What if you buy for liquidation? Assuming they cannot find any business, there is still roughly 5 cents div incoming and the gap between their net conservative book value and market capitalisation is still so far off.
Side note, the prime land is valued in 1996. Taking into account inflation, the increase in land price is easily equivalent to the price you are paying for in market capitalisation.
The top 4 holds 60%+ of shares and they won't sell out at this dirt price, they might else call for liquidation and get a bigger chunk of profits. The only thing I could see going wrong in investing in Duta is that if:
1) The balance sheet is fake. Basically like those red chips companies.
2) The management does some funny business.
If everything goes within the legal boundaries, I do not see how the top shareholders and management can possibly screw the company up.
normally b4 big wave tsunami coming in, the sea level will drop far beyond the normal low tide n this is what currently happening if u look to the historical dutaland chart...so potential to further drop is there n likely followed by big tsunami wave later....
my fair value for mnrb rite now is ard 3.50 but it never move higher than 2.80 in the past 6mths. and now at 2 with an estimated ri at 1.60, it looks relatively cheap with a tp of 3, so it looks quite attractive to me at the current price.
i feel there will be some sort of consolidation in the insurance space in the next few quarters or so.
Dutaland is giving you money while Mnrc is sucking your money by Rights Issue. With so many Tornadoes in USA, Floods in Japan & High Accident Claims and other unseen disasters in the world and in Malaysia Insurance business might be a casualty like LLyod of London
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....
Fabien Extraordinaire
2,012 posts
Posted by Fabien Extraordinaire > 2018-07-06 20:28 | Report Abuse
they have declared 5 sen previously. why another 5 sen?