Highlights of the Singpost-Alibaba Collaboration

If you haven't already know, Singpost announced a trading halt yesterday in the afternoon, pertaining to Alibaba's investment in it. The news can be found here.

Instead of boring you with the nitty-gritty details; let's take a look at the main highlights:

1. Alibaba Investment Limited will invest S$312.5 million to purchase 30 million existing ordinary shares held in treasury by SingPost and 190.096 million new ordinary shares and take a 10.35% stake in SingPost upon completion.
   
2. Both parties are forming a joint venture (JV) to leverage on each other's strengths and distribution networks/technology discuss.
   
3. Currently, SingPost’s e-commerce and related businesses account for about 26% of its total revenue. The CEO has said that he understands that their core domestic business [mailing biz] continues to be under pressure from rapidly declining domestic traditional mail volumes.
   Thus, he is looking at driving growth through Singpost's regional e-commerce logistics and strengthening it to be a regional revenue stream.
   
4. Funds from this investment provide SingPost with financial flexibility to significantly scale up its e-commerce logistics business and build new capabilities as they are poised for growth in the region.

My Opinion

It seems that everything is oiled into place - CEO with the right focus on e-commerce, a strong backing from Alibaba and plenty of ka-ching to expand quickly. 

While Singpost is selling for a relatively high P/E ratio of 23.08 (from bloomberg as at 28 May); if it can turn its e-commerce biz from 26% of its revenue to 50% - it will mark a very strong growth rate like seen from Raffles Medical (growing at P/E 20+ with strong earnings growth over past years) 

Furthermore, it also offers a 3.79% dividend yield, so it can also provide some decent cash-flow for an investor even if it is a long wait for capital gains.

What do you think about this deal for Singpost? Let me know by leaving a comment under my facebook page @ www.facebook.com/kissinvesting. Thanks & HUAT AH!

How to buy thailand undervalued stocks

Unrest in Thailand

The political turmoil in Thailand shows no pause or any sort. In fact, this 12^th military coup in the history of the country is making things worse for the country’s economy.

Thailand has been facing unrest for over the past six months and the Thai Baht has come down 2% compared to US dollar after the coup news.

Nevertheless, as investors dig through Thailand's history of coups, they will realise that the stock markets usually rebound sharply once things are stabilized.

Finding Undervalued Thai Stocks

So out of curiosity, I decided to run a stock filter based on the following:

1. Exchange is SET [Stock exchange of Thailand]
2. Return On Equity (FY) is >10 (%)
3. Dividend Yield is 5 - 10 (%)
4. P/E excluding extraordinary items (Q) is <10

Screenshot of Stocks which match the 4 filters

The rationale behind these screens? I want the stocks to be cheap and performing well in terms of ROE. One filter Warren Buffett tends to look for is "Has the company performed consistently well?" ROE is also referred to as "stockholder's return on investment." It reveals the rate at which shareholders are earning income on their shares.

Lastly, no one will know when the coup will end. Barring any unforeseen circumstances, I wish to look for a good dividend yield to help me tide over the uncertainty ahead. Of course, consistent dividend payouts and free cash flow will be important in judging if the yield can be sustained.


School of Thought

While it may not be comprehensive enough to capture other quality stocks as well, I believe a stock screening is definitely better than nothing. Moreover, there are still numerous stocks which we can zoom into their qualitative aspects.

In my next few posts, I will be touching on those Thailand stocks (if any) that possess one or more qualities such as great growth potential, high profit margins, margin of safety and more!

Like my post to receive more regular updates like this at www.facebook.com/kissinvesting. Thanks & HUAT AH!

Why SMRT share price shoot up/increase 44.6%

SMRT had a huge run-up in its stock price - whopping 44.6% gain in less than 1 month from 23 April where it laid stagnant at S$1.02 for quite some time. This is despite the fact that there are no significant developments in the company!

Nevertheless, many market observers would be lamenting now that they missed such a market darling. Will the up trend continues or will it fade away? Let's take a look at why its stock price soar so high in the first place...

