Buy @ $1.515 & $1.485
Newly listed today with shares issued as Dividend-in-Specie (DIS) to F&N shareholders (1 x F&N => 1 x F&N + 2 x FCL).
Pre-DIS indicative NAV were,
- F&N = $1.69
- FCL = $2.04
- Total = $5.77
An old CIMB report has the following Valuation figures,
- F&N = $1.90
- FCL = $1.96
- Total = $5.82
Post DIS, we see today,
- F&N = $2.47
- FCL = $1.485
- Total = $6.44
So, we see a good premium to F&N and a good discount to FCL. F&N is likely being supported by the current 12ct div (xd on 4-Feb) plus another 42ct Capital Reduction (yet to announce EGM).
Yesterday, there was also an SGX Annc which gave FCL NAV = $2.12! At today's close, we're seeing a 30% discount… I'm buying based on this quick preliminary study plus memories of past studies which I'd done and posted in VB forum last year where I also compared against CDL & CapLand.. Will have to redo my studies soon as Property Stocks are now not in favour, due to adverse impact of govt cooling measures…
Still, I imagine it's one of the Special Situations described byJoel Greenblatt… unwanted 'child' (FCL fm DIS) being thrown out by pre-existing shareholders who're only keen on the parent (F&N)… Let's watch and learn… 😀
