@optimusx: do you really think that I am an ordinary investor who simply follows the so-called "banker" in the stock market? I can't read Kok Onn's mind. But, based on fundamental and technical correction of about 10%, I feel good to enter now. Am I wrong and misleading others?
sjsoon i donno u la. i m just commenting on your post. i have no time to study your background. but i know kok onn since 1999. i have a house few doors away from his. i never said u wrong or misleading.
Personally, I think director's additional purchase of shares is a good sign that shows his confidence about the company's prospect. The change of shareholding of Kok Onn records 0.77% from January to April? Isn't the change significantly large enough to imply something behind?
With d rev n profit trending, gadang will not settle down at this price. Rm 2.5 will be no issue and rm 3 is stretch. Will have 6 more months to run before start to settle down.
GADANG is indeed an undervalued gem with positive growth potential. The company’s management has strategically transformed it to be an all-rounded player by vigorously expanding its existing businesses to segments other than construction that once was its primary source of income. Nowadays, GADANG has thriven to be an outstanding performer with good track records and sound fundamental. The recent optimistic recommendation made by those brokerage houses has led to the stock price hike of this counter. Given the surprisingly high fair price valuation (beyond RM 2.00), it has attracted and raised market participants’ concerns, particularly those value investors, about the company’s tremendous positive growth prospect. Of course, the sudden substantial price surge from RM 1.10++ to RM 1.96 in April could be attributed to the short-term speculation hype on this counter. After the minor correction triggered in last Monday, it is believed that GADANG would enter a consolidating phase and wait for new catalysts to boