United Engineers

[greengiraffe]

Post the continued divestment of non core assets at WBL levels, UE has deleveraged substantially.

I suspect this is a deliberate attempt on the part of OCBC/GE/UE in order to unlock the true potential of the conglomerate.

UE ex the troublesome and volatile electronics and auto division is simply a real estate company with proven track record:

Commerical properties in Singapore, non-bank style developments in Singapore and excellent bluechip record in China.

However, at current prices, there is limited upside to UE. The focus as I say will be on how FCL will be positioned to benefit from future value extraction Towkay's Charoen's heavy exposure in real estate spanning from Australia to South East Asia to China to Europe.

That is the next episode. Given that most SGX developers have been to focus on their core markets and neglected expansion in less lucrative but more stable markets like Australia and Europe, Towkay Charoen is in a better positioned even though most of these assets are recent purchases.

Odd Lots Vested
GG