Proposal to sell hard assets to Singapore's govt

After numerous train breakdowns, one of the key concerns is the improving and refurbishing of its railway lines which cost tons lots of money, driving its profits down due to high costs. The potential sale would turn SMRT into an asset-light operator (For more information, you can read the news article here) where: 

• it only charges a cost-plus pricing for operating the lines (a d*mn good deal i would say)
• The high operating costs are now borne by the government, in turn, by the tax-payers. 
• Don't forget about its lucrative rental and advertising side-lines where the opening of Sports Hub will lead to another set of good results.

Over the long run, if the framework is approved, it does help to validate the surge in share price. However, as of 20 May 2014, SMRT is selling at 36.88 times P/E ratio, 2.68 times of the STI multiple. The earnings will have to increase by 100% or 2 times in order for the P/E ratio to be in a more acceptable range of 18+.

Lastly, such a major decision may take some time to materalize and even more time will be required to turn it into profits. People should be careful of buying in a frenzy and getting stuck at the top for a long time in order for fundamentals to catch up to the euphoria.

3 reasons to bet on Croesus Retail Trust

Gone were the days where Croesus Retail Trust lingered at below its IPO price of S$0.93 around one year ago. It has been on an upswing recently, up almost 8% in a month. This can be due to the positive news where it still has the first right of refusal to 2 additional malls in Japan.

Other than that, there are 3 compelling reasons why Croesus Retail Trust is worth another look:

1. Strong Financials: Besides reporting Actual results that out-performed forecasts in 3 straight quarters, it is offering a dividend yield of 7.37%.
2. Right Place, Right Time: Croesus Retail trust properties are all situated in Japan, a country where many asset values have fallen drastically for the past decade. Nevertheless, under Abenomics, the middle income crowd seems to be getting back into shape.
3. Awards: Winning the title of "Best Small Cap Company" drives in the notion that management team is delivering a good job in steering the company to greater heights.
4. Growth Plans: Opportunities of Rental Reversions are intact. With accretive acquisitions & rental increases -> it can lead to higher distributions in the future too.

Nevertheless, investors will have to take note of the high gearing ratio (53.5% as of 31 March 2014) which seems to be more than the average REITs in the market. If you are interested about the company, you can read more here.

Hope you like my post! You can receive more regular updates by "Like"-ing my facebook page at www.facebook.com/kissinvesting. Thanks & HUAT AH!

A Stable Dividend Stock worth looking at

China Merchants Holdings (Pacific) Limited (SGX: C22) reported a solid first quarter results yesterday, with net profits rising 14% to HK$222.67 million from the corresponding quarter last year.

Listed in August 1981, China Merchants Holdings (Pacific) Limited (SGX: C22) ("CMH" in short) was originally a hotel operator under the name of Hotel Tai-Pan Pte Ltd. However, according to this quarter results, the company has announced the disposal of its property development business on 16 April 2014. The sale is a positive sign since the segment has not been performing well and with that, CMH can now focus on its profitable and growing toll road division.

Currently, the company owns and operates four toll roads totalling 367 kilometres. They are located in Zhejiang province , Guangxi Zhuang Autonomous Region and Guizhou province in the PRC. These roads form the main component of the national and provincial road networks.

Some basic numbers

While group revenue for 1Q2014 increased 6% to from HK$436.4 million to HK$464.4 million, net profits edged up 14% due to several components in the income statement.

• ·   Other operating income swelled 199% from HK$4 million to around HK$11.9 million mainly due to recognition of deferred income and effective interest on other receivables relating to compensation granted by local governmental authorities
• ·    19% and 39% fall in admin and finance expenses. The former is because of lower professional fee incurred by the Company and lower administrative expenses incurred by Beilun Port Expressway while the latter is due to repayment of certain long term bank borrowings
• ·    Share of results of jointly controlled entities also inched up 10% with higher contributions from the group's two toll roads, namely Gui Liu Expressway and Gui Huang Expressway

Financial Position and Valuation

If you zoom in on the liabilities area, you would have noticed that it is slightly on the high side at HK$3.38 billion as net profits only amount to HK$222.67 million for the quarter. On the other hand, cash and cash equivalents stands at HK$1.64 billion, and capital expenditure remain at a bare minimum - HK$5.05 million for the quarter.

