Engtex's earnings is more resilient than a lot of people know. Eve during 2008 crisis, they made good profit. This means their business model has strength.
Bought this counter maybe 8 years ago. Subscribed to its rights at 50sen with free warrants in Sep 2007. It was struggling at 50 to 70sen range for a good many years. Dividend back then was also pathetic few sens. 20,000 shares with 4,000 rights and 12,000 free warrants cost 14K back then. Now its worth approx 50K? Long wait, but eventually, all is good.
Icon, it was actually very frustrating holding on to these shares, no movement for years. Many other counters I bought at below 75 sens, eg Latitude, now at 2.50 mark. Best buy was probably Maybank OR in Apr 2009, when Maybank dropped from RM15 to RM4. Subscribed for Maybank at total cost of 3.85. In 5 yrs, with dividend, DRP and capital appreciation, it has gone more than 3 times what I paid. That's the value of investing.
why buy engtex... ? in case langat 2 project is cease. engtex will plunge..buy jaks better...new reservoir is aprove to build now to substitute damn..so small pipinng /fiiting is need only as now..i feel jaks will be a beneficial
if at all anything, there will be pressure to speed up completion of Langat 2 in view of critical water shortage situation in Selangor & KL over next few years. Anyway dun think Engtex current price is the function of Langat 2, without this it already earns about 28cts eps. Langat 2 can only enhance its growth profile.
I still think the hangover effect of Engtex at 1.88-1.90 is due to the cancellation and resale of its treasury shares. It still hv 8.5million shares to be sold out. But so far, i think the sales are well absorbed by investors, If not, the price would hv free fall and will not sustain at such lucrative level. The sales of the treasury shares will be factored in the next quarterly report in May 2014 as ENgtex had bought back its shares in 2013 at prices below rm1.00.
a couple of foreign funds are buying the shares over the last few weeks. Latest rumour is that the water concessionaires have agreed to a deal to be struck with the Selangor/Federal state govts
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Icon8888
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Posted by Icon8888 > 2014-03-14 16:52 | Report Abuse
Does it matter ? We satu malaysia mah : )