I believe the management team is capable of pulling off big deals, I'm just wondering what is the impact to us as retail investors.
On this side they are listing an empty shell company with the aim to acquire foreign assets for development.
On the other side, they have actually been very active scouting for potential deals and are completing a few with their private vehicles.
It's just a matter of time they will announce that EWI (the new listing, not the current EW) has identified suitable acquisition targets and will pay with the money raised in EWI. They will in fact be acquiring their own private vehicles with EWI.
It may be good for EW and EWI shareholders if the projects make money. But for sure when they acquire their own private vehicles they would have pocketed a good sum of money.
FYI, the annual salary for Tan Sri for heading EWI is a cool RM3m. For the ex CFO of SP, he will be getting RM2m. All of which would be paid by their subscription fee of EWI's shares. Meaning they pay EWI for shares. And EWI pays them salary for managing it. Meaning.... free shares!
That tell you Ecoworld is overpriced because SP Setia use to get no 1 in property ranking. The failure of Ecoworld to replace SP Setia(despite Liew joining Ecoworld) as no 1 mean hype is built into Ecoworld share price.
Property crash is imminent no matter what , though long term is good but do u know how long is long term ? Minimum 10-20 years cycle but how many may outlive the cycle? When it crashes , banks are the first one to repossess the houses not been able to service loans....jobs lost , unemployment , etc.... All will be in the drain...and the scene will be pathetic! This is real life , only the super rich may withstand the shocks.....
Posted by leslieroycarter > Oct 26, 2014 11:09 AM | Report Abuse
Property crash is imminent no matter what , though long term is good but do u know how long is long term ? Minimum 10-20 years cycle but how many may outlive the cycle? When it crashes , banks are the first one to repossess the houses not been able to service loans....jobs lost , unemployment , etc.... All will be in the drain...and the scene will be pathetic! This is real life , only the super rich may withstand the shocks.....
matter of time it crash to half-price for most property that is condo and office type. and the rebound would take at least 10 years.
Land cost in Singapore constitute 60% of total cost of development. In Malaysia it is between 20 to 30% unless you convert from your agriculture land. EW bought land at prevailing market price. So land cost is non competative at all, moreover EW will have to service interest and principal repayment. What can you expect? Call for private placement, right issue or property SPAC. Tan Sri Lew is not God, he cannot turn water into wine. There are many better buy in the market. Why must you buy EW?
Its a matter of time before this company gets into serious financial trouble with the amount of leverage it has and the pace it has accumulated landbank. It is apparent that the property market is slowing down drastically especially at the high end sector. Good times cannnot go on forever
from their balance sheet, the over leverage, susceptible for crashes if the market turned bad... to be honest, their assets is their reputation but that doesn't count with the bank... PER for this stock is outrageously high...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
masterpeace
190 posts
Posted by masterpeace > 2014-10-02 11:04 | Report Abuse
fall fall fall down down down red red red