How to identify potential privatization stocks in SG? - Seedly
Seedly logo
Seedly logo
 

Stocks Discussion

FSM INVEST EXPO 2020

Gabriel Tham

Asked on 15 Jan 2020

How to identify potential privatization stocks in SG?

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

0 comments

6 answers

Answer Now

Answers (6)

Sort By

Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Answered on 15 Jan 2020

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

0 comments

👍 1
pat
pat
Level 7. Grand Master
Answered on 15 Jan 2020

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

2 comments

👍 0
Billy Ko
Billy Ko

15 Jan 2020

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

15 Jan 2020

It’s all about finding a “mispriced gamble”
Billy Ko
Billy Ko
Level 7. Grand Master
Answered on 15 Jan 2020

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)

0 comments

👍 0
Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 15 Jan 2020

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

0 comments

👍 0
Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 15 Jan 2020

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.

0 comments

👍 0
AT
Alvin Tan
Level 4. Prodigy
Answered on 15 Jan 2020

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

0 comments

👍 0