S$2.05-HPLS.SI
Ong Beng Seng bought 1.326 mln shares on Wed Aug 31st at $1.96 a share.
This would be OBS’ first purchase since May-July ’06, when he and wife Christina bought 2.37 mln shares at $1.81 average.
From the 2007 peak of $6.16, HPL fell 87% to its nadir of 82 cents in Mar ’09, from which it rebounded to $3.00 in Aug ’10.
Given that the celebrated husband-and-wife team does not sell shares, their latest purchase, we believe, could simply signal that they see value in the stock, rather than as a precursor of positive / exciting developments ahead, as in 2006 when talk of a bidding war for control was very much in the air.
Indeed, other than the JVs with CapitaLand (d’Leedon, the condo designed by Zaha Hadid and Interlace by Ole Scheeren), HPL has been rather “quiet”.
a. The redevelopment of the upper stretch of Orchard Road (where the Forum, Hilton Hotel, HPL House are located) was first talked some 20-30 years ago.
b. Wheelock Properties bought its 19.99% stake back in Mar ’06 and also at $1.80, from Quek Leng Chan who got in in 2001 at $1.15 a share.
Even the private arm of the couple has not done very much, eg the Halkins Hotel in London is 20 years old (going a big anniversary bash this month), while the Metropolitan Hotel in Bangkok (built after the one in London) is more than 10 years old.
Trading at 0.78x price to book of $2.63, it is probably worth taking the cue from OBS.
Note HPL is not a yield story: Last year’s 2 cents normal and 3 cents special translate to only 2.4% yield.
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