kukuman, even if you don't have the brains to answer questions based on logic and facts, you should have the balls to explain your allegations.

Hey taciturn, do us all a favour and cut him down to size.

Reading what kukuman has to say leaves me in no doubt that he is delusional, vindictive and deranged. Does anyone know how much it would cost to move the price up some 28% up and involving 345 million shares? Further, I do know for a fact that fund managers and institutional investors are moving back into the counter in droves. Yet kukuman thinks that this situation has been brought about by spin doctors! Actually, he is the biggest spinner of them all, in the negative sense. Keep doing it, you nut-case!

Yeah, keep hoping and waiting for 80 sen to happen, but don't hold your breath!

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xncziyi44, if you don't trust the directors or if you don't believe in the growth prospects of the company, the obvious course of action is to sell out or to refrain from buying in.

Just wait and see. There should be more action, if not today then definitely over the next 2 to 3 days.

taciturn, you are right to a large extent. Sometimes, as is true in the case of Benalec, if you see an upside in the current share price (i.e. the market is under-valuing the company), you might want to buy in now, hold the shares for 6 to 9 months and wait for the share price to move up to somewhere near its true intrinsic value before selling down/out. To my mind, Benalec is definitely not a counter for a short-term play.

Just wait out the next 4 to 6 weeks and I am sure that the rewards will be there for the believers to collect.

Hey king7, are you kukuman in disguise? Are you suggesting that I am in hiding? To tell the honest truth, I don't give a shit to people like you. If anyone wants to know, I am concentrating on my next move in the stock market and harvesting the low-hanging fruits.

For the benefit of all those doubters re Benalec's chances of getting EIA approval, my source (who is close to the EIA consultants) told me that the status of the EIA process is as follows:

1. The key first step in the whole process was the procurement of approval from the Cabinet/Federal Government; this approval was duly granted to Benalec. Thereafter, the Terms of Reference (TOR) for EIA had to be applied for; once again, approval was duly granted to Benalec. With this approval Benalec was cleared to proceed with submission of the proposed Detailed EIA (DEIA) plan to the DOE.

2. The DEIA covers purely technical issues which Benalec is well capable of addressing and resolving through mitigation measures that the company are proposing. Hence, getting approval of the DEIA should not pose any issue, pending implementation of any mitigation measures.

3. The fact that an agreement (which Benalec’s Tg Piai and Pengerang projects come under) was signed early last year between 1MY, Spektrum Kukuh and SSI in KL and in the presence of the PM Najib, the Crown Prince of Abu Dhabi and important government officials should serve as conclusive evidence that the said projects have received the blessings of the Federal Government, inclusive of Pemandu (which comes under the PM’s Dept.).

4. Given that the two projects (in Tg Piai and Pengerang) are regarded by the Federal Government as being in the national interest and are expected to deliver a significant positive impact on the Malaysian economy, endorsement and support by the Government and understandable and visible.

So, putting all the pieces together, EIA approval, which is expected to be granted in the very near future, should not be an issue at all.

taciturn, I reckon you have made the right decision to buy more. Based on market info reaching my ears, the big funds buying in over the past two days include JP Morgan and surprise, surprise ... CIMB! These guys normally don't make moves unless and until they are totally convinced. In CIMB's case, I hope they have not taken their own advice and sold at 90 sen, only to buy back now at RM1.10 or higher! Poetic justice?!

ts it just possible that elmo888 is actually kukuman in disguise? Sounds like him!

The other point to note is that the big funds normally have access to information we are not privy to.

small_investor, you may call yourself a small investor, but you should think big. The big volumes traded both yesterday and today are due to the big funds buying in. These guys are not investing with the aim of making a couple of sen or peanuts; normally their target is at least a 30% return. So, are you clear as to what you should do now?

Intuition, you've got the IPO date wrong. It was 17/01/2011.

Intuiton, what taciturn said in his comments is absolutely correct. I suggest that you do some research before posting your comments. Don't just make statements based on intuition!

taciturn, that would be poetic justice!

stainlyho37, You may wipe your sweat off now. Wipe your hands too, because you will not want sweaty hands when you count your money from the windfall.

Btw, has anyone noticed kukuman loitering near to a lunatic asylum?

Intuition, do you know how much ESOS has been exercised? Do you know that ESOS actually vests over a number of years? Normally 3 to 5 years!

