MARKET CAPITALISATION @ 14 JULY 2017 @ RM1.01 or RM2.2b

If anyone who enjoy roller coaster rides, Ekovest is the right one.  One in May 4, 2017 and the other, 13 & 14 July 2017. May 4 gap down from RM1.43 to low of RM1.01 and rebounded and closed at RM1.17 on the same day.  That is because IWC project was cancelled, and Ekovest, has common shareholders, LKH.  

During May 4, it came down about 18% (closed) and was down as much as 29% on the same day.

As for the second drop was on 13 & 14 July, it dropped about 11% in two days (maximum of high and low is about 14%).  This round, everyone was in the dark.  No news about any cancellation or adverse development.

FOCUS ON THE GAME INSTEAD OF THE SCOREBOARD

WB always said, players must focus on the game (value of the company) and not the scoreboard (share price fluctuation).  So, lets focus on the game here:

EKOVEST "considered valuation" since May 3, 2017

1) Duke 1& 2 (60% interest), UOB Kayhian estimates RM3.1b, so 60% is about RM1.8b

2) Construction orderbook to-date (excludes ROL) - RM13b.  Estimated profit RM150m to RM200m.

3) EkoCheras Mall (not sure what is the cost of construction).

4) GDV for property, UOB Kayhian estimates about RM7b.

5) Duke 3 a.k.a. SPE (let us leave this out for the moment).

(UOB in Sep 2016 esitmates (when order book was RM5.4b) the value at RM3.3b or RM1.55 vs Friday's closing of R2.2b or RM1.01

VALUE vs PRICE  -  RM3.3b vs RM2.2b

So, price is what you pay, value is what you get.  Each of the participants, have to do our own thorough research as to find out roughly what is the "estimated fair value".

UNLESS, there is adverse insider news that effect No. (1) to (5) substantially, it is pointless to speculate on the "price actions" or "major price movements". 

WILL THE VALUE PREVAIL IN THE LONG RUN?

No one can actually tell you exactly the causes of the "price action", but, we can evaluate rationally the impact of any adverse development that effect significantly the fundamental of the company based on announced news.  So, let us not waste too much time speculating the causes of "price movements" unless there are major INFORMATION that effect the company.  If they do not disclose, they will be fined by Bursa.

So, the question is whether value really prevail in Bursa, in the long run (>12 months).  I pick up a bit at RM1.01.  Investing is fun, but it is not a game.

19 July 2017, price fluctuated between 1.13 to 1.24, average up some at RM1.14.  Average cost now is RM1.08.

PHILIP A. FISHER QUOTES

"THE SHARE MARKET IS FILLED WITH INDIVIDUALS WHO KNOW THE PRICE OF EVERYTHING, BUT THE VALUE OF NOTHING"