Shares of Tuan Sing (TSHS.SI), a property, hotel investment and industrial services firm, rose as much as 12.8% on Wednesday after the Business Times argued it was undervalued given its growth and earnings potential.
At 10:11 a.m., Tuan Sing shares were up 10.6% at $0.26 on a volume of 12.6 million shares.
“People only wanted to buy familiar names -- the most liquid, active names -- initially, then when they had loaded enough they go searching for things that are off the radar,” said a local trader.
Tuan Sing recently said it had secured a 99-year leasehold land parcel at Seletar Road, Singapore, for $123 million. It has also won the tender for Serene House at the price of $99.1 million.
Kim Eng said in a report last week that Tuan Sing stock was trading at only around 0.5 times its net asset value, which deeply undervalued its investments in Singapore and Australia.
The brokerage added that Tuan Sing has a strong balance sheet, with net cash position of $19 million and $204 million in cash balance.
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