I accumulate a little more of Stamford Land today after the stock price consolidate at around $0.55.
With this purchase, I now own 10 lots of Stamford having accumulated some in the past. I’ve also written a post in the past when I purchased them at a slightly higher price. See Here
The fundamentals have not changed for the reasons from the day I decide to purchase this counter.
I am looking at this counter from an asset play point of view where their hotel assets remain recorded based on their historical costs under the PPE segment of the balance sheet. Based on the FCL example I have given in my previous post on Stamford, the RNAV value for the hotel assets should be more than double the current book value stated. In other words, I am really just awaiting for one day when someone really bids for the hotel assets from Stamford and the management agree to the sell. I am not sure it will come soon as the management has rejected a bid price back then in 2008 when the bid price was equally attractive. This will become a long term investment for me anyway as I buy the hotel assets cheap at half the price and get the business for free while waiting for value to be unlocked one day.
1H14 Earnings came in at 1.34 cents a share, so they would most likely ended up the year with earnings less than 3 cents a share. It will be interesting to see if dividends of 3 cents a share will be maintained, otherwise 2 cents might be more sustainable. At a current price of $0.55, 3 cents would represent a 5.5% yield while 2 cents would represent a 3.6% yield.
Revenue from their development Macquarie Park Village will only be recognized in 2017, so earnings will somewhat be dependent on the hotels and probably subdue from now till then. Elsewhere nothing much to shout on as this will probably be a long term investment play for those who are willing to wait.
Coincidentally, I share the same office building as Stamford and took this photo on my way to lunch today 🙂
With this purchase, this adds $180 (assuming 3 cents a share) to my annual dividend income. I will update the details of the purchase under my Recent Transactions shortly.
What do you think of this stock? Spot any other good stocks lately?