Friday, September 14, 2007
Results Brief
Tomson (258)
There wasn't much activities during the period, save that Company managed to earn a few bucks from the stock market, decent but unreliable and not to be encouraged. Income from golf club, hotel, and commercial properties was stable but nothing spectacular. There are a few smaller scale property projects in Pudong being built mostly via its associated company Riviera. While these will provide income, they are only peanuts next to the 4 towers of Tomson Riviera. The way I see remains that this project alone should be worth more the entire Tomson's capitalization right now. And the other property assets of Tomson are worth of at least their book value.
WKK (532)
On the contrary, the results were really bad with both turnover and profits down substantially, by 24% and 42% respectively. This raised serious question on the timing of the privatization. If Senta Wong knew the business was going bad, he could've waited until now to make the offer, and his chance of success would've been much higher. Or more importantly, why would he want to make an offer at all? He's too smart to have missed that. I'm too dumb to understand him.
Maybe now he's failed in taking over WKK cheap, he wants to 'demonstrate' he was actually trying to do all shareholders a big favor, so we should send our apologies to him for misjudging his good intention.
There was no mentioning of the Chinese medicine and health product business which Senta Wong talked about during the privatization period (WKK had invested 10 million already). In fact there's almost nothing in the MD&A section and shareholders are pretty much left in the dark, as before. Let's hope darn isn't far away.
The funny thing is that the stock barely moved after this disastrous results. It seems that the holders are all very calm, at least up to now. I guess most stocks are now split between Senta Wong, his friends, supporters, and his enemies (like David Webb and other funds).
The soap opera continues.
DISCLOSURE: I hold 258 & 532 at time of writing.
There wasn't much activities during the period, save that Company managed to earn a few bucks from the stock market, decent but unreliable and not to be encouraged. Income from golf club, hotel, and commercial properties was stable but nothing spectacular. There are a few smaller scale property projects in Pudong being built mostly via its associated company Riviera. While these will provide income, they are only peanuts next to the 4 towers of Tomson Riviera. The way I see remains that this project alone should be worth more the entire Tomson's capitalization right now. And the other property assets of Tomson are worth of at least their book value.
WKK (532)
On the contrary, the results were really bad with both turnover and profits down substantially, by 24% and 42% respectively. This raised serious question on the timing of the privatization. If Senta Wong knew the business was going bad, he could've waited until now to make the offer, and his chance of success would've been much higher. Or more importantly, why would he want to make an offer at all? He's too smart to have missed that. I'm too dumb to understand him.
Maybe now he's failed in taking over WKK cheap, he wants to 'demonstrate' he was actually trying to do all shareholders a big favor, so we should send our apologies to him for misjudging his good intention.
There was no mentioning of the Chinese medicine and health product business which Senta Wong talked about during the privatization period (WKK had invested 10 million already). In fact there's almost nothing in the MD&A section and shareholders are pretty much left in the dark, as before. Let's hope darn isn't far away.
The funny thing is that the stock barely moved after this disastrous results. It seems that the holders are all very calm, at least up to now. I guess most stocks are now split between Senta Wong, his friends, supporters, and his enemies (like David Webb and other funds).
The soap opera continues.
DISCLOSURE: I hold 258 & 532 at time of writing.
Comments:
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Hello Abaci,
A bit input for Tomson (258) - other than Tomson Riviera which represent a huge amount to its assets, the property Tomson Huting Garden under development will be very important to both its profit and assets value. As I recall some news almost 1 year ago its target price is $28k per sq meter, phase 1 (72,000 sq meters) if sold = $28000 x 72000 = 2016M, which equivalent to $1.5 per share. The new development is similar to Tomson Golf Villas which sold at >30k per sq meter (as found from some China property website). Phase 1 will launch to market within 2007 & target to completion in 2008. I meet Albert Tong at Tomson shareholder meeting May 2007 and he said parts of the house is almost completed. So I believe the profit will be booked in 2008.
In addition, phase 2 is about similar scale as phase 1.
Anyway, thanks for your sharing in your Blog.
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A bit input for Tomson (258) - other than Tomson Riviera which represent a huge amount to its assets, the property Tomson Huting Garden under development will be very important to both its profit and assets value. As I recall some news almost 1 year ago its target price is $28k per sq meter, phase 1 (72,000 sq meters) if sold = $28000 x 72000 = 2016M, which equivalent to $1.5 per share. The new development is similar to Tomson Golf Villas which sold at >30k per sq meter (as found from some China property website). Phase 1 will launch to market within 2007 & target to completion in 2008. I meet Albert Tong at Tomson shareholder meeting May 2007 and he said parts of the house is almost completed. So I believe the profit will be booked in 2008.
In addition, phase 2 is about similar scale as phase 1.
Anyway, thanks for your sharing in your Blog.
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