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14-12-2011, 04:34 PM
In the worst-case scenario - i.e. the market becomes so bad that Popular can't even sell a single unit of "8 Raja" (with a total of 26 units) above its estimated break-even cost of $1,200 psf, after the project is completed - the external auditors will require Popular to make an accounting provision on the project based on what is considered a fair written down value in their opinion, backed by inputs from one or more external professional valuers.
Based on Popular's rock-solid B/S and large net cash reserve, and the strong operating cash generation from its retail and publishing activities, the company can easily hold on to "8 Raja" - a small project! - indefinitely and just rent out the units until the property market recovers.
Frankly, I won't lose any sleep on this, and I think it is still reasonable to expect Popular to sell, given enough time, all the 26 units in "8 Raja" and make a profit form the project, just like what the company has done in both "1 Robin" and "18 Shelford”.
I am looking forward to collect the $0.005/share Interim dividend on 31Jan12.
Based on Popular's rock-solid B/S and large net cash reserve, and the strong operating cash generation from its retail and publishing activities, the company can easily hold on to "8 Raja" - a small project! - indefinitely and just rent out the units until the property market recovers.
Frankly, I won't lose any sleep on this, and I think it is still reasonable to expect Popular to sell, given enough time, all the 26 units in "8 Raja" and make a profit form the project, just like what the company has done in both "1 Robin" and "18 Shelford”.
I am looking forward to collect the $0.005/share Interim dividend on 31Jan12.