support duta yap ? he is very old already, both dutaland and olympia doing nothing for the pass few years , shareholders just feed them, better go night club grab a girl and feed her.
PETALING JAYA: The gaming sector looks like a fairly safe bet for those looking to deploy a more defensive investment strategy, said CGS-CIMB Research, which has an “overweight” rating on the sector. The report noted that number forecast operator (NFO) sales have steadily climbed to 80% to 85% of pre-movement control order (MCO) levels in September, since outlets re-opened on June 17.
The research unit said this should be faster than recovery in casino volumes, thanks to NFO outlets’ closer proximity to punters, non-reliance on foreign tourism and lesser impact of social distancing measures on operating capacity. Also, while illegal NFOs have been the main drag on legal NFO sales since 2010, the latter has seen a slight 2.9% growth year-on-year in 2018 and 2019 as authorities stepped up enforcement against illegal NFOs.
This has continued in the first seven months of 2020, with 3,015 raids on illegal gambling dens and the crippling of 61 syndicates (compared with 32 in 2019).
Budget 2021: No add. gaming tax as many feared 2) Rural development myr2.7Billion 3) Sabah state dev myr5.1billion 4) Sabah poised to collect RM1.25b sales tax from Petronas next year Biggest gainer is Sabah among all states
Our money is getting smaller with US printing and pumping in ridiculous amount of money into their system. The only way to preserve your money is to buy quality assets like Olympia with prime land at Sri Hartamas (Kenny Heights). This land is still stated at cost in the book. NTA will easily more than RM0.70 per share if we take into account of the current value of this prime land. Don't forget our bank interest is all time low and the Kenny Height project ( JV with Dutaland )is on the verge of launching their condominium sales anytime from now. Downside is limited but the upside with potential billion dollar gross development sale will be unlimited especially the market capped of Olympia is less than RM100m.
The company sold 9 acres of it's Sri Hartamas land to a 3rd party for 150m or rm380/sq ft back in 2016/17.....Now the co still have 60 acres ( 42% ownership ) left or effectively 25 acres left in the book. Is 25 acres of Sri Hartamas land worth only 140m or RM128/ sq ft which is stated at cost ( more than 10 years ago )in the balance sheet? Don't forget also this is a PRIME FREEHOLD land and will only get more and more valuable with time especially in this low interest rate environment. Don't forget also the management is actively working behind the scenes to develop this prime land and create values for the patient shareholders...The management repeatedly said that they were just waiting for a good time to launch the project. Yes, it is been a long time but believe me, It will be worth holding.
If you have 100M what do you do? I will buy 100% Olympia shares assuming i can get all at rm0.10 and below. Then with 100m investment, i will gain control over
1) 25 acres of Sri Hartams Freehold land easily worth RM430M 2) Menara Olympia worth RM300M with bank loan of 120m. Net 180M 3) Sabah gambling (Sabah88) license & operations for free since it is not stated in the book. 4) 1400 acres of Seremban land worth 57M 5) 60M cash + 20M current assets which will be enough to pay all the co debts.
Super undervalued. It is a matter of time before the market discover it.
If you are wondering how such a small co like Olympia going to undertake such a mega size development project in Sri Hartamas ( Kenny Height Project)? Where do the co get the fund? The answer is the fund is already available. It is sitting in it's JV partner Dutaland ( sister co, same owner) bank account. A Whopping 520M CASH!!! Everything else is ready just waiting for a good market sentiment to launch the project.
Related party transaction. 2 vacant and 2 low yielding rentals 4-storey town villas in exchanged for hard cash from cash rich Dutaland. Transacted closed to net book values of Olympia. Good deal for Olympia shareholders as cash is always better than fixed assets that are not creating values for the co. Bulk of the proceeds will be reserved to pay co short term interests & liabilities. With cash rich Dutaland backing Olympia, the co can survive & excel even in this pandemic. Thank you Dutalnd.
If you read the announcement in details, you will see that there won't be any profit from this disposal. In fact the co estimated to make a loss of RM21,880 from this transaction. What is more important is the co now have more cash instead of some dead assets. The cash also allow the co to breath during this difficult time. With most of the short term bank interests and liabilities taken care of ( liquidity risks ), it also tells you there is not much downside for this stock.
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....
adamsmith
338 posts
Posted by adamsmith > 2020-08-10 22:48 | Report Abuse
support duta yap ? he is very old already, both dutaland and olympia doing nothing for the pass few years , shareholders just feed them, better go night club grab a girl and feed her.