Selling off non-core assets is one of the strategy for short and mid term booster for companies. Yup,they had sold off MRCB IT but I do not know the want to sell construction arm as well,whether they intent to do or not,from my point of view,it is great news as construction are the laggard as well as margin stripping operations for MRCB thus if they really sold it off then the overall margin of the company will be improve.
Coming back to our investment,buying equities provide us an opportunity to dispose off the shares easily as compare to we involve directly in the business,thus we can decide to get in a great company while we can exit when they are overvalued.For MRCB,may be you are right Zeeai,as they just repeat the asset dumping process (like MAS) but we as an investor can ride on this process when the profits are recognized on asset disposal.
I do not know your holding cost as well as holding period when you first bought MRCB or MRCB WA.However,I am strongly recommend you to convert the mother shares to MRCB WA as there is a high gearing here.
But for me mother share is better. Exercise on 2.30 /unit + current 0.22 total of 2.51 /unit . If the M share hit 2.51 . WA can still maintain at the current price 0.22 /unit. Current 1.58 /unit - If TP +2.51/unit = 0.93 /share gab.
RECOMMENDATION Maintain BUY and with a target price of RM1.88. Our target price also reflects a 25% discount to our SOTP valuation of RM2.50/share that implicitly factors in the expected value-enhancing exercises and corporate events. There could be substantial upside to our SOTP valuation which has not factored in likely enhancements from future development projects undertaken at the PJ2 or the RRI land. We will issue an update report tomorrow pending a company briefing that would be held this morning.
OTHERS PROPOSED DISPOSAL OF 30% EQUITY INTEREST IN NUZEN CORPORATION SDN BHD (“NUZEN”), RM58.5 MILLION SERIES A REDEEMABLE PREFERENCE SHARES AND RM54.0 MILLION NOMINAL VALUE REDEEMABLE SECURED JUNIOR BONDS IN KONSORTIUM LEBUHRAYA UTARA-TIMUR (KL) SDN BHD (“KESTURI”) TO EKOVEST BERHAD (“EKOVEST”) AND ITS SUBSIDIARIES http://www.bursamalaysia.com/market/listed-companies/company-announcements/1630621
From my analysis, the profit comes from the project that has started years ago (before the current mngt) and it started to bear profits. THERE IS NO NEW PROJECT OR LAUNCHES. Future earning is bleak. From grapevine in MRCB....MRCB have lost five projects proposed to the govt recently. They have lost govt favour.
MRCB is holding 900,000 sf of vacant office space at KL Sentral.... a loss of RM5.4m per month..... NU Sentral opening is on wrong footing, running at loss in the tune of RM2m per month.
check the syariah compliant issue , example: ytl with epf, , mrcb newly added to the list, there is a need to fill their portfolio with these stocks. kiv
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....
thinkstodo
38 posts
Posted by thinkstodo > 2014-05-10 22:41 | Report Abuse
Masterclass CEO of the Year ****** will not guide down stream.