Shit. The speculated plan to merge with Sime Darby Property FAILED. Sime announced proceeding with its own IPO to list its Property arm and distribute ALL its property shares to Sime Darby shareholders. Of course Sime NTA will be adjusted down. And its future profits will also be reduced after floating its property arm. The talked about merger with Ecowld will ALSO GONE N NO MORE
Must remind myself. The trend is your best friend. Never go against it. Property Sector downgraded due to general weak property market with sentiments aggravated significantly by BNM Reports and all the Gurus's / Negative analysis causing much fears resulting in the bearish trend engulfing most property counters.
Will also negatively impact banking stocks due to its linkages to the latters' loan portfolios for property financing both in its lending business volumes as well as its risks of higher provisions for impairments especially with the impending implementation of MFRS9
The increasing glut of unsold properties resulting in the downgrade of the Property Sector will adversely affect all property Developers. The Govt approval freeze on specific categories of new projects will aggravate their business prospects and profits. Situation will deteriorate going forward.
This fear had been at the back of my mind during my earlier comments above (about Lofty Share prices . A sharp correction is overdue ) "Fed officials fear financial market 'imbalances' and possibility of 'sharp reversal' in prices Minutes from the Oct. 31-Nov. 1 Federal Open Market Committee meeting indicate some worry about rising financial markets."
In view of the recent downgrade of the property sector, its current share price can now be considered too high. To wait for is price to correct down further and maybe re-enter after property mart had consolidated. No hurry as got no near term catalysts
really holland company ! The only way they are good at is aggressiveness on selling their product, but enable to sustain consistency really questionable.
Hold for 12 months, should get more then 30% return.. For last 12 months, ecowrold expand aggressively, but share price still the same. Many already no more patience to wait.
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....
prudentinvestor
3,955 posts
Posted by prudentinvestor > 2017-10-28 21:10 | Report Abuse
This company needs several years to lay golden eggs. Only for those who have the patience.