Are you a shareholder of SPSETIA?

No and never was. I just happened to know someone in there. They thought their bidding for Bayan Mutiara was already too high for their comfort and they were clearly stunned when they were outbidded by a developer that has a market cap that is not even 10% of theirs.

ivory now 0.835 very cheap n undervalued, worth to buy?

Firstly I think its a good stock. They won the bid YES they bid high but margins are crazy... high at circa 40%...Secondly based on their latest 2Q2011 their cash level is at RM11m not RM5m...Downpayment for land in Penang plus with govenrment tender Im sure there are bankers lining up to fund them....It be pricey but there will be takers to back them up in terms of financing...Secondly their debt level is circa RM150~160m and Equity is at RM210m...how does this make their gearing above 1.0x? (160/210=0.8x)

Simply pakai tembak only....anyways agreed that they have been declining in profits but this company do have a track record in penang which is fairly good. I hope to see a good turnaround over the next 2-3Q's...Worth a look I would!

This post has been edited by param124: Oct 24 2011, 08:14 PM

Bankers are lining up to finance them? you are simply an ignorant fool who doesnt know anything about corporate finance 101. A loan for the purchase of the land 1.2 billion will simply raise their gearing close to 10. Very few profitable listed companies in Malaysia have gearings above 3 anyway and never heard of any profitable company with gearing above 5 we are now in a crowded property market and global economic outlook. Banks are more likely to do the exact opposite , risk aversion and avoid companies with gearing above 1. 11 m in cash is nothing to shout about for a mainboard comapny. It is dangerously low. Dont forget theay they drew down 60 mil of loans alone last quarter and still has such a pathetic level of cash. They are doing exactly what Greece is doing, using fresh borrwoings to pay back existing borrowing and this is nothing but an impressive pyramid scheme. They have to pay back almost the same amount next quarter. SP Setia and Mah Sing has cash in the hundereds of millions at least.

Another simple observation. It has been more than three months since they won the bid but yet no agreement has been signed yet. SP Setia and Mah Sing could have easily paid the 120 mil downpayment with cash and sign the agreement starightaway but this company dont even 10% of that in cash

This post has been edited by taxpayer: Nov 4 2011, 01:21 AM

Shot up to 1.02 today. Any news?

For a person who knows alot about CF you should also know contracts are not given if the company if they/Ivory did not have means/plans on how to finance this project. For a person who knows alot about CF you should also know that an SPV vehicle can be set up for this particular project finance to raise cash by ring fencing future proceeds of this development. For a person who knows alot you probably should have known that most of the trade secrets are not told in then open and most information pertaining to this is not fully available yet. So don't shoot things down so soon. Be optimistic. To much pessimism in the market at the moment. By the way, I doubt the payment is due all in one go plus is part of government tender so payments will be made in stages/progress. Plus 35 acres is to be reclaimed so as far as my limited knowledge goes, payment of this usually will be in terms of part of the reclaimed land (such as Benalec which takes payment in terms of land reclaimed)

I don't know about 10% payment etc upfront. Anyways have you looked into their loan docs to see that they need to pay 10% etc for the downpayment? Where is it stated? Secondly, yes agreed MSGB and SPSB would have easily paid the amount (if needed) but where is it stated state government seeking RM120mm down payment? If you were observant you would realise that property developers are location centric thats why you don't see MSGB and SPSB doing much/any projects in penang or other states. Their strong hold is KL/S'gor as they know what the market is over here and they are undoubtedly the champions here. Penang on the other hand is a strong hold for E&O (Sime Darby). Why did'nt E&O win is the BIG QUESTION?

Don't sound like there are only 2 property players in the country brother.

Btw just sharing my thoughts and opinion. I know you(taxpayer) sit and talk to all big boys but that does'nt mean you discount other people point of view.

_________________________________________________________________________________________

CF guy (taxpayer), your big friends never tell you ah that Ivory suspended? Looks like you may find out solution for your financing issue that Ivory can never get tomorrow....

This post has been edited by param124: Nov 10 2011, 11:51 PM

You mentioned that they wouldnt be awarded the tender if they dont have the means to finance it. Well the state gov will be in a dileema if they were to turn down the highest bid as well. Their balance sheet does not indicate that in any way they can finance it. Ask any impartial investment bankers and they will say the same thing.


