Keck Seng has not paid any dividend to shareholders for over 2 years. During this pandemic hit period, it has failed to pay 2 interim and 2 final dividends. Just be happy with the usual 4 sen interim and 6 sen final dividends and don't dream for anything extra from the existing directors.
Genting Bhd and Genting Malaysia have been losing hundreds of millions over the past two years yet they dutifully pay dividends, unlike Keck Seng. I doubt Keck Seng directors will declare a final dividend of over 6 sen a share though shareholders haven't received any dividend for over two years.
Price RM3.60 NTA RM6.29 Cash/Cash equivalent at end of period = RM634m = RM1.75 per share Share Investment profit for 2021 = RM179m .... "fair value gain recorded in 4Q 2021 for an unquoted foreign investment held" Anyone have any idea what this unquoted foreign investment is?
Keck Seng has benefited a lot from the sharp fall of the Ringgit against the US and Singapore Dollars. The most appropriate thing to do now is to reduce its holdings of US and Sing Dollars and embark on a buying spree of its own shares.
Keck seng needs a big time operator to goreng up the stock, I have noticed the stock price is controlled. the liquidity is artificial and the management is unfriendly.
Shareholders need to band together and form a voting block of 10% of the company shares and requisition for an EGM under S144 of the companies act following the procedures guided by S144(2) of the companies act
Minority shareholders should table a resolution to payout 50sen a share in special dividends as the company is holding excess cash on their balance sheets which is not necessary for the operation of their business
These bunch of directors won't do anything proactive. After divesting Keck Seng's stake in Parkway Holdings about a decade ago, instead of buying some properties in Singapore or bought some Singapore bank shares which by now could have doubled or tripled in value, they increased Keck Seng's cash holdings in US and Singapore dollars. I have kept some Keck Seng shares for 25 years, it looks like I have to keep them for another 25 years.
Keck Seng has net cash of over RM800 million after deducting RM210 million short and long term loans, mainly kept in US and Sing dollars. It has sizable investments in the stock market, worth over RM400 million. The most valuable asset is its land, about 9,000 acres of plantation, golf course and housing lands almost entirely located in Johor Bahru.
The company directors haven't acted proactively all this while. They just hoard cash, mainly in Sing and US Dollars and seldom sell the company's share investments. In 2007, Keck Seng's share investments were worth RM720 million. It plunged to just RM360 million the following year as a result of the world financial crisis.
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....