SIIC Environment

[¯|_(ツ)_/¯]

SIIC@19

Initially, I was about to says that I'd not take a look at SIIC and wanted to gives some general comments too.

But, I worried that moderator will come in, so I spend 5 mins of my time looking at SIIC latest Qtr results, dividend history and price chart:
1. Financial result actually quite decent - pass.
2. Balance sheet - too much debt to my liking.
3. Dividend history also quite decent - pass. But, my mind was thinking where did SIIC come out with so much cash to pay dividend? I put SIIC into the too difficult category.
But, out of curiosity, I took a quick glanced at it's price chart and realised why our valuebuddies started to buy SIIC.
For me? it's too difficult and I wish those valuebuddies vested/vesting - good luck. 

I agreed 100% with Karlmax.
Just wanted to add that other than hard works, luck regularly played a part too.

Refers to OPMI, about the investment style called "paying for school fee".  This really make my day.  Thinking back, this is actually my favourite investment strategy.  

Thank you everyone.
I had learn a lot from you.

Gratitude.

[wonghw12]

Separate to the discussion so far, I bought into this (and China Everbright) thinking that the company will take some action to catalyse the price action, but getting disappointed. Granted, it is very difficult to know the underlying business of this company without grilling the management, but here's an announcement which I thought could be material:

https://links.sgx.com/FileOpen/SIIC%20-%...eID=663597

(1) Company does not believe the P/B ratio reflects the actual value of the company and has done share buybacks
(2) Company will strengthen communication with investors
(3) Pandemic has no impact to business, management affirms view that debt of local government has not much impact on company

Basically was hoping for the company to aggressively conduct share buyback, which should be more lucrative than undertaking new projects. So far, there seems to have minimal traction with new investors/analyst to rerate the stock. There's also not that much disclosure for investors to assess the projects.

[CY09]

I think what is important for this BOT companies is to prove to market participants that their stated asset value is correct.

This can only be done with sale of assets at stated price (with no impairments). If they don't do this likely, P/B will be depressed forever and investors will only have a 7% dividend yield (which hopefully is not cut )