OUE net cash in 6 months?

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OUE (LJ3.SI) has dropped 35% in 2018. The share price is trading at 31% of its NAV.

Here are 2 latest reports on OUE.

https://www.theedgesingapore.com/oue-kept-buy-amid-plans-clean-house

https://research.sginvestors.io/2018/11/oue-limited-ocbc-investment-research-2018-11-13.html

What’s interesting to me is that the OUE management plans to be in net cash position in 6 months. This looks like tall order.

With much uncertainty surrounding the Riady family and their companies, most of their bonds have fallen slightly. However, the short tenor OUE bond prices are trading near par.

  • OUE 4.25%, Oct 2019 maturity, price 99.95, YTM 4.3%.
  • OUE 3.8% Apr 2020 maturity, price 98.0, YTM 5.3%.

This implies that the bond traders think that the short term cash flow of the company is still sound.

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