Its also the wrong company. If you look at Ecoworld international's price, it hasn't fallen much. The slide started on the day BNM increased rates by 0.25%. I note that the fall was in relatively low volume and there were no significant high volume before that. Whatever the reason is, I hope that it will turnaround soon.
Yup. No volume yet the price drop like a shit. Possibilities of force sale by banks on the owners shares pledged with them. ordinary shareholders will not sell when the company at this low price. Most property needs financing for their development
Ecoworld is the easiest short on Bursa right now. Biggest market opportunity on KLSE 2022 Interest rate hikes will hurt property development companies the most. No more free money to keep building useless buildings
I don't think that interest hike of 0.25% or even 0.5% should have caused such a fall. The end effect is a reduction in net profit of only RM2700 million debt x 0.25% x 0.7 = RM4.7 million a year. This is insignificant and immaterial compared to the annual profits of 180 million in 2021.
Ecoworld price target: RM0.30 Interest rate hike will impact property development company the MOST. No exception. Even 0.01bps hike will severely damage Ecoworld's profit margins. Whoever is optimistic on this company is insane
If Ecoworld can maintain its earnings in the final two quarters and declare another 2 sen as final dividend, it is trading at a prospective PE of around 10 and a dividend yield of almost 6%. What more do investors expect?
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