Wednesday, October 2, 2013

BLUMONT

BLUMONT: SIAS has called for a "speedy investigation" into the unusual share price rise in Blumont Group. The call comes even as Blumont replied to a Singapore Exchange (SGX) query yesterday that it was not aware of any unannounced reasons that accounted for its share trading activity. SIAS said Blumont shareholders need to know the reason for the price rise and whether it is supported by fundamentals. The company is now trading at close to 500x its earnings over the last 12 months, and about 60x the value of its net assets. We hope there is an acceptable explanation by the company. If not, SIAS calls on the relevant authorities to investigate this unusual stock activity immediately," said SIAS president David Gerald. At a market capitalisation of $6.3b, Blumont is as valuable as Singapore Press Holdings (SPH), twice as valuable as telco M1, and three times as valuable as SMRT, Wheelock Properties, or Venture Corp. Blumont currently gets most of its revenue from providing sterilisation services to get rid of bacterial contamination of food products. It declared revenue of $714,000 in its second quarter ended June 30 and a loss of $22.4m mainly due to fair value losses on financial assets.

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