Agreed iswara.....but have a look at this fact on history 1964 - Incorporated as Nanyang Subsequently got listed and called General Lumber Bhd 1991 - Change name from General Lumber to L&G Bhd Before changing name the price was at rm2.xx before 1995 - 4 years after changing name it hit rm8.xx
Fast forward to 2008 2008 - New Management team led by Low Gay Teck a former Project Manager from Mayland join L&G 2014 - 6 years later, reduce rm200 Mil debt to gearing of 0.04 with growth of 3times at topline, bottomline and almost 3 times market cap from rm150Mil to rm400Mil
Moving forward with the muti year revenue generator for Lembah Beringin 2500 acres may move the price to rm 2 again within near future in my opinion.
For the 2500 acres landbank has GDV of 100 billion. If taken GDV next year against their current target of market cap 500million it will be 200times. So to develop the landbank over the years may see this reduce from 200times to around 30 or 40times which is at least 5 times lower than 200. So the market cap will have to be at least 5 times more at 2.5 billion. Something to think about if they can reach that market cap without increasing their low gearing may see the price shoot multiple times
Can it do a 2 million volume fly pass 59cents.....of course it can......all the money I asked you to focus flying into your house and living room,..you have taken a suitcase to buy a car.....still plenty more. Imagine taking those and knowing you can buy anything and go straight pay cash for the 3 millions L&G shrs.... It's your now the shrs and you feel great achievement in your buy today!!
Today's first half volume taking position. Mother must lead as they are doing. Those not familiar with goalpost and prediction, this is the 101 on it. Lesson 1 Goalpost and direction of the ball
We all know football objective is to score goals and the target is to put the ball In between the goalpost. Generally I spoke about the opening yesterday which showed a glimpse of a queue at 59cents with a 21.8k buy queue at 8.45am before the opening and stuck on till opening. That was a good signal of how much that needs to be done however the volume of sellers wanting to sell was overwhelming. At 3.48pm when the volume was at 5.8 Mill shr done, I used the. 59 cents target to predict the 8Million shrs at closing and it did hit above 8 Million at 4.30pm however it did not hit 59cents.
How did I do it? Simple at 3.48pm, there were 2.5 Million seller shrs waiting to be cleared to reach 59 cents if buyers commits Why did I choose .59cents? I chose 59cents because of the morning signal I saw. Why did it not reach 59cents yesterday? It tried however the mark was determine at 3.45pm on the number of shrs to take upto reach 59cents and the buyer thought the market had settled in however between 3.45 to 4.15pm, more seller decided to drop in and queued at 58 and 58.5cents which the 2.5 million shrs intended by buyer was not sufficient to cover up to 59cents by 4.15pm.
For today look at the buyer and seller for the next lesson Assuming buyer position is at 59cents and last position is 59cent (buy) with queue volume 300k Next look at queue volume of buy the next level below. In this case we will say its 58.5cents at 1million shrs at buyers queue while the seller is at 59.5cents at 1.3 Million sellers shrs queue. Watch closely when the 59 cents buyer shrs are cleared which will leave 58.5 cents 1 Million shrs (buy position) Vs 59.5cents 1.3 Milion shrs ( sell position)
How do you view this? Again assuming all standing their ground and no one adds at 59cents the 1Million vs 1.3Million can be taken off straight of. What it means is either buyer willing to go up or seller willing to come down. That would determine the direction for today's game. Either way the buyers intent is to buy the volume they intended and even easier to predict if the number of buyers are few. Example 3 buyers queuing buy at 1million each will be holding approx 330k and can easily know the direction.
So what does it tell me for today if it goes up or down? Honestly it tell the buyers intent. As you can see the volume they are doing is already avg at 2Million shrs per hrs buying/selling pattern. If the intent persist, we should see a closing of at least 10 Million today. Anything less than 10 million would signal the buyers have taken sufficient and have cleared also sufficient of those overhang. Hence when it crosses the 60cents mark, this should be new sellers or the minority of overhang who bought at 60 cent to above the last round. There should not be a lot of them.
So watch the closing is very important, if they close at 12Million the pace of the buyer increased at 3 million per hrs. This show increase interest. This is the answer for those who always ask why an overbought position is desirable even if price does not go up....
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Building management systems (BMS), solar thermal systems and energy-saving services provider, Solar District Cooling Bhd aims to list on the Ace Market!
MQ Trader 723 views | 4 d ago
0:17
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 14131 views | 12 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....
Johnnys
759 posts
Posted by Johnnys > 2014-07-22 17:33 | Report Abuse
Good Earning $$ again from this counter. Tomorrow push again.