rich, you should immediately sell your Keck Seng shares, if you have invested in this counter. The probability of Keck Seng going up to RM 14 is higher.
reliable source said govt acquired 1700 acres quoted at RM 8.50 per ft2 but can request for a review in court for a higher compensation after the valuation done .
Has any one read today's SinchewBusiness (星洲财经)? It was reported that Greenland Holdings of China (绿地集团)plans to buy 1,200 to 1,400 acres of industrial land located near to the existing Tanjung Langsat industrial building for RM 40 per ft2 or over 1.7 million per acre. Keck Seng's plantation land is just a stone's throw away.
No, agric lands coz the CEO said after conversion , the Co has to pay high premiums . So far the co has no plan to develop except to wait for acquisition.......
With land in Johor Bahru getting lesser and lesser each day, Keck Seng could come in for a revaluation by some savvy investors one day.The time might be earlier than one expects. We won't go very wrong if we slowly accumulate Keck Seng shares now. Forget about its paltry dividend payout. A long term view is needed if you want to invest in this counter.
Bonus/Share Split are possibilities, including a special dividend, which we have all been waiting patiently for so long!!...But why warrants for Keck Seng?
Selling at what price as the stock goes up is not that easy to determine (easier said than done) eg like OFI recent run, you follow Director selling at RM4/- still shoot up to RM6/- so how?? No harm just tell us when to sell Keck Seng if it makes a run, we appreciate the gesture and wont blame you. Thanks.
Nobody can ever correctly predict when to sell a share, otherwise one does not need to work, only concentrate on share investment. Even charts can be deceptive because share price is often manipulated. Suppose you have bought several thousand Keck Seng shares today, would you not sell some after it has gone up by 15 to 20%?
I participate in this Forum to share and learn how money is to be made in Bursa (KLSE), and continue to make more, after having retired, no more work. I see Keck Seng as one stock that will reward a faithful holder in the long run. Knowing when and at what price to sell is much harder to be correct than knowing when to buy. I know that at these levels, Keck Seng is a BUY!!!
I just couldn't bring myself to comment this laggard stock though its assets r undervalued , nevertheless I can't see any buying interest either ; worst still some of its land bank has been acquired by the state government to build low cost houses . Reliable sources said , the compensation is RM 8.50 per ft2 coz its tenure is agric n haven't converted to housing or industrial . If the co is not satisfied , it can choose to file charges for a higher compensation, that's it. Per acre shall be RM 370,260 *1700 acs which equate to RM 6.29442 Billion...and per share shall be RM 17.41 per share...Hope my calculation is correct?
With RM 1 billion in cash reserve and only about 142 million Keck Seng shares not held by its directors, major shares holders or their associates, the company can actually offer RM 7 per share to buy up all the public shares.
629.629 mi for 1700 acs , balance land bank is +- 8000 acs so, 8000 acs*8.50 per fts 2 = 2962.96 mi+629.629 mi =3592.589 mi /1000 mi =3.592589 billion.....for all the land banks paid up cap 361.477mi @ RM1 per share @RM 9.93 per share for the land bank only.....!
Keck Seng has almost 10,000 acres of land bank, of which 8,900 acres are plantation land. The rest consists of a 510 acre gold course (including club house and other recreational facilities) and housing land. Keck Seng's housing land and golf course should be worth RM 1,000,000 per acre. Based on this, Keck Seng's land bank is already worth RM 12.2 per share.
I cannot see, but smells good from the few valuable comments posted, thanks for sharing. Looks too good to miss, so I chiak some today and more as it drops. Cheers.
Last year, Keck Seng's over RM 900 million cash only earned about RM 10.6 million in interest. If the management is half as good as EPF, the income from Keck Seng's cash stockpile would have been RM 30 million.
Its cash reserves is around 1.1-1.2b. If it were deposited in banks , it will earned not less than 40mi er year not 10.6mi ddefinitely. I think something is not right here !
Keck Seng must have kept most of its cash in Singapore. The average effective interest rates for its cash holding last year was 1.32 %. From the middle of last year, the Singapore dollar has gone up from $ 1 = 2.55 Ringgit to $ 1 = 2.75 Ringgit today. Can you imagine how much Keck Seng stands to gain if it keeps $ 300 million if its cash holdings in Singapore?
Over the past two years, the Ringgit has dropped from 1 Singapore Dollar = 2.40 Ringgit to 2.80 Ringgit. Keck Seng keeps most of its almost 1 billion cash holdings in Singapore. Ringgit's loss is Keck Seng's gain.
Go to page 53 of the annual report. Keck Seng had well over 900 million cash but this amount of money only earned the group 10.6 million in interest income. Our banks pay over 3% interest. The interest rate in Singapore is much lower. Look at the unrealized foreign exchange gain for that year and the year before. I believe the foreign exchange gain has not been fully reflected in the report.
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Posted by rlch > 2015-04-10 17:44 | Report Abuse
Why for buy expensive stock when dividend so little?