All 3 companies in the stable have no reason to stay listed. They are all net cash and trade at way below NAV. With S Bagan having the biggest discount count of
Premium clients know that I advised them 2 accumulate below $3.36 from last week onwards. However, today's movement was shockingly sudden even to me! =)
Based on SGX AR (GE), Kuchai & Sg Bagan hold 3.032M & 1.733M of Great Eastern Shares respectively.
Stake for Kuchai & Sg Bagan estimate around RM 197M & RM 112M based on my own estimate calculation as compare to their present mkt cap around 227.7M & 238.8M respectively.
dompeilee Most M'sians also gong gong one...'invest' in unit trust happily pay $550 FEES to """professional"" gambler for every $10k they put in...now many down 40-60% in a few years, don't hv the guts to phone the cunn!ng fund manager to scold them for wasting assets...10 ppl pay his fees already he can jiak pa pah already...get paid for the privilege of playing with your hard-earned $...
Even worse, they dump the losing hopeless stocks into your unit trust but allocate the winners into their own proprietary portfolio...this AlexSUU(Kmouse is no less greeedy than Jho low...pay insufficient to even fill his car with petrol for 1 month but wanna hantam & all-in to earn $20k or more within a year LOL! 05/11/2021 4:13 PM
BODOH DOMPEILEE... MALAYSIAN ARE NOT GONG GONG PLS!! 16/11/2021 12:10 PM
With a cash kitty of $161 mil, it can afford to mop up ALL its own remaining free float of shares at significantly higher prices & STILL have $50mil leftover!!!
The proposal is a very good deal for SBagan as they will issue shares at very high price above RM10 to buy all assets of Kuchai which include Great Eastern shares.
The historic high is NOT 3.96. That figure is AFTER adjusting for all the dividends & share dividends since then. The actual market price peaks were $4.90 in 1995-1997, $5.70 in 2004, $10.65 in 2005(a very brief ex-bonus peak) & $4.18 in 2018.
My Sungei Bagan realized earnings cross the $5k mark reaching $5,671.82 since '13 after earning ZERO last year when it was comatose ALL YEAR LONG & margin interest piled up on a small stake re-purchased too high in Oct '21!
I have made slightly more than RM170k in realised gains from the stock market so far until end of last year. Yet to account for the gains I made this week from Kuchai. :-)
According to the Efficient Market Hypothesis, the market price reflects the “true” value of a company as it incorporates all known information. Behind this is the “wisdom of the crowd” concept. This is the idea that large groups of people are collectively smarter than individual experts when it comes to problem-solving and predicting.
Take the example of Sg Bagan Rubber, a Bursa plantation company. When you look at the ROE and share price trend, you can see the share price spiking currently. The last time it occurred was in mid 2021 when the ROE peak. https://i.postimg.cc/Xvqx0kJ4/Sg-Bagan.png I suspect that it is because of the proposed takeover of Kuchai Dev. Is the market predicting that the coming ROE will be higher than 7.5 % because of the Kuchai Dev? I think that the wisdom of the crowd does not apply to projecting business performance. If any, it probably applies to market price.
But then the wisdom of the crowd only works if every individual in the crowd thinks independently. I am have my doubts about this independent thoughts when it comes to the stock market. I think herd and lemming behaviour are more likely.
So what can you make about the Sg Bagan market price? I am more inclined to see it as herd behaviour rather than the wisdom of the crowd.
When it comes to is business performance, I rather trust a fundamental analysis rather than the wisdom of the crowd. While I have yet to do a fundamental analysis of Sg Bagan I think that its current business underperformed KLK, my reference Bursa Plantation sector. Secondly, as my analysis of the property sector has shown, it is not an automatic ticket to making money. https://www.youtube.com/watch?v=Wn4p31y0CUQ
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 2877 views | 2 d ago
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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....
Bedakong116
95 posts
Posted by Bedakong116 > 2021-09-28 06:13 | Report Abuse
All 3 companies in the stable have no reason to stay listed. They are all net cash and trade at way below NAV. With S Bagan having the biggest discount count of