Listed companies with hidden assets

The company's valuations and its share price in most cases may not match. There may be considerable hidden assets within the company but due to various economic reasons, the said company's latest reported regular earnings may be very poor and its share price may not fully reflect its inherent strength.

• For example, Binny Mills in Chennai India had plenty of landed property assets near Koovam River and Central Railway station, worth crores ( millions) of Indian Rupees. But the company's earnings from its regular fabric business was very poor, its share price was struggling around INR 10.  One analyst identified the potential property asset valuations and a local Industrial group of companies started buying the Binny Mills shares from INR 10 and accumulated about 75 percent of the total Binny Mills issued shares.  The property valuations started to go up in Chennai and Binny Mills share price had gone upto INR 1000, a hundred times appreciation, giving the group several hundred crores of total asset holding on their Binny Mills shares. Such investments are to be considered for medium term basis and cannot expect gains in short term.

• In every stock exchange such undervalued shares can be identified, The poor valuation can be due to multiple reasons. In USA Macy's operating revenue used to be normal, but its prime asset holding will make it a worthwhile candidate for buying. 

• However, in developed markets like USA, the companies would have covered such hidden assets with bond issues to raise capital. Recently, it was found that the JC Penny shares in USA was trading below below USD 2, at  USD 1.76. JC Penny had property assets worth considering to accumulate the companies shares. On analysis, it was found out that  more than enough bonds had been issued by JC Penny to cover such property assets and the company may be struggling to meet us bond payments becoming due in near term.

• In Singapore, understand, most listed Transport companies depreciate their assets in shorter time than the real useful life of their assets such as an aircraft by Singapore Airlines or a bus by a listed bus operator, such as SBS Transit, thereby creating a balance sheet hidden assets. When such assets are sold, these companies make extra ordinary gains on which there may not be additional tax paid. Such company shares are, in general, under valued.

Astrological effects for Financial gains in equity markets

Asians, especially Indian, in general consider that the star movements affect in all areas of their life. A professional astrologer by analysing one's astro chart can predict the industry and type of investment which will give the individual an easier monetary gaining path.The strength of eleventh house which is considered profitable place and ninth house which is related to Bagiyam or one's inherent strength  ought to be analysed to make this prediction.

I know of a specific case, where one individual was involved in stock market activities in Singapore and Malaysia.He was by training an Engineer, but he was doing more stock market trading at that time. His astrological friend had analysed his astro chart and recommended during one weekend that he choose to invest in Timber. At the same time, a broking house in Kuala Lumpur was recommending that their clients buy a counter North Borneo Timber {NBT} with east Malaysia operations. After checking through the company's annual reports, this specific individual bought 51000 share in this company by next Tuesday.Cost including commission was at SGD 2.65 per share. During that time period,  trading was scrip based in Singapore and Malaysia. Even though the trade settlement was T plus 3 days, actual settlement dates got extended due to non availability of scrip for delivery.Before this trade was actually settled, NBT had run upto SGD 4.80 per share. This individual had a chance to sell, say at SGD 4.50 level, making a profit of 4.50 minus 2.65, about 1.85 per share, making a total gain about SGD 94,000.

This individual did not sell these NBT shares but held on to it. The point is that based on astro analysis, he had a very good chance to easily gain about SGD 94,000 in one single trade.

The beauty was that this NBT share price later dropped to SGD  2.50 per share and if  this individual  he had taken SGD 94000 profit, he could have easily doubled his purchase around SGD 2.55 level, NBT had later run up to SGD 4.65, again giving him a chance to sell around SGD 4.50 level, gaining about SGD 1.95 per share, and doubling his overall profit.

Again, if he had concentrated only on Timber trade, he could easily had become a millionaire in one year, perhaps, making this astrological prediction valuable.

Make sense of Tencent Price movement

Tencent listed in Hong Kong and New York had lost recently more than USD 165 Billions in Market valuation much more than what Face book lost, as Chinese Tech counters were hit hard. With Chinese regulators putting in more conditions on Gaming activities for young people, Tencent further lost close to 5 percent value on 31 August 2108. US president Trump is said to add next week, USD 200 billions in Tariff against Chinese exports. This will further cause market value loss to Chinese Tech counters, especially Tencent.  Persons with deep pockets can consider buying Tencent below HK 300, say about HK 250 level  for medium term gain. Once this tariff related noise settles out, Tencent will start moving up, as the long term potential in Chinese economy is considered good.

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