BS's 3Q09 core net loss of S$1.4m contrasted with our expectation of some profits for the quarter. We believe the results were below consensus as well. Lower development bookings and higher interest costs were the culprits. Depressed results should continue to feature if new inventory is not rolled out soon. With balance-sheet risks mounting, BS will be raising over S$284m from a 1-1 rights issue priced at S$2.30/right. While capital inadequacies should be partially addressed, dilution to RNAV is massive. We cease coverage of the stock in view of management activity and extremely low liquidity, which have resulted in poor institutional interest. We previously rated it an Underperform with a target price of S$3.87, at a 50% discount to our end-CY09 RNAV.
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