400 * 0.07

28K leh.

i just bought 400 lots. i did an analysis on the stock, read through the annual report, did some calculations. the company is currently sitting on cash of about 5.5 cents a share. PURE cash is received from the sale of properties to sabana (so pls dont say cash dont exist or what crap, this is not a china company). so if u buy at 7 cents, effectively, you are paying 1.5 cents for the business.

gain from sale of property (excess of sale amount over book value = 95 million) will be recognised across 5 years which is the leaseback period according to FRS leases. so there will be a 20 million excess profits recognised for each of the next five years. each quarter will be 5 million. This will bring the annualised EPS for the next FY to be 1.1 cents. forward PE ratio will be approximately 6-7x based on share price of 7 cents, superbly undervalued compared to other logistic providers.

Next up, company bought 27 million sabana units. this will bring in approximately 2 million for the company according to 8% yield of sabana. Freightlinks also has a 51% in the REIT and Property manager of sabana, management fees will probably around 1-2 million (not too sure about this). so altogether this will bring in about 2-3 million income for the company.

about 40 million of debts are repaid using the proceeds of the sale, company will have no interest obligations in the next period thus increased income again.

after everything, company still has extra 120 million cash out of 196 million sale proceeds (after buying sabana units and repaying debt). they said they wanna invest in more properties, and dunno do what, but lets just say they try to obtain a return a 8% return on the cash, thats about 9.6 million extra income each year.

NEGATIVE: company will have to pay rental to sabana of about 8 percent per year. thats about 15 million a year.

So my guess is: increased income for next period is about 20+3-2+9.6-15= $15.6million

Companies usual income through operations is about 4 million a year. So next year profit will jump 400 percent.

 Dividend: company has a history to pay generous dividend when it earns money. For e.g just a few months ago, because they made money, they gave a 0.35 cents dividend, thats 5%! assuming they dont know what to do with the excess cash they have, and because the CEO has a 50 percent stake, i would guess he would strongly encourage a dividend payout to reward shareholders. if they pay out 50% of the excess cash of 120 million (im very optimistic here haha), thats about 2.7 cents per share. dividend yield will be 40%!! ok lah thats not v possible but even if they pay out 10%, thats good enough.

Korean WAR does not mean stock market CRASH !

i just bought 400 lots. i did an analysis on the stock, read through the annual report, did some calculations. the company is currently sitting on cash of about 5.5 cents a share. PURE cash is received from the sale of properties to sabana (so pls dont say cash dont exist or what crap, this is not a china company). so if u buy at 7 cents, effectively, you are paying 1.5 cents for the business.

gain from sale of property (excess of sale amount over book value = 95 million) will be recognised across 5 years which is the leaseback period according to FRS leases. so there will be a 20 million excess profits recognised for each of the next five years. each quarter will be 5 million. This will bring the annualised EPS for the next FY to be 1.1 cents. forward PE ratio will be approximately 6-7x based on share price of 7 cents, superbly undervalued compared to other logistic providers.

Next up, company bought 27 million sabana units. this will bring in approximately 2 million for the company according to 8% yield of sabana. Freightlinks also has a 51% in the REIT and Property manager of sabana, management fees will probably around 1-2 million (not too sure about this). so altogether this will bring in about 2-3 million income for the company.

about 40 million of debts are repaid using the proceeds of the sale, company will have no interest obligations in the next period thus increased income again.

after everything, company still has extra 120 million cash out of 196 million sale proceeds (after buying sabana units and repaying debt). they said they wanna invest in more properties, and dunno do what, but lets just say they try to obtain a return a 8% return on the cash, thats about 9.6 million extra income each year.

NEGATIVE: company will have to pay rental to sabana of about 8 percent per year. thats about 15 million a year.

So my guess is: increased income for next period is about 20+3-2+9.6-15= $15.6million

Companies usual income through operations is about 4 million a year. So next year profit will jump 400 percent.

 Dividend: company has a history to pay generous dividend when it earns money. For e.g just a few months ago, because they made money, they gave a 0.35 cents dividend, thats 5%! assuming they dont know what to do with the excess cash they have, and because the CEO has a 50 percent stake, i would guess he would strongly encourage a dividend payout to reward shareholders. if they pay out 50% of the excess cash of 120 million (im very optimistic here haha), thats about 2.7 cents per share. dividend yield will be 40%!! ok lah thats not v possible but even if they pay out 10%, thats good enough.

Conclusion: I LOVE THIS STOCK HAHAHA. will post a more detailed analysis soon, need to prepare to go for my studies in US

I dunno how many is stuck in this counter, but I AM!!!

Anyone out there to share info/view?