Be patient. The market sentiment is still weak for Malaysia. This stock price have reaches the bottom on 16th and 17th Dec. We could see the price is slowly improving in the coming time.

If this company collapse not sure how many companies will still left in Bursa Malaysia.

From the latest Annual Report the Top 7 largest shareholder already hold 82% of the total shares of Plenitude. The remaining 18% is held by the minority shareholder like us.

It is the panic retail investors that sell down the price for the past few weeks. And this panic retail investor may be just less than 1%.

The management of Plenitude should look into increase the number of share in order to improve the liquidity of share trading. Otherwise, just 1% of the panic retail investor could bring down the value of the company.

Let us see into the logical side of this share. From the past one month I had observed the quantity of this counter transacted is not too big. Another words, it is very low volume in buying and selling in this counter.

I would think that most of the local and foreign institutional for this counter are still holding it. If they wanted to exit this counter the volume shall be very big. The drop of the share price is resulted from the knee jerk reaction from some small group of retail investor.

Once the panic retailer had cleared all their stock the price of this counter will be back to its real value again.

Let me give a little bit explanation on why this company is so much undervalue.

The latest financial result show that the cash in the balance sheet amounted to RM 421,712,000 and if it convert to cash per share it shall give RM 1.56 (RM 421,712/270,000)

The last closing price of Plenitude on 18th Nov 2014 is RM 2.64

Meaning that from the last closing market price at 2.64 minus cash per share 1.56 and 1.08 will be the remaining Asset – Liability of the company.

Don’t forget that this is a debt free company, therefore we can easily look into other asset which is the land held by the company and a Four Star Sheraton Hotel in Tanjung Bungah Penang.

The remaining 1.08 x 270,000 shall give RM 291,600,000 to the value of the land and the Sheraton Hotel.

From the latest Annual Report, Plenitude land areas cover 155 acres in Selangor, 444 acres in Johor, 91 acres in Penang and 663 acres in Kedah. A total of 1,353 acres and majority of the land is FREEHOLD title.

What about the 220 rooms Four Star Sheraton Hotel in Tanjung Bungah. The estimated value of the hotel could be RM 135,000,000 giving the hotel is in good location and facing the sea with beautiful sandy beach.

When you do a simple calculation RM 291,000,000 minus out the value of the hotel shall give you the value of the 1,353 acres of land in Plenitude.

With this value, the 1,353 acres of land is super cheap. If you are planning to buy a piece of land for your children or grandchildren, perhaps can think of buying Plenitude share. Beside if you bought a land you got to pay tax every year, with Plenitude you received dividend.

Looking at the share price now, Plenitude is totally under value. Most of the land is freehold status and was purchase many years back. With the high cash pile in the bank this company had the advantages over many others company in Bursa.

On 7th Sept 2010, Plenitude had proposed bonus issue of 1 for 1. The financial statement for the year 2010 the share capital was 135,000,000 with the reserve of RM572,118,000.

And from the latest result for year 2014, the reserve had balloon to RM710,540,000 which mean in order for Plenitude to propose bonus issue as a reward to the shareholder shall not be an issue. It is just a matter of time.

Kenanga TP for KSL is RM6.63, what about TP for Plenitude? Both companies also have valuable land bank in Johor and Selangor.

I don’t see why the share price of Plenitude should be drop so drastic because this company is fundamentally strong. Unlike some lousy company with huge loss and high debt and soon going to join PN17 club, Plenitude had all the good ingredients that we should look into it for a longer term. Let us see below:

1. Whole year 2014 performance the profit is up from RM77 mio to RM87 mio compare last year.
2. EPS had increased from 28.8 to 32.5 sen
3. Cash in hand stood at RM396,356,000 in the balance sheet. By the way not much property firm in Bursa is such cash rich like Plenitude.
4. Acquisition of Gurney Hotel Penang will provide recurring income for Plenitude in coming future where Plenitude won’t solely depend on the income from property development. Even it paid the hotel with cash RM160 mio it will still have plenty of cash in bank. (RM 236 mio)
5. Plenitude had sold its 36.94 acres of land in its Taman Desa Tebrau township to the Ikano Group for a total cash consideration of RM64.4m (RM40psf) in year 2007 and now the Ikano Group had getting the approval from relevant authorities to develop the popular IKEA mall.
6. This was the strategy of Plenitude selling it land to Ikano Group because when Ikea Mall is up mean the land which Plenitude had in their book in Desa Tebrau will be benefiting just like Ikea Mall benefiting the development in Mutiara Damansara and Kota Damansara in Selangor.
7. Together with AEON Tebrau City and TESCO hypermarket and IKEA retail store, Plenitude has a land bank of approximately 300 acres in Tebrau for future development. This will make Plenitude the Jewel among the property stock in Bursa for time to come.
8. Not forgot others land bank in Puchong, Penang and Sg Petani, Plenitude had bought this land many years back when the price is still cheap.

