Wednesday, September 1, 2010

Wing Tai

I bought Wing Tai 2 lots at 1.62 today. A bit high, I did decide without much thought when I noticed price going upwards that I would put in a bid for 1.62.

Why Wing Tai? It is based more on fundamental and my own analysis as compared to the charts.

NAV = 2.1267
Current price = 1.62
Price / NAV = 0.7398
PE = 7.79 (one of the lower ones in the share market)

I liked the fact that its NAV is higher than current price. I also remembered reading reports that Wing Tai took a conservative stance in buying land earlier this year. Which is good, since with the property market looking to cool off, and the bids earlier this year seems to be on the high side. It is likely that Wing Tai can pick up better land deals later this year as compared to earlier.

Also, it does have new property launches later this year but they are mostly high end property. Not mid market property. I believe that those people in Sg who can afford Orchard Road / Bt Timah property are not going to be deterred by the new property measures. The hardest hit are the HDB dwellers looking to upgrade or invest in property. Not the people who can afford the orchard road or bukit timah property.

Perhaps there may be a dip, which I expect looking from the charts. But I am new to charting so I will risk it. I won't mind adding another 2 lots of need be if prices go lower.

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