CIMB Research, are you guys noticing Benalec's transaction volume and price movement today? Are you still maintaining your SELL call with target price of 90 sen? Let us all know ...PLEASE ...

Take a good look at today's transaction volume and price movement and judge for yourself.

Surprise, surprise! I understand that some cross-border funds are making a trip to KL to talk to the management.

king7, armed with the news that I have shared with you guys, do you think that I'm gonna let go at this price? Sometimes, we have to act with courage, i.e. courage of our conviction.

Ok, guys, further news coming to my ears ... a very prominent corporate figure is about to take up a substantial stake in the company. It has to be very good news for the company because, apparently, the incoming stakeholder will help the company achieve its strategic goals and thus create value for the company. You can bet on the share price moving up significantly because this kind of investor will not be interested in making peanuts with their investments. Are you beginning to see Benalec's potential?

king7, why are you worried by the number of buyers and sellers? If you have already invested in the shares of the company, you should be happy that the big funds are moving in, confirming that this counter is well worth investing in.

Intuition, if you want to invest in a dividend-paying counter, Benalec is not for you. The nature of this company's business is very capital-intensive. If cash is consistently paid out in dividends, the company will keep having to source for funding from banks, etc. to carry out its projects. In so doing, the interest costs will go up, profits will come down and dividends will shrink. It's a vicious cycle! If you do invest in this company, you have to go for their growth potential, leading to a healthy capital appreciation from your perspective.

Good morning everyone.

The high volume of transactions and the upward price movements in recent days have not been surprising to those in the know. The news is that the big funds, both local and foreign, have been buying into Benalec, mainly because they see the big potential in the company. It is not difficult to figure out the positives that have prompted them to make their investment decisions. I surmise that these are:
1. The counter is, at the present price level, grossly undervalued.
2. The recent business deals closed by the company will net some RM600+ millions revenue for the company. Assuming a 25% contribution to the bottom line, some RM150 million will be added to the net assets of the company.
3. With the procurement of EIA clearance in the pipeline, the mega Tg Piai and Pengerang projects are due to commence sooner rather than later. In fact, physical work is targeted to start soon.
4.Confirmation by Petronas of its decision to proceed with the RAPID project is a shot in the arm for Benalec because of its concession rights to reclaim approximately 1,500 acres of land in Pengerang, near to the RAPID project. Once the RAPID project takes off, there will be a clamour for land in Pengerang by the O&G players in order to engage in downstream business. Benalec will be in prime position to capitalise on this upsurge in demand for land in Pengerang.

So,guys, do your homework and quickly decide to take action.

Hi guys, before trading resumes tomorrow morning, I would like to take stock of the postings on this blog, both by myself as well as by others. To begin with, kukuman of late has been conspicuous by his absence ... wonder whether he has retreated to his closet, where he is presently hiding!

Next, about a week or so ago CIMB Research published their analyst's report recommending a SELL call with the target price of 90 sen. Anyone who has half a brain will wonder why CIMB, in their doubtful wisdom, would set that low a target price. Well, the closing price yesterday was 98 sen! Good luck to those who took their advice and got out at 90 sen. Unless they have a secret agenda, I can't understand their analyst's sell call at that price. As I mentioned in my post of some days ago, CIMB strongly recommended a BUY call in relation to Muhibbah Engineering's involvement in the mega Asian Petroleum Hub (APH) project some years ago. Guess what happened then? The project went KAPUT due to cost overruns and delays. Guess also who ended up with egg on their faces? The same guys recommending a sell call of Benalec shares at 90 sen! Also, CIMB reckoned that Benalec's mega projects need to kick-off for the company to turnaround. What turnaround? Has the company been making heavy losses and is going into PN17?

On the positive side, since the departure of Vincent Leaw's two brothers from the company in early December 2013, land deals have been closed and a land reclamation contract has been won, generating an aggregate revenue of RM600 m in the process. The cash flow position of the company is definitely very healthy. This happy state of affairs surely serves as clear and strong evidence that the company, under the astute and dynamic leadership of Vincent Leaw, will catapult to the next level. So, all you true and fair-minded believers, now is the right time for you to make the right move.

The section which I have quoted can be found in the Companies Act 1965.

JT5774, you are indeed mistaken. Section 67A subsection (3B)(b) states that a company may resell the treasury shares, i.e. shares that it has bought back on the market of the Stock Exchange on which the shares are quoted, in accordance with the relevant rules of the Stock Exchange.

king7, one of the things that the company can do with the shares it has bought back is to re-sell them on the open market or place them out for cash. So, where is the problem?

