Global Value Investing

[throwerw]

Interesting volume on Keck Seng today... that might have been us, not sure.

They are generating about .70 per share of recurring FCF from hotels and rental income, and an additional .20 per share from development sales in Macau, which at the current rate could continue for 20 years. This should increase significantly has average prices are already 30% higher than last year in Macau.

Net cash at the corporate level is 3.35 as of 12/31/12. Net cash by the end of June will be 3.63 (3.35+.45 FCF - .17 dividend). If you subtract the .17 dividend, the shares are trading at about 3.83. Downside to net cash is only 5.2%. Upside to true NAV is 200-300%.