For a cash rich company like Keck Seng, interest rate rises should benefit it tremendously. With a cash pile of RM1 billion, each percentage rise in interest rate should bring in an additinal pretax profit of RM10 million to the company. However, the perfomance of Keck Seng shares doesn't seem to indicate that it has benefitted anything at all from the rate rises.
Thank you @ prudentinvestor for sharing some insights on benefits of high interest rate for this counter. No wonder there was some buying in of KSeng at 3.52 yesterday
Keck Seng keeps most of its RM1 billion cash in US and Singapore Dollars. Any drop in the Ringgit against the US and Sing Dollas would also benefit the company.
Hope it rockets up to the moon! Next agung is Sultan of Johore. Let's hope JB will be fast developing ...with more n more Singaporeans shopping n staying in JB
Keck Seng's net cash today exceeds RM1 billion. Just allocate 10% of this amount to buy listed shares that pay good dividends like Maybank. I believe it has held PPB Group and Chin Teck shares for over 30 years. Time to switch to counters which pay better dividends.
Keck Seng achieved record earnings last year but its share price stays stagnant. That seems unusual. Prior to 2020, it used to trade at well over RM4 a share.
Keck Seng's directors had acquired Keck Seng 23,700 shares at RM3.62 a share. The company's net cash and investments in the stock market are already worth over RM4 a share. Too bad, some small investors are willing to part with their Keck Seng shares at fire sale price.
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....
prudentinvestor
4,474 posts
Posted by prudentinvestor > 2023-04-14 15:07 | Report Abuse
A gem which remains in the hands of over conservative people may eventually turn into a stone.