Hi everyone, nowadays I am getting quite a fair bit of news from some reliable sources. The latest news that has come to my ears is that the company is now flushed with cash as a result of the recent land sale transactions and has set aside some RM50 million for buying back its own shares. The management apparently is more than convinced that the current share price represents a gross undervaluation of the company's shares. By aggressively buying back its own shares, the company will be well-positioned to very likely make a payment of dividend in specie, i.e. in shares rather than in cash. One side-effect will probably be that weak holders of the company's shares will get "mopped up", resulting in a much fairer valuation.

Good day, everyone. I have once more been informed by reliable sources that over the next 2 or 3 weeks there will very probably be announcements made by the company in relation to some big deals. Watch this space! If you are a believer, you might want to move in now at the current low price and enjoy the ride.

Hopefully.

taciturn, good morning to you. I was told over the weekend that the fund managers are once again approaching the company for investor briefings. Slowly, but surely, Benalec is reappearing on the big investors' radar for the right reasons. The recent increased trading volume in the company's shares serves as further evidence of the renewed interest in this company.

You absolutely can. Who would know better than the company's management? They have deemed it viable for the company to buy back 6 million+ shares at a cost of RM5.9 million. They certainly think or know that the shares are worth much more than the current price at which the shares are trading. To me the downside risks are minimal, but the upside potential is definitely very attractive.

My personal belief is that things will start moving in earnest as soon as the EGM has been put to bed.

Trust me, you will end up in ShangriLa.

sunztzhe, you are right on both counts except that the gain(s) made by the company in disposing its treasury shares to the incoming investor(s) will increase the net assets of the company and will therefore increase the NTA per share.

By the way, CIMB has got it wrong before. Check out their strong recommendation to buy in Muhibbah's case some time ago.

My view is based on the body of my previous posting.

sunztzhe, in computing all financial metrics, be it ROE, eps, etc., treasury shares are excluded. This is as per the Companies Act.

Having tracked this counter and the events affecting and involving the company since its IPO, I would venture to paint the following scenario:

1. Having "settled" the issues caused by, and with, the 2 brothers, Seng Hai now has effectively a free hand to drive and lead the company to the next level, both in terms of business as well as good corporate governance. This is evidenced by the spate of land deals (and the latest reclamation contract) closed by the company subsequent to the "settlement".

2. Benalec is on the cusp of kicking off with the mega reclamation projects in Johor and some interested parties are coming out of the woodwork; these include strategic investors, both individual and institutional.

3. I have learnt from my sources that further good news is in the pipeline and that getting a project in Penang is not a remote possibility.

4. With all the positive developments taking place, it makes good sense for the company to aggressively buy back its own shares (which are now trading well below their intrinsic value), which it can do up to a maximum of 10% of its paid-up and issued share capital. In the highly likely event that a strategic investor/partner wants to take up a placement of say 5% of the share cap, the company can easily do so out of its holding of treasury shares, i.e. the shares that it has bought back. This will likely result in a profit for the company and, better still, will not give rise to a dilution of shareholdings in the hands of existing investors.

To me, the jigsaw puzzle pieces seem to be falling into place at just about the right time.

samsung555, think about it, Seng Hai has spent a good part of his productive life growing the company and at this juncture, he and all the other shareholders have not realised anything close to the true worth of the company. Does it make any sense for him (who is the key driver of the company) to cash up now?

The company's recent share buyback activities may well be indicative of a strategic corporate manoeuvre. There have been a number of cases where share buybacks were followed later by the subject companies being taken private. There is every likelihood that the majority shareholders of a company like Benalec may reckon that, despite very good financial performance and outstanding potential, the company is still being chronically undervalued, in which case going private can be an exceedingly viable option. So, let's wait and see.

Alex Tan, the inevitable consequence of a so-called "family feud" occurring within the company is that the attention of the Authorities, i.e. SC and Bursa, is focused on the company and its management. If there is anything that is "more than meets the eye", the Authorities will certainly come down on the perpetrators like a ton of bricks. Do you think that the current management would be so stupid as to commit transgressions right under the noses of the Authorities?

king7, that's probably because a large number of speculators may have bought into the counter and are selling out within the T+3 contra period.