valuation gap

Croesus Retail Trust co-founder speaks up about going private

SINGAPORE (Jan 12): Last September, Croesus Retail Trust (CRT) was taken private by Blackstone Group at a higher price than it ever garnered in the public market.

The trust had traded below its net asset value (NAV) for most of the 4½ years it was listed.

“I was obsessed with closing the valuation gap,” says Jeremy Yong, who was managing director of CRT’s trustee-manager and co-founded the trust.

“We needed to make sure we were trading at fair value so that our acquisition currency was strong enough to acquire new assets,” he adds.

Jakarta Stock Exchange woos millennials with shows, competitions

(Dec 6): Indonesia’s stock exchange is having trouble luring retail investors. Their solution? Target the millennials.

While the participation of individual investors in Indonesia is low compared with other Asian countries, those aged between 21 and 30 account for 26%, the biggest share of any age group, according to data from Indonesia Central Securities Deposit. To capitalize on that, the century-old bourse has been holding pop concerts on its trading floor and running photo caption contests in a bid to appeal to younger, would-be market players.

What to look for in equity markets as the business cycle ages

SINGAPORE (Sept 13): With the emergence of renewed geopolitical tensions, the upward incline of equity markets have come to a halt in August, even after a strong earnings season for 2Q.

Nonetheless, Amundi Asset Management says the economic cycle remains sound and synchronised on a global level, and recommends that risk allocation favour equity over credit, with a focus on areas of the market which still retain a valuation gap.


Go for CNMC Goldmine: KGI Fraser

SINGAPORE (June 21): KGI Fraser Securities has initiated coverage on Malaysian low-cost gold producer CNMC Goldmine at a “strong buy” with a target price of 48 cents.

“CNMC’s current trading price mirrors a gold price of at most US$1,070 ($1,437.12)/ozt. This implies that there is a huge valuation gap that needs to be closed,” says analyst Renfred Tay in a Monday report. He believes there is “much headroom” for the producer’s valuation to run before the movements of its stock price can be justified by changes in gold prices.

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