Executive Chairman and CEO Mr Luo Hui Lai said, “The Group delivered strong results in 1Q2014, continuing the good momentum from FY2013. We expect our toll road business to continue to deliver positive results in light of the economic growth in the provinces where they are located and the continued growth in vehicle ownership.”

CMH last closed at S$0.96 and trades at a Price-earnings ratio of 7.28. It also offers a juicy 7.29% dividend yield, which may attract the attention of many income investors since its underlying toll road businesses can support the dividend pay-outs through stable, recurring cash flows.

Why SMRT and SBS Transit Prices increase/surge?

If you haven't notice, the prices of SMRT and SBS Transit soared to S$1.205 and S$1.315 respectively, up almost 20% from wednesday (23 Apr) closing prices!!

SGX has also launched an investigation/query to investigate on the unusual trading activity.

But what actually happened... I received an analyst report stating 2 possible reasons:

Scenario 1 

Railway Financing Framework in place - Highly possible – The house believes that SMRT is making inroads with regulators regarding the accounting of asset transfers under the new rail-financing framework. This is assume to be very close to a conclusion. 

In short, the end result will be a predictable cash flows and a more sustainable financing model, which will alter the fate of the company. Under the new rail financing framework, LTA will collect a licence charge that the operator will pay for the right to run and generate returns from the revenue service. The monies received will be pooled together to replace and enhance operating equipment such as trains, signaling systems and other operating assets for operating the Railway Transport System (RTS). 

The licence charge comprises fixed and variable components. The fixed component is calibrated to take into account factors such as the viability of the line, its long-term operational and maintenance needs, and the benefits and costs that the line is likely to bring to/impose on the rest of the railway network. The variable component ensures the appropriate level of risk-sharing between government and the operator. 

CIMB modelled in significant amount of service enhancement works that would be completed within the next 24 months, related costs would taper, leading to margin recovery in FY15F. As such, the house sees a 36% yoy improvement on core net profit (FY15 net profit S$84m).

The shift/change in business model (to cost-plus model, if indeed this happen) will would also go a long way into reversing SMRT’s bus losses 12-18 months from now and significantly improve margins, earnings and cash flows. This should help mitigate the incremental costs required to improve the other related opex, which are currently causing severe the cost-revenue misalignment.

Scenario 2: Nationalization of SMRT 

- Lower possibility – Though not ruled out entirely, is the possibility of nationalizing the company. CIMB however do not think it is in the interest of the government to “own” back the company, and subject itself to further abuse from disgruntled commenters whenever trains breakdown, or fare increase is necessitated. 

QT Vascular IPO - upcoming IPO

Recently, the IPO fever seems to heat up again. While there are 2 upcoming IPOs, QT Vascular and PACC Offshore Services Holdings (POSH); the former seems to be down-played due to the lack of advertising and significantly smaller size.

Introduction

QT Vascular produces devices to treat diseased arteries in the heart and elsewhere, aims to develop new products and enhance its existing ones. The company, which operates out of California and Singapore, registered revenue of US$1.5m for FYSep12, and doubled to US$3m in FY13. 

Current flagship product is a balloon catheter known as the "Chocolate" PTA balloon device, which is implanted to treat peripheral artery disease, or blocked arteries in the leg. It is the first Singapore-designed device to win approval from the US FDA. 

The company counts multi-national pharmaceutical company Johnson & Johnson, the Economic Development Board's Biomedical Sciences Investment Fund, and homegrown Juniper Capital among its major shareholders. QT Vascular is working with UOB Kay Hian and Prime Partners for the IPO.

Details of IPO
The company will list on the Catalist, with a placement of 196,429,000 new shares, at S$0.28 each. This translates to about S$50 million in proceeds, less fees. The offering is not made public and only Each of Three Arch Partners, BMSIF and J&JDC intends to subscribe for Placement Shares in the Placement.

QT Vascular will use S$5 million for commercial expansion and marketing purposes, while S$15 million will be used for new product development. The rest of the proceeds – S$30 million, will be used for general working capital purposes.

The IPO Prospectus can be found here.

Opinion of IPO

Since you are not able to buy it before it list in Catalist, should you buy after the IPO? IMO, it's a no-no. Just look at the continued losses it has been making.

