2nd Chance Properties

[CityFarmer]

3.3 cents for FY2012 declared as forecast previously.
On top of that, due to 14 months vs 12 months FY, additional 0.5 cents declared as special dividend

Base on today share price of $0.43, dividend yield (ex-special dividend) is 7.7%, if include special dividend is 8.8%

[KopiKat]

3.3 cents for FY2012 declared as forecast previously.
On top of that, due to 14 months vs 12 months FY, additional 0.5 cents declared as special dividend

Base on today share price of $0.43, dividend yield (ex-special dividend) is 7.7%, if include special dividend is 8.8%

Congrats! You were right!
From the segments, Apparels seems to have done very well in terms of Revenue and Profit growth. But, of course, biggest share is still from Property segment (even after stripping out Gains from Valuations).

[mrEngineer]

Kopikat, I like your signature but I believe also that luck & fortune favors those who actively search / work for it.

[changwk]

it's interesting to note that the final and special dividend will be paid via cash instead of the past option cash or scrip option.

I would have missed that if i didnt read it more carefully.

I wonder why management has chosen to change the dividend payment option

---

i quote from the latest results announcement
"The revenue increased due to the additional rental income from the new properties
purchased in the current financial year and also increased rentals for some existing properties."
I looked thru all the company announcements from Jun 2011 to Aug 2011. I did not see any announcements regarding property purchases.

But i do recall property purchase announcements in the previous years.

Can someone help me to understand when does a company need to make such announcments?

[camelking]

it's interesting to note that the final and special dividend will be paid via cash instead of the past option cash or scrip option.

I would have missed that if i didnt read it more carefully.

I wonder why management has chosen to change the dividend payment option

---

i quote from the latest results announcement
"The revenue increased due to the additional rental income from the new properties
purchased in the current financial year and also increased rentals for some existing properties."
I looked thru all the company announcements from Jun 2011 to Aug 2011. I did not see any announcements regarding property purchases.

But i do recall property purchase announcements in the previous years.

Can someone help me to understand when does a company need to make such announcments?

Dividends
- Almost half of the outstanding warrants (2013 batch) have been converted. The rest will probably be converted given the current price.
With so many new shares and expected cash from further conversion, the management probably think they can afford to pay cash and avoid further dilution. Note: With a bigger shareholders base, future dividend will be more.

Announcements
- If i remember correctly, the threshold is based on the latest audited net tangible assets of the company. Something like 2.5% or 5%. Go read up the listing manual which can be found in SGX. (Long time never do reporting...so can't remember) So, the purchase/disposal of properties is below the threshold, no announcement is required.

[CityFarmer]

Instead of plug-in all numbers into Black-Scholes Model's formula, and crunch out a number which i have no confidence on, i will rather try the following "non-academic" model.

I will not use the Black-Scholes Model's formula, but its concepts are well-accepted.

The value of the warrant lies with market price of the company share. The share price within the maturity period lies on few factors
- Outstanding share growth by remaining 147 millions 2013 warrants and scrip dividend scheme annually
- Equity growth by dividend re-invested annually, retained profit and new fund from exercising of warrants

For simplicity, assume the following
- Earning yield flat throughout the maturity period, with dividend yield flat on 8%, and 6% are re-invested via scrip dividend annually
- The remaining 147 millions 2013 warrants are exercised by end of FY2012, thus bring in $47 millions into the equity
- PB ratio remain flat @ 1.2 throughout the maturity period
- Equity grows @ 10% throughout the maturity period, due to re-invested dividend and retained profit

So at end of FY2012, with new fund from 2013 warrants, the equity is $203 millions with 701 millions share outstanding, thus priced @ $0.39 with PB of 1.2

By the end of maturity period i.e. FY2017, the equity grows to $370 millions. The outstanding share grows to 938 millions share due to script dividend. Thus bring the market price of $0.47 with PB 1.2

2017 warrant's strike price $0.4, with current warrant priced at 7 cents, effectively need market price above $0.47 to be in the money.

I admitted that the model is over-simplified, but should be realistic.

IMO the value of the warrant should be within 5-6 cents to be reasonable

Any comments welcome.

The warrant 2017 price drop back to 5-6 cents range... Closed today @ 5.2 cents

[CityFarmer]

The company updated its investment on quoted security

http://info.sgx.com/webcoranncatth.nsf/V...F003288E2/$file/SCPL_AnnouncementPursuantToListingRule704_17_b_19Nov2012_r.pdf?openelement

The company had acquired substantial quoted securities from market, using the money mostly from divestment and warrant conversion.

So far the return from quoted security is >20%, base on the info provided.

[CityFarmer]

The company AGM will be held at Qian Xi Restaurant in Tanjong Katong Complex !

http://info.sgx.com/webcoranncatth.nsf/V...60003911B/$file/SCPL_NoticeofAGM30Nov12.pdf?openelement

This will be my 1st AGM in restaurant

Anyone attended AGM in restaurant before?

(vested)

[CityFarmer]

The AGM is not well organized, and probably the least costly for all AGMs attended, but the communication is candid and useful.

The company is preparing for a slump on property market, with lowering gearing ratio, piling up cash reserves, maintaining the line of credit with banks.

I agreed with the common view that as long as interest rate remain low, property market will continue to prosper. But opportunities will only benefit those have prepared.

The retail business in Malaysia continue to grow. Approx 20% more Malaysia's outlets in current FY.

After the 2013 warrants been converted, the EPS will get diluted in current FY.

Will continue to be vested...

(vested)

[money]

I have sold all my shares in the company.. Everything is fine, i just do not like the idea of so many warrants issued by the company, it seems to limit the upside imo