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Investhor's Mighty Hammer of Wisdom

Author: Investhor   |   Latest post: Sat, 1 Feb 2020, 4:44 PM

 

WOW !!! WHITE KNIGHT COMING IN TO SAVE THIS COMPANY !!!

Author:   |    Publish date:


Hi to all fellow investors and traders !

Today I would like to share my thoughts the following counter:

COMINTEL CORPORATION BERHAD or COMCORP (Code 7195, MAIN Market, Industrial Products & Services)

COMCORP - WOW !!! WHITE KNIGHT COMING IN TO SAVE THIS COMPANY !!!

1. COMCORP Signed MOU With Dhaya Maju Infrastructure (Asia) Sdn Bhd and the Latter's Executive Director, Datuk Seri Subramaniam Pillai Sankaran Pillai

COMCORP fell into PN17 in January 2018, after disposing its core business for RM 123.8 million and then rewarding shareholders with a handsome dividend of 45 cents. Since then their price have slided downwards.

But looks like the worst is over for COMCORP. Article below is referred from The STAR (appreciate if The EDGE could also do some write up for COMCORP, I think even PN17 company deserves the right for media coverage)

https://www.thestar.com.my/business/business-news/2020/01/23/comintel-signs-mou-to-explore-railway-jobs

A few salient points of the MOU for those who would like to read summary instead of whole article:

i) Dhaya Maju and its Executive Director considers to explore jobs worth no les than RM 115 mil in railway construction-related communications, system integration and support services

ii) COMCORP regularization plan will include the material content of this MOU

iii) This regularization plan would comprise repayment of existing debts, disposal of its loss making subsidiaries and subscription of private placement by the white knight

COMCORP's current market cap is only RM 12.6 million. Therefore, should the white knight be able to assist and award jobs worth up to RM 115 million, this would help increase value of COMCORP market cap to between 5-10 times that of current market cap (long term valuation of about 45 to 90 cents).

2. ABOUT DHAYA MAJU INFRASTRUCTURE (ASIA) SDN BHD 

Their website can be referred below.

https://www.dmiagrp.com/

This company was incorporated in 1996. Registered in Malaysia as a "PKK Class A" Bumiputera and CIDB G7 Contractor. They are qualified to undertake projects of unlimited value. Their management system has been awarded ISO 9001:2015 quality certification by Lloyd's register Quality Assurance since 2004.

They have successfully completed a number of prestigious projects, for example:

i) Central Link KLIA Expressway (Package 1A)

ii) Rail Link to West Port (all balancing culvert and drainage work) 

iii) LHDN building in Bangi

iv) Major slope rehabilitation works along North-South Expressway

One of the recent major highlights for them, is that they managed to secure the 2nd phase of Klang Valley Double Track (KVDT2) rehabilitation contract, 10 months after it was terminated. They are in a 80:20 JV with LTAT. Total contract value is RM 4.475 billion. Refer news link below:

https://www.theedgemarkets.com/article/new-rm448b-contract-second-phase-klang-valley-double-track-rehabilitation

Therefore, based on the above fact, it is clear that they have the capacity to subcontract works to COMCORP, with their backing of the company once they have entered thru the private placement.

YB Datuk Seri Subramaniam Pillai is the Group Executive Director.

3. CHARTING - Forming Rounding Bottom, With MACD Cross Indicating Bullish Momentum

Let us first look at the monthly chart of COMCORP. A few observations:

i) A Rounding bottom pattern is forming, indicating the the worst might be over and trend is changing

ii) MACD has started to cross upwards to indicate bullish activity ahead

iii) Stoch and RSI are oversold, but are trending upwards indicating buying strength entering the counter

Let us look at the daily chart. A few observations:

i) Price managed to achieve a break out of EMA 14, 43 and 200 at closing today to close at 9 cents.

ii) Volume has significantly increased on 23/1/2020.

iii) Should the price be able to break EMA365 of 11.5c, then the sky is no longer the limit for COMCORP

CONCLUSION

Based on my opinion, I believe COMCORP should be seeing better future ahead, based on below:

i. Signing of MOU with White Knight to inject new Work worth RM 115 mil into COMCORP

ii. White knight is major contractor , and among jobs in hand are KVDT2 Project worth RM 4.475 billion

iii. Chart shows rounding bottom forming in monthly chart, signalling worst is over for COMCORP

Thanks for reading and see you in the next post.

THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.

Yours Truly,

INVESTHOR

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Labels: COMCORP

Related Stocks

Chart Stock Name Last Change Volume 
COMCORP 0.145 -0.015 (9.37%) 123,700 

  Patrick13 likes this.
 
piluba77 Ok limit down
23/01/2020 6:07 PM
Investhor Because?
23/01/2020 6:12 PM
Investhor All the things i highligted are facts so if there’s any comments hope to be constructive for the benefit of our community
23/01/2020 6:14 PM
newbie67890 Not gonna waste time with this author...always highlight some rubbish counters
23/01/2020 8:36 PM
Investhor @newbie67890 - a fake username just created to talk trash..no history or posts whatsoever before..sorry the people can see that your comment is baseless
23/01/2020 8:55 PM
Grandmustah If don't like it don't need to post negative comments. The author is just highlighting his opinion. He didn't ask anyone to buy or whatsoever. If you got nothing nice to say then keep it for yourself.
23/01/2020 9:01 PM
Investhor Just for info, a few counters which I highlighted in my articles which went up higher after my write up includes recent ones Melewar, Sedania and FGV..

Please check my other previous articles
23/01/2020 9:05 PM
apolloang insider trading,already up 50% only news came out.who are those who bought yesterday must have known the news earlier
24/01/2020 1:52 AM
Investhor @apolloang - check the announcement..the news already came out on 22/1/2020 evening time (wednesday evening)..

What is it with Malaysia baru these days? So many people who talk trash and simply accuse without reading the actual facts..feel pity for you brother
24/01/2020 6:33 AM
newbie67890 Better avoid. When this author highlighted,they are ready to sell. When people say negative about their counters, they will attack the people. New Malaysia government should take action to check.
24/01/2020 6:46 AM
Investhor @newbie67890 - such a heavy accusation..please tell me which part of the article is untrue or fake? Malaysia baru dont need people like you..only know hantam other people without basis..very sad..go back to school please..
24/01/2020 8:28 AM
newbie67890 I think I have to apologise to investhor. Today comcorp fly to 18c
24/01/2020 9:08 AM
CharlesT Very sharp
24/01/2020 9:16 AM
Investhor congrats all..highest 31c this morning
24/01/2020 9:18 AM
24/01/2020 9:22 AM
sensonic NICE TIPS . EARN 10K THIS MORNING.
24/01/2020 9:23 AM
EngineeringProfit Thor Hammer candle formation - bullish
24/01/2020 9:24 AM
DickyMe A company which needs injection is not worth considering because
1) They are not creative.
2) They are depenedent.
3) They lack business sense.
4) They need LINKS to connect the dot.

In summary a company dependent on handout is not worth investing.
24/01/2020 11:42 AM
EngineeringProfit (Gamble a bit ok....no need to invest long)
24/01/2020 11:44 AM


 

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