As bloggers, we must be consistent. Calvin Tan condemned Comcorp because it has 0.5 times gearing (60 mil loans divided by net assets of 120 mil). Now he recommended a stock with 3 times gearing ? (RM581 mil loans divided by net assets of 230 mil).
There is a vast difference between BPuri and Comcorp.
BPuri has Rm250 millions asset in Subang Shopping centre and many other assets. All very defensive. Its total assets minus total debt is still positive.
For concorp it has only one forlorn factory in faraway Kulim. So at such lofty price Comcorp has no margin of safety. Comcorp also stood guarantee for huge subsidiary borrowings.
While we talked The Balance of 81% free float will all be taken up.
So better hurry. Or else you guys will miss BPuri just like you did with Super Enterprize.
Hi ! Icon8888 bro, must defence that Comcorp's genuine loan are much more lower, as much as 10mil out of the 60mil to serve as Capex expenditure for It's EMS / Communications Solution segment / New biz (Green Tech) . In another word it is a merely 0.08 gearing, while it is still healthy on the first glance at 0.50 yet still reducing .
Icon8888 bro aware of that certainly, juz to wipe off Calvin from copy & paste your posting and start to blur the newbies in i3.
First I want to apologise to Gen2 for not replying to his specific request about BPuri has only 33% stake in USJ Main Place Mall.
Let me explain my position:
What I wanted to highlight is that BPuri has Rm205,000,000 worth of Money in Main Place Mall. So it is inconsequential whether BPuri ouw 33%, 50% or 100%.
My Main Focus is If BPuri Needed CASH it can sell off this asset and convert it into CASH.
To me NTA (Net Tangible Asset) backing is VERY IMPORTANT AS A MARGIN OF SAFETY.
THIS IS THE REQUIREMENT MENTIONED IN THE BOOK
THE INTELLIGENT INVESTOR By Ben Graham
Ben Graham's criteria for picking a stock is
IT SHOULD BE SELLING AT AT LEAST 30% DISCOUNT TO NTA
That means that BPuri current NTA is 93 cts.
The Margin of safety if to buy up to 65 Cts. Why 65 Cts?
Because 65 cts is actually 70% of 93 cts.
SO I POINTED THE IMPORTANCE OF BPURI'S RM205,000,000 WORTH OF ASSET IN MAIN PLACE MALL.
So in time of emergency Main Place Mall (33%) Could be sold for RM205 MILLIONS TO PAY OFF DEBT. BPURI ALSO GOT OTHER REAL ESTATE VALUABLE ASSETS)
BPURI Also Own:
TOLL ROAD. Again this is a recurring CASH COW. And if needed This Can Also BE CONVERTED TO CASH.
POWER SUPPLY DIVISION Again this could be sold off for cash just like 1MDB selling off Power Concession to China for cash.
QUARRY & READY MIX CONCRETE ASSET
HOSPITALITY DIVISION
SHOP/OFFICES FOR RECURRING INCOME
So these above constitute the 93 Cts NTA of Bpuri.
And all things being equal
All Assets - Debts show a NET NET of 93 CTS for BPuri
So at 42.5 cts BPuri is selling at a WHOPPING 55% DISCOUNT TO NTA!
Trading Market has discounted most Properties asset by 50% . For a small player in this section 50% discount considered very generous. There are much more efficient player in the market..eg . Hohup , Matrix , Tambun ...
Again, pls leave your believing to yourself, and don't influence i3 newbies with such poor argument. Who going to pay in full for an asset while everyone run out of cash ?
Posted by VenFx > Oct 4, 2016 08:32 PM | Report Abuse
Again, pls leave your believing to yourself, and don't influence i3 newbies with such poor argument. Who going to pay in full for an asset while everyone run out of cash ?
From the mouth of VenFx
"EVERYONE RUN OUT OF CASH?"
Only VenFx Run out of cash!!
My Johor Buddies who followed me to buy Pm Corp at 9 cts are laughing.
Those who followed Calvin to buy Super Enterprize at Rm1.25 are laughing
Those who bought Jaks at 39.5 cts are laughing all the way to the Bank
Those who bought My EG, Jerasia, Kheesan, Ajiya, Kimlun, Masteel, Prestar, Kulim, TMakmur, KPSCB and many others are making 30% to 200%
ALL FULL OF MONIES & LAUGHING ALL THE WAY TO THE BANK!
Where Got "Run out of Cash"?
AND LISTEN! LISTEN! LISTEN!
ALL WHO BUY BPURI WILL ALSO END UP LAUGHING AND LAUGHING SOMEDAY TOO!
Don't twist my meaning Calvin, isn't you mentioned above Asset serve as your safety margin during bankrupt of Bpuri ... isn't that hint your Bpuri will sell all their asset by 50% ?
Show us what your analysis covers, if it is the same as everyone else, there is no point for us to look into it, not to mention purchase. No offence, it is just that free information is everywhere now. Thanks
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
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
0:17
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 5898 views | 5 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kakashit
1,472 posts
Posted by kakashit > 2016-10-04 14:11 | Report Abuse
Sohai ar,二百五酱贵