How to identify potential privatization stocks in SG? - Seedly
 

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How to identify potential privatization stocks in SG?

How to identify potential privatization stocks in SG? What are the tell tale signs?

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Choon Yuan Chan
Choon Yuan Chan
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered 4d ago

Chairman/Founder is old and no one within the family is taking over the business

Companies which has a low price to free cash flow ratio

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Yee Woon
Yee Woon
Level 6. Master
Answered 4d ago

Buy undervalued/family business and gamble. Investing is all about gambling.

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Billy Ko
Billy Ko

3d ago

Hahahhaa I think the term 'calculated risk' sounds more apt for investing
Wilson Nid A Break
Wilson Nid A Break

3d ago

It’s all about finding a “mispriced gamble”

Look at those stocks with high ownership by the founder of the company / a particular entity. Reason-being, it is feasible for major shareholder to simply acquire the remaining of the shares and this will translate to a higher chance of success as compared to saturated ownership holdings where problems arise from unwillingness to sell of stakes within the company.

Aside from high ownership, you could also look at the value of the company. If it's consistently undervalued, some companies i.e. OSIM would rather privatise and re-list elsewhere for higher volatility, liquidity and value appreciation (figuratively and literally)

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Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Answered 4d ago

No telltale until official announcement or unless you have insider-information lol

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Bjorn Ng
Bjorn Ng
Top Contributor

Top Contributor (Dec)

Level 9. God of Wisdom
Answered 4d ago

Well TBH there isn't any clear telltale signs.. Like for SMRT, ARA Asset Management, I don't think there is any clear signs. I guess for me, the closest is just looking @ related news for it, and usually if the numbers are good with potential pipeline in the future, that might be a way to approach it.

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AT
Alvin Tan
Level 4. Prodigy
Answered 4d ago

A direct answer would be that these stocks are unloved but have potential:

trading with low Price/NTA ratios, net cash, have large shareholders that are able to control the whole company

also look for share buyback activities of the above mentioned type of companies

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