1.90, 1.91, 1.92, blocks cleared!

If I am not wrong, Kok Onn delivered a good message about Capital 21 during the EGM this morning.

Gadang, I love this company's name, sound like Kandang in bahasa....Hope that the goat can gallop as fast as the horse.

Buy call to sons and mother shares of PJDEV.

What do you think if the MD buys the company shares? Of course, he think the company earnings prospect is good, especially the acquisition of shares takes place when the release of quarterly earnings report is around the corner.

Tan Sri Ong family stealthily exploits the inefficient market to buy in OSKPROP shares and warrants in order to make the privatization (though it is not confirmed yet but possibly works) easy when the public shareholding is less than 15% as stipulated by the securities commission.

Basically, my guess is: first OSKPROP is privatised. Second, OSKPROP is injected into OSK to unify as one entity so as to gain synergy as both companies have similar and large degree of exposure to property sector. Yesterday, Tan Sri Ong gave a hint in his statement to the media that OSK may consider to engage in property sector.....Third, PJDEV's non-core-business assets will be sold off to release it value. This can be seen from the disposal of Menara PJD and some landbanks in KL. Finally, merge PJDEV and OSK and emerge to be a prominent players in Malaysia.

It would be probable that OSKPROP will be privatised and then injected to OSK then within 6 months ahead.

GADANG is transforming its position to be a property player in domestic market as the company management foresees that the pure exposure to construction sector does not provide lucrative earnings margin and the sector itself is cyclical. In order to secure consistent profit, the company starts to diversify its businesses to several segments (Please check the company website). Moreover, Kok Onn presented before the press conference in February 2014 that the company is eyeing for doubling the profit contribution from property sector from existing 20% to 40%. It sounds he is ambitious to boost the growth prospect of GADANG. If the plan came true, GADANG would be the second SBSCORP.

@Desmond Goh Kok Seng: You are right. It is not worth to buy the warrant at the moment unless one who does not do the maths very well.

Recall - Kok Onn, on 31 October 2013, said before a press conference that the company will establish dividend payout policy if it is doing well consistently in future plus the recurring income is stable. http://www.thestar.com.my/Business/Business-News/2013/10/31/Dividend-policy-by-Gadang-Group-plans-to-give-regular-dividend-as-it-builds-up-recurring-income-asse.aspx/

The saying that substantial shareholders were dumping their shares would not be true since the latest company announcement has shown that they are in fact accumulating the shares in the open market at the moment. Thanks to the panic sales, they collected shares at cheaper price.

Those who dumped the shares this morning is mainly because they were nervous when they saw panic selling. But, they did not understand the nature of the market (because of t+3) and the fundamental of the company well. Stay tuned and calm. Handsome profit is ahead.

Because warrant is traded on premium and it is going to be expired next year. So, it is better to buy shares now. Also, the substantial shareholders (Kok Onn and his wife and shareholding company) have hold about 54% of shares (both direct and indirect) in total, suppose with the remaining shareholdings of substantial shareholders add up to 70%, the price may easy goes up if there is any huge buying pressure.

Directors accumulate the shares now.

The quarterly report will be released around these few days. Stay tuned.

17 Apr was the first day when the price skyrocketed. According to t+3 principle, today is exactly the settlement day for those contra players. So, relax......for value investors.

Tomorrow is the EGM. The "huge" drop today is deemed attributed to the the profit taking by those contra players. They are nervous.

Selling is because of correction. Why fear? The quarterly earnings report is going to be released soon.

Anyway, it is just a matter of time.

The stock price will go north all the way to 0.60 shortly.
Currently, all the small-mid cap property counters undergo re-rating. It's MKLAND's turn.

TROP's land sale gain which was reflected in the last quarterly earnings report boosted the price on 20th of February. The proceeds from disposal of Menara PJD will be recorded in the book when the next quarterly earnings report is released at the end of May. Not for sure, but higher probability that the stock price of PJDEV will rally.

Perhaps, suppose there is no much additional fund flowing into this counter, this morning was just a signal that contra players realized their profit and hence there was a strong selling pressure. However, since the selling pressure is of short period, the following price rise could probably be attributed to the fact that these contra players "renew" their trading contracts, re-enter the market and keep speculating for much more upward potential ahead. Hhm, so, the herding behaviour is still there and the price upward trend may persist for another 3+1 days until the end of April.

This morning the stock price exhibited a "rollar-coster" movement, hard fight between bull and bear. In the morning session, it seems like bull wins over the bear. Let's see how it is going on in the afternoon session.

By the end of April, the stock price will lie in the range 1.80 - 2.00. No worries.

@duitKWSPkita: GADANG engages in public utility business in Indonesia. The company is going to acquire the mini hydro-power plant by the end of this year. The contribution share of this segment to the overall earnings performance is relatively small, equivalently <10%. However, this segment will generate a recurring income to shareholders. The company at this moment eyes for more property development projects and intends to raise its contribution share to 40% as the management would like to reduce its over reliance on the construction sector which is a high-beta sector.

