Koon Yew Yin's Blog

What is wrong with Eversendai? Koon Yew Yin

Koon Yew Yin
Publish date: Thu, 06 Jul 2017, 10:02 AM
Koon Yew Yin
0 1,440
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.

All materials published here are prepared by Mr. Koon Yew Yin
Following Message
As you can see, the price of Eversendai has been falling quite sharply in the last few day and many concerned and worried investors have asked for my opinion. 
 
As I said many a time before, no share can go up or drop continuously for whatever reason. After a while, the price must make some correction. Many weak holders would follow the crowd like sheep to sell without thinking logically about the reasons why they have bought the share. They will have the problem when the price continues to go higher, they will not buy back at higher prices than the prices they sold. As a result, they have missed the opportunity to own a small part of a really great construction company. 
 
Some clever day traders would sell and buy back at lower prices. They have the problem to decide when to buy. Studies has shown that these people can only make enough for a living. They cannot be rich. 
 
Only long term clever investors can make a lot of money to be rich. 
 

Examine your track record

Readers must seriously examine their track record to see how they have been performing. If they have not been doing so well like most of the commentators in i3investor.com, they must change their method of selecting shares to buy and learn when and how to sell to get the best advantage.
 

My talk for all the construction contractors

About 3 months ago, I gave a talk under the title “How to overcome contractors’ difficulties?’ at the Master Builders Association Malaysia (MBAM) Building in Kuala Lumpur. MBAM members are most of the contractors who have been building all the properties in every town and city. The entrance fee for each attendee was Rm 300. The total collection was Rm 34,000 and I donated Rm 100,000 to start a scholarship fund. 
 

Open tender system

The most difficult obstacle every contractor has to overcome is the open tender system- cheapest tender gets the contract. Every tenderer must be very optimistic in his estimation of his cost so that he can submit the cheapest price. He must assume that he has no difficulties in getting his labour and materials at current prices. He must also assume that he will not meet too much rain and he will have no construction difficulties. 
 
When he is awarded the contract, invariably almost all his assumptions will not come true. Due to inflation and other reasons, all the labour and materials will cost more than what he has allowed. Moreover, he will meet more bad weather and unforeseen construction difficulties. 
 
As a result, he will not be able to complete his contract on time. Statistics shows that almost all construction contracts cannot be completed within the original programme. 
 
One: I was pleasantly surprised to see that Tan Sri A K Nathan, who is Chairman and CEO of Eversendai and Deputy President of MBAM, stood up and said that he has no difficulties in completing all his contracts on time. Wah! I am very impressed. 
 
Two: I am also very impressed by Eversendai’s press release after its recent AGM. It has contract works in 15 different countries and it has secured projects worth RM557.6 million to-date, bringing a total of RM1.3 billion projects secured for the year 2017. Eversendai have been executing projects in India from 2009 and have gone through great details over the years in learning the intricacies in doing business in the sub-continent. This has culminated in a successful year for the Group here in 2016 with future projection looking very promising for making inroads and improving profits through capitalising on significant projects. “India continues to be a focal point for the Eversendai Group as the country continues to push construction as part of their rapid economic growth. We are continuously establishing ourselves as a niche steel contractor for highly complex land mark projects,”
 
Three: Eversendai specialises in large steel structures and was involved in the construction of several large and tall buildings such as Capital Gate Tower, Abu Dabai, Burj Al Arab, Dubai, Tanjong Bin 3 X 700 MW coal fired power plant, Malaysia and many others. 
 
Four: Eversendai is not like most construction contractors. I believe there are very few contractors of this class in the world. As a result, it has less competitors and should be able to secure contracts with a higher margin of profit. 
 
Five: Tan Sri Nathan openly declared that his company can complete Rm 2 billion value of works in the current year. From long experience in the contracting industry, I can assume that he can achieve 5 % net profit for the current year and 7.5% for next year. 
Based on these profit growth prospect, you can see from Bursa announcements that I have been buying Eversendai frequently.
 
More articles on Koon Yew Yin's Blog
Water pollution in the UK: the causes and effects - Koon Yew Yin

Created by Koon Yew Yin | Sep 06, 2024

Water pollution is a huge challenge for freshwater in the UK, impacting our rivers, streams, and lakes and the wildlife that call them home.

Johor Property Boom - Koon Yew Yin

Created by Koon Yew Yin | Sep 03, 2024

State housing and local government committee chairman Datuk Mohd Jafni Md Shukor said demand for properties in Johor has gone up since last year’s announcement about the SEZ.

KSL’s Profit Record - Koon Yew Yin

Created by Koon Yew Yin | Aug 30, 2024

KSL announced its total 4 quarter EPS of 42.3 sen and its net tangible asset (NTA) backing of RM3.86. It is selling for less than 50% of its net tangible asset (NTA). KSL is undervalued. Its share...

How Malaysia can become a Developed Nation? - Koon Yew Yin

Created by Koon Yew Yin | Aug 26, 2024

In 2012, I wrote my first book “Malaysia: Road Map For Achieving Vision 2020” which was launched by former Financial Minister Tengku Razaleigh.

How to make money from the stock market - Koon Yew Yin

Created by Koon Yew Yin | Aug 26, 2024

On 21st Aug 2024, I posted my article with the title “90% of investors lose money in the stock market”. Now I will tell you how to make money from the stock market.

90% of people lose money in stock markets - Koon Yew Yin

Created by Koon Yew Yin | Aug 26, 2024

A few years ago, one relative asked me to invest for him. I told him to let one famous professional fund manager manage his life saving. I cannot mention his name. He teaches Technical and Financial..

Why do people riot? - Koon Yew Yin

Created by Koon Yew Yin | Aug 19, 2024

On 14th Aug 2024, I posted my article “Why people are rioting across UK”. Now I want to tell you why do people riot?

How much do our MPs and assemblymen earn? - Koon Yew Yin

Created by Koon Yew Yin | Aug 19, 2024

If I knew politicians are so well paid, I should have been a politician. A few days ago, one old friend who migrated to Australia about 40 years ago, visited me. He told me that he was a Member of P..

Why are people rioting across UK? - Koon Yew Yin

Created by Koon Yew Yin | Aug 14, 2024

Riots have spread across numerous cities and towns in England, and in Belfast in Northern Ireland, over the last week in the worst outbreak of civil disorder in Britain for 13 years. Police have ma...

Can Harris beat Trump? - Koon Yew Yin

Created by Koon Yew Yin | Jul 30, 2024

The new poll, conducted between July 22-24 and released Sunday, found that Harris’s approval rating had surpassed Trump’s in Wisconsin, Pennsylvania, Minnesota, and Michigan. In Michigan, Harris was..

Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment