United Engineers

[Behappyalways]

NTA as of 30/06/2013 $4.00
Number of Shares 310m

After 1 for 1 rights at $1.50.
Number of shares 620m
NTA = ($1.50+$4.00)/2 = $2.75


Net divestment gain after tax of UE Bizhub East $86.7m
NTA after Divestment = $2.75 + ($86.7/620) = $2.89

somehow I got a funny feeling that share price might hit $1.5 as those who subscribe to the rights might take profit on the new share while keeping the old......

not vested

[greengiraffe]

IMHO, UE has been adequately punished for its egoistic purchase of Worst Brothers.

The steep discount 39% to the book value ($1.635 vs $2.69) is representative of the mistake made.

Fundamentally, UE has embarked on strategies to unlock assets on its books. Whether or not such strategies will materialise (given the cautious outlook on the local REIT sector) remains to be seen.

Nevertheless, with quality assets sitting on the books and the backing of strong shareholders - OCBC/GE and Lee Family, it is an opportunity to buy UE - not that it will revisit its book value but certainly the discount is too steep.

The selldown which accelerated since the nil paid rights started trading is the usual mkt abnormally that is witnessed during periods when nil paid rights are traded.

With programmed algo trades, house trades (especially those from foreign institutional trading desks) can arbitrage with margins as razor thin as less than 1 cent).

I am hanging in there as I strongly believe that there are little geniune sellers of UE at current levels since it is trading at levels not seen in years. Assuming if UE pays out 7.5 cents in dividends for FY13, yield remains decent at 4.6%.

Newly Vested
Turning Green

NTA as of 30/06/2013 $4.00
Number of Shares 310m

After 1 for 1 rights at $1.50.
Number of shares 620m
NTA = ($1.50+$4.00)/2 = $2.75


Net divestment gain after tax of UE Bizhub East $86.7m
NTA after Divestment = $2.75 + ($86.7/620) = $2.89

somehow I got a funny feeling that share price might hit $1.5 as those who subscribe to the rights might take profit on the new share while keeping the old......

not vested

[felixleong]

I think UE is likely continue its down trend
However given the recent rights at $1.50

this $1.50 level forms a very strong price support
I would gladly scoop up anything $1.50 or below

Its just selling at too much of a discount to NAV

[freedom]

with current under performance of SoildBuild Reit, the transaction of selling UE Biz Park Changi could be off the table.

[felixleong]

btw sorry to trouble you guys, just to check

do u all have any recent research reports on UE to share?

or do you guys have the break down of UE's assets?

[greengiraffe]

Any reasons why you think that UE is likely to continue its downtrend?

I think UE is likely continue its down trend
However given the recent rights at $1.50

this $1.50 level forms a very strong price support
I would gladly scoop up anything $1.50 or below

Its just selling at too much of a discount to NAV

[Behappyalways]

$3b debts as of 30/06/2013 and after rights issue and disposing UE Bizhub and using the proceeds to pare of debts, debts would still be around $2b.

If interest on loans increased by 1%, that would be $20m. How much profit does UE earn in 1H2013 if gains are taken off? UE needs to dispose more assets to pare off debts.......

Wing Tai is a much better buy than UE at this moment......not vested in both of them.......

[felixleong]

looking at the chart, still looks like its sliding down... maybe its gonna stabilize soon?

[kbl]

$3b debts as of 30/06/2013 and after rights issue and disposing UE Bizhub and using the proceeds to pare of debts, debts would still be around $2b.

If interest on loans increased by 1%, that would be $20m. How much profit does UE earn in 1H2013 if gains are taken off? UE needs to dispose more assets to pare off debts.......

Wing Tai is a much better buy than UE at this moment......not vested in both of them.......

Good morning Behappyalways san and every1

UE E&C or UE a better bet??? <not vested both>

Is Sing Holdings a much better buy than Wing Tai at this moment? <not vested in Wing Tai>

[Behappyalways]

I am currently looking at UE E&C. Forget about UE. The rising interest rates will eat into their profits....

Look at UE E&C's chart. compare the MACD with share price......I think it is going to fall by a lot.....a good chance to buy when it does so.....

As for UE, I noticed there are lots of shorts

http://www.sgx.com/wps/wcm/connect/sgx_e...130903.txt

http://www.sgx.com/wps/wcm/connect/sgx_e...130902.txt

http://www.sgx.com/wps/wcm/connect/sgx_e...130830.txt

http://www.sgx.com/wps/wcm/connect/sgx_e...130829.txt