WHY PRESTAR AT 47.5 SEN IS STILL FAR BELOW ITS REAL INTRINSIC VALUE? NOW MAKES MORE ATTRACTIVE BY ITS GREAT PROSPECTS. Calvin Tan Research

Blogs Headlines

THE INVESTMENT APPROACH OF CALVIN TAN

WHY PRESTAR AT 47.5 SEN IS STILL FAR BELOW ITS REAL INTRINSIC VALUE? NOW MAKES MORE ATTRACTIVE BY ITS GREAT PROSPECTS. Calvin Tan Research

calvintaneng

Publish date: Mon, 06 Jul 2020, 09:40 PM

Dear Investors, Traders & Friends of i3 forum (Please read to the end as we type)

Prestar has moved due to the realisation of its Great Growth Prospects today.

Please read here again if you missed

PRESTAR (9873) Or Pre Star. Buy Before it Turns into A STAR. Calvin Tan Research

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-07-06-story-h1509770267-PRESTAR_9873_Or_Pre_Star_Buy_Before_it_Turns_into_A_STAR_Calvin_Tan_Res.jsp

Now let us go and Dig Out Prestar's Value

See last Qtr Report

SUMMARY OF KEY FINANCIAL INFORMATION
31 Mar 2020

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		31 Mar 2020	31 Mar 2019	31 Mar 2020	31 Mar 2019

		$$'000	$$'000	$$'000	$$'000
1	Revenue	93,696	112,839	93,696	112,839
2	Profit/(loss) before tax	4,425	-3,467	4,425	-3,467
3	Profit/(loss) for the period	4,055	-140	4,055	-140
4	Profit/(loss) attributable to ordinary equity holders of the parent	4,066	-1,903	4,066	-1,903
5	Basic earnings/(loss) per share (Subunit)	2.09	-0.97	2.09	-0.97
6	Proposed/Declared dividend per share (Subunit)	0.00	0.00	0.00	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	1.4900		1.4600

Definition of Subunit:

In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:

Country	Base Unit	Subunit
Malaysia	Ringgit	Sen
United States	Dollar	Cent
United Kingdom	Pound	Pence

This Quarter Prestar made

2.09 sen Annualised will be

2.09 x 4 = 8.36 sen

At 47,5 sen the P/E is 5.68

Or growth is 17.6%

Very good!

What if we rerate Prestar like Glove at 30 P/E? Gloves hot now. Who knows? Contruction & Contruction Material shares might one day turn hot because of ECRL, Pan Borneo Highway, MRT & LRT

THEN IF PRESTAR IS RERATED AT 30 P/E

the formula is this

30/5.68 x 47.5 sen = 250.88 or RM2.50

SO IS PRESTAR WORTH RM2.50?

Of course currently No Investment Bank Dare to Give Construction/Construction Material Stocks High 30 P/E like they assign Glove Stocks. We don't know for the future as the goal post can change

Stocks like Technolgy got P/E from 50 to 100 and yet they are all tolerated by the Maddening Market

For that we leave them to so called "Experts"

Now let's Dig Deeper

Not too long ago PRESTAR Spin-Off Its baby TASHIN

PRESTAR IS STILL THE TOP HOLDER OF TASHIN

Let's go to Tashin and see Its Top 30 Holders

THIRTY (30) LARGEST SHAREHOLDERS OF TASHIN..........No. of shares held...............Percentage(%)

1. PRESTAR RESOURCES BERHAD..................................... 118,656,619.......................... 34.00

So PRESTAR IS TE TOP HOLDER OF TASHIN WITH 118,656 MILLION SHARE AT 34%

Tashin closed at 22 sen today See https://klse.i3investor.com/servlets/stk/0211.jsp

So let's calculate PRESTAR worth in TASHIN

118,656 x 220 = 26,104,320

So PRESTAR Has Rm26.1 MILLIONS WORTH OF SHARES IN TASHIN

How much Per Prestar Share?