Lady and Gentlemen, to all the supporter and investor of KNM stock, I am would like to share my point of view for this potentially high growth stock.

1. First of all, the fund manager from BlackRock and State Street Corp had transacted some share in KNM earlier this year. And recently our EPF fund manager have been accumulated almost 6% of KNM and becoming one of the largest shareholder. These 3 funds manager are not ordinary people, they definitely have done the research and they could see the future value of KNM after it cooperates restructuring and debt refinancing.

2. Secondly, the management of KNM Group, especially the CEO Lee Swee Eng as far as I know he is the type of workaholic person. I am very confident that with his leadership credibility he could further grow the company to become one of the top oil and gas services firm in this region.

3. Borsig, which KNM bought for RM1.67bil in 2008, had become one of the core businesses for KNM Group. It is just the matter of time KNM will consider to unlocking the intrinsic value in BORSIG when the time is right. The Borsig Germany had been for 177 years since 1837, producing high quality products and innovative services to the customers from all over the world. It produce pressure vessels, heat exchangers, compressors and the trend-setting membrane systems at the cutting edge of technology stand up uncompromisingly in use for the oil and gas, power plant and petrochemical industrial.

4. Another cooperate diversification strategy, the Renewable Energy in the development of the 80 MWe Waste to Energy Project in Peterborough, England. With this development, KNM could have generated recurring income from the Energy Park in Peterborough which is expected to start by end of this year.

5. Lastly, the contract awarded from RAPID project will keep KNM busy for the next 3 years. From the 1st Quarter 2014 results, EBITDA for Asia & Oceania is only contributing RM 6.1 million as compare to Europe RM 56.4 million. With the contract from RAPID project, I am sure the revenue and profit from Asia & Oceania region could significantly improve the bottom line of the KNM Group.

6. KNM Group is on the track of recovery from the past due to the loss operation in Brazil and huge financial cost. To venture into oversea market is very subject to the environmental risk in that particular country; especially when you need the right people to do the right job for you.

7. Now; the CEO Lee had restructuring the business, KNM Group shall be back to it glory time again. It is time the result of the company proven the capability of the management to bring back the confident to the investor. The Target Price set by HLG and Maybank of RM 1.35 and RM 1.50 could be realizing in the near term. But for the long term I believe KNM could go beyond RM 1.50 per share.

The recent corporate exercises of bonus issue and share split by Century Logistic is to enhance trading liquidity and the marketability of its shares.

The paid-up share capital consist of 122,064,297 shares. And after the bonus issue the share will be increase to 183,096,445. With the share split into 50sen the total amount of subdivided share will be increase to 366,192,890.

So what does that mean? When the company announce for bonus issue one of the reason is to reward the shareholder. After the share split it could further improve the liquidity of its share. This, of course the share price before bonus and share split it will go up further so that after the split the value of the company can be increase.

Let calculate from the closing price of RM2.52 the value of the company in total will be RM 307million. If the share had been split at RM2.52 the price will be adjusted to RM 0.84 and multiply with the new number of share 366,192,890 it give you back the same value of RM 307 million.
Let assume the price of the Century Logistic share after bonus and split turn out to be RM 1.17 per share this will give the total value of the company increase to RM 428 million (RM1.17 x 366,192,890) from RM 307 million.

In order to achieve RM 1.17 per share after bonus and split, the share price of Century Logistic have to go up to RM3.50 per share from the closing price RM2.52

And after the split, the share of the company will “look cheaper” and the trading volume could be further enhanced because the number of shares had been increased. Thus the value of the company will be increase in the same time.

Why need to increase the value of the company?

FGV has a RM4.4 billion war chest comprising funds raised from its initial public offering in 2012. And recently, FGV is scouting for logistic company to acquire, mainly is to exploring more options to unlock value of its transport and logistics division.

And early this year, FGV have the intention to acquire a significant stake in Century Logistics for the reason FGV wanted to inject its own transport and logistics division into a listed entity to create more efficiencies and scale.

FGV have set it target by year 2020 it wanted to achieve a yearly revenue of RM100billion. Recently it had lost the bid of NBPOL to Sime Darby, therefore FGV could have focus on other area in order to achieve it vision. One of the way is through Merger and Acquisition in other division such as their Logistic arm.

Now we all eye on the Century Logistic, will Century Logistic accepting any proposal from FGV to further enhance the value chain into FGV businesses?