Thursday, April 21, 2011

Roxy April 2011 and other updates

A short note to update the numbers for Roxy pacific, a real estate developer and hotel operator listed on SGX.
Back of the envelop calculations (In S$ mm)
- Hotel                 $320
- Total debt        ($376)                      
- Cash                  $157
- Devt propty      $235
- Devt profit pv   $84 - 90
- Kovan surplus  $20 - 25                    
                                             $496 - 507
Rough est value     =        $440 - 451 ($0.69 - 70)
Current mkt value  =         $290 (636.56m shares)
Upside                  =            51.7 - 55.5 %
Downside             =            10.0 - 15.0 % from recent low

** I will look to continue to hold the counter as favorable upside remain. The only risk is devaluation of the hotel which takes a bulk of the asset value. Barring any economic fallout or epidemic, I remain positive on the hotel operations and hence the property value, the asset floor is the locality of the building.

Currently I have a couple of items on my watch list and looking to pull the trigger. However, it does seem that many of them are at their trending highs and I will buy on pullbacks. Other indicators remains positive, market recovered today despite the US S&P downgrade news and China reserve tightening policies. Expect more from China and look out for QE news in June. Will post the updates accordingly.



John Koh said...

Hi there,

Thanks for ya post on Roxy. How do u think of Lee metal?

MTH Investments said...

Hi John, perhaps you can tell me why are you looking at the counter so its easier for me to comment? Thanks!

Penny Stock Investing Blog said...

I think now would be a good time to lay off of any stocks in the real estate business. Although their is one real estate investment trust that I like here. Its called westfield. They own prime retail shopping malls the world over.

MTH Investments said...

Hi Penny stock, thanks for the heads up. Lets have a discussion on it? Drop me a note :)

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