Thursday, December 13, 2012
Far East Orchard
Far East Orchard +0.5% to $1.92, not reacting much to news it signed an MoU with Australia's Toga Group to explore an Australian JV to own 5 hotels and a hotel management business comprising 6,700 rooms across more than 50 hotels. Concerns over the Australian hospitality business may be an overhang and with the uncertainty of the final price tag. Other S’pore companies such as Ascendas Hospitality Trust have not turned in big success stories there. Another restraining factor is that the counter is not very liquid as 60% is still owned by the parent, Far East Organization. Resistance seen at $1.94, which is the top-end of its recent trading range.