Yup, the latest PE is 26 now and will drup further to PE less than 20 by FYE2017. For those who sold after the financial announcement last week better think twice and my best advise is to buy back now....
This company will be like 2nd Kerjaya Prospek. Dun forget the IBS is going to take place in 2nd quarter of 2018. Buy now and keep for this stock.
The catalyst for this stock will be: 1st continuous support by LBS Bina Group. 2nd IBS system going to contribute signficantly on next year. 3rd Maybe, i just say maybe ML global will be benefited by the Zhu Hai project.... 4th. Last friday transaction didnt show the "sell on news" in fact, a lot of ppl buying. The share price increased from 1.64 to 1.70.....
Choice is yours, hold for long term.
Target price for short term revised to RM1.85, Mid term @ RM2.10, long term @ RM2.30
This is controlled stock.The daily trade volume never exceed 10mil.Not even 2% of total shares.Can not be analysed by chart.Apartment in Cameron is over supply.Not easy to sell.It's better to stop construction rather than having shortage of fund during construction stage.
I won't buy if the stock collapse because the cost of major shareholders is very low.I won't sell if daily trade volume is not more than 10mil because is easy to push it up
The 4th quarter result should be good.Probably LBS can transfer the profit to ML Global.By adjusting the contract sum,revenue for ML Global will be increased,hence earning will be increased.After all,LBS still own 51% of the earning.
Now more easy to push up the warrant after most of the people converted into mother shares.Total shares now is 14.5mil,after deducted Tan Sri,his brother & dato Beh 6.5mil,only left 8mil shares.If after deduct the shares own by operator,maybe no more shares in the market.
In that case better watch out.MD & his cousin brother are holding all the ICPS.They have converted 90mil out of 180mil ICPS to ordinary share now.Probably they are planning to sell anytime.
Remarks : The above ICPS are converted to Ordinary Shares based on a conversion price of RM0.67 and at the conversion ratio of one (1) ICPS into one (1) Ordinary Share with no additional cash payment.
The latest issued and paid-up share capital of the Company including ICPS is RM382,445,407.40 comprising:-
(i) 487,709,273 Ordinary Shares; and (ii) 90,000,000 ICPS.
Maybe automatically converted.67.5k by LBS,22.5kby Datuk Lim.All together 90k.After converted,earning per share will be diluted.Now total shares 488mil,before 398 milTheir cost is 0.67,actual cost much lower.
I do my calculation on expected PE .I assume property market still good & earning remain 10mil each quarter for the next two quarter. Normally public invest research never take ICPS into account.
PE=Price/Earning per share
Current price =1.63
Total shares is 492mil+90mil ICPS=582mil
Total earning per year 10milx4Q =40mil
Total earning per share= 40mil/582mil=0.069
PE=1.63/0.069=24
If want to know the expected PE,just take the current price divided by 6.9ct
I expect at least 30% growth in revenue next year once the IBS plant has started to contribute. So current PE is okay for me and the this stock is really a controlled stock, nobody can let it collapse unless big boss wants to.
Recent conversion of ICPS and huge warrant amounts might due to the fund that they need to set up the IBS plant, so all big bosses are injecting more money into mlglobal.
Not to mention that the shares hold by LBS Bina and Lim Lit Chek will be ballooned to 72% out of 100% in mlglobal total issued shares after they convert all the ICPS and warrants. It is just showing how confidence the management is in term of the prospect of the company or else they will not invest so many money into mlglobal.
Another advantage of using the IBS which is not mentioned in the news is that the using of IBS will let them save cost in the raw material by reducing the using of steel bar which is more expensive now.
The above ICPS are converted to Ordinary Shares based on a conversion price of RM0.67 and at the conversion ratio of one (1) ICPS into one (1) Ordinary Share with no additional cash payment.
Please read carefully,they sell MITCE S/B to ML Global 300mil,with the issue price of 0.67per share.They never paid ML Global a single cent but ML Global issue share to them,268mil ordinarily share & 180mil ICPS.Who determine the selling price?The seller & the buyer is the same person.That's why they own 72% as what you said.
Conversion don't need to pay a single cent.0.67 is issue price.
Ken, sorry, I think you are right. I found those details in the pdf file.
Conversion Price or Conversion Ratio : Subject to adjustments to the conversion price and conversion ratio set out below, the conversion price shall be an amount equivalent to the Issue Price (“Conversion Price”), which effectively results in the conversion ratio of one (1) ICPS into one (1) new MGB Share (“Conversion Ratio”). For avoidance of doubt, no additional cash payment is required for such conversion of the ICPS by the ICPS holders. Based on the current conversion ratio, 180,000,000 new MGB Shares will be issued upon full conversion of the ICPS.
@christophertopher , if based on current PE, price seems like overpriced. But if you take into the account of 30% growth, current valuation is reasonable. The only risk to growth stock like mlglobal is when it unable to deliver the "expected" result. So for those who have bought mlglobal since 1.1x like me, it is okay to hold and let profit runs. For those who intend to buy but haven, you must have a very strict trading/investing plan including when to buy and sell because you do not have the safety margin like us.
@Ken, as no cash is received upon the conversion of ICPS, my guess that it is probably why they extend the private placement period so that they could do another private placement to have fund to build the IBS plant as I kind of remember that they need like 20.4m (51% out of 40m, 51% holding in JV with Sany) fund as the initial investment to build the plant.
For those who intends to sell at current price, dont need to be panic selling, if you have observed the buy queue during this few days, you should have already noticed that there are someone who queued huge amount of money to buy at 1.62, so you guys could probably sold all your holdings at 1.62 without the need to throw all down the share price tremendously. Just my 2 cents. No offence. Btw, happy winter solstice to all of you. :)
I am not rushing to sell.The major shareholders need time to dispose their shares.Once the daily trade volume increase abnormally,then it's my time to sell.My guess is they will support or push up the warrants once they want to sell their mother shares.Currently total shares for warrant is 10.3mil relative low compare to mother shares whereby total shares is 492mil.Just need little fund to push up warrant
I am quite confused when you are saying that the major shareholder need time to dispose their shares. From my point of view, I dont think they want to sell and if they really want to sell, there is no retailers that have the ability to absorb the shares they own. The average volume traded each day is only around 500k.
PtransGoGoGo.Yes,you are right,not enough retailer able to absorb the shares,that's why they need to take more time to dispose(.Media strongly recommended,this will make more retailer to absorb)I am not sure whether you aware that one of the current ED was MD for Vintage Bhd.ML Global former name was Vintage Bhd. Previously the share price was push up to Rm2- 3(I can't recall the actual price)and the shares was dump until the price drop to 0.10+ & the company was fell into PN17.LBS bought over the remaining shares from him and able to control 51% of this company and he was appointed as ED for this company.The same story might be happened again & probably in very slow progress.
If you are referring to Beh Hang Kong, I dont think is a real issue now as he is only the Non-Independent Non-Executive Director for mlglobal now which is basically useless
They might follow Dato Beh's footstep.If really can sell this company at market price,they can earn at least 500mil.If you can earn 500mil in one year plus,why you choose to earn 40mil in one year.But for sure nobody will buy this company at this rate,they only can sell it in market & you can know by volume traded.That's why I will base on target volume to sell,not target price to sell.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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 2948 views | 2 d ago
0:17
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....
Stevecheahsw
881 posts
Posted by Stevecheahsw > 2017-11-10 00:59 | Report Abuse
greatful, u are right, buy wa to convert mother immedialy gain