$QAF(Q01) slow stock. wait for it to come down. neckline support still holding for now.
Recommended & Related Posts
$QAF(Q01.SI) QAF’s earnings per share will drop from 21.4 cents to 16.6 cents illustratively if the proposed listing goes through. and no upside from the listing. I think its better to wait for things to unfold before we take any stand.
7 things I learned from the 2017 QAF EGM | The Fifth Person
QAF announced plans to list 49% of its pork production business on the ASX for S$88 million. I attended the QAF EGM to find out the impact on shareholders.
The $QAF(Q01.SI) - Rivalea divestment is interesting.
Looking at the history of Rivalea since 2005 reveals that this particular business earnings are rather volatile.
It might be better for QAF to shed this business. Market Capitalisation of this Rivalea is about 200M. It might look expensive based on past history of earnings (attached). But I have no idea what properties are going to be transfer over... they can be worth a lot.
Assuming earnings will be less volatile post-Rivalea, a PE of 10 off a pro-forma EPS of $0.166 would mean QAF is worth about 1.60. This looks cheap based on PE relatively to its "peers." Dividends are decent and sustainable. So I will go ahead and say good things can happen if you load up on QAF. Not sure how others here feel.
Edit: Thanks to @AlpacaInvestments for the heads up... the estimated reduced EPS of 16.6c/share is derived from 21.4cents, which includes figures from the special one time sale of GBKL.
Without including this figure, the EPS is 10.9 cents... and the reduced EPS post-Rivalea is likely to be much lesser. I assume the "normal" EPS post Rivalea will be about 5.6-6cents a share. That works out to be a PE of about 20.
I guess the price is probably supported by dividend/income investors.