Posted by taciturn > 2014-05-08 18:13 | Report Abuse

Share buyback today by Benalec. 1,186,700 shares at an average price of 95.3 sen each.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1617917

Posted by small_investor > 2014-05-08 20:01 | Report Abuse

ofcourse the land reclaim is not an easy business but Benalec is the leader in this industry check their track record before you invest. Why drop so much from high of 1.5X is because delay in Pengerang and CBT by the Leaw brothers.. hopefully with more contracts coming in revenue and profit will increase ....

Posted by JT5774 > 2014-05-08 23:33 | Report Abuse

Benalec have been actively buying back the Company's share for the last 3 days for a total of 5,872,500 shares at the average price of 0.955.

Why do a company's want to do share buy-back :-

1. Such action can be an indication that the Company's believes the stock price is undervalued and also don't see any better investment other than in themselves.

2. The Company's is saying that its share are currently selling at a discount to their fair value.

3. The Company's find itself with a large amount of excess cash on its hands and must decide what to do with it. Some choose to give dividends while others prefer to buy back their own shares.

4. When a Company spends its cash, its assets are reduced. This will cause the Return on Assets (ROA) to increase. Also, Return On Equity (ROE) is upped because there is less outstanding share floating in the market.

5. Companies may find themselves in a position where another company is planning an unfriendly or hostile takeover. If a company can succeed in buying back a substantial amount of its own shares, this make it more difficult to be taken over.

Conclusion :-

Investors obviously would like Companies to buy back shares of their own because they are currently undervalued. The market has yet to realize the Company's true value and once it does, they would enjoy the price appreciation.

Good Night to all Benalec Investor's, and i sincerely hope this will help you all to make your own decision or judgement to sell or to hold.

Happy Trading.

Posted by ahlek888 > 2014-05-08 23:52 | Report Abuse

so next week this stock can fly over $1?

Posted by ymtan > 2014-05-08 23:59 | Report Abuse

I have a silly question .. why Ben need to buy back their share when it is at .95 instead of 0.90.? They can buy it gradually when the market is less concentrate after the announcement being release ..i agreed with all your statement as above said .. The question is why they need yo buy back during hot time ?? Will it be another more positive announcement will be release very soon which will re - value the company ??

Posted by JT5774 > 2014-05-09 06:52 | Report Abuse

Good Morning, Benalec Investors, Happy Trading!

Posted by taciturn > 2014-05-09 08:46 | Report Abuse

ymtan: The simplest answer probably is that they didn't have the money until Tuesday itself. (one of the lump sum payments for the land sales came in, suddenly they're flush with cash with no need for it for operational use)

Of course logic dictates you should spread out your purchases over a larger period of time to get a better average price. I'm guessing though when they had the money (let's assume RM10m for an example), they called their broker (don't think Benalec has someone in the office doing online stock trading :p), tell them how much they have to spend and give instructions to buy up to that amount.

By chance the broker starts buying during the hot market period, thinks "huat ah!" and joins in the rush. :p

The other reason could of course be what you said, there might be another positive announcement coming so management told the broker to buy the shares in x period of time (i.e 1 week, 2 weeks etc) forcing the broker to rush a bit.

Posted by samsung555 > 2014-05-09 09:42 | Report Abuse

taciturn your posed regarding alot of Benalec news, are you the board mamberes of Benalec group.......

Posted by taciturn > 2014-05-09 10:05 | Report Abuse

samsung555: I'm not a board member or an employee of the group. Just an interested investor.

Posted by sunztzhe > 2014-05-09 10:33 | Report Abuse

JT5774:4. I refer to your point 4 which is stated below

Point 4: When a Company spends its cash, its assets are reduced. This will cause the Return on Assets (ROA) to increase. Also, Return On Equity (ROE) is upped because there is less outstanding share floating in the market.

Wikipedia defines ROE = Net Income/Shareholder Equity

ROE can increase if Net income goes up if there is no change to total number of Equity shares
ROE can also increase if Total number of Equity shares are reduced whilst Net income stays the same

How can the ROE of Benalec increase when Benalec buys back its own shares? The total equity shares is still the same whether Benalec buys or other investor buy the shares.

The shareholder equity will be reduced ONLY if Benalec decides to cancel the treasury shares it had bought to reduce the total number of Equity shares. Assuming the Net income stays the same, cancelling the treasury shares will have the effect of increasing the ROE value.

Have Benalec cancelled any treasury shares todate?

Posted by king7 > 2014-05-09 10:35 | Report Abuse

THE AGM has started.

Posted by samsung555 > 2014-05-09 10:43 | Report Abuse

Posed by savvyOne on Apr 21, 2014 12:27 PM

viktor2u, I personally think that the EGM will be held before the end of June, which incidentally is the financial year-end of the company.

Posted by SavvyOne > 2014-05-09 11:37 | Report Abuse

Having tracked this counter and the events affecting and involving the company since its IPO, I would venture to paint the following scenario:

1. Having "settled" the issues caused by, and with, the 2 brothers, Seng Hai now has effectively a free hand to drive and lead the company to the next level, both in terms of business as well as good corporate governance. This is evidenced by the spate of land deals (and the latest reclamation contract) closed by the company subsequent to the "settlement".

