My Dell All in One desktop computer had a technical issue. I keep getting a sharp sound every minute.
Saturday, January 02, 2021
The table belows compare the current price (1-1-2021) of the stocks in my watch list with the average of the 1 year price target set by analysts.
Why did Christopher Columbus sail west?
I support the cancellation of the High Speed Rail (HSR) between Singapore and Kuala Lumpur.
Thursday, December 31, 2020
This video explains about the great reset which has been discussed in the world economic forum for several years. It is a new world order based upon central planning and digital currency.
Wednesday, December 30, 2020
I invested $80,000 in Lippo Mall. It has dropped $50,000 in value, or more than half of my invested sum. The current share price is $0.062.
Lippo Mall is having a rights issue to purchase a "flagship mall" in Jakarta. It is carrying out a rights issue at $0.06 to raise $180 million for the purchase of this mall. This has caused the share price to drop from $0.10 to $0.062 over the past few months.
Here are the details of the malls owned by LMIRT in Indonesia.
They own 30 malls with a portfolio value of $1,826 million and a net letable area of 913,958 sm. This works out to $185 per sf (compared to $2,000 psf in smaller malls in Singapore).
Furthermore, the share price for LMIRT is only 28% of asset value. A shareholder of LMIRT pays only $185 X 0.28 = $52 per sf of retail space in a mall in Indonesia.
In the chart below, the price to sale of LMIRT is 1.1. The average for the 4 other REITS is 11.67. It LMIRT has a price to sales ratio of 11.67, the price would be $0.65. On this metric, LMIRT is undervalued by 90%. Insane, right?
There could be several problems with LMIRT that account for its severe undervaluation. There is a risk that it may go bankrupt, if it does not earn enough to pay off its debt.
I think that this is not likely to happen. The net operating income (mainly from rental less expenses) is $100 million (trailing 12 months) compared to interest expense of $45 million. This was probably the worse case situation due to the lockdown caused by the pandemic. When the malls open in 2021, the net operating income should be higher than the current value.
Furthermore, I expect that the Lippo Group, which is the sponsor of LMIRT, will support this trust and ensure that it does not go bankrupt.
In view of the under valuation of this stock (as suggested by the price to sales ratio), I have decided to buy more stock to average down my cost and also to take up the rights issue.
I am not able to see any report from the stockbrokers. So, I have to do my own analysis.
Tan Kin Lian
Note - this is not financial advice. Please do you own analysis before you decide to invest in this stock.
Monday, December 28, 2020
It cost $7.47 billion SGD to build the North South Corridor (21.5 km) in Singapore. This works out to $347 million per km.
The North South corridor probably has 3 lines of traffic on each side. This is the equivalent to four Boring tunnels.
The cost of 6 tunnels of 21.5 km using the approach of the Boring Company would be $21.5 X 6 X $21 = $2.7 billion SGD. This is 36% of the $7.47 billion that is spent.
It will also take a shorter time to build the four tunnels using the Boring Company approach
Here are some information of the tunnels built by The Boring Company
I know that there are big differences between the two types of tunnels. The comparison may not be reliable. We probably have to consider other costs and technical aspects.
But, as a rule of thumb, the approach adopted by The Boring Company seem to reduce the cost by 64%.
Sunday, December 27, 2020
My friend was disappointed. He said that people are now crowding the malls. Why are they acting irresponsibly? Are they not afraid of spreading the virus?
- ► 2023 (342)
- ► 2022 (654)
- ► 2021 (1151)
12/27 - 01/03
- Excellent technical support from Dell, Penang
- Compare current price with target price
- Take risk and make progress
- Transition of Joe Biden
- 4 hour workday
- Wisdom of the Crowd - New Issues
- Show respect when giving comments
- Cancellation of High Speed Rail between Singapore ...
- Wisdom of the Crowd - New Issues
- WOTC - Sale of investment product by banks
- WOTC - Increase of 35% in Medishield Life premium
- The Great Reset, as discussed in World Economic Forum
- My analysis of LMIRT (Lippo Mall)
- North South Corridor
- People use their common sense
- ▼ 12/27 - 01/03 (15)
- ► 2019 (1839)
- ► 2018 (1406)
- ► 2017 (1258)
- ► 2016 (827)
- ► 2015 (691)
- ► 2014 (144)
- ► 2013 (501)
- ► 2012 (1268)
- ► 2011 (1872)
- ► 2010 (2369)
- ► 2009 (1654)
- ► 2008 (2104)
- ► 2007 (1803)
- ► 2006 (696)
- ► 2005 (159)