Secondly, It doesn't even have a website!? Maybe it's only me who cannot find it though. Lastly, Biomedical technology companies similarly like Biosensors tend to fluctuate a lot based on the Patents and successful breakthrough next time. While it may work in the U.S. due to strong coverage, it may not bode so well for a rather small Catalist company like QT Vascular.

Why You should take Brokers' Analyst Reports with a Pinch of Salt

Conflicting Interests

If you have watched the "Wolf of Wall Street" Movie, the most significant takeaway is that people (not only stock brokers) are usually there for their own interests. When you know that a stock broker earns his pay-check by the commissions when you trade, you would have jolly well know that they will try all means to entice you to trade stocks in and out actively for their commissions to be as fat as possible.

Furthermore, they have the tendency to be slightly biased when the company is doing business with the bank they are working in too. That said, you cannot say that all of them are bad apples too. Some of them provide us with valuable and relevant stock information that are only available/accessible to them. My stock broker is one of them, everyday he sends me the forecasts and various reports.

However, ultimately I have to make the final judgement and decide whether to invest, according to my investment style. What he is doing is just to provide the information for me as a platform to filter through the stocks i want to look at. Thus, when you make money through their recommendations, you are happy and they will be happy too. However, if things turn for the worse, you cannot blame them as they are only providing recommendations - its up to you if you want to follow; and they are protected with disclaimers.

No crystal ball

When you see two different banks' analysis on a stock with different views, one say SELL, one say BUY, which one should you listen to? The following example below depicts the question relatively well...

Well, while analyst can do a detailed analysis of the firm using the same data set, different assumptions can lead to different results/outcomes. Neither one of them is wrong down here - they are just providing their viewpoint about where the stock price is going, a target price they say.

All in all, the lesson here is to educate yourself if you wish to be successful in stocks investment. And there is the slogan that goes - there is no free lunch in this world. You cannot expect to just buy into all the stocks recommended and think that you will become a millionaire at the end.

Different types of Alternative Investments

As i browsed through the financial readings for the night, I saw this particular watch that is selling for an astonishing price I can ever imagine.

Guess the Price?

Its selling in The Hour Glass for S$150,700! I can only use one word to describe - disbelief. S$150k can buy me a car straight or used as downpayment for a condo or something... And what if you drop it on the floor accidentally? Ouch!

Then again, it spurred my thoughts to head another way - Alternative Investments.

Types of Alternative Investments

Offhand, I can name just a few like Gold, Wine, Watches, Collectible Coins etc... Wanting to know more, i did a search and i realize basically; An alternative investment is any investment other than the three traditional asset classes: stocks, bonds and cash!

So practically many other things like fine art, private equity or real estate are considered alternative investments too! 

Let's take a look at some of the popular ones most investors will pursue (considering hedge funds, private equity are only limited to accredited investors with S$1million or more):

Coins

The collectible coins are valued, not for their weight in precious metals, but because of their scarcity. Popular collectible coins include Morgan dollars, Walking Liberty half dollars and certain Buffalo Nickels. 

Many factors influence how valuable a particular coin can be such as:

1) condition, 

2) which mint mark it carries and 

3) the year of issue. 

Mint condition coins are always more valuable than coins that are heavily worn. Certain years of coins had fewer mintings, making them more rare and valuable [source: Coin World]. For example, some 1918/7-D Buffalo Nickels could be worth as much as $285,000 because the coins were printed with overdates when then 1917 die was impressed with a 1918 hub.

In the coin market, the rarest coins tend to provide huge returns (upwards of 100 percent of their value in a year), while more marginally rare coins provide only modest returns (sometimes as low as 0 percent in a given year). With any investment coins, find a dealer with a good reputation and inspect the coins carefully before making a purchase, as there are always forgeries circulating.

Commodities

There are tons of commodities traded in the futures markets including resources like crops and livestock, fossil fuels such as oil and coal, and precious metals like copper and gold. Nevertheless, the most 2 common commodities people keep a tab on are Oil and Gold prices. 

