Even though they have a strong and branded parent company but Public Investment Research is the most lousy in malaysia investment world . very close to holland
Hi there fellow investor! i think public invest is right and also wrong. The land value is there in a nice location yes but this co is a palm oil oleochemical products co. Long term, good value but short term, a bit hard to keep on running-up. Now kena bursa unusual market activity query (UMA query), i think short term puncture lah....
Eric123, just because you lost money in SBC Corp on 15 Jan 2014 due to your short-term trading mentality (btw, SAB is not meant for punting -> I agree with Yogibear), you accused PublicInvest for being 'lousy'. If you have kept SBC Corp since their non-rated note on SBC Corp issued on 15 Jan 2014 ( http://klse.i3investor.com/blogs/PublicInvest/44887.jsp ), you will have made >65% in less than 4 months. PublicInvest issued a note on SBC Corp months before Kenanga and CIMB even initiated on it.
Anyway, every house will have good and bad calls. If you have bought shares for a long time (>20 years), you will recognise anyone who can give more right calls than wrong ones as good (out of 10 calls, 6 right ones are already considered positive alpha). The key idea is to maximise the gains (ride the winners) and minimise your losses (cut the losers).
I cannot edit my earlier post...my apologies on Kenanga issuing a note on SBC Corp later PublicInvest. I overlooked that Kenanga had issued a Trading Buy note on SBC Corp on 20th June 2013. Anyway, SBC Corp share price only moved up in later half of Feb 2014. http://klse.i3investor.com/servlets/stk/chart/5207.jsp
As for SAB, after such a steep run-up, it is better to be careful (particularly, for short-term punters with no holding power).
This is a long term counter. As there is such a huge safety margin, it is still safe to purchase at the current price. Just look at the response of IJM Rimbayu projects and the selling price, you should have a good idea on how much is the land owned by SAB. One needs to watch out for is the latest response to Rimbayu Periwinkle project.
A bit of profit taking after the huge rise is to be expected. The Company can deny any immediate plans of disposal of the 644 acre land in their reply to Bursa's UMA but what you can not deny is the inherent value of the land, which is what Public Investment research was referring to.
I have been keeping this counter for over 2 yrs+. As I do not have the financial strength to buy a piece of land in Kuala Lumpur region, buying into SAB is another way to participate the upside of land appreciation in KL region. With the current price of RM5.5/=, it works out to be about RM27/= psf of land in Kota Kemuning if we ignore everything else. Do you expect Rimbayu housing project price to go higher or lower in the near or far future?
Let the short term punters exit and expect the price to drop slightly. The sellers are little and price is holding on well. Do not expect the board to say they are developing the land now when they are not ready yet. Smart way is to maximize the development of this valuable land and use the massive profit generated to buy agri land in East Malaysia and Indonesia or venture into value added downstream palm oil activities. Just like at what the boss of IOI did! Boss of SAB is from Klang just like IOI boss, shrewd and wise entrepreneurs. Just my gut feel.
3.8 million shares traded on Thursday and Friday rising RM1.45. Yesterday and today, 800,000 shares traded giving up 47 sens.. How much shares will be picked up from the remaining 3 million shares in the next 2 days?? Price expect to be under great pressure.
Today abt 140k shares are traded, vastly smaller from that yesterday. Lesser sellers and buyers now. Value investors could hold the stock if have holding power.
I believe they will use the land for residential development as they will benefit from the infrastructure and traffic flow built by ijm land. SAB won't be short of funds and experience to develop it. Former ijm boss is somewhat linked to southern group. They have all the fact n figures ready cards to play the property theme.
Smart businessmen will not plant kangkong or palm oil in the middle of well developed towns or cities, simple logic. Patience and holding power are the keys here. Latest is RRI land, early examples just look at agri land in Puchong and Subang Jaya!
Southern Acids may climb after the latest white candle. Traders may buy if it closes above MYR5.00, with a close below MYR4.80 as a stop-loss. The price target is MYR5.50 if the MYR6.00 resistance is broken. However, note that the stock could trend lower if it fails to get above MYR5.00, while the downside risk will increase if the stop-loss is triggered. RHB RESEARCH
Judging the current property market in Klang Valley, SAB may keep their land in Kemuning area for another 10 years...waiting for the next property boom.
The location for Kemuning land is very strategic, surrounded by Kota kemuning, Bandar Rimbayu (IJM) and Tropicana Aman (Canal City). On the way to Rimbayu Sales gallery via Bukit Kemuning, you will pass by SAB's Land (on your right hand side). In future, Rimbayu residents will also able to access through North-south highway to Putra Jaya & KLIA and South Klang Valley Express (SKVE). For more information, you may visit Rimbayu sales gallery. If SAB choose to keep their land for another 5 year, they can easily sell it above RM50/sqft ( limited freehold land in that area)
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3079 views | 2 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
hoeleong
7 posts
Posted by hoeleong > 2014-04-26 15:34 | Report Abuse
MPHB also a very good company and similar story with huge plot of land located in Pengerang