Hmmm you are suggesting they set up a Speacial Purpose Vehicle (SPV) so that everthing from this land deal go off balance sheet . It is definently convenient for them to sugarcoat their disastorous balance sheet now. However, I am sorry to inform you that Ivory is too small for that. No one will take the SPV of a small company like Ivory seriously as the parent company also has to be credible and Ivory has yet to establish that (far from it in fact). SPV is only viable for the big boys like investment banks and Enron which ultimately collpased due to its off balance sheet liabilities. Please be reminded that we are in the early stage of a credit crunch and banks will scrambling to conserve capital rather than lend to risky SPV's that has a dubious parent company. Hong Kong's property bubble is showing very overt signs of bursting as well and the domino effect across Asia will be severe


10% downpayment is quite standard for all land and property deals and I doubt the cash strapped Penang state government will be in any position to give them any more leeway. elections are coming sir. Penang state gov preaches CAT all the time so it will be catastrophic for them to keep trade secrets

This post has been edited by taxpayer: Nov 10 2011, 11:56 PM

Boss its been done before. I dont want to quote example as I feel you have not quoted facts to date and just spoken through thin air. Anyways a JV vehicle Co would work and would certain boost Ivory upwards. Disastrous balance sheet? why do you say that? There are some weak points (i agree with you) but borrowings is not all bad just better way to increase returns

If they want they land to be develop and they gave the contract to Ivory dude i'm sure there are arrangements made not necessary public UNTIL TIME IS RIGHT as things are still being finalise. Where did you see Penang is cash strapped? They have been running a surplus pass few years --> Pls google! Anyways elections you don't use state cash to run in it! Sir MACC mari Sir..hehe

This post has been edited by param124: Nov 11 2011, 12:16 AM

Ivory suspended today pending material announcement. Price surged yesterday. Something good?

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Added on November 11, 2011, 5:28 pmOn behalf of the Board of Directors of Ivory, OSK Investment Bank Berhad ("OSK") wishes to announce that the Company wishes to undertake the following corporate proposals:-

(i) Proposed purchase and development agreement with Chief Minister of Penang (Incorporation) and the Penang Development Corporation to purchase and develop all that pieces of land measuring approximately 102.56 acres in Bayan Mutiara, Northeast District of Penang ("Land") for a total cash consideration of RM1,072,203,264 ("Proposed PDA");

(ii) Proposed joint venture between Ivory and Dijaya Corporation Berhad, to govern a joint venture company, namely Tropicana Ivory Sdn Bhd ("TISB"), for the proposed purchase and development of the Land ("Proposed Joint Venture");

(iii) Proposed renounceable rights issue of 186,000,000 new ordinary shares of RM0.50 each in Ivory ("Rights Share(s)") together with 186,000,000 new free detachable warrants ("Warrant(s)") on the basis of one (1) Rights Share and one (1) free Warrant for every one (1) existing ordinary share of RM0.50 each in Ivory ("Ivory Share(s)") held on an entitlement date to be determined later ("Proposed Rights Issue");

(iv) Proposed bonus issue of 46,500.00 Ivory Shares ("Bonus Share(s)") on the basis of one (1) Bonus Share for every four (4) Rights Shares subscribed ("Proposed Bonus Issue")

(v) Proposed provision of financial assistance by Ivory to TISB in the event TISB becomes an associated company of Ivory pursuant to the salient terms of the joint venture agreement governing the Proposed Joint Venture ("Proposed Provision of Financial Assistance");

(vi) Proposed increase in the authorised share capital of the Company from RM100,000,000 comprising 200,000,000 Ivory Shares to RM500,000,000 comprising 1,000,000,000 Ivory Shares ("Proposed Increase in Authorised Share Capital"); and

(vii) Proposed amendments to the Memorandum and Articles of Association of the Company ("Proposed Amendments").

The Proposed PDA, Proposed Joint Venture, Proposed Rights Issue, Proposed Bonus Issue, Proposed Provision of Financial Assistance, Proposed Increase in Authorised Share Capital and Proposed Amendments are collectively referred to as the "Proposals".

This post has been edited by yeeck: Nov 11 2011, 05:28 PM

Everything thing can be summed up using two words "cash strapped". no more , no less. It has been listed for only a year and it alredy wants to dilute its shareholders by half. The rights share has an indicative price of Rm0.50, a 50% discount to its latest closing price. You must me pretty desperate sir. A steep discount gives a super bad impression . People usually dont give more than 20% discount for rights issue

A JV means that Ivory will not get full benefit out of the project anyway and Danny Tan is the type of person that will make sure he doesnt. Danny Tan is a very shrewd businessman by the way. Mr Low simply can only get lower from now on although he is still not in the pits yet.

Good luck to Ivory shareholders. The train has left the station either way. It cannot be turned back whether you subsribe or not. However, a rotten egg is still intact and can still be sold at loss. I will cut my losses and run if I were you. A rotten egg smells and makes me want to puke

I think it will be interesting to ask one of my professor who won a nobel prize with his bankruptcy "Z Score" to assess Ivory's bankrupty potential Dr Edward Altman. He told everyone in the class that he gets a high when he sees a major corporate bankruptcy.

