Despite the current aggressive share buybacks plus earlier cancellation of 10% treasury shares and a pretty good performance including CPO prices going through the roof, the share price still stuck at pathetically low levels.
palm oil price bull run this year. stick to this counter for 100% blue chip gain. sit down relax waiting for the capital appreciation while happily collect dividend every 6 months. where to get?
Kadilong: EPS = 187.78; P/E: 10.33 & NTA: 15.54. World class figures. 'It's a steal'. Guess what I'll be spending the $0.20 upcoming dividend on? Reinvestment into more BKawan shares. It's a no-brainer to do 'buy back', as it's massively undervalued. Not to mention we just bought Chemical Company of Malaysia Bhd (CCM), what a great buy.
Yes, massive 157,500 share buy back on 24th June 2021. Mark my words: very soon they'll be: Notice of Cancellation of Treasury Shares. Just like last year(10/06/20). As the current treasury shares exceeded 1% of issued capital shares!
UndukNgadau - It's odd you say that you will take part in the DRIPS. A few AGMs ago I opposed the Co from embarking on this although I lost overwhelmingly.
Think about it - it's totally illogical. The Co painstakingly and aggressively does buybacks so that the EPS may improve which will cause share price to rise. However they propose DRIPS that will negate and reverse the effects of all the buybacks.
Sheldon: I actually saying that I hope that the management will do Dividend Reinvestment Plan (DRIP) as an option. Because I wanted to save commission in buying BKawan from market. In an idea world, BKawan NEVER do Bonus Issue or share split. & every time provide options for shareholders to choose (A) dividend or (B) DRIP. Just my opinion. As shareholders whom wanted the cash, can opt for it. Me, I definitely want shares.
& going a step further. I'm sure you guys know that today's Share buyback queue @ 19:20(3000) & 19.22(5000). Every time I wanted to buy/accumulate, I have to queue a 'bit' higher(example: 19.24) just to be ahead of SBB. & Thanks to the upcoming 6 months bank loan moratorium. I will buy 6 + 1(20¢ dividend) more times for the next 6 months. I actually wish BKawan do not go above 20.00 till December. So that I can accumulate at current cheap $.
UndukNgadau - Yeah you save a bit in terms of commission & slightly cheaper. It's petty la. In the long run, I suggest that if you like the share just buy it at market price.
Don't be like my wife - If something cost 20 - ask for 19.90; if it cost 19.90 - ask for 19.80; if it cost 1.00 - ask for 95 sen. If house in Damansara I want to sell for 10 sen, you'll ask for 5 sen. It goes on and on. The market price is never ever the right price!!
If you like KLK, buy the holding co BK. Why? Trades at a much lower PE, has other profitable activities, fairly good dividends and very aggressive share buybacks.
However setback is unlike KLK, lower liquidity & like KLK, some questionable large scale investments. Maybe they can't say why. I can only hope they pay off.
Sheldon: Thanks for your response & I respect your view. Q1: what do you think of (i) PPB & (ii) UtdPlt ? & Q2: other then BK, what Plantation stocks are you holding?
sheldon: You are right. It's makes more sense to invest in BK, which is undervalued. It's shareholding in KLK and other assets are worth more than what it's quoted at right now. I wish tho that BK would split their shares or announce a bonus to make the shares affordable to more investors and provide liquidity. I asked the board at the last AGM about this but the answer from TSLOH was very vague: something about maintaining the share price. Still we can only hope seeing as bonus issues are becoming quite common nowadays with the relaxation of Bursa rules.
UndukNgadau: most of the well managed plantation companies are undervalued at the present moment. The good palm oil prices have not been factored in. Looking at the recent deal by KLK to buy IJM Plantations we can see that companies like HS Plantations and TSH are still reasonably priced.
Optimism in CPO futures and company's aggressive plan to return shareholder value restores investor confidence in plantation companies despite risks such as ESG concerns
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 2938 views | 2 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....
sheldon
1,406 posts
Posted by sheldon > 2020-12-09 22:33 | Report Abuse
Shitty dividends given the sterling CPO performance