Currently, even Kps just hold 30% stake in splash, a associate company, but, it is major profit contributor to Kps.
Divestment of splash will be good to monetize only if offer take over is based on book value or RM 2.5 billion, but it will be negative impact if offer price remain at RM 250m.
the price is so much difference. It just like heavan and hell. Probably at the land/earth level will be offered a RM 1.7 billion. if kps own 30%, then it will get about rm 510 million. If the pay minimum 30% of the rm 510 miilion, then the special dividend will be 30 cents per share.
With series of new profitable business acquisition, KPS effort already start bearing fruit, once, Cenbond earning kick in next q, KPS earring will be even higher. :)
Good result also no use . Recently some company with good results also dump by investor . If no news this kps price won't move . Let's us to wait for 9xcent .
kps is going to the right direction investing in the less volatile business. Not like puncak announcing new business like oil and plantation before selling syabas.. now what happen to the share price even though many cash.... end up like chicken without the head.
no-wonder kps was awarded with best risk-management award.
I think if selangor wan to privatize it, it should be before selling splash, as splash assets is a gem in KPS, it should take over it before unleash it,
Don worry, puncak also on track to follow KPS success path, in the midst to wisely make full use of its cash from water divestment ta acquire new profitable business , targeting ....Triplc, more construction contract, kelantan water concession
assuming you get 30 cents special dividend with roughly about 18% yield, then by back-calculation the share price shall worth 1.60 That is only giving minimum of 30% of the 510 million they made.
Sellers volume strong today. Looks like some people wanna keep this share from flying. But I like what I'm seeing in the Q-results so far with the contribution from the chemical sales segment. Definitely not selling any KPS(or some call it penguins) for the moment, wanna buy more instead but no money...
i think some insider has been accumulating this counter with high volume . Probably splash deal is getting closer and the offer is good. Probably special dividend of 30 cents will come true.
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....
hng33
20,528 posts
Posted by hng33 > 2016-08-25 22:52 | Report Abuse
:D)