As to the second point, it's quite possible as Savvyone put it that progress payments for the land sales are coming through hence their ability to commit to buybacks.
Sadly, Benalec gives their quarterly results near the end of the two month time limit allotted (as does at least 90% of all Bursa listed companies). So we won't be able to interpret very much on this aspect when the quarter ending March results come out some time end of this month.
The point that highlight by savvyOne on the buy-back of shares of 50M based on the company flush with cash might be true. I have search through the annoucement on the Bursa as follows:-
Cash @ 31/12/2013 RM 16,763 M
Land Sales to Faithview (S&P signed on 17/12/2013 and the Final Payment of 90 days after signing of S&P) RM 49,978 M
Land Sales to Teobros (S&P signed on 13/03/2014 and the terms of payments, upon signing of S&P 10%, after 7 days, 10%) Total 20% collected. RM 9,623 M
Land Sales to Ultra Harmony (S&P signed on 20/03/2014 and 10% upon signing of S&P) RM 23,513 M ------------------- RM 99,877 M Cash collection expected in June, 2014 :-
Land Sales to Teobros (Balance of 80% after 90 days from the date of signing of S&P) RM 38,492 M
Land Sales to Ultra Harmony (Progress payment) RM 53,661 M (Balance = RM 157,955,268.24) ------------------ RM 192,030 M ------------------ Base on the above cash collection summary, i believe that the Company's have to fund to do the shares buy-back as much as they can.
It is up to you all to make your own judgement, to continue to buy, hold or sell.
Hi guys, before trading resumes tomorrow morning, I would like to take stock of the postings on this blog, both by myself as well as by others. To begin with, kukuman of late has been conspicuous by his absence ... wonder whether he has retreated to his closet, where he is presently hiding!
Next, about a week or so ago CIMB Research published their analyst's report recommending a SELL call with the target price of 90 sen. Anyone who has half a brain will wonder why CIMB, in their doubtful wisdom, would set that low a target price. Well, the closing price yesterday was 98 sen! Good luck to those who took their advice and got out at 90 sen. Unless they have a secret agenda, I can't understand their analyst's sell call at that price. As I mentioned in my post of some days ago, CIMB strongly recommended a BUY call in relation to Muhibbah Engineering's involvement in the mega Asian Petroleum Hub (APH) project some years ago. Guess what happened then? The project went KAPUT due to cost overruns and delays. Guess also who ended up with egg on their faces? The same guys recommending a sell call of Benalec shares at 90 sen! Also, CIMB reckoned that Benalec's mega projects need to kick-off for the company to turnaround. What turnaround? Has the company been making heavy losses and is going into PN17?
On the positive side, since the departure of Vincent Leaw's two brothers from the company in early December 2013, land deals have been closed and a land reclamation contract has been won, generating an aggregate revenue of RM600 m in the process. The cash flow position of the company is definitely very healthy. This happy state of affairs surely serves as clear and strong evidence that the company, under the astute and dynamic leadership of Vincent Leaw, will catapult to the next level. So, all you true and fair-minded believers, now is the right time for you to make the right move.
Haha.... First Kukuman job have been taken up by someone now. Plus the share price are in green therefore he/she won't show up. We can hear from kukuman when it drop or bad news coming again. Else don't expect to see him. By the way why we need his voice. I believe most of us ignore his comments. I did even spend a second on his post for some reason.
IMHO and past experience, I did not read analyst by CIMB and OSK. Even someone share I won't believe them till the real thing happen :-) well don't get me wrong some time they are right but most of the time they do that by making profit. They may be one of them that buy in when those listen to them to SELL :-)
At the end of the day make your own call and decision.
CImb had a 'sell' call when Muhibbah Eng down below 1 a few year ago, now they have strong 'buy' call when Munibbah price had peak close to 3. Well, for me, this is a typical buy high, sell low case, how to make money? Cimb seem try very hard to wipe off their readers or customers. A pro and responsible investment bank should not advice their customers to chase high.
Is better to subscribe to iCapital analysis, which is more pro and independent. Not like those cimb, either they had hidden agenda to profit someone or they just hired 3 grade advisors.
Of course, wait until Tanjung Piai deal confirm, then it's 100% safe to buy like cimb had hinted. But, do u think the price will still be below 90? I think it will be way above 1.50 or 2. I bought at 87 before 2 cents dividend in Dec '13. For me, buying low is crucial in equity investment. I won't try to time the market because I don't have the 'skill'.
Shares buyback won't stop suddenly as happen in my other stocks like Parkson and RCE Cap. I also think shares buy back will enable Benalec to rise above RM1 even Tanjung Piai project not confirmed. KWAP selling also no more news?
you will regret more if you do not get in today. but make sure you buy and keep for 2 months. i can see it flying after EGM and confirming a few more land deals.
The high volume of transactions and the upward price movements in recent days have not been surprising to those in the know. The news is that the big funds, both local and foreign, have been buying into Benalec, mainly because they see the big potential in the company. It is not difficult to figure out the positives that have prompted them to make their investment decisions. I surmise that these are: 1. The counter is, at the present price level, grossly undervalued. 2. The recent business deals closed by the company will net some RM600+ millions revenue for the company. Assuming a 25% contribution to the bottom line, some RM150 million will be added to the net assets of the company. 3. With the procurement of EIA clearance in the pipeline, the mega Tg Piai and Pengerang projects are due to commence sooner rather than later. In fact, physical work is targeted to start soon. 4.Confirmation by Petronas of its decision to proceed with the RAPID project is a shot in the arm for Benalec because of its concession rights to reclaim approximately 1,500 acres of land in Pengerang, near to the RAPID project. Once the RAPID project takes off, there will be a clamour for land in Pengerang by the O&G players in order to engage in downstream business. Benalec will be in prime position to capitalise on this upsurge in demand for land in Pengerang.
So,guys, do your homework and quickly decide to take action.
Savvy, thanks for the info. the continuous buyback by the co made for a good base for price movements. what is your 1 month tp for ben? I think the 1.20 point is very much achievable. Given it's gross underperformance and scandal-ridden past 12 months, I think people overlooked it's huge potential. If and when EIA clearance is obtained, I am sure it will once again be a darling of fund managers like it was before. Be aware that it was trading at a range of 1.50++ with an average TP of 2.00 a year ago.
Based on the land sales and letter of awards for reclamation and the steady flow of cash, I do believe Benalec share price should worth at least 1.60+, without Tg Piah & Pengereng reclamation project.
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Posted by taciturn > 2014-05-12 22:29 | Report Abuse
staind86: Agreed on the first point.
As to the second point, it's quite possible as Savvyone put it that progress payments for the land sales are coming through hence their ability to commit to buybacks.
Sadly, Benalec gives their quarterly results near the end of the two month time limit allotted (as does at least 90% of all Bursa listed companies). So we won't be able to interpret very much on this aspect when the quarter ending March results come out some time end of this month.