2. Benalec is on the cusp of kicking off with the mega reclamation projects in Johor and some interested parties are coming out of the woodwork; these include strategic investors, both individual and institutional.

3. I have learnt from my sources that further good news is in the pipeline and that getting a project in Penang is not a remote possibility.

4. With all the positive developments taking place, it makes good sense for the company to aggressively buy back its own shares (which are now trading well below their intrinsic value), which it can do up to a maximum of 10% of its paid-up and issued share capital. In the highly likely event that a strategic investor/partner wants to take up a placement of say 5% of the share cap, the company can easily do so out of its holding of treasury shares, i.e. the shares that it has bought back. This will likely result in a profit for the company and, better still, will not give rise to a dilution of shareholdings in the hands of existing investors.

To me, the jigsaw puzzle pieces seem to be falling into place at just about the right time.

Posted by sunztzhe > 2014-05-09 11:53 | Report Abuse

SavvyOne: CIMB recommended a sell with TP=90 cents. Why are you so bullish? What is your intrinsic value of Benalec?

Posted by SavvyOne > 2014-05-09 12:00 | Report Abuse

sunztzhe, in computing all financial metrics, be it ROE, eps, etc., treasury shares are excluded. This is as per the Companies Act.

Posted by SavvyOne > 2014-05-09 12:02 | Report Abuse

My view is based on the body of my previous posting.

Posted by SavvyOne > 2014-05-09 12:03 | Report Abuse

By the way, CIMB has got it wrong before. Check out their strong recommendation to buy in Muhibbah's case some time ago.

Posted by jn69 > 2014-05-09 12:08 | Report Abuse

way to go ben ! only one cimb recommend sell. the rest have tp around 1.02 - 1.22.

Posted by zero > 2014-05-09 12:08 | Report Abuse

weren't they the same fellas (CIMB) who said Benalec was 'turning sand into gold' not too long ago?

when somebody can change their opinion (180 degrees, no less) so quickly, it makes you wonder about the work/thought they have put in and their competence, really

Posted by sunztzhe > 2014-05-09 12:19 | Report Abuse

SavvyOne: Thanks for the clarification. In the event that any company sells its treasury shares to a new investor, how will the sales of treasury shares be treated?

In this case the company will make an accounting profit whereas the treasury shares released through the sale will be added back to the equity capital. So the total number of equity shares will increase by the amount of treasury shares being sold by the company. Right?

In the event the new investor comes in and buys the treasury shares within the financial year, the EPS will reduce to reflect the sale of the new treasury shares to the new investor. Is that correct?

The EPS may reduce, stagnate or increase and it depends on the effect of the release of treasury shares back as equity capital on EPS versus the impact of the accounting profit on EPS.

Posted by SavvyOne > 2014-05-09 12:21 | Report Abuse

sunztzhe, you are right on both counts except that the gain(s) made by the company in disposing its treasury shares to the incoming investor(s) will increase the net assets of the company and will therefore increase the NTA per share.

Posted by samsung555 > 2014-05-09 14:55 | Report Abuse

don't guide we all to Holland......

Posted by SavvyOne > 2014-05-09 15:03 | Report Abuse

Trust me, you will end up in ShangriLa.

Posted by SavvyOne > 2014-05-09 15:04 | Report Abuse

My personal belief is that things will start moving in earnest as soon as the EGM has been put to bed.

Posted by zack_liza > 2014-05-09 15:08 | Report Abuse

i rasa ben10 mcm dah nak terbang ni...anytime will fly 1.00...support at 0.95....

Posted by zack_liza > 2014-05-09 15:13 | Report Abuse

mari..mari...baik punya...TP 1.20 to 1.30...

Posted by samsung555 > 2014-05-09 15:16 | Report Abuse

just buy like savvyOne said ShangriLa is coming soon.......buyyyyyyyyyy................................

Posted by jeremmy1 > 2014-05-09 15:28 | Report Abuse

recent high vol indicate funds are accumulating.....soon will move up to 1.00. good luck to all of us

Posted by zack_liza > 2014-05-09 15:38 | Report Abuse

beli sajer..buyer tak nampak but still eat seller price..big fund collect to be substantial shareholder...

Posted by zack_liza > 2014-05-09 17:10 | Report Abuse

good signal for benelac..Target opening on monday 0.98.... my prediction transaction on monday low at 0.97 high 1.02...please monitor this stock..

Posted by taciturn > 2014-05-09 18:38 | Report Abuse

Share buyback today buy Benalec. 300,000 shares at an average price of 96.5 sen.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/1619141

Total spent on buyback for the week RM5,859,115 for 6,172,500 shares.

Current total number of treasury shares held by Benalec: 7,772,400 shares. (0.96% of the company's issued shares)

Posted by powerwk > 2014-05-09 20:47 | Report Abuse

Hope that a good sign and wish they will reward investor by special dividend since they buy back so many share so far. Perhaps I'm dreaming but rather than sleeping.

