Suggest bursa & sc to go & investigate capital reduction of 90 sen per share pushing price down but suddenly went up by 7 sen today. Something not right.
Nothing is wrong with emico. Although its biz prospect isn't positive, with PBT of 3m @ 0.15 yesterday, it is deeply undervalued. Expected TP 0.285. This IS just an undervalued share, NOT a growth prospect stock.
Anyway don't take Emico for granted too much because if some better explosive stocks pop up by next Wed then we can say goodbye to prospectless Emico..
If you are Mr Koon's follower, then emico is a no no for you because it derives revenue mainly from property division. If not mistaken, koon said must avoid properties sector companies.
The issue is not that it derives earnings from property development, but whether there is any more income to expect in the future. In other words, if the Bandar Mutiara project is fully completed and there will no more income from it, or there are no new development projects, then earnings will take a nosedive in the next quarter.
Write a comment..Willc48, I just read the circular. It is not a capital reduction but a reduction in par value excercise, which is good for the company accountingwise. Still, calling it a "share capital reduction" instead of "reduction in par value" (by which many other companies, which did the same thing, termed it) is clearly weird and misleading. It is no wonder that some people panicked and dumped the stock. In reduction in par value exercise, shareholders retain the same number of shares. They will not see 90% of their shares wiped off.
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....
bleuerouge
3,221 posts
Posted by bleuerouge > 2016-02-02 09:43 | Report Abuse
CNY mood oledi, just watching....no action