News Analysis On China Automobile Parts Holding Ltd (CAP)

CAP and the 1MDB factor which was blown out of proportion

Ezra
Publish date: Mon, 15 Jun 2015, 12:38 PM
Ezra
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It's interesting to note from The Edge dd. 25 May 2015, the Australian mining company Siburan Resources Ltd (SBU) which is acquiring a 16.67% stake in China Automobile Parts Holdings Ltd (CAP) for 60 sen per share counts some prominent Malaysian corporate figures among its major shareholders e.g. Negeri Sembilan royalty Tunku NaquiyuddinTuanku Ja'afar who owns 5 million shares or a 2% stake and RH Resources Ltd an associate of Rimbunan Hijau Group which owns 10.33 million shares or a 4.18% stake

It's a common knowledge for a penny stock the ceiling limit is 30 sen up. In other words, 66 sen per share is the maximum for today. 

Of course, it's not going to shoot the ceiling unless another institutional investor were to join Credit Suisse. 

What I'm saying at current prices, the stock is extremely undervalued. 

If investors were wise enough, they'd not be disposing their shares for anything less than 50 sen or above should they wish for their shares to return to levels seen before the 1MDB rumours broke out last 21st May 2015. 

The latter actually was a non-issue as it matters not who ascends or descends the political ladder, the Government's ability to honour its debt obligations remains intact.

                                                                                                                 Ezra, 15 June 2015

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