Good luck all.... see you Monday!

Posted by jenabchen123 > 2014-05-09 23:27 | Report Abuse

The daily chart looks nice, the weekly chart also nice, the monthly chart also nice. what can we conclude on the latest trend? Will it continue the trend and set a turnaround to its yearly chart??? Anybody care to be left behind a moving train? what train are we talking here? a cho cho train, electric train, a bullet train or an electromagnetic train??

Posted by jenabchen123 > 2014-05-09 23:31 | Report Abuse

Just lending a helping hand here.

21/3/2014 (Day 3) : 0.935
25/3/2014 (Day 7) : 0.920
26/3/2014 (Day 8) : 0.920
27/3/2014 (Day 9) : 0.900
28/3/2014 (Day 10) : 0.900
01/4/2014 (Day 14) : 0.890
02/4/2014 (Day 15) : 0.890
03/4/2014 (Day 16) : 0.885
04/4/2014 (Day 17) : 0.905
08/4/2014 (Day 19) : 0.895
10/4/2014 (Day 21) : 0.895
14/4/2014 (Day 25) : 0.895
15/4/2014 (Day 26) : 0.900
16/4/2014 (Day 27) : 0.900
17/4/2014 (Day 28) : 0.900
22/4/2014 (Day 33) : 0.910
23/4/2014 (Day 34) : 0.935 (That is up 1.5 cent in 34 days!)
30/4/2014 (Day 41) : 0.900
05/5/2014 (Day 46) : 0.895
06/5/2014 (Day 47) : 0.940 (That is up 2 cents in 47 days!)
07/5/2014 (Day 48) : 0.955 (today up by 1.5 sen. Yahoo!)
09/5/2014 (Day 50) : 0.965 (today naik lagi 1 sen. Google!)

I am tracking interesting time for Ah Ben! Huat arghhhh!

Posted by Axin > 2014-05-10 01:42 | Report Abuse

Thanks,jena.
Have been stuck in this for so long. don't know when can regain capital.

Posted by powerwk > 2014-05-10 09:46 | Report Abuse

Haha, jena after Google! what next? Now you replace someone to take on that job? :-)

By data and chart the next important level is RM1. Once break next week then will be good to hold. Or for some folks then will run even with lost.

Axin - its all depend on news and quality project that they are getting from project. If the management continue to surprise the investor with good project and good quarter report then it should be reach your target price in very short time. Of course it depend on your average price for the share. If it still high you probably can consider to average it down by buying some now. If it close to your average price then just hold and see what going on next week.

Posted by Beginner1989 > 2014-05-10 11:07 | Report Abuse

Just wondering can still go in with this price?

Posted by SavvyOne > 2014-05-10 11:46 | Report Abuse

You absolutely can. Who would know better than the company's management? They have deemed it viable for the company to buy back 6 million+ shares at a cost of RM5.9 million. They certainly think or know that the shares are worth much more than the current price at which the shares are trading. To me the downside risks are minimal, but the upside potential is definitely very attractive.

Posted by alexisvics > 2014-05-10 13:32 | Report Abuse

The share has broken 96sen gate, soon to break RM1.00.....go--go--go uncle Ben

Posted by alivetoinvest > 2014-05-11 00:43 | Report Abuse

this doesn't seem right somehow. It seems too good and obvious.
Company buying back a super huge chunk at 0.95.
And its a HUGE HUGE chunk
Why wouldn't everyone buy it?
Seems too easy. Like free money lah
Somehow, somewhere, very very very fishy..
My opinion only lah ^^
good luck

Posted by alexisvics > 2014-05-11 09:11 | Report Abuse

This is a big fish soon. Prepare your net mr.alivetoinvest.

Posted by alivetoinvest > 2014-05-11 11:01 | Report Abuse

I dont know but it seems too easy and expected.
Hmmmmmm

Posted by Beginner1989 > 2014-05-11 14:19 | Report Abuse

I don't get two of you. Means this stock is good to buy or what?

Posted by powerwk > 2014-05-11 16:02 | Report Abuse

alivetoinvest - if that the case you tthink of then you already make the decision not to invest in this counter. What the point to invest counter that you did not believe or doubt with. :-) your opinion may be right and who know you will come back to this counter later?

Posted by ahlek888 > 2014-05-11 22:25 | Report Abuse

seems like volume picking up. let the fishiness begins?

Posted by alivetoinvest > 2014-05-12 00:04 | Report Abuse

I think i'll buy when it dips a little. Hehe

Posted by air01557 > 2014-05-12 00:07 | Report Abuse

Yes, it will correct (dip) - then you can buy

Posted by jenabchen123 > 2014-05-12 00:34 | Report Abuse

He he he

Posted by johnny cash > 2014-05-12 00:43 | Report Abuse

https://www.facebook.com/photo.php?fbid=794665227210909&set=oa.491175974345114&type=1&theater

Posted by JT5774 > 2014-05-12 06:58 | Report Abuse

Good morning, Benalec Investors, Happy Trading!