NTP has a good future and someone knows it. This is finally hitting home with some savvy investors as the stock continues to climb.
We still need to wait another 2 years, but make no mistake, this stock will be hitting the $30 before this project is complete.
If the company goes private, then Koo and Kelloggs share are also tendered at the offering price. I am expecting $15 - $20 a share. But if not and the project goes forward, I then expect a higher price of maybe $35 but then as the contstruction is near completion, the real value is unlocked. Heck, this could go into the $60's, who knows.
Interesting article on Chairman Koo of NTP from 9/2013
Nam Tai chairman stands to make a fortune from his factory site in Shenzhen, thanks to the city government's rezoning project for Qinghai
Monday, 02 September, 2013,
Nam Tai Electronics chairman Koo Ming-kown, nicknamed the "electronics king", earned his first pot of gold by selling calculators before moving on to the assembly of high-end electronic components for original equipment manufacturer customers.
His company now stands to make an unexpected fortune from property.
Nam Tai, founded by Koo in 1975, plans to redevelop a plant close to Shenzhen's Qianhai special economic zone to take advantage of a rezoning project by the city government. The 52,600-square-metre factory site, bought by Koo's company in 1993 for 30 million Yuan, will be turned into a complex offering more than 300,000 square meters of commercial, serviced-apartment and hotel space, with the project valued at nine billion Yuan (HK$11.3 billion) to 12 billion Yuan.
"This is a gift from heaven as we never dreamed of earning money from property but now we are forced to earn such a fortune," Koo said.
Koo, 69, said redeveloping the factory was not his idea, but a result of a Shenzhen government plan to turn areas close to Qianhai into commercial use to support the zone's development as a financial centre. The special economic zone was designated last year as a testing ground for the freer transfer of Yuan.
Land prices in Qianhai and nearby have surged, with China Resources Land, the property flagship of China Resources (Holdings), paying 10.9 billion Yuan last month for the third commercial site in the zone, making it Shenzhen's most expensive land.
Koo said the factory would be moved to other land the firm owned at Shenzhen's Guangming Hi-Tech Industrial Park.
While the Vanke product has a REIT structure, it doesn’t offer the tax benefits that similar securities in overseas markets enjoy, eroding its appeal to the market, Du said.
“At least it shows that the direction is the government is becoming
Hereis a clearer explaination
China Grants Approval for First Public REIT Offering
June 9, 2015 — 4:21 AM EDT
China’s securities regulator granted approval for the first public sale of units by a real-estate investment trust, broadening financing channels for developers facing a prolonged housing market slump.
The China Securities Regulatory Commission on Monday approved the REIT managed by Penghua Fund Management which will list in Shenzhen following the offering, according to a person at the company who asked not to be identified. The trust will be made up of commercial properties from China Vanke Co. in the southern city of Shenzhen and receive cash flows from rental income, the developer said in an e-mailed statement.
Chinese developers are looking to raise cash as home sales remain weak after a more than yearlong housing market slump. China Resources Land Ltd. and Evergrande Real Estate Group Ltd. are among listed Chinese homebuilders that raised funds in Hong Kong through share sales last month.
Vanke has been exploring different asset management models, including REITs, Vanke President Yu Liang said at a May 14 briefing in Beijing. The builder tapped the bond market in December after regulators allowed more property companies to access the onshore note market.
The approval came after China’s housing ministry in January called for active pushing ahead on trial of REITs, amid a housing market slowdown dragging on the economy. In countries including the U.S. and the U.K., REITs enable both developers to diversify portfolios and investors to gain exposure to the kinds of real estate that would otherwise be too expensive.
REITs are positive for developers with high investment properties as they can enhance return on equity, Du Jinsong, Hong Kong-based analyst at Credit Suisse Group AG, wrote May 3.
China approves first REIT listing of Vanke properties
HONG KONG, June 9
China has approved its first real estate investment trust (REIT) public offering, which will consist of office properties owned by China Vanke and managed by Penghua Fund Management, the country's largest property developer said on Tuesday.
The REIT will list on the Shenzhen stock exchange, another source with knowledge of the matter said, and aims to raise several billion yuan.
REITs, common in most developed markets, give developers a new way to raise funds as property sales slow in an oversupplied market.
The approval from the China Securities Regulatory Commission came on Monday, a Vanke spokeswoman said, and the office properties packaged in the REIT are in the Shenzhen free trade zone. She did not give more details. Penghua was not immediately available for comment.
China's largest commercial property developer, Dalian Wanda Commercial Properties, and state-backed China Resources Land have also expressed an interest in launching REITs. (Reporting by Clare Jim; Editing by)
Nam Tai Property Inc. (NYSE:NTP): The 1.95% of the US long portfolio NTP stake was increased by more than one-third in Q1 2014 at prices between $5.59 and $7.27. Last quarter saw an about-turn as the position was reduced by 21% at prices between $4.18 and $6.07. This quarter saw minor additional trimming. The stock currently trades at $5. The original position was a ~2% (~400K shares) stake established in 2001.
Note: Kahn controls 6.85% of the business through his ownership of just over 2.9M shares of NTP.
I agree, this is very interesting move. I kind of expected something like this. Stock hitting all time lows as this type of project takes time. The stock market is not patience. This offer is just basically another stock buyback offer that replaces the one that expired last fall. NTP is getting these shares very cheap.
I wonder if the big holders (Kahn Brothers) will bite on it. I expect not. It the little fish here that usually take the bait.
Once the permits get issued, things will brighten up. I am in for 6K shares and will hold most likely for 2 more years. Ugh.
