Hello Pezz, Report:
Had a think about it, and decided to re-enter this trade by buying two dollops of Hopewell Holdings (HK.0066 finance.yahoo.com ) at HKD 6.5, because its boss is supposedly buying, and see below.
The company has not much to do with HK, but may play a role in the possible construction of the world's longest bridge (29 kilometers, from HK to Macao and Zhuhai, along the China coast).
If the company sounds familiar, it is because I had earlier sold too cheap earlier:
http://www.siliconinvestor.com/readmsg.aspx?msgid=18415878
January 8th, 2003
Hello Pezz, Sold this trade at 5.60 today, earning 8+%
Message 18278619
November 26th, 2002
Hello Pezz, Today's Report:
(a) Purchase a wallop (meaning full fill of) Hopewell Holdings quamnet.com at HK$ 5.15/shr
...
Reference
columns.scmp.com
Sunday, April 6, 2003
Sun Hung Kai recommends 'buy' on Hopewell
What the broker says...
After years of discussions on the disposal of its stake in Tanjung Jati B power project in Indonesia, Hopewell Holdings has reached an agreement with purchasers Sumitomo Corp and CJP, says Sun Hung Kai research.
The proceeds of US$215 million from the deal is higher than expected and compares with a book value of HK$600 million.
The huge writeback amount should surprise the market. The sudden recovery of HK$1.68 billion will enhance its net asset value by about HK$1.92 per share to HK$14.92.
The hidden risk is that completion of the deal is subject to conditions, including the buyers having to obtain the first loan drawdown. Earnings forecasts have been increased to HK$878 million for this financial year and to HK$970 million in 2004. The cash recovered can greatly lower Hopewell's debt and put it in a stronger position to take part in new investment, such as the Hong Kong-Macau-Zhuhai bridge. Sun Hung Kai has a "buy" recommendation on the stock, with a 12-month target price of HK$9.80. The counter closed at HK$6.65 on Friday. |
