Chat in car during lunch hour:
KC: buy any shares recently ?
F: No! Dare not buy now. My friend so worried that she want to sell LionDiv when reach her cost at 1.75.
T: LionD cannot move one, LionInd up already but LionD still there.
KC: for you, you look at the -ve side of price cannot move. As for me, I see at now is very cheap & attractive. BUY LOW SELL HIGH. In fact, I have just bought it yesterday at 1.28-1.30.
P/S: What 1.30 can get? LionD 's assets of Parkson's RCSLS already worth more than 1.00 if convert to Parkson shares. LionD's NTA as at 31/12/07 is 2.70.
2 comments:
Hi KC,
I had also been adding up my stock exposures lately.
For liondiv and Parkson, I noticed that there is a norm that the market will discount the value of the associates or subsidiaries a parent company owns.
For example, Parkson Malaysia owns > 50% of Parkson Hong Kong. However, Parkson Malaysia share price is lower than the value of asset which it owns on Parkson Hong Kong.
Another example, Batu Kawan owns KLK, however, the Batu Kawan share price is lower than the stake it owns on KLK.
Like wise, liondiv owns Parkson malaysia (in terms on convertible options). Hence, it would still continue to be traded at a discount, compared to Parkson.
I think the reason why people discount on liondiv is because, if we are bullish on the China stories, we may better buy directly into Parkson. Whatever benefits (dividends, etc) paid out from Parkson will goes to the Parkson shareholders. However, whatever paid out by Parkson, may not be distributed accodingly by liondiv.
I myself had already cashed out on liondiv, and switched to Parkson, as I prefer Parkson's retail business than liondiv's steel business.
What do you think?
regards
Giap Seng
Hi GS,
U are right to pick Parkson if u want to get exposure in China/HK Biz.
I have some on Parkson also, for long term play.
I pick LionD on shorter term gain. U r right if saying me speculative.
My main reason is to 'buy low sell high'. taking some calculative risk. judge from it's current price against it's NTA & possible Theme Play.(eg Steel, Lion Group Restructuring)
The beauty of Stock Market is allowing us to take profits on Sentimen Swing.
INTELLIGENT INVESTOR!?
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