Icon8888's 12 part articles is quite spot on about - Da'men (which will be completed sometime Sep'15 to Dec'15 and this will definitely transform GOB), - low cost land bank at Batu Kawan and Seri Kembangan (just look at their recent sales of 15 acres of land at Seri Kembangan), and - JV with Lembaga Getah (Pavillion Embassy). But then, his articles missed out on GOB's diversification into the F&B business to earn recurring income. My point of view is that this diversification may have worsen GOB.
GOB's revenue actually improved from FY14 to FY15 but there is a corresponding increase in - their OPEX, taxation and interest expenses.
Up to today, i don't understand the following: (1): why their OPEX spiked up? From another forumer, Opteron, it seems to come from their diversification in to the F&B business. Heck, they are even looking into expanding into China's F&B. (2): why can't they be more like HuaYang or Tambun Indah who just focussed on developing properties? The reason why i buy this counter is their low cost landbank which will guarantee high profit margin when they develop those land. And they have Damein to tide them over. (3): WHy their taxation is so high? (4): Why there is a purchased goodwill in their balance sheet? Which company they buy ? Without the above, GOB could have easily add on additional RM10M to RM15M into their net profit.
These are the questions that Icon8888 does not focus on his 12 parts article about GOB. Right now, i don;t know who to ask?
Other than that, please don't blame him for the drop in GOB's share price. He would not have known it in advance when writing those articles. There is dual impact to this drop. (1): Property sector is not doing well. Heck, even good companies like Tambun Indah is experiencing RM1 drop from their previous high of RM2.60 to RM1.60, and coupled with (2): rights issue which halve the share price.
He is NOT GOD, he does not possessed divine power to know about those share price in advance.
My point of view is that GOB is considered quite undervalued in terms of their RNAV but not so much in terms of their EPS.
Icon8888, I need ur help. I plan to invest for 2 to 3 years but only 1 counter because my capital is small. Can u recommend a stock for me? Frontkn? LCTH? Penta? or anything?
Really don't know why: (1): why their OPEX spiked up? (2): WHy their taxation is so high? (3): why their finance cost so high? (4): Why there is a purchased goodwill in their balance sheet? Don't know ask who....sigh...
chance for price to drop is limited, but up is unlimited. All the profit will count in FY 2016, land sold completed at Apr-1 (purposely), Da-Men complete at Sept & so on....will see a huge profit & definitely share will shoot up..let's wait & see..
hahaha.....should i say - this is a phariah company....high revenue but matched with high OPEX and tax...- resulting in lower net profit for shareholders compared to last year...
let us look whether they will declare dividends for FY2015 following the disposal of 10+ acres of land at Seri Kembangan....
Who can enlighten us if GOB actually owns the big piece of Ampang Land opposite HSC building? It has been fenced out indicating "Pavilion Embassy" - Service Apartments yet to be constructed.
To chshzhd: Thanks for posting on GOB, I believe this article is indeed very useful for those who intend to buy property counters for longer term and to benefit greatly when GOB has completed its projects on time by 2016/7. Thank you once again
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Posted by Icon8888 > 2015-06-19 12:26 | Report Abuse
i agree