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Nam Tai Electronics, Inc. Message Board

  • john429a john429a Jan 29, 2013 12:30 AM Flag

    Real Estate gets even more interesting.

    • Designated to be “The Manhattan of Asia"
    • 15 sq km zone that won’t be expanded.
    • Reduced tax rates for those in the zone
    • Adopt Hong Kong business standards and methods of doing business.
    • Business disputes are handled by Hong Kong judge and Hong Kong Jury.
    • Stock Exchange to be implemented
    • Ease of money flows between Hong Kong and “The Zone”
    • Local Hong Kong telephone for “The Zone” for ease of doing business with Hong Kong.
    • Fortune 500 companies are already lining up trying to secure a place in "The Zone"

    Basically they are turning this area into an extension of Hong Kong, which is now currently a “special administrative region” within china. But I would wager that it actually will take over. Hong Kong is basically an outcast when it comes to mainland China. It was in the past, and never has been accepted to this day as a part of China. Still quite a bit of tension between the two "countries". People in mainland China actually don't like Hong Kong people.

    This is like winning the lottery for NTE. Three million buildable sq feet will be worth over 1 billion.

    The analysts on the call have no clue what it's worth. They are probably still hurting from trying to sell condo's they bought in the USA for 20 cents on the dollar.

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    • You can find the location by Google Earth. It will help you to understand its worth. It is funny NTE gives up core business for real estate. Ha ha....

      Sentiment: Strong Sell

      • 1 Reply to iceman131413
      • First, why would you not pocket 1 billion on that transaction, and put it in shareholders pockets which is Koo's and Kellogs, and ours. To some people, 1 billion is quite a bit of incentive. Also, do you not see a problem with people working in the plant making $5 a day working in a location such as downtown manhatten? Also, the area has been rezoned. Banks, high end retail, trading companies, technology infrastructure. A manufacturing plant is not in the zoning code. Last I looked I didn't see a manufacturing building across from central park. The land is being transformed. It's not just the land, the laws and rules have changed for those in that zone. They are also adding huge incentives for companies to move there. Also NTE will be able to get cheaper labor 30 miles out.

        Can't even put a $ value on this land since it's never been done before. Basically Hong Kong is the closest bet except Hong Kong is closed off to main land china in many ways. This will be open to both Hong Kong and main land China. This could be worth even more than Hong Kong.

        This stock is now better value than when it was $5 last summer. It was Aug of last year when the land was rezoned. In just a couple of years it's being transformed. I don;t think people understand how quickly things move in China. And how valuable real estate is.

        I used your suggested method and google earth said the land was worth $20 billion. Seems a little high to me. Maybe using Google earth isn't the best method to calculate the valuation.

        Investors are clueless here. It's amazing.

    • I completely agree with you. It is not understood how valuable this asset is. Investors/analysts are so accustomed to looking at a company through a single lens, that they don't consider all aspects of the company. I think the seeking alpha piece, while a rehash of much from this board, did a great job of bringing to light the value of this asset.

      Hopefully some sell side analysts will pick up coverage and point out the asset value. It's a rather simple and incredible story. $3.50 cash (and cash probably grows by $2 in 2013 based on EPS less dividends), real estate worth $5-$20 (or more) and a operating business that on a conservative basis is earning a couple bucks. And people are selling.

      Jaret and some others know me well from the IMOS board. Anyhow, I'm doing some digging with contacts in China re: real estate values. If anyone knows people at CB Richard Ellis, Jones Lang Lasalle or any other global or local Chinese real estate experts, I'd love to know what you come up with. I know someone posted a comp in the $160 dollar range. From what I've seen, I think $300+ is realistic, although I've also seen considerably higher. Not trying to pump - don't think it will help anyway. Just trying to get to the bottom of this. I just think the market is really missing it and longs have an incredible opportunity to make a lot of money.

      Sentiment: Strong Buy

      • 1 Reply to memoryxpert
      • My dream scenario would be for them to sell it before they've moved out of it so that we could realize the gain much sooner. Something like a sale and lease back situation. A lot of buyers would be glad to do that, because they'd know if they bought it sooner they'd probably pay less, and could secure it before another buyer steps in -- this is a limited resource. I would expect Koo to wait in order to maximize the gain, but at the same time Koo is not a young man and may not want to wait years if he doesn't have to. Take a slightly reduced figure this year and rent it for 2 years, then move when the new facilities are completed.

        I'm looking forward to hearing about what memoryxpert comes up with. We need some solid numbers on this.

        Another, perhaps even better tactic that memoryxpert suggested is spinning it off. It would be better both for tax purposes (to prevent double taxation on the land gain), and allowing an investor to sell one of the two while retaining the other.

        Sentiment: Strong Buy

    • Thank you for the research.
      I love this story
      All of my cash is in NTE

      Sentiment: Strong Buy

 
NTE
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