Posted on March 24, 2010 - by kevinscully

Ellipsiz sells building in Joo Koon road for S$4.4mn…this is the building that caught fire in March 2009…

Photo by ~yienshawn92~

…what to do with this laggard stock in my portfolio

Ellipsiz has sold its building in Joo Koon Road for S$4.4mn against its book cost of S$0.7mn.  This would increase its NTA by 0.86 cents to 8.89 cents.

This sale is not surprising given that the reinstatement costs would be about S$2.6mn (also claimable from insurance) and is better than a recent valuation of S$4mn.

Ellipsiz has been one of the worst performing stocks that were added to my model portfolio in June/July 2009 – its up about 5% since it was included compared to Sinomem and Broadway which have risen 135% and 200% respectively.  I also had some concerns when its then Executive Chairman Xavier Chong sold some shares and became non-executive chairman. Read more…

Related posts:

1. Is the March 2009 Bull rally over ?…….this question was put to me by some financial journalists yesterday
2. Ellipsiz meeting was broadbrush as they have yet to release their results and like Miyoshi…
3. Fire and forget…the past will haunt you one day