Lee Kim Tah Holdings

[RBM]

That is a very powerful chart you have shared with VB forummers dydx - it "speaks a thousand words" as they say and it makes the point far more eloquantly than my words can ever hope to do.

LKT was one of my top three performing holdings in terms of 2011 TSR - beaten only by a Warrant where I had a punt in late August and by a Preference Share where I got in at parity on its listing.

LKT is quietly going about its business without singing and dancing; the Lee's are buying stock (until 20th December that is - they haven't bought any since, despite trying at the S$ 0.595 level) and it seems that others are now buying at prices of S$ 0.60 per share and above. I also believe this counter has further price upside, viz.: i) a potential G.O., ii) the current P.E its trading on and iii) its current discount to asset valuation. I wouldn't be overly confident about a dividend increase however, if past form is anything to go by.

I'm hopefull that the LKT outperformance you refer to dydx will continue this year.

Vested (in LKT) .......... unashamedly so!!

I am indeed pleased to note that LKT has out-performed both CapitaLand (C31.SI) and STI (^STI) in the last 12 months by a big margin.....
http://finance.yahoo.com/q/bc?s=L25.SI&t...i%2Cc31.si

RBM, any comments?

[dydx]

LKT is quietly going about its business without singing and dancing; the Lee's are buying stock (until 21 December that is) and it seems that others are now buying at prices at S$ 0.60 per share and above. I also believe this counter has further price upside, viz.: i) a potential G.O., ii) the current P.E its trading on and iii) its current discount to asset valuation.

May I add another potential catalyst event which, IMHO, will almost certainly lift LKT's share price. That is if and when LKT finally secures the approval from authorities in India to go ahead with the long-stalled (since 2005) development of a 421,318 sq.m. plot of freehold land (in which LKT holds a 74.51% stake) located at SIPCOT Information Technology Park, Siruseri, Tamilnadu, India, into 6,000 residential units and retail, commercial office space, under the "Southlands" project. The BV or total development cost todate for this property asset is understandably only less than $10.0m, but its corresponding fair CMV is many, many times more. As a rough estimate, assuming a CMV of only $30p.s.f., the plot of land would be worth as much as $136.6m now.

Based on LKT's 505.443m outstanding issued shares, we are talking about another minimum approx. $0.19 a share of hidden reserve for this plot of land in India alone, before counting any future development profit.

More info on the "Southlands" project.....
http://www.singaporerealty.net/southlands/

[RBM]

A month has now passed since the Lee's made their last purchase of Lee Kim Tah shares on the SGX on 20th December 2011; in the mean time, the LKT share price has risen ~ 4% and a rather meagre 277,000 shares have been traded. It is clear that this is not for want of trying by the Lee's broker - at least at the S$ 0.595 share price level, where the Lee's broker has, for the most part, placed a daily 50,000 share bid during the mid morning of each trading session - this has failed to attract a seller ............. or higher bid prices were placed.

50,000 shares were traded in the closing minutes of today's SGX trading session to a single buyer at a price of S$ 0.615 per share, but these were not bought by the Lee's; I am certain of this. This daily volume is the highest since 20th December 2011. Could it be that the remaining minority shareholders are now a monotonically dwindling minority of those willing to sell until a G.O. is forthcoming?

In addition to the clear attractions of the counter, viz.: - i) a potential G.O., ii) the current P.E its trading on and iii) its current discount to asset valuation, the additional "catalyst event" point registered by dydx in his 10th January 2012 posting, regarding development of LKT's Indian asset, is a very good one. This would add serious delta value to LKT's NAV........... and its share price.

Kung Hei Fat Choy everyone.

Vested,
RBM

[RBM]

It is now over 8 weeks since the Lee's Broker last bought Lee Kim Tah shares on the SGX.

However, today there were a couple of interesting "Lee-esqe" type trades, i.e. offers for 50,000 share chunks, pitched at the S$ 0.595 per share level, and the broker made his bid's mid/late morning. A total of 115,000 shares were traded today (i.e. larger than normal), with the share price closing up one cent at S$ 0.595. It will be interesting to see in the coming days, via the usual SGX disclosure mechanism, if indeed the Lee's have re-initiated their LKT share-buying campaign.

P.S. A health warning - usually my hunches are wrong.

Vested,
RBM

[dydx]

FY11 (ended 31Dec11) full-year results just out.....
http://info.sgx.com/webcoranncatth.nsf/V...100250AC6/$file/FY2011Results.pdf?openelement

The numbers are superb! I shall say no more except to suggest fellow forumers to dig into it to discover the goldmine within LKT.

[RBM]

Thank you dydx - Yes, the word "superb" is merited in my view as well. I don't see a key weakness. Profits AT up ~ 120%, Dividend up 50% (from an admittedly moderate level), very healthy cash generation enhancements .......... and there are upsides yet to be realised, as we have discussed before. I believe we are already seeing the fruits of LKT's 25% Jurong Point 2 acquisition with these results.

LKT's share price has been hovering around the S$ 0.60 per share for a couple of months now, and this has been without the Lee's buying any shares during that time. Lets see if Mr. Market, even without further activity by way of the Lee's stock-building, begins to recognise the value already built and the upsides with a healthy move upwards to the share price.

Vested.

[RBM]

Hello dydx,

It seems that it is not only you and I who believe that LKT's FY 2011 results were "superb". It looks like the Lee's are also pleased with the performance and the future prospects for LKT.

Yesterday the Lee's bought 115,000 shares at an average price of S$ 0.61665. This is the first time the Lee's have raised their holding in LKT in about ten weeks.

Today, LKT's share price held steady at S$ 0.62 in respectable volumes (179,000 shares).

Vested

[psolhawk]

The Lees are back acquiring. Another 0.03%. Any estimate on their grip now?

[dydx]

Controlling shareholder Lee Family, through their private investment holding company Lee Kim Tah Investments P/L, added a massive 556 lots on 1Mar12 and paid $0.62/share, and another 20 lots on 2Mar12 and paid $0.625/share - a new recent record!.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument [1Mar12 purchase]
http://info.sgx.com/webcorannc.nsf/Annou...endocument [2Mar12 purchase]

Including the latest purchases, Lee Kim Tah Investments P/L now holds a 66.3% direct stake in LKT.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument

My rough calculation shows that the total shareholdings (both direct and beneficially owned) of the enlarged Lee Family - i.e. including all related family members - have crossed the 80% mark. We should be able to verify this position in the coming FY11 AR.

[dydx]

On 5Mar12 (Monday), the Lee Family added another 134 lots and paid $0.625/share.....
http://info.sgx.com/webcorannc.nsf/Annou...endocument