GREATWARRANTS

ECOWLD & UEMS AT ROCK BOTTOM - POTENTIAL V TURN

GreatWarrants
Publish date: Wed, 25 Mar 2020, 12:00 AM
All investment decisions are at your own risk.
Warrants play are for aggressive traders who capitazlizes on the power of leverage

Dear Valued Affluent Investors,


As all investors know, the recent chaos in financial markets sparked due to the viscious coronavirus outbreak which lead to many margin calls and oversold stocks. Nevertheless, do take a look at how Ecoworld and UEMS is positioned in this current economic environment. The fundamentals of this Penny stocks should catch the attention of institutional and affluent investors. These two companies need no introduction as they are the Property Titans of Malaysia.

 

STUNNING VALUATIONS - LITERALLY

Graph 1.0 : Valuation ratios & Book values of these two companies

As you can see, Price to book ratio trading at 80% Discount with almost 70% of its market capitalization wiped out from the previous glory years in 2014-2018. Market capitalization for both companies only at RM 2.4 billion today compared to a combined value of RM 8.3 billion in 2016

 

Charting Possible Rebounds

 

Chart 1.1 : Ecoworld Berhad's Oversold Conditions - Possible due to margin calls & Panic Selling

 

Chart 1.2 :  UEM Sunrise Oversold Conditions- Possible due to margin calls & Panic Selling

 

These charts are oversold and there should be a rebound to at least RM 0.50 based on strong fundamentals and book values.

 
Potential Merger & Acquisition 
 
 

 

 

Source : NST & TheStar Online 2019
 
At these cheap valuations, acquisitions or privazitation of these companies at fair value of above RM 0.50 sounds reasonable. After all, mergers only complement synergies, improve margins and economies of scale during these tough times. The value of land banks for both these values combined exceed the value of its market capitalization multiple times !!
 
 
Food for Thought :
 
 
They Said "Public Bank was just RM 2.00 in 1997 ."
Will they say these Property Titans were only trading around 30sen in future? 
 
 

 

 

Thanks for reading. 

Best Regards,
Greatwarrants

 

Disclaimer: 

Investing in stocks is a great tool for capital gains. However, all investments come with risk. Therefore, all investment decisions should be borne at your own cost and I will not be held liable for any investment decisions made. Do not buy Equities if you do not know the risk !! Thank you.

 

 

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3 people like this. Showing 12 of 12 comments

zhen wei & JP

Hi, Graph chart need changes.

2020-03-25 00:16

GreatWarrants

Agreed

2020-03-25 00:24

bahai4453

Heavy debt company with zero dividend for years.

2020-03-25 07:07

bahai4453

2 possible ways : either V turn or going south further to match Berjaya land.
There may not have a third round rebound for the market, if everything turn sour. Be aware folks!

2020-03-25 07:12

Wolf_Of_Gaya_Street

talk cock

2020-03-25 19:33

CHONG Kong Hui

Many stocks worth buying but 'limited' bullets. Which one has best chance to rebound in 36 months ? I only need 5 stocks.

2020-03-25 20:26

bahai4453

@chong all the blue chips stocks have best chance. Just choose yourself. My choice is UMW.

2020-03-26 09:44

bahai4453

@Wolf of Gaya : sometimes talking cock is better than pulling others into disaster. Now the whole world is in chaos economically. Others are better off than these 2 unperformed stocks in turn of real return. Sensible person doesn't keep shares for fun only! The ultimate aim is to make a lot of money! And time is money !

2020-03-26 09:51

liegelord

Not bad...

2020-03-26 09:55

GreatWarrants

Good rally. Thanks for reading this article.

I am humbled.

2020-03-26 12:44

zhen wei & JP

Welldone.

2020-03-26 15:57

SUMATECRM1

Bravo !

2020-03-27 09:45

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