Rowsley - Buying up Land in Iskandar Malaysia!

I am sure people are going to be interested in this.. Just look at the soaring trading volume of Rowsley as at friday (21/12/2012).

You can read about the news here:

They are acquiring a land size of 9.23 hectares = 92,930 square metres = almost 1000 4-Room BTO Flats' size!

Besides the land, Rowsley is also collaborating with RSP Architects & Planning (http://www.rsp.com.sg/). A check on their projects really made my eyes glare BIG BIG. They are master planners and designers of soooo many big projects like Ion Orchard, Plaza Sing new extension, Jcube and Pinnacle@Duxton etc... You can check it out yourself..

Best of all, i like the concept below:

The Land, which is located at Bandar Johor Bahru, Daerah Johor Bahru, Negeri Johor, is within Flagship A of the Iskandar development region, Johor Bahru, Malaysia. The Land is located on a waterfront site just a few hundred metres from Johor's new customs, immigration and quarantine facility, making it highly convenient for Singaporeans due to its proximity to Singapore.
The Land is to be developed into an integrated mixed-use township centering on a major shopping, entertainment and residential complex. It also comprises of hotel, commercial and office developments. The Land measuring approximately 9.23 hectares is expected to yield a
gross floor area of no less than 10 million square feet.
The adjacent medical hub to be jointly developed by Thomson Medical Pte. Ltd. and Vantage will complement the mixed-use township and enhance the overall attractiveness of the development.

I have done a search on google maps and see that Bandar is really close to Singapore causeway. A integrated mixed-use sounds like a whole business park formation to me which means ka-ching ka-ching!

Be sure to read about the Rationale of Acquisitions and Bonus issue of warrants at $0.18 as well..

The Directors of the Company believe that the Acquisitions are in the best interests of the Company. The Acquisitions provide the Company the opportunity to participate in the growth of the Iskandar Development region in Johor Bahru, Malaysia and transform the Group into a major real estate player with complete multi-disciplinary design capabilities and expertise.
The RSP Acquisition and the Land Acquisition are to be completed concurrently and are inter-conditional. The Directors believe that the award-winning expertise and complete suite of property services of RSP combined with the development potential of the prime Land will provide the Group with the platform, synergy and scale it needs to transform into a major real estate player in the Iskandar development region. The Acquisitions will increase the market capitalisation of the Company significantly and is expected to raise the profile of the Company and generate investors’ interest in the Company.
If the Definitive Agreements are entered into and the Acquisitions materialise, the Directors are proposing the Bonus Issue to reward existing Shareholders and to raise funds for the Group in the future. The Directors believe that the Bonus Issue will provide Shareholders with the opportunity to increase their equity participation in the Company, and potentially increase the Company’s capital base and strengthen its balance sheet. Based on the Company's issued and paid-up share capital of 989,301,265 Shares as at the date of this announcement, the Bonus Issue will comprise 1,978,602,530 Warrants. Assuming all the Warrants issued pursuant to the Bonus Issue are exercised, the Company will receive gross proceeds of approximately S$356.1 million. The Company intends to use the proceeds arising from the exercise of the Warrants for future working capital and expansion plans.

On the downside, Rowsley still has a long way before the acquisitions are completed and the seeds have to be sowed for us shareholders to reap the rewards.

Nevertheless, it may turn out to be another Yoma... you will never know right? ^_*


The Best Way to capitalize on U.S. Housing Boom

Sorry for being away for so long... Been busy with my work and other stuff...

Found a good article that allows you to capitalize on the US housing boom by targeting the Chemical Industry instead. Find out more below...

The Best Way to Play the Housing Recovery
By Frank Curzio, editor, Small Stock Specialist
Friday, December 21, 2012
The housing recovery has created a powerful tailwind for homebuilders…

It's difficult to find a better-performing sector. Over the past year, the average homebuilder stock is up over 80%. That's about five times higher than the S&P 500 index.

My friend and colleague Steve Sjuggerud nailed the big uptrend in homebuilders. He told DailyWealth readers to buy the sector in November 2011. If you followed his advice, you're probably sitting on huge returns today.

After such a strong rally, homebuilder stocks are expensive, and I wouldn't recommend them at these prices. But there's a better, cheaper way to make money as the housing recovery continues…

Homebuilder stocks have outperformed the S&P 500 more than five-to-one because we're finally seeing a recovery in most major U.S. housing markets.

Prices have risen for nine straight months, while the inventory of homes has fallen for the last five months. There is only a five-month supply of homes on the market. That's a sharp decrease from a year ago, when the supply of homes stood at 11 months.

I expect the housing recovery to continue. The Federal Reserve has said it will do everything in its power to keep interest rates near historic lows. That's good news for homebuyers looking to take out a loan. Plus, most of the major banks are sitting at 52-week highs. They're in much better shape to lend money than they were during the credit crisis of 2008.

However, based on the recent surge in homebuilders, I don't suggest buying these stocks today. The Dow Jones U.S. Construction Fund (ITB) is trading at an expensive 27 times earnings. A better way to play the recovery in housing is to buy chemical companies.

Chemical companies make products found in building materials, paint, carpets, and tiles. Most companies in the sector are trading near 52-week highs. However, unlike the homebuilding stocks, these companies are still cheap.

Dow Chemical, E.I. DuPont, and Ashland trade at 12 times earnings. That's a 15% discount to the average S&P 500 company. Small-cap names like Huntsman and Stepan Company are trading below 10 times earnings – and also pay a dividend.

Chemical companies are also seeing a boom in earnings as raw material costs come down. The prices of natural gas liquids (NGLs) are trading near 10-year lows due to the boom in natural gas drilling. NGLs include propane, butane, and ethane. These key materials are used by chemical companies to make everyday products, like the fuel many folks use for their backyard barbecues (propane).

If you are looking for an alternative way to play the recovery in housing, forget the homebuilders for now. These stocks could fall 20% each and still be overvalued.

I suggest buying chemical companies. Most of them are seeing huge earnings growth. They're also still dirt-cheap. I wouldn't be surprised to see 25%-plus gains in these names over the next six to 12 months.