I think If you have stayed at the student hostels you know how they charge the room rental /payment . Very lucrative business model ! Seems attractive at current price level ! Pls Dyodd.
80% LTV is very high for properties. Even banks wont lend at that ratio, just think about your mortgage. Is the CEO trying to smoke people.?
Are the properties in booked at cost or revalued?
Long ago, the company has some issues with very short lease, like the dorms in Tuas were 3 years leasehold. Not sure what happened to those....
the previous news about the bond extension, sounds a bit like a 'voluntary' debt restructuing (maturity extension), though the 'family/friends' probably have controlled the bonds. According to FSMOne, the bonds The 5.250% 12Apr2020 Corp (SGD) is callable at par in April 2019. In the event of a non-call, the coupon rate will step up to 7.75%. The fact that they couldnt call the bonds, or refinance those bonds with a bank loan or using cash on the balance sheet indicates that their financial flexibility may not be as great as they indicate.
https://www.businesstimes.com.sg/companies... https://secure.fundsupermart.com/fsm/bonds...
Reply to @l0nEr : Haha. I am long only. Yeah. When I was auditor, changing valuation method is a alarming sign unless there is change in nature of investment (for example, a private investment ultimately get listed ).
I was vested @0.34 in 2016 when I was searching worker dormitory alternative (TTJ) but I left it go in 2017 @0.5 due to its raising debts.
You are right that the revenue increase but so does the liability. So far it seems to me that the management is only focusing on acquisition for growth (which will reach stagnant point at certain point).
I think If you have stayed at the student hostels you know how they charge the room rental /payment . Very lucrative business model ! Seems attractive at current price level ! Pls Dyodd.
Reply to @Iamanoob : Ok. Huat ah!
80% LTV is very high for properties. Even banks wont lend at that ratio, just think about your mortgage. Is the CEO trying to smoke people.?
Are the properties in booked at cost or revalued?
Long ago, the company has some issues with very short lease, like the dorms in Tuas were 3 years leasehold. Not sure what happened to those....
the previous news about the bond extension, sounds a bit like a 'voluntary' debt restructuing (maturity extension), though the 'family/friends' probably have controlled the bonds. According to FSMOne, the bonds The 5.250% 12Apr2020 Corp (SGD) is callable at par in April 2019. In the event of a non-call, the coupon rate will step up to 7.75%. The fact that they couldnt call the bonds, or refinance those bonds with a bank loan or using cash on the balance sheet indicates that their financial flexibility may not be as great as they indicate.
https://www.businesstimes.com.sg/companies...
https://secure.fundsupermart.com/fsm/bonds...
Reply to @l0nEr : Haha. I am long only. Yeah. When I was auditor, changing valuation method is a alarming sign unless there is change in nature of investment (for example, a private investment ultimately get listed ).
I was vested @0.34 in 2016 when I was searching worker dormitory alternative (TTJ) but I left it go in 2017 @0.5 due to its raising debts.
You are right that the revenue increase but so does the liability. So far it seems to me that the management is only focusing on acquisition for growth (which will reach stagnant point at certain point).
Reply to @luxcan : the ceo and founders super supportive in buy backs, pretty pro-active. Run a check on how his holdings change to have an idea