Do you still remember the financial crisis from the U.S. sub-prime era? During the period, everyone was worried of the hefty debt levels in the U.S. and sought safety in gold; thus Gold sky-rocketed in the aftermath and investors who bought into it early would have seen impressive returns. On the other hand, economies across the globe aren't doing well, and leading to a drag on the oil prices.

There are various ways to buy into commodities (you don't have to buy the actual stuff and store in your house!). One is to buy into commodity futures through a broker which involves leverage or stocks/companies that are into the mining or supply of the relevant commodities. 

Lastly, if you wish to seek diversification, you can also go for exchange traded funds (ETFs) where you can purchase several different commodities at one go, rather than focusing on one. ETFs can eliminate some of the uncertainty from choosing which commodities might rise and fall at a given moment too.

Real Estate/Property

Historically, real estate has been a very popular alternative investment especially in Singapore as people view it as a form of retirement scheme. History has proven itself as many rich people in Singapore do that due to the rise in property prices in the past few decades. 

Buying rental property can usually provide steady, reliable income if you find the right tenants. What's better than having someone else pay for your housing loan and to own a house debt-free at the end of it? This is a way to beat inflation and to take advantage of leverage in the best form, provided that the "ingredients" are well in place.

In contrast, if you are afraid of the hassle of owning a physical property, you can always turn to real estate investment trusts (REITs). They offer a more hands-off, low-risk method of investing in real estate. 

An REIT is a group that invests in various real estate properties, and receives preferential tax treatment from the government in exchange for paying most of its income to shareholders. Investors can purchase shares of REITs on public exchanges, making them one of the more liquid alternative investments. Another upside is that, like stocks, shares in REITs pay out regular dividends.

Bottom-Line

Historically, many of these alternative investments have been more popular among high-net-worth individuals and institutional investors. That's because many alternative investments require larger initial investments than stocks or bonds and are usually less liquid. 

But despite that, there are some advantages to alternative investments. Read on to find out those advantages, and educate yourself before you dip your toes into those murky waters.

Reasons for DUKANG DISTILLERS Explosive Breakout 18/4/2013

At 5pm+ during work; I tuned in to the SGX website to take a glance at the stocks and one stock caught my attention right away!

Why did DUKANG DISTILLERS rise up 16%+ suddenly out of the blue?!?

I did a research immediately when i reached home... and found out the details below:

Obviously there is someone out trying to manipulate the Stock [Dukang Distillers]... I observed two important things...

1. Numerous 1,000 shares (1 lot) being purchased throughout the early periods [no one in the right mind will keep buying 1 lot at such close periods of time as the commission just doesn't make sense]
2. Huge volume of "ASK"/Intent to Purchase of more than $100,000 at stakes indicates interest by rich investors or financial institutions.

What does that mean? It means the "big fishes" are keeping the prices afloat @ half a bid ($0.005 more) and it will generate positive signals to big traders/retail investors out there to join in the party!

Thoughts

Dukang has fallen tremendously over the past years to a low of $0.20+ last year but has picked up and reached $0.35+ recently. A positive pattern [ascending triangle] is established and surpassed through to the upside. 

A short-term target price would be $0.46. However, I believe there might be a pull-back after a 16% rise in one day. An entry after some pull back can prove to be $_$.

Rowsley New Update!

As you can see from the SGX portal, 2 new announcements are reported at 9pm+ on Sunday Evening for ROWSLEY!

You can find the links here:

• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_39B1F43C7EB175F548257B070048154A/$file/RowsleyLtd.Announcement_03.02.2013.pdf?openelement
  
• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_6E6B209ACBF2850948257B07004889D2/$file/RowsleyMediaRelease_03.02.2013.pdf?openelement

They are finally proceeding with the Reverse Takeover and finalizing the S$545 Million deal... The highlights are as seen below:

ROWSLEY SEALS S$545 MILLION DEAL WITH RSP, JOHOR’S ROYAL FAMILY AND PETER LIM

• Rowsley to acquire RSP in all-share deal for S$187 million

• Rowsley to acquire 9.23-hectare Iskandar Land in all-share deal from Vantage Bay for S$358 million

• Upon completion, Rowsley will reward existing shareholders with bonus issue of two free warrants for every one existing share

• Rowsley will be transformed from an investment holding company to a major real estate player

The thing that caught my eye is that Rowsley are issuing 2 free bonus warrants for every one share we own with an exercise price of $0.18...

