@OTB "A cup and handle chart is formed soon. Super bullish. I just recommended it yesterday, it shoots up like a rocket. See you at 0.995 soon. Good luck.:
Does this stock meets your FA investment criteria??
1.I am a fan of Ekovest. I have been here since Sept 2023, still is and will continue to be around. 2. As you are aware, last year in Sept TSLKH has a proposal to reorganize, rationalize and to merge it sister companies to scale up Ekovest and establish it to become a conglomerate. 3. In the mega proposal and among them, Ekovest will buy 70% of Credence a company that belongs to TS at Rm1.14b. Ekovest will issue new share at consideration price of 60 sen. Therefore the transaction would enable TS to receive 1.9b ekovest new shares.
4 .Ekovest will also buy Danga City Mall and 2 parcle of land from Khazana Melati right in the city center of Johor Bahru and in the vicinity of RTS connecting Bukit Chargar and woodland Singapore. This transaction is value at Rm310 and the share consideration price is also 60 sen. That means TS and related person will receive additional 516m Ekovest new shares.
5. Upon completion, the shareholding of TS will be increased by 1900m plus 516m or 2416m new shares. That is huge and in one master stroke TS is envisaged to own 51% of the enlarged entity of Ekovest if he succeeds.
6.In retrospect, the week before the announcement of the proposal Ekovest sold 269m or 10% of its issued capital at 43.5 sen through a private placement. Thereafter, share price began to rise. And following the announcement of the mega proposal by TS days after, the share price shoot up and hit a high of 61.5 sen. It jumped 41.5% in the shortest time and TS sold some shares
7 Thereafter, share price began to fall and on 7th Dec 2023 the counter gave back all gains and it was back to square one again and closed at 43.5 sen again.
8.From thereon the counter made a strong recovery and again hit a height of 62 sen for the second time on 8th Jan 2024 and again TS sold 1.2m shares at 61 sen. Following the disposal, the share has contracted to 54.5sen. Fortunately the timely analyst report by Rakuten on Thursday quickly lifted the falling share price above 62sen and finally closed at 59 sen on Friday 13/1/24
9. Technically, basing on the candlestick chart Ekovest is undergoing a cup and handle formation. This pattern is indicative of a bullish market. Some has predicted it to go beyond 80sen and one brokerage house has a target price of 116.
10. What is the implication of the share disposal by Tan Sri each time when it hit 60sen and above. By his action, can he damage or destroy the cup and handle formation and turns it into a double bottom in the coming weeks before resuming a spectacular rise and shooting to the sky subsequently.
11. Let's analyse. The proposal has been accepted by the BOD and TS has a legally binding agreement with all the companies. They allowed themselves 4 months to do the due diligence and thereafter enter into a definitive agreement. Next they will submit the proposal to SC and obtain its approval. Thereafter the company will prepare and dispatch circular and convene EGM to obtain shareholders' approval.
12. To obtain shareholders'approval means the proposal is subject to a vote. For the sake of discussion,let us assume if tomorrow is the EGM and in the hypothetical case that the share price is 116, how would you vote and what minority watch dog would say?
13. Remember, the proposal entails TS to inject 1.14b assets into Ekovest and in return would enable TS to acquire 2.416b shares at consideration price of 60 sen. This would be seen as a huge unfair discount. Hence,there is a risk of rejection or an air of dissatisfaction among minority shareholders over the discount. This should be avoided.
13. However,this does not mean that ekovest will not reach 116. It is a great company with huge land bank in the Iskandar region kept under IWB and IWCity. Ekovest owns DUKE1, DUKE2 and the recently just opened tolled highway SPE. The highways are the most pricey and quality assets of Ekovest that are worth multiple billion of ringgit.
14. I think more excitement and greater volume and volatility will take place after all the shares are in the hand of TS.
15, This is my personal and layman perception of the counter. It could be completely wrong. Happy trading.
If share price hit more than rm1 during the EGM, I believe most of the minority shareholders would happy to support TSLKH's merger proposal because they are in a happy mode, and won't care whether Tan Sri get new shares for a cheaper price. Most of the retail investors only care about making fast profit
Ekovest Bhd (8877) is a diversified company with activities spreading across the construction, property, toll operation, and plantation segments. As a prominent contractor and toll highway concessionaire, Ekovest is set for profitability by FY25, benefiting from Johor's vibrant property and construction sectors plus potential gains from the monetisation of DUKE highways and improvements across its business segments. BUY with a TP of RM1.16 based on our SOP valuation. Please read the link below. https://klse.i3investor.com/web/pricetarget/research/70061 https://www.nst.com.my/business/2020/09/626587/ekovest-list-duke-q3-2021-aims-raise-rm2bil
Note : The PAT for Q1 2024 is 3.083 million, this stock starts to make profit after a few years of losing money. I believe the worst is over for this stock.
The enterprise value of the three highways owned by EKovest (DUKE 1&2 and SPE (DUKE 3) is about RM 11 to 12 billion. The total debts for these 3 highways = RM 6.56 billion, net worth assets of 3 highways are around RM 5.0 billion. The number of share issued = 2.965 billion. The fair share price of Ekovest based on DUKE highways asset alone = 1.69. Hence the actual share price of Ekovest at 0.59 is really undervalued. Thank you.
This is what happens when ppl chase overvalued overticketed co. with too many short-term players stuck @ lofty price higher than $1(from 2016 till 2019)...1 miserable tick up...profit can't even buy the cheapest high-end coffee....instead of buying the undervalued gem in the group which is UP NINE ticks today!!!
Trader808, thanks for valueable sharing. U have any indication or thoughts when exercise will be completed that we may see prices starting to move up in definite way? thanks again
You must give credit to OTB in identifying value and summarising it for the uninitiated...whether or not the market recognises and gives it the due value is beyond his control
Duke highway 5B? If you include Duke 123 10B la
Squirtle
Otb buy call Say Duke highway RM5b worth Confirm ah
Consolidation phase is always normal after recent surge up, profit taking activities set in, quite normal. If investors don't punt and contra, invest with our own limited fund, still fine for mid long term. But, see prices going south is a confirm sian as it affects mkt sentiment already. Next few days may be less activities also, any run up (rebound) will trigger selling. Hihihi
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....
RISK8888
2,231 posts
Posted by RISK8888 > 2024-01-12 15:39 | Report Abuse
to stay 0.60 pun susah. lagi mau 0.99.