Hi gang, see asia1.com.sg
for some perspective on the financial reforms in Singapore. It profiles one of Singapore's top bankers. Note the passage:
Senior Minister Lee Kuan Yew had noted that Singapore seemed to lack the "buzz" and "electric" that marked Hongkong's bustling financial service industry. Then, in a landmark speech at Sesdaq's 10th anniversary last November, Deputy Prime Minister BG (NS) Lee Hsien Loong had thrown Mr Seah's committee the longest rope he could have wished for. Said BG Lee: "I have encouraged them to not confine themselves to incremental improvements, but to make bold proposals where justified. I have told them that if all their proposals are accepted, it probably means that they have not been radical enough."
Savoirman says: In my opinion, share buybacks is the least contentious of the 55 proposals put before the government. Practically a shoo-in. It's just one of those things that Singapore has been slow at implementing, and this island is anxious not to let simple improvements slip away. Buybacks are even more relevant these days when companies are often helpless seeing their stock bashed down to ridiculous levels. Hongkong stocks have held up better because of buybacks, and I am certain Singapore is going to follow suit. Malaysia (often a competitor) has allowed buybacks in a limited way but there the poor protection of minority shareholders has put a cloud over what was essentially a good move. Singapore is by common consensus miles ahead in policing the market, and thus buybacks will be a big positive to investors.
And among companies here, Creaf is the one with the best disclosure. It reports earnings quarterly (99% of companies here report half-yearly) and reports it 3-4 weeks after the end of the period (most companies here take 2-3 months) and gives balance sheet figures every quarter (most companies here give only Profit and Loss at half-time). In short you get tons more information from Creaf than your regular Singapore company. Plus, it gives gross profit figures (all companies here have a big void between turnover and operating profit - you have to fill in the blanks). Lately Creaf has instituted a worldwide teleconference every quarter (don't even dream about this one - the only one so far is Singapore Telecom, the biggest company in Singapore with the telecom monopoly had one and was thoroughly embarrased by the technical problems during the conference).
In short, Creaf is one super company, relative to its Singapore counterparts. Most companies here can't even hold a candle to its market share, technology, management, disclosure, earnings and financial strength. And why does it trade at 8x, when share buybacks are imminent? That is the 64K question. |
