from S$66.2 million to S$64.0 million. This can be attributed to margin erosion as costs are now higher and margins are also depressed as contracts are harder to come by, and customers have had to bargain for lower prices in order to accept jobs as financing is also tight. Gross margin contracted from 31.4% to 27.5%, and a closer look at each division will be done in Part 2 of this analysis, as well as offering a peek into PBT margins and I will provide possible explanations for the margin erosion, and whether I think it will persist in the medium-term."

[Musicwhiz]

It is indeed interesting to note that Boustead has resumed its share buy-back after a hiatus of exactly 3 months (the very last recorded buy-back was done on Sep 2, 2009 at an average price of S$0.7369).

Today, on December 2, 2009, Boustead bought back a total of 237,000 shares at a total cost of S$170,725.96. This works out to be about S$0.7204 per share (72.04 cents per share). If one compares this with the previous buy-back of 73.69 cents, it becomes obvious that the Company feels that the shares offer good value around this price, which is why when the share price had fallen from a 52-week high of 86 cents to current levels, Management initiated the share buy-back.

To-date, total shares re-purchased stand at 10,471,000 at an average price of S$0.4705. Note that this was due to a large married deal back on April 1, 2009 of 8 million shares at 40 cents.

Share capital less treasury shares stands at 505,274,524 shares.

Will we see possibly more share buy-backs as the days go by? Very likely since the company has a net cash hoard of S$163.4 million as at Sep 30, 2009! This equates to about 32.3 cents per share worth of cash.

[Musicwhiz]

Dear all, Part 2 of Boustead's 1H FY 2010 Analysis and Review has been posted on my blog. Please feel free to visit and leave comments. Thanks!

A small snippet as follows:-

"Water and wastewater engineering was a major disappointment despite the repeated promises by the Chairman to turnaround this division. Revenues dropped by 53% due to the slower completion of projects, but higher costs caused net loss to increase by 33% (even though technically lower revenues should result in lower costs). I am not sure why Management is confident enough to assert that this division would register a profit by FY 2010; but this is something I would like to see with my own eyes instead of believing time and again that they can turn things around. My opinion is that if they are unable to turn this division profitable, perhaps they should consider selling it away and channelling the cash for other more profitable pursuits instead of letting it bleed away."

[Musicwhiz]

Business Times - 10 Dec 2009

Boustead to record a S$17.3 mln gain from property sale

By ANGELA TAN

Boustead Singapore Limited on Thursday unvieled plans to sell a building under construction and land at Tampines Industrial Avenue 5 in Tampines Wafer Fab Park Singapore for a about S$67.8 million.

After taking into account the estimated costs of the proposed sale and the share of minority interests, the Boustead Group is expected to record a gain of S$17.3 million from the sale.

The property seller is Boustead Projects Investments Pte. Ltd, a wholly-owned subsidiary of Boustead's 91.7 per cent owned subsidiary, Boustead Projects Pte Ltd.

The sale is the result of the purchaser exercising its option in accordance with the agreement for lease.

[Musicwhiz]

Today, on Dec 15, 2009, Boustead bought back another 68,000 shares at S$0.725 each, for a total of 10,539,000 treasury shares held now. This is out of a total daily volume of 142,000 shares transacted today. Boustead has closed up 0.5 cents to 73 cents per share. They spent a total of S$49,430.56 for today's share buy-back.

It would seem the Company views the shares to be of good value as the buy-back on 2 Dec and today has shown that Management is willing to purchase from the market at 72 cents and 72.5 cents.

Moving forward, I would expect the Company to continue to buy back shares if the price hovers at around this level.

The recently announced sale of an industrial leasehold property will be concluded in FY 2011, and a gain of S$17.3 million will be recognized, leaving Boustead with a portfolio of 4 properties left. The cash from the sale will also boost their current net cash balance of about S$163 million as at Sep 30, 2009.

[memphisb]

Perhaps its time to consider average down now?

[Musicwhiz]

Perhaps its time to consider average down now?

You own Boustead too?

For me, I cannot average down as my cost is lower than the current market price.

[kennynah]

Perhaps its time to consider average down now?

[memphisb]

holdin on to some

The last few times they buy back is around 0.72+, if i rem correctly since the agm passed the resolution.

There is some hesitance to sink $ into engineering co now for me unless I m interested in collecting div.