Hi to all fellow investors and traders !

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

EASTLAND EQUITY BERHAD or EASTLND (Code 2097, MAIN Market, Consumer Products & Services-Travel, Leisure & Hospitality)

Some basic info on this company:

i. Number of shares float : 356.71 million

ii. Market Cap : RM 46.37 million

iii. Last closing price : 13 cents

iv. Website : http://www.eeb.com.my/

EASTLND - TOURISM SECTOR REOPENING SOON ??? KEEP AN EYE ON THIS OVERLOOKED STOCK !!!

1. More Malaysians Getting 2nd Vaccine Dose Completed - And More Freedom in Movement Coming Very Soon

Refer news article below. More and more Malaysians are getting vaccinated every day. Its just a matter of time before we get to herd immunity.

Government will announce more leniency for 2nd dose vaccinated individuals very soon. Well this doesn't mean necessary that tourism will be opened immediately, but it is definitely a first good step heading towards tourism reopening very soon.

So, ask yourself, would you want to get into tourism sector now, or when the reopening has already been announced by government ? I opine that getting in now at lower prices would be smarter than buying when prices already moved higher after reopening is announced.

https://www.bharian.com.my/berita/nasional/2021/08/847592/kelonggaran-kepada-penerima-dos-kedua-diumum-esok-atau-lusa

2. EASTLND - Also one of the market favourite of retailers in tourism sector stock

On Friday, I noticed that a few tourism stocks including aviation stocks had moved.

Some of the noticeable movements were AIRASIA & AVI.

Some minor movements were seen in GENTING, GENM, OWG.

EASTLND, with a year high of 23c made in August 2020, is also one of the market favourites in tourism sector and I believe that the volume will be picking up soon.

3. Trading At 73% Discount to Its NTA of 48 cts

Refer screenshot taken from latest Asset Vs Liability sheet. As we can note the following:

i. Total Assets amouting to RM 266.55 mil (noticeable are the tourism related property assets and investments properties valued at RM 182.6 mil)

ii. Total Liabilities amounting to RM 112.3 mil

iii. Net Asset exceeds Net Liabilities by RM 154.25 mil

iv. Total NTA stood at 48c. With the latest closing price of 13c this means that the price is trading at 73% discount to its NTA

4. Technical Analysis - Bullish Flag Pattern Formed - Pending a Breakout Above 14c

Let's take a look at the daily chart of EASTLND:

A few observations:

i. Since hitting the high of 23c in past year, EASTLND chart has formed a bullish flag pattern, which is getting to the breakout price soon

ii. Refer Circle 1, shows the Stochastics is in oversold area and pointing upwards, which implies that buyers are taking over the sellers in momentum

iii. Such a trend, indicates that price is more inclined to break upwards of the flag pattern, to move above 14c and make a new trend up.

CONCLUSION

Based on my opinion, EASTLND should be given attention in coming weeks, based on below:

i. More Malaysians getting vaccinated, and reopening of tourism should be happening in the near future

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