Falling Knife of the Week: Pollux Properties

This week’s Falling Knife is Pollux Properties (Catalist: 5AE). The stock has fallen by 13.6% from last Friday till yesterday, hovering at S$0.070 at the time of writing. It has a tiny current market capitalisation of around S$44 million.

The company is an investment holding firm involved with properties and it operates in two segments – Property Development and Rental Services. The Property Development segment is involved in the acquisition and development of properties for sale while the Rental Services segment is involved in the renting of properties.

On 10th of January, the company announced that it had appointed new members to the company’s board with effect from the previous day. Mr Nico Purnomo Po became the executive Chairman of the board. Mr Tan Kay Kiang was appointed as a member of the Audit Committee and a member of the Remuneration and Nominating Committee. Furthermore, Mr Low Chai Chong became the Lead Independent Director with effect from 10th January 2014.

In November last year, Pollux released its first half of 2013 (1H 2013) results. Its revenue shot up 195% to close to S$10 million. However, it posted a net profit of S$395,000, which was a 64% plunge from the previous year. It had around S$70 million in total debt. Cash flow wise, it generated S$5.3 million of cash flow from operations in 1H 2013 while the corresponding amount in the previous year was at S$1.6 million.

The firm is currently trading at a historical PB of close to 1.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.