Quote: Many property developers are giving 20 to 30% discount to clear inventories. This is particularly true for developers having high gearing so as to ease cash flow problem.
Is it the case for Ecoworld? What is annual sales compared with borrowings and trade payable? Is the 'profit' generated sufficient to pay off interest charges? I have no idea. I prefer to leave them to those already heavily stuck punters to provide us with the answer.
kopitiam is absolutely correct as what is happening to Hongkong economy right now. You lost your job, for how long you can survive with mortgage that take up to 50% of your income every month?
But in the case of property market in Malaysia, unless you are punter trying to flip (with DBIS) and now you are to pay full installment, very likely genuine buyers should be able to service their loan obligation.
What we are talking now is for those Big Head Developers with mountain size bank borrowings, can they keep on holding their completed houses with no sales? That is the reason some developers already offer 20 to 30% discount right at the moment. By next year, some may offer up to 40% before become insolvent.
1. Father buy from son at 45 sen, need not pay for more than actual intrinsic value.
2. Mountain size debt killing all.
3. Property under Eco Brand not selling for it has priced out of market range (overprice lah)
4. Land cost extremely high. Landbank acquired at prevailing price prior to property slow down.
5. Cost for unsold units keep on adding, interest expenses, depreciation, maintenance cost for landed/ strata condo.
6. Very soon fire sale to clear stock. 5% discount, 10% discount, 15% discount, 20% discount, 25% discount, 30% discount, and finally at 45% discount fire sales.
7. Ecoworld International is another sick child. Medical fees will be unbearable.
8. Many other very well managed property counters with strong cash flow, low land cost, strong brand, trustworthy directors, good dividend pay out, low PE, low P/B. All are having much better prospect than Ecoworld. Why go for lemon when you can find orange for the same price?
Why Ecoworld will come down to 45 sen very soon? Drifting downwards mah. You know what are the characteristics of a drifting stock? Engine malfunction, nothing to stop it. You know Newton's Law of Inertia?
LKS will be much more happy to see the minorities to take up the 45 sen right issue with free WB, rather than now u all dumb2 defending the current price!!
Coming soon to 0.45 than follow by 0.25 . EPF are dumping Eco world share at the moment. Will come back next 2 years. Earnings all go to debts payment and Directors' pays and bonuses ! Ikan billis all makan kacang.
forgive him Alan, As I said..he is just a machine... No brain... I explained to him many times.. we cant control share price..but fundemental is there... why 0.45?
ks55 Sell Ecoworld. Cut loss. Use proceed to buy into GKent at 1.05 You will make money today, latest next week. 01/11/2019 12:28 PM 25/11/2019 3:08 PM
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....
apalumau
2,192 posts
Posted by apalumau > 2019-11-22 08:48 | Report Abuse
云顶壹号i, 好康啊.....!