My Thoughts on HoBee and Bukit Sembawang

I am in the midst of relocating my research articles which once were posted on sgstudent.com(another dot.com that bite the dust recently) to my newly established blog. The rationale -- despite the ravages of time, an occasional glimpse of my blog could help decipher my train of thoughts, past hits and misses which will be a refreshing reminiscence of old times.

Currently, I am vested in Hobee and Bukit Sembawang which were purchased way back in May 04. Each of my articles contained a yahoo price chart with a time stamp evidently stating the research was undertaken in May 04. Without a doubt, I am not here to brag about my success(attribute it to the fortuitous identification of a bottoming out of the property cycle) but to share my findings with the local investing community.

Ho Bee has embarked on a stratospheric rise and further additions may be imprudent though signs of a resurgence of a property boom are palpable. Furthermore, Ho Bee being a mid-scale property developer with a business model of swiftly flipping their newly acquired land parcels for a quick buck due to their dearth of financial clout substantially lowered their business risk. Henceforth, if consumer confidence were to deteriorate, the bulk of its NTA comprising of cold hard cash will cushion any substantial price decline . At current price level of 62cents that approximates its NTA, the impending risk is minimal, so is the reward.

Bukit Sembawang Estates is one of the few grossly overlooked property counter that remains on SGX. Few seems to appreciate its beauty other than Aberdeen Asset Management who accumulated it from at prices ranging from $13-$20 before it went XD and XR. Since the inception of my article, nothing much has changed and its revised RNAV should be closer to $20-25 after adjusting for the rights issue.