@ykinvestor: but, do you notice that the leverage ratio of ENCORP is too high?

@nickyeo: 10,000,000 is considered negligible. Why do you worry? Ask yourself three questions: (1) is the company making money? (2) is the company's financial position sound and helathy? (3) does the company have a positive growth prospect? If the answers to these questions are "YES", just be patient and reap super profit then.

GADANG makes me a day! Wohoo.....

sklyte: you are right. SBCCORP is similar to MKH. No worries for any short fall.

Panic sale kicked in this afternoon. So tomorrow need not worry.

@gweilo: Based on what facts and implications you come up with such valuation? Rumour? Recently, people speculates on the appreciation of the value of landbank that the company has in Pengerang. Hhm, yes, indeed it may lead to some positive effect on the balance sheet. But, I don't think the benefit can materialize at the moment. Of course, may be in long long future, the Pengerang RAPID project can indirectly benefit the property devlopers at the side way. Most importantly, the profitability of its existing business is still the key factor for the valuation. Perhaps, I am too conservative. The current price is okay.

This company has a strong balance sheet. Fundamentally speaking, it is worth investing. However, let me point out some facts that may not be favorable to me as an ordinary shareholders: (1) The management does not share ownership in the company. Even if they were, the shareholding would be negligibly small. (2) The company lacks creativity to promote their development projects. Comparing to its peers, eg TROP, OSKPROP, SBCCORP etc, their publicity leaves much to be desired. (3) The management is too low-profile. Sometimes, it is good to let the media and other agents to help the company do FoC publicity. Otherwise, though it is undervalued, fundamentally speaking, no one can realize it could be a shinning pearl.

Whenever those brokerage firms and researches write about RAPID, they omit GADANG which too engaged in the project as well. Hhm, it seems like no one is interested in small-mid cap. Never mind, trust the fundamental and buy it when it has yet been digged out. Once some local "prominent" institutions endorse this counter is a good buy, we are the one who reap the rewards. SBCCORP is one of the example. Patient~~~

Based on the news of substantial share disposal, I think CBL intends to cabut away from this counter. Shareholders, please be aware. If you visit Low Yat, you will find UTOPIA is actually a crap company. Two years ago, they introduced "MOORA", how is it now? The company management does not have credibility at all. UTOPIA, INGENCO, and TAKASO.....There is no entreprenuerial directors. Most of them hit and run.
My fair price to this company: 0.05

Today, the transaction volume for this counter is quite stable. It seems like a good time for me to add more lots. Cheers.

Before that, a few of us recommended this stock, nobody bothered and talked about rubbish that property market in Malaysia confronted challenges ahead...bla...bla...bla. Now, a piece of opinion from CIMB can lead to huge herding behaviour of all these new investors to speculate on this stock. So, based on my observation, market is not efficient at all. Fundamental analysis can bring someone who is determined and patient enough whooping rewards.

Fantastic man! RNAV 6.60, target price recommended by CIMB 3.96. Current price lasts at 2.18. Upward potential 1.78. Hhm, it seems like more small-mid cap property counters are going to be revalued soon after BREM, MKH....

The second MKH!!!!

Of course, I hold the same expectation as yours. The target price should be more than 1.45. I just wonder why don't you straightaway buy the mother shares as they are relatively cheaper than if you exercise the options to get the shares. Also, holding shares enables you to be entitled to dividend.

Icon8888: You bought GADANG_WA. Does it imply that you are confident the stock price will ultimately break 1.45?

Haha, no need to wait for Icon8888 at 11:30am, the stock price surges now.

7surewin: You are right. Some "bankers" behind the game try to create a huge block at certain level so as to give retail investors a illusion that the stock price has attained a bottleneck and possible sell-down is ahead. Then, the price would not escalate to much.

A boring business, a profiting business. Never ever underestimate the profitability of this company.

This counter has been in consolidating mode for quite a few weeks. Positive catalysts are ahead. Stay tune and ride on the possible upward potential. RAPID phase II, KVMRT phase II, West Coast Expressway.... I find no reason why should I sell it off now.

Just ignore the selling pressure. We are going to ride on the price surge as the existing market price is deemed undervalued relative to its NAV. Referring to my previous post, I have mentioned about the dividend policy. You may at least get a hint why this counter is considered fundamentally sound and worth investing in.Hold it, hold it and hold it. You may realize your investing capital will record at least 50% return by the end of this year.

Siew Jian Bin: You are right. Gadang enters into a joint venture with landowners to develop its plantation segment.

Hold! Hold! Hold!

If Jasselton project boost the profit in this year, Woo, great, solely relying on dividend plus the power of compounding interest will make your wealth two folds, three folds, four folds, from year to year.....:)

The dividend policy proposed minimum 20% payout. The first three quarter for FY2014 records 27.74. Arbitrarily plus 7.00 (assume) for the next quarterly earning. The expected profit will be 34.47. The expected dividend will then be 6.894. Dividend yield is about 3.939%. Of course, this is just the minimum expected dividend payout. Anyway, it is quite attractive to me.