KUALA LUMPUR (Dec 10): KUB Malaysia Bhd (KUB) said the fulfilment of the conditions under the Sale and Purchase Agreement (SPA) signed between its indirect wholly-owned subsidiary, KUB Agro Holdings Sdn Bhd, and Beradin Plantation Sdn Bhd has been extended by 30 days until Jan 8, 2021.
Under the SPA made on June 10, 2020, KUB Agro Holdings had proposed to dispose of two oil palm estates in Kluang, Johor to Beradin Plantation for RM158 million cash.
"The compliance period for the fulfilment of the conditions precedent under the SPA made between KUB Agro Holdings and Beradin Plantation has been extended by 30 days until Jan 8, 2021," said CIMB Investment Bank Bhd in a filing to Bursa Malaysia, on behalf of KUB.
"Save for the above, all other terms of the SPA remain unchanged," it said.
CPO prices are at 8 years high and its last quarter's result was credible. But why is this counter still languishing at current level?
In my opinion, these are possibly the reasons: 1. Lack of coverage/promotion for this counter: No brokerage houses actively cover this counter. Even our forumers are not actively promoting this counter here. 2. The company is undergoing a transformation of business portfolios, away from plantation business and into midstream LPG business by 2021. 3. No declaration of dividends to attract longer-term investors.
The lack of interest in this counter is evidenced from the low trading volumes recently. This gives a good opportunity for the operator to collect cheap tickets on the quiet, for the next push up.
January is traditional the best calendar month of the year for small and mid-cap stocks as we gear up for the CNY. Let's see if the tide will lift up this laggard counter.
Do your own homework. Buy or sell at own risks. --------------------------------------------------------------------------------- Loh Kok Wai W waste your time n money counter.....
Our market started weak on the 1st trading day of 2021, reeling from the termination of the KL-Singapore High Speed Rail(HSR) project. Many of the high fliers(eg steel counters) got sold down.
I thought I could scoop up more of this counter at much lower prices. But operator did not churn it down below 58 sen. For 58 sen, we need to queue far behind the operator. Lol.
I was told the sharp drop of the glove counters yesterday was in large part caused by RSS(Regulated Short Selling) activities of the big boys.
Fortunately, this counter is not in the RSS list. So, it is safe from RSS attacks. We just need to put up with the day-to-day churning activities from the mkt operator. Less volatile.
I was spot on to say that genuine selling had almost dried up. After churning down more actively in the past 2 days, the traded vol came down to a trickle of merely 70,100 traded shares this morning.
Apparently, the market operator is taking a break and stops churning after futile attempts for now.
Talking about churning, I would say nobody can hardly beat the goreng master of Awanbiru Technology(previously known as Prestariang Berhad). After collecting cheap from a rights issue with free warrants, he started to churn up their share prices almost non-stop everyday, until his cheap rights and warrants got almost fully distributed.
This morning, he started to do a major shake-out by churning down the share prices of both the rights and warrants in huge vol, hoping to collect them back at much lower prices. A master-grade market operator indeed!
Just asking an opinion, is this company (KUB) keep into my portfolio for mid/long term? Seems nobody interested with this stock. Volume traded also low everyday.
Gentlefolk, I have already explained earlier why this counter has not been too active. You may check back my past postings.
Usually, we invest for 2 things: capital gain or/and dividend. Unfortunately, this counter does not declare dividends as it needs extra funds for transformation. So, we can only go for capital gains. This explains why punters/traders will be keenly attracted to buy only when trading vol is ramped up as a result of more active churnings by the operator on positive catalysts, eg release of good quarterly results and/or sale of assets, etc.
As CPO prices are doing well, we can at least expect good quarterly results from the company's plantation business last quarter and this quarter, plus possibly some more asset sale news in the making.
To be very frank, a discerning investor will like to nibble at counters when trading vol is very low and price, attractive. But this is no easy feat as it requires some skills and knowledge of the company. Fortunately, we can use the dollar cost averaging method to average out our buying costs.
To invest longer-term, a company must demonstrate a proven track record of consistently good profits in a growing industry, plus declaring dividends on a regular basis.
The company is going into midstream LPG business(for higher profit margins?). Whether the share price will go up will depend on how successful the company can turn around the business.
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....
strattegist
23,459 posts
Posted by strattegist > 2020-12-10 11:01 | Report Abuse
soft