This post has been edited by taxpayer: Nov 11 2011, 10:18 PM

hi folks
sorry to butt in on this conversation - but it was very interesting ..
would like to ask some questions :
1) if Ivory is not having enough money / too much debts, how are they gonna pay for the bayan mutiara project ? (hope for miracle sales figures ?)
2) the bigger question : how come PKR-run state govt with an accountant for a CM can do such a deal?

i m penangite n see many ivory projects everyday - imho, semua kenot sell wan (so far at least) so i was very surprised that ivory got the BM deal (maybe E&O could have done wonders with it, instead, you know?)

I think this stock is going to go be a roller coaster soon. A reliable source told me that there is a clause in the tender document for the Bayan bay project that prohibits any "SUBDIVISION" or "SALE" of the project. What they have done is in direct contravention with the clause. They have partially "SOLD" the project.

This post has been edited by taxpayer: Nov 16 2011, 10:20 AM

I think this stock is going to go be a roller coaster soon. A reliable source told me that there is a clause in the tender document for the Bayan bay project that prohibits any "SUBDIVISION" or "SALE" of the project. What they have done is in direct contravention with the clause. They have partially "SOLD" the project.

Sifus,
how come the price adjusted from rm1.05 to rm0.6+?
what will happen to ppl who hold less than 4000shares of Ivory?

appreciate any details on this.. thx thx notworthy.gif



"IVORY - NOTICE OF RIGHTS & BONUS ENTITLEMENT


(i) Renounceable rights issue of 186,000,000 new ordinary shares of RM0.50 each in Ivory Properties Group Berhad ("Ivory") ("Rights Share(s)") at an issue price of RM0.55 per Rights Share together with 186,000,000 free detachable warrants ("Warrant(s)") on the basis of one (1) Rights Share and one (1) Warrant for every one (1) existing ordinary share of RM0.50 each in Ivory ("Ivory Share(s)") held at 5.00 p.m. on 30 March 2012 payable in full upon acceptance ("Rights Issue"); and

(ii) Bonus issue of 46,500,000 new Ivory Shares (Bonus Share(s)") on the basis of one (1) Bonus Share for every four (4) Rights Shares subscribed by the existing shareholders of Ivory and/or their renouncee(s) pursuant to the Rights Issue ("Bonus Issue")."

MY TP of RM0.50 turned out to be correct after all. Next TP Rm0.20. The company is partially INSOLVENT now. Total borrowings of RM250mil exceeds market capitalization of RM 210 mil(and falling by the day). They can bullshit whatever they want and but the AmInvestment joker that put a target price of RM2 will be lucky to keep her job. Ive worked in equity research and you will be fired in no time in Singapore and HK if you screwed up like this

Ivory Group to start phase 3 to 5 of Penang Times Square by year-end

Penang-based Ivory Properties Group Bhd will start work on phases three to five of its Penang Times Square project, which includes a five-star hotel, by year-end.

Group chief executive officer Datuk Low Eng Hock said the three phases would cover 1.5 million sq ft, including a five-star hotel.

In a statement issued after its AGM in Penang, Low said these phases would comprise small-office-home-office (Soho) units, a shopping mall, a hotel with 300 en-suite rooms, exclusive suites and a stand-alone cineplex.

As for the mall, Ivory Properties is to be the sole owner and plans are underway to attract international retailers to fill up 500,000 sq ft of the mall area.

"There will also be a double-storey basement car park to accommodate high traffic flow during the peak season," he said.

[quote=davinz18,Jun 20 2013, 05:23 PM]
Ivory Group to start phase 3 to 5 of Penang Times Square by year-end

Ivory will be the owner , much more better than just built ....

Disposal of all those parcels of freehold land held under Lot Nos. 3624 (Geran Mukim No. 20), 3625 (Geran Mukim No. 21), 3626 (Geran Mukim No. 22) & 3622 (Geran Mukim No. 23), Mukim 18 Tempat Mt Erskine, Tg. Tokong, Daerah Timor Laut, Negeri Pulau Pinang, measuring approximately 4.0365 hectares by TTG Holdings Sdn. Bhd., a wholly owned subsidiary of Ivory Properties Group Berhad, to Aspen Vision Development Sdn. Bhd. for a total cash consideration of RM35 million (“the Disposal”)

http://www.bursamalaysia.com/market/listed...cements/1442493

no wonder la... quite strange see their price increase... any good good... increase somemore