At a current price of $0.29, it will mean:

[$0.29 + $0.18*2]/3 = $0.2167 average price per share based on current stock price if all warrants are immediately exercised.

I myself is interested in hopping on to the possible property investment idea in  Iskandar Malaysia but heard of some risks involved like easy to see companies go bankrupt, worrying about security issues and how to collect rental etc..

Therefore, lets do a simple calculation here...

Let's say i invest $10,000 at the price of $0.29, i will get around 34,000 shares & double the warrants (68,000).

Theoretically, at the end of one year, if the stock price 

(1) still remain at $0.30 & i exercise my warrants by then; the gain will be:

(34,000+68000) * ($0.29 - $0.2167) = $7,476.60

The % return is a spectular 75%!

(2) goes down to $0.15, I will not exercise the warrants and my loss will be:

[34000*($0.29 - $0.15)] = $4,760 ; a % loss of 47.6%!

(3) goes up to $0.45, I will exercise the warrants and my gain will be:

(34,000+68000) * ($0.45 - $0.2167) = $23,796.60

The % return is a astonishing 238%!

What i take confidence from Rowsley is also that the land acquired has excellent prospects; it is located within Flagship A region -> where many key players are: Citigroup, HSBC and Kuwait Finance House, major manufacturers - YKK, Celestica, Lion Group, Sumitomo.

Source from http://www.iskandarmalaysia.com.my/flagship-a-johor-bahru-city

Another point to take note is the compensation being paid out only when certain criteria are met as seen below:

This means the current management team being taken over (RSP group) will have a certain goal to look forward to when they generate significant growth in earnings...

My own Take

Since i am not ready to invest directly into property investment (although they give better returns due to leverage) even though Iskandar is a good opportunity, I may consider Rowsley since it is soon becoming a major real estate player. 

Good luck to you all then! Cheers!

Olam Stock Take on Blog

Recently, i done a Facebook Q&A to see what are the companies my readers are interested in. And Olam comes out as quite a hot favourite.

I shall touch on Olam now (sorry for the delay! Busy with some stuff recently...)

Fundamental:

Everyone should have known about the big impact of the Block's damaging report from Muddy Waters which led to a stock fall of nearly 20%, adding to the woes of a bad commodity cycle.

As for the recovery, Olam is issuing a big sum, US$750m, of 5 year Bonds which comes with "free" warrants.. trying to boost its war-chest. The cost of this debt is a whooping 13.7% according to the article by Michael Dee, saying that it sorts of instills the notion that what Brook was correct in saying that Olam is cash-poor and debt-intensive. 

If you wish to read the entire report, Like my Facebook Page and message me and i can send it to you :)

In the meanwhile, Olam is still continuing to acquire businesses using the expensive debt. It's like borrowing money at 13% annually and using the money to buy businesses. You have to get more than 13% return from the acquisitions to be yield-accretive - not really my cup of tea.

Technical

After hitting rock-bottom, Olam seems to be on a channel uptrend [see the 2 lines moving up]. On the longer term over a year period, the market seems to be in a descending triangle formation.

Thus, short-term traders can choose to take profit at $1.90 and set a stop-loss at the $1.50 mark established in June.

Conclusion:

I agree that confidence is boosted by the support of Temasek Holdings, which upped its stakes to 18% as one of the major shareholders. However, this bad news is not one which is temporary, it divulges real significant balance sheet problems for Olam - causing equity dilution in the future due to the issue of free warrants.

Furthermore, I have read reports on how 27% of net income comes from inflated biological gains. Therefore, personally, I would regard Olam as a short-term play. For longer-term wise, its better to go for Noble group or Wilmar which are more stable.

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:

• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_84F219799804932B48257ADB0020FBFD/$file/RowsleyLtd.Announcement_21.12.2012.pdf?openelement
• http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_93D67C6962F8B30548257ADB001CF5C4/$file/RowsleyLtd.MediaRelease_21.12.2012.pdf?openelement

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.