The simple formula is

26,100,000 divides by 4,066,000 X 2.09

13.4 Sen

OK DEDUCT THIS 13.4 SEN FROM PRESTAR PRICE TODAY 47.5 SEN = 34.1 SEN

SO IF WE ASSUME THAT PRESTAR GIVES EACH SHARE HOLDER EQUALLY THE REWARDS OF TASHIN THEN OUR REAL HOLDING COST OF PRESTAR IS ONLY 34.1 SEN

Now do we have any more Assets in PRESTAR

OF COURSE!

SEE THE NAV OF PRESTAR RM1.49

AND WHAT ARE THESE ASSETS?

LET US GO AND SEE PRESTAR'S PROPERTIES

LIST OF PROPERTIES BY PRESTAR

FOR FINANCIAL YEAR ENDED 31 DECEMBER 2019

1. PRESTAR RESOURCES BERHAD............Freehold... 588,793 sq ft...office & manufacturing....Rm41.1 MILLIONS 5/4/ 2001

manufacturing

site for

subsidiaries

sq ft

GM 4895, Lot 1298 Mukim of

Rawang, District of Gombak,

Selangor Darul Ehsan

Now we got all the details and figures before us clearly

This 588,793 sq ft FREEHOLD Land Was Purchased for Rm41.1 MILLIONS In Year 2001 on 5th April

How many Acres is 588,793 sg ft

Just divide by 43,560 = `13,5 ACRES OF FREEHOLD LAND IN GOMBAK BOUGHT IN YEAR 2001 (19 YEARS AGO STILL AT OLD BOOK VALUE? HUHUHU!!)

PRICE IS RM41.1 MILLIONS FOR 13.5 ACRES

PER ACRE IS ABOUT RM3.04 MILLIONS PER ACRE (THAT'S CHEAP)

TODAY BURSA ANNOUNCED THAT KOSSAN BOUGHT 10 ACRES OF LAND IN FARAWAY KAPAR, KLANG FROM CBIP FOR RM40 MILLIONS WHICH IS ABOUT RM4 MILLIONS PER ACRE

NOW CALLING ALL KL i3 FORUMERS

IN GOMBAK FREEHOLD LAND AT RM3.04 MILLIONS PER ACRE BETTER THAN RM4 MILLIONS PER ACRE FOR LANDS LOCATED IN KAPAR?

OF COURSE LANDS IN GOMBAK MORE SUPERIOR AND CHEAPER FOR PRESTAR!!

THERE ARE 7 MORE PIECES TO GO

BUT LET US SUM IT UP

2. RM19,764,000

3. RM14,643,000

4. RM15,366,000

5. RM3,924,000

6. RM794,000

7. RM1K

8. RM1K

TOTAL: RM95,594,000

Or ABOUT RM95.5MILLIONS WORTH OF WAREHOUSE/FACTORY LANDS ALL AT OLD BOOK VALUE

Wonder what are no 7 and 8 got only Rm1,000 book value

Well, they deprecated these two pieces of lands to only Rm1K over the years

IF PRESTAR SHOULD FOLLOW SO MANY OTHER LESS WORTHY COMPANIES TO REVALUE ITS LANDS AND BOOK TEM AS PROFIT THEN ITS NTA SHOULD RISE EVEN HIGHER

GOOD NIGHT

Calvin Tan Research

Discussions

1 person likes this. Showing 1 of 1 comments

calvintaneng

Almost forgot

How much is rm95 millions worth of assets in real money figure?

About 49 sen

Wahaha

Cash in tashin is 13.4 sen
Cash in assets is 49 sen

Total is 62.4 sen

At 47.5 sen we are buying at a nice 24% discount just for investments in tashin and properties

There are many hidden imvestments in

Posco
Other subsidiaries

2020-07-06 22:39

Featured Posts

MQ Trader

Introducing MY's First IPO Fund for Sophisticated Investors!

MQ Chat

New Update. Discover investment communities that resonate with your ideas

MQ Trader

M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a

Latest Videos