Sing Holdings

[CY09]

Recently, Mr. Lee bought another round of shares between 0.375-0.38.

http://infopub.sgx.com/FileOpen/_FORM1_2...eID=302133

Here's my take. If he is buying shares from the open market, why is the company not using its excess cash to execute a buyback. From the last round of letter, it is apparent minority shareholders has voiced the need to buy back shares . Similarly the recent round of share buying by FH Lee holdings and Mr. Lee Sze Hao is an indication of the shares being undervalued. If majority shareholders (who hold senior mgmt positions) and minority shareholders are on the same wavelength that Sing Holdings shares are undervalued, why is the company itself not executing a share buy back?

Someone should highlight buying the company shares is no different from buying any vacant land for development and the Board is familiar with the Robin Road project & the company's status. With its NAV of 0.55, a share buyback until 0.415 will "reap a 32% return for shareholders".

Lets compare the 32% return to the Robin Road project: assuming the Robin Road project is fully sold at $2200 psf under optimistic forecast, Sing Holdings will obtain an approx 29.4% return over 4 years ( Land cost 1350 psf, development 350 psf). Therefore the share buy back is better than even the Robin Road project. Excess cash should be deployed to purchase shares than any land acquisition.