Boustead

[Musicwhiz]

Thanks Winston,

I remain highly confident that the CEO can clinch more contracts for Boustead Projects and grow Boustead's revenues to another record yer for the company. Let's hope they manage to look for a suitable acquisitive target amidst the market downturn (which will provide ample opportunities to invest at bargain basement valuations !).

Cheers,
Musicwhiz

[Musicwhiz]

Dear all,

This evening, Boustead announced that its 40% owned associated company, GBI Realty, had disposed of a property in an arms length transaction for S$200 million. The cash will be used for working capital purposes and I have no doubt that it will come in handy during the current credit crisis, where opportunities abound and valuations are reasonable. The Group will recognize a gain of S$26 million from this transaction, to be booked in FY 2009.

[kennynah]

Dear all,

This evening, Boustead announced .... in an arms length transaction for S$200 million. ...

hi MW, please teach me...what is the meaning of "arms length transaction" ?

[Musicwhiz]

Hi kennynah,

Arms length transaction simply means a transaction entered into between a willing buyer and a willing seller; both agreeing on the terms and conditions of the transaction. It's just one of those jargon used for transactions involving contracts, agreements or MOU.

Regards,
Musicwhiz

[iam802]

IN PRINCIPLE APPROVAL FOR PROPOSED SHARE SPLIT OF EVERY ONE EXISTING SHARE INTO TWO SHARES

http://info.sgx.com/webcorannc.nsf/ef3b ... enDocument

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Is this good news?

[winston]

IN PRINCIPLE APPROVAL FOR PROPOSED SHARE SPLIT OF EVERY ONE EXISTING SHARE INTO TWO SHARES

Is this good news?

Should be slightly positive.

Share splits increases liquidity but if too cheap, then some Fund Managers may avoid as they dont like to buy penny shares..

[Musicwhiz]

Hi Winston and iam802,

The share split will simply create a larger pool of shares at half the market price. The total market capitalization of the company will remain the same. Though most people feel that share splits and bonus issues are positive news, I am neutral towards such a move as it does not enhance shareholder value, earnings per share or net asset value whatsoever. The usual reasons given for increased liquidity and a broader base of shareholders do not hold water, IMHO. The MAIN reason for a company's share price to head UP is due to its business doing better and it growing its earnings consistently.

In Boustead's case, I can see good earnings visibility and also possible earnings improvement. I certainly hope their 181th year will be their 7th consecutive year of record revenues and profits !

[helios]

likely good news.

saw Boustead booth in e Singapore International Water Week ...

[winston]

Engineering services firm Boustead Singapore said its wholly-owned unit Salcon won a S$175 million ($129 million) contract to design, construct and upgrade a water infrastructure system in Libya.

[winston]

Not vested. From DBS:-

Boustead has won a S$37m contract to design and build an aircraft engine maintenance, repair and overhaul facility for Singapore Aero Engine Services.

The project will start immediately and is expected to complete by 3QCY09.

Assuming 50% of this contract is completed by FYE Mar 09 with 10% net margin, the impact to bottomline is only 2%, hence no change to our FY09 earnings forecast of S$73m.

We maintain our positive view on Boustead in view of the brisk orderbook momentum.