You just have to ask yourself is there any changes in the fundamentals of the co? if your answer is no, then you will be happy if it drifts lower so that you can buy more on weakness. Olympia quarterly results should be out in the next few days, expected to be bad as It's lottery business in Sabah ( Sabah 88 ) was badly affected by the MCO lockdown in Oct last year. But then, the lottery business has resumed it's operations now. The worst should be over for this counter, as evidence by some small weak hands who are selling in the market at the moment. For this stock to go up, the co has to launch it's property project in Sri Hartamas ( Kenny Height Project ). The management have repeatedly told us that they are waiting for the right timing to kickstart the project. The whole Bursa property sector sentiment has improved a lot recently, so hopefully it won't take long for the co to finally launch the long awaited project. Be patient, good things will come to those who CAN wait.
This audit report of account status had been disclosed during last quarter. Nothing news and it is mentioned in the annual report as normal. One thing positive from this statement to tell u that the outstanding liability as we knew earlier will further extend to 2023 and 2026 that will wait Datuk Yap to find money as he has to redeem the liabilities under his personal guarantee. Stay tuned.
Yes Scrown, you are right. That's nothing new about this audit opinion. But the words Material Uncertainty related to Going Concern really scare the hell out of many people who don't understand. In the worst case scenario, if the co really go into receivership, the co do really have no problem to settle the debts as it has got DEEP values hidden in the financial statements. The 150m bank loan (the only threat the auditors are concerned about) will be easily offset and settled by forced selling Menara Olympia ( 295.7m). After that, the co will be clean with some small current liabilities and plenty of assets. Besides the 1400 acres of Seremban land (57m) Olympia is still left with 2 hidden deep values which are not reflected in the financial statements! 1) 42% ownership of 60 acres of Sri Hartamas Prime Freehold Land. Easily worth rm440m or rm400/sq ft but only stated at cost at only 140m or rm128/ sq ft in the balance sheet. Easily 300m are hidden and waiting to be unlocked by the receivers 2) Sabah gambling (Sabah88) license & business operations. How much does it worth? Duta Yap had a similar gambling set-up and operation ( Megaquest Sdn Bhd ) in Sarawak and sold it to Berjaya Assets for 17.5X of it's average past 3 years net profit for 108m in 2016.If we take Olympia Sabah88 average last 3 years net profit X 17.5 = 105m. This is another amount which is hidden in the book. This co has deep values. Shrewd players will be buying instead of selling at current prices even if the co goes into receivership.
Up to tonight, the annual report is not yet posted at Bursa announcement. Why Annual report not yet come out in Bursa announcement but Bursa can post this auditor opinion earlier from annual report without investors to analyze the whole report to judge the share investment and panic selling on this counter? Any agenda motive from Bursa management ?
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....
Posted by DreamEmperor > 2021-03-18 19:48 |