People must be disappoint by the false breakout in MRCB. As we know the movement of derivative is in line with its mother. The 0.255 resistant seems strong for MRCB-WA as there is a strong resistant for its mother at 1.65 level.Just be patient.
Dear Friends,from the announcement,the M&A with QCAP will be postpone to Apr 10 thus if things rally goes smooth,then Apr 10 or 11 will be turning point or short-term catalyst to MRCB and MRCB-WA and we can say byebye to resistant of 1.65 and 0.255 for at least for 1 year or 1.5 years.
The postponement is unavoidable but it is forgivable if MRCB really has the heart to make a successful turnaround in Property investment business (REIT).We think from the business perspective,as mentioned by MRCB through media,they are preparing a big size asset injection to REIT worth bout RM 3 billion,thus it is not easy for them to strategize the whole things. As we know,the QCAP asset injection only worth RM 750m thats mean there are more to go after QCAP.
From the investor perspective,as long as the MRCB are all-out in getting the deal done coupled with the potential the positive news from PJSENTRAL as well as Kwasa,the future for MRCB and MRCB-WA looks bright. Again,investment can only bear fruits with patient investor.
Consistently added position in both MRCB and MRCB Wa after reading ACELEE and Cytew comments.Both of your analysis are insightful.
As pointed by ACELEE,with all these news roll out in the very near future perhaps starting from this month,MRCB and MRCB WA will start the Journey to the North.Cheers.
By the way,how you guys think on Tguan. Acelee and Cytew.Others?
To LuvLuv First of all,it is my pleasure to have you readings my comments as well as brief analysis.
Yup,MRCB and MRCB Wa is still a hidden gem even he had rebounded from below 1.4 level last year. However,I think the show for MRCB is not started yet. As I said before, RM2.00 to RM 2.50 will be the comfortable level to sustain the bullishness of its strong performance in expected result and catalyst. Furthermore,I had just noticed that they now coming up with another project called Nu sentral(GDV 1 billion),although Nu sentral is a long-time project but I found that this will be strategic move as I think this will the another asset that they will bring to REIT in 3 years time (a long term catalyst) and this is in line with management vision in strengthening investment and development division.
With the weightings of operation is now slightly changing from construction to the investment and development division,the group stability in PAT will be enhanced (better margin for sure) especially all of their development project are in strategic area (ie. Seputeh & KL Sentral) and this might be great transformation by the company to "escape" from the traditional GLC image and become like another MBSB,RHB.
For Tguan,to tell the truth, I had closely observed tguan when its lingering at the level of below 1.3 level last year but I had missed the chance to ride on their strong uptrend as they had not hit my targeted entry price.Just a few cents,and I had no choice just watching them to climb higher and higher to the current level of RM 2 level. I do not expect Tguan profit performance to escalate sharply like what hartalega and L&G,but rather I am satisfied if the company can maintained the current performance in the future (translating to Approx 8 PE). Any growth in profit will be an additional bonuses for us.I termed investment in Tguan as a value play which posses a stable (or small growth business) but with great discount on its P/BV.Just want to share with you some of my investment methods and hope you can picked up some of them
There are few more categories in my selection categories,will share you more in future.
Come back to Tguan again,They have a very balance sheet and a very attractive P/Bv with stable business.but what really attracts me is the proposal which I think they might play the same show again like L&G for the motive of controlling stake. please analyze the terms of the proposal closely and I believe you know what I mean.
It is my pleasure too read your comments ACELEE.I am enjoying it.
Will tambah lagi garang position again in both MRCB and MRCB-WA today.There has been a great initiative taken by the new management in transforming the company. Your price range 2-2.5 is not problem.Cheers.
Need to meeting liao,will share more on Tguan later.
Thanks for the great Info ACELEE !! But base on the PE RATIO + EPS + The Nx Earning Quater... Don't you think RM2.00-RM2.50 abit overvalue for MRCB ?? Even UEMS hit RM3.50 after correction the price should be stable around RM2.30-2.50 ~~
huar aarrrrrrrr ... kali ini .. my 2014 container ... cheerssssssssssss
by Ho Wah Foon of theedgemalaysia.com on Thursday, 10 April 2014 11:35
KUALAL LUMPUR (Apr 10): Based on news flow and corporate announcements today, the stocks that may be in focus tomorrow could include the following:
Malaysian Resources Corporation Bhd (MRCB) announced the sale of Platinum Sentral to Quill Capita Trust (QCT) for RM750 million.
MRCB stands to gain RM240 million from the disposal of the property. MRCB said the gain represents 15 sen earning per share for MRCB for this financial year.
The RM750 million sale will be satisfied via cash of RM486 million and the issuance of 206.25 million new QCT units at RM1.28 per unit.
Simultaneously, MRCB had entered into share sale agreements with CapitaLand RECM Pte Ltd and Coast Capital Sdn Bhd to acquire their respective 40% and 1% stakes in Quill Capita Management, the management company of QCT, for RM6 million.
With the acquisition of the 41% stake, MRCB will be a significant shareholder in Quill Capita Management.
You are right if we measure MRCB through traditional investment metric (i.e. PE) then it will be seems bit overvalued.However,MRCB from my perspective is a turnaround stocks in which we could not judge upon current earnings.Like Jtiasa,the price is drop below RM 1.90 when the analyst still have the negatives views over CPO prices,but when the "dust"-the CPO prices had finally turnaround then it had attract re-rating over the overall industry as well as individual stocks.
Back to MRCB,as we can see from the efforts initiated by management as well direction indicated,they are now focusing on Property Investment and Development. With this,the Net margin for the company will be enhanced as Property development will have higher margin than construction sector.
Don't forget KWSP holds more than 38% of MRCB while the CEO even with his massive asset injection only holds 12%.
It certainly looks like the mother and WA prices are being traded in a narrow range. And with a total of 7 call warrants for this counter, it is hard to see why the issuers would allow the price to go up significantly. It is a possible reality that the re-branded KWSP with its outsourcing to selected fund managers actually trades counters such as MRCB ie with volume, these fund managers can make money even in a narrow trading range.
For a supposedly turnaround stock with so much positive news to date, I have been wondering why the mother share cannot breakout from its narrow trading range. Perhaps only when KWSP says so, and only then will you see a higher price. In which case, the call warrants issuers will panic, haha!!
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....
alexisvics
944 posts
Posted by alexisvics > 2014-04-03 12:10 | Report Abuse
Warrant start moving soon.