The Straits Times Index (SGX: ^STI) in Singapore dipped by 0.1% today to 3,172 points. Within the index’s 30 constituents, 11 shares closed the day in the black while 19 ended up in the red. Despite a larger proportion of losers in the STI, it was still relatively quiet, with the biggest mover being palm oil producer Golden Agri-Resources (SGX: E5H), which dropped 1.7% to S$0.57. So, what are some of the big movers? C&G Environmental Protection Holdings (SGX: D79) is up 9% to S$0.365. The company, whose main assets are in waste-to-energy businesses in China, have seen…
The Straits Times Index (SGX: ^STI) in Singapore dipped by 0.1% today to 3,172 points. Within the index’s 30 constituents, 11 shares closed the day in the black while 19 ended up in the red.
Despite a larger proportion of losers in the STI, it was still relatively quiet, with the biggest mover being palm oil producer Golden Agri-Resources (SGX: E5H), which dropped 1.7% to S$0.57.
So, what are some of the big movers?
C&G Environmental Protection Holdings (SGX: D79) is up 9% to S$0.365. The company, whose main assets are in waste-to-energy businesses in China, have seen its shares embark on a rise that can only be classified as “meteoric”.
Back in 22 Oct 2013, slightly more than a month ago, C&G’s shares were worth S$0.12. Then, it announced that it would be selling its China-based waste-to-energy (WTE) businesses to a China-listed company that was revealed on Monday to be Nanhai Development Co. Ltd.
The next thing we know, C&G’s shares have leaped by more than 200% to its current price today!
It’s not even known yet how much Nanhai’s going to be paying for the acquisition, nor what C&G’s management intends to do with the proceeds, which would likely come in a mixture of cash and shares of Nanhai.
Nonetheless, with important details about the acquisition and its aftermath being unknown, as mentioned, it has not stopped C&G’s shares’ seemingly unstoppable forward-march.
And in case anyone needs a reminder, C&G’s WTE businesses are very important to it: last year, almost 90% of the company’s earnings before interest, taxes, depreciation & amortisation (EBITDA) were generated by the WTE businesses.
So while early buyers of the company would have made out like bandits, investors have to realise that at the end of the day, a company’s only worth the sum of its future cash flows.
At S$0.365 per share, C&G’s worth close to S$350m as a company. Would Nanhai be paying that much for the WTE businesses, or would C&G be capable of investing the sale-proceeds that would generate future cash flows in excess of S$350m? It remains to be seen.
Integrated healthcare services and facilities provider International Healthway Corporation (SGX: 5WA) is down 5.4% to S$0.35. The company announced yesterday evening that it has been selected to be a constituent stock of the Morgan Stanley Capital International (MSCI) Global Small Cap Indices and would officially be part of the indices today.
According to the press release, “MSCI Global Small Cap Indices are designed to represent a material component of the small cap size segment in the global equity universe.”
IHC’s executive chairman and group president, Dr Jong Hee Sen, commented that being selected for the indices “heralds the investing community’s confidence in [IHC’s] fundamentals as well as strong and visible growth pipeline of development projects in Asia’s healthcare sector.”
Tye Soon (SGX: T08) slid 23.1% to S$0.15. Last week, the automotive parts distributor came out with a trading and performance update for the nine months ended 30 Sep 2013. The company said that sales for the period had grown 13.9% year-on-year to S$144.9m.
Tye Soon’s export-based businesses in Singapore had grown along with its overseas operations, driving the top-line growth. The company also mentioned that its “business remained profitable” for the first three quarters of the year.
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