ooi,u r slowly getting to know me,haha.Yes,FA to set the foundation first then TA to capture the explosive move (the home run) so as to make the most in the shortest time.
Coming into Nov,there will be 2 catalysts for Engtex.There is the Selangor water deal and the Quarterly result end of Nov.and by the looks of the first 2 quarters,the coming result will be more than satisfactory.
rchi, past two quarters, Engtex reported EPS of 7 sen per quarter. If they report another 7 sen this quarter, I think the stock will cross decisively RM2.00. What is your view on this ?
Icon,yes...possible annual eps of 30 sen,and with Selangor water issue settled and the replacements of old pipes throughout the state and nationwide....i m laughing quietly thinking of the effect on future eps.That's why my ultimate target for mother is 2.50
rchi, is it still worth to buy wa as its ex price is 1.25 + its current price is 0.76 (2.01), which is more than its mother share, 1.74. should i go for its mother share?
rayhvs..if u want to play safe u can buy mother,as limsk25 said,there is a premium attached to the warrant so it is not deemed over valued.Furthermore the % gain from buying warrant is more than twice the mother.So the choice is yours.
Being: 1) an established pipeline system provider with integrated manufacturing and distribution arm, 2) a dominant player in the domestic market who is able to manufacture large diameter mild steel cement lined (MSCL) pipe, as well as 3) one of two players in the duopolistic ductile iron (DI) pipe manufacturing in Malaysia, we believe Engtex is poised to benefit from the pent up demand for MSCL pipes in Malaysia. Despite the share price appreciating 15.9% since our previous report dated 27 September 2013, we still see value in Engtex as it is trading at an undemanding forward P/E multiple of 5.1x based on the current share price of RM1.60/share. Based on target P/E multiple of 6.5x, we arrive at a fair value of RM2.03/share for Engtex.
In neighbouring Singapore, the government is expanding the capacity of NEWater from the existing of up to 30% of the nation’s water needs to 55% by 2060, before the expiry of the second agreement in 2061 for water supply from Malaysia. Engtex could benefit from the sizeable pipe orders in Singapore, expanding its product range exported to Singapore, on top of the existing ductile iron pipes and wire mesh supplies to Singapore.
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....
rchi
20,958 posts
Posted by rchi > 2013-10-30 10:55 | Report Abuse
ooi don q get the seller.