The terrible results announced by SPH of a first time loss led to its share price dropping to less than S$1 per share. Current price has recovered to around S$1.01 per share. If one has been holding on to SPH when it was S$4 per share, 75% of one’s invested capital would have gone up in smoke. But then again, I think that SPH is oversold albeit its Media segment needing an emergency rescue. 1. Fair value accounting can be nonsensical and illogical
The main reason for the net loss of SPH is due to S$232Mil fair valuation loss of its investment properties. Accounting rule have been changed from a historical focus basis to the current fair value model. Unfortunately, this leads to weird “see saw” effect on the yearly profit and loss. This <S$232Mil> is an unrealized losses due to market valuation in the midst of COVID-19. Last year