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Author: tapdance   |   Latest post: Wed, 20 Jan 2021, 2:51 PM

 

(TapDance) Low Risk High Return (6) - MUI Properties

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Summary

MUI Properties (MUIP) deserves attention from the classic value investors for its substantial cash holding (~50% of mkt cap) and massive land bank (at 80-90's valuation).

Growth lovers would also be pleased with MUIP's Australian Gold Mining co. (listed in Australia Stock Exchange worth RM60m). MUIP's timely gold discovery allows for the extra return kicker from GOLD price of which is on a tear. 

Just imagine buying a typical value stock - attached with a gold warrant for extra reward.

 

Description

$MUIPROP / 3913 (MUI PROPERTIES BERHAD) is an interesting muitifacet play on-top of its ultra-high content gold mine in Australia (read: https://bit.ly/2EZm63Y and here).

1. It is hoarding substantial cash of RM100m (minuscule amount of debt) which is ~50% of its market cap.

2. It owns substantial amount of land-bank (Malaysia, Australia and US) which are accounted at 1980's - 90's valuation. (is this not a crime?!)

3. Ultra high content gold mine has attracted its farm-in partner (Metalicity) to acquire additional substantial land/drill-lease/rights ADJACENT to MUIP's gold mine. The move itself justifies the validity of the gold play.

As a side note, I have consulted a number of gold-mining specialists, a typical high content gold mine of ~5 grams/ton of soil is considered good. MUIP's mine has a content of ~80 grams/ton.

4. Senior Khoo is passing on the baton to Son - Andrew. Andrew has directed a slew of activities to monetise/revive its dated assets/resources. i.e. more cash/good news flowing-in.

5. Gold + land is best hedge to our modern monetary system for those who are terrified by the massive-massive-massive US money printing.

One may ask if gold price is sustainable. Based on my own observation, hedge funds around the world are terrified of the FED's massive money printing. I think gold has legs for more - hitting new highs as I'm drafting this write-up.

 

Why the opportunity?

  1. Gold discovery is in early stage and mine is pre-production – market can’t comprehend the potential
  2. Negative perception over MUI series of companies’ as track record has been somewhat a laggard
  3. (Andrew’s) corporate exercise / special situation plays are less easy to understand for amateurs 


Catalyst(s)

  1. Gold price on a tear
  2. Co.'s Land & Gold as a hedge for modern monetary system risk
  3. Andrew's moinetisation plans
  4. Obvious undervaluation

 

P/S: link for follow-up posts https://my.stockbit.com/post/4319766

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Labels: MUIPROP

Related Stocks

Chart Stock Name Last Change Volume 
MUIPROP 0.215 -0.005 (2.27%) 3,134,800 

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