Today, while checking for the performance of my stock portfolio, I noticed that one particular stock that I am holding for long term (Super Group - S10) has jumped by close to 5%, at the time of writing (last traded at $1.215). So, naturally I am interested to find out the cause(s).
After quick check at SGX's website, found the cause! Apparently Super Group has recently announced that they are selling their property at Chin Bee Cresent for an handsome sum of $8 millions. Click here to see more details.
With the sale, there is positive financial effect to the book of Super Group in terms of their Net Tangible Assets (41.60 cents to 41.95 cents per share) and Earnings Per Share (from 8.96 cents to 9.32 cents).
This is at the backdrop of their recent additional investment in their subsidiaries, Super Continental Pte Ltd and Super Coffee Corporation. Looking forward to more "qiong-ing" by Super Group, hopefully. ;-)
Cheers!
leaseback?
ReplyDeleteCW8888 : Nope! It's a clean sale. According to the announcement, the reason is because of the relocation.
DeleteCongrats Richard!!!
ReplyDeleteI know you are vested in Super :)
B : Hahaha, ya, I am. But the current price is still below my purchase price, so.... still at paper lose lol
DeleteHmm, this kind of earnings is like monetising assets. If done often enough, no more assets to earn LOL
ReplyDeleteBut if relocation, wouldn't they need to rent/buy another property? I'm thinking they will be renting. So it's a net-neutral news to me.
LP : Luckily they are selling Kopi and not property, so, not so bad lar! hahaha
DeleteThey didn't indicate where they are relacating to but you got the point ;-)
I guess this years earnings not too good, that's why they sell to make the numbers look nicer for FY 14. Hope FY 15 their earnings can recover.
ReplyDeleteFelix : ya, they have a dismal Q3 2014 result and hope their 2015 result can improve. Are you vested too?
Deletenow a day, some company try to mark up their profit by selling their asset, LIke u look at Pacific Radiance, If not for the sale of 8 vessels, their profit stink. Just be careful, dont be so taken off by plain profit.
ReplyDeleteAnonymous : thanks for dropping by! I am long for this counter, so not overly excited about it ;-)
DeleteHi Richard,
ReplyDeleteI am vested in Super at 1.47. It is my super "lousy" investment for this year. But like you, maybe future still bright. But then again, Super coffee not so nice. Owl still ok. Haha.
Rolf
Hi Rolf,
DeleteI am slightly better, vested at $1.465 lol. I intend to hold this for long term. At least there is some positive movement finally ;-)
As for kopi, I still prefer Old Town lol
lol....hiloo guys,
ReplyDeleteI'm slightly better, bought at 2.85 just before the split. It is my worst performing stock todate.
David : lol they are still financially strong.. Just hold it for a little longer ;-)
DeleteYes Richard,
DeleteThis is a very long term holding....lol.
David : Good to hear that ;-)
DeleteIsn't this a one-off transaction? Selling of a building for $8m when revenue for 9M 2014 was $385m won't really put a dent in the financials. The additional profit recognition of around $3.8m is also but a fraction of their 9M 2014 NPAT of $42.8m. I would think that selling of non-core assets should be considered an "exceptional" item anyway which should be stripped out from main operations. The important thing is to determine if the main business is still doing well.
ReplyDeleteAnd the announcement was made on Nov 14, 2014. Why would the "effects" only come through now on November 27??
MusicWhiz : thanks for dropping by and comment. Other than this news, I didn't see any other potential positive news that causes the sudden jump in the share price.. I could be wrong in making this assumption though ;-)
DeleteIn the short term, it is a voting machine. This is a better explanation. Ok, almost all analysts cut rating to sell after 3 qtr results. And every Tom, Dick and Harry must have sold. No one left to sell. Analysts are poor at turning points. Everyone rated Super a buy when it was near $5.00 pre bonus. One with a target of $6.80 if I remember correctly. Now the same house says 80 cents ( $1.60 ).
ReplyDeleteAnonymous : can't agree more with you! The rule of thumb is : never listen to the analysts 100% and do our own analysis/judgement, then no one to blame except ourselves ;-)
ReplyDelete