I was thinking about that also, I currently holding until we see some more solid information / plans from the company before I add anymore.
I think we will test the lows again soon and may dip in.
I am sure I will return a profit on what I currently own but it will take longer than I expected.
Don't worry about the particulars, I am sure we will see another buyback approved as they had $40 million approved in the first round and only spent appox $17 million.
Guys, the share repurchase program ended on November 28th. This is what was approved by the Board and that unless they approve a new additional buyback program. That's it. Rules are Rules.
I expect a new program to be announced in 1st quarter 2015, how can anyone not be tempted at these price levels.
With that said, someone is buying the shares. Stock is up 3.7% so far today (12/2/14)
Mr. Koo is getting old, my thinking are that in 3 - 5 years he will be ready to retire. Mr. Koo does not want to manage a company that makes money only on rental income.
Restructuring the company to take advantage of the great assets (land holdings in prime real estate area) to the strategy that maximizes the financial returns to not only Him but to Mr. Kellogg and also the many shareholders is the end goal.
Every company leader eventually sells all his shares then retires.
If they have $36 million left on the buyback, then at say $7.10 / share, they would buy back 5,070,422 shares. Now if this was over 5 months to November end, this would be 1,014,084 shares per month. Or perhaps 253,521 shares per week. Daily volume is averaging 222,000 shares.
What really happened with NTE, which I just picked up from the Japan Display IPO, was that Japan Display (JD) was NTE's biggest customer for LCD screens for Apple IPhone's, NTE announced this very large supply contract to JD, but behind the scenes, secretly, JD was developing the in-house capability to do what NTE does. JD then demanded from NTE a ridiculous large price reduction or else they would lose all the business. This demand came out of nowhere as a total surprise to NTE that JD had developed the capability to bring this operation in-house. The two companies relationship goes back a long way and they had very strong ties.
I think the reason JD decided to bring this work in-house was the need to improve sales and profitability as the company will then be a publicly traded company again.
Being that NTE majority of sales came from JD, when they lost the supply contract, they had no other option but to transition to another business plan, quickly. They were not a supplier to Samsung or any other cell phone manufacturer most do everything in-house or already have key partner suppliers.
In the long run, NTE will be better off, but it will be a boring next 3 + years minimum. So, take your money and invest in other stocks and come back in3 years to check up.
What I am very glad to see is that Japan Display's IPO was a disaster and the stock is down over 20% since the IPO. I hope they die.
I read it, and can only say one word, DEPRESSING
Looks like NTE has become a long term investment of at least 4 years. The stock can drop much lower based on the many unknowns when converting from a EMS player to a real estate owner and developer.
Well, I guess that could be a possibility, as NTE leadership (Mr. Koo) put his foot totally in his mouth on the conference calls last year by projecting rosy sales predictions based on their supply contracts and then, whamo, it all goes away with the contract loss, just as the real high volume was to hit. I am sure management does not want to go through that mess again with lawsuits and just plain bad PR about the company. But then, maybe their answer to this is just to stop having conference calls and posts the results. They really do not have to have conference calls unless they want to generate investor interests.
I would be disappointed if they did go private, I like the company and the management's thinking, they are always trying to create substantial value for shareholders. I think the Real Estate deal is going to be a big within 2 years. If we get into the mid 4's or low 5"s I may start buying again for the long term
World's Biggest Tablet, Smartphone Display Maker and Key Apple Supplier to List in March
TOKYO: Japan Display Inc., the world's biggest maker of displays for smartphones and a key Apple Inc. AAPL -0.08% supplier, is aiming to raise up to $4 billion in what would be Asia's biggest initial public offering so far this year.
The move, if successful, would represent a rare turnaround for Japan's manufacturing industry, which has been battered by the rise of Chinese and South Korean rivals.
The company has thrived by taking advantage of its manufacturing scale and focusing its resources on small and medium-size displays, despite earlier criticism that Tokyo was throwing good money after bad when it helped set up the firm in 2012.
Japan Display was formed from the loss-making liquid crystal display units of Hitachi Ltd., Toshiba Corp. and Sony Corp, with a Japanese government-backed fund pouring $2 billion into the combined entity.
In addition to making displays for Apple's iPhone 5s and iPhone 5C, Japan Display's client list includes other top U.S. and Asian smartphone makers, according to people in the industry.
The display maker on Friday gave the first concrete numbers on its lucrative business supplying Apple, saying that the U.S. company accounts for nearly a third of its revenue.
Japan Display grabbed a top share of 17% in the global market for small and medium-size LCD panels by value of goods shipped last year, according to estimates by research firm NPD DisplaySearch.
Japan Display said Friday it would offer up to 158 million new shares in the IPO. That could raise ¥170 billion or about $1.7 billion. The company intends to use the money to boost its production capacity and to develop new technologies. In addition, the current shareholders will unload part of their stakes, bringing the total IPO value to an estimated $4 billion.
IF YOU WANT TO INVEST IN THE DISPLAY SECTOR, THIS COULD BE THE BEST WAY TO DO IT.
I would be interested in knowing how you heard this about the new supplier having problems. Usually this is not privilege information.
Unless you made this assumption due to the contract extension.
I hope the work requirements are not eliminated, if so, then there would be no incentive for dead beats to leave the welfare program.
But then, this is what the Democratic party is all about. Buying / Bribing votes for their party.
Thanks, koyak, I been keeping an eye on NTE. Until I see real actual facts, I am staying on the sidelines. In my opinion, the real estate project is worth a lot more than they are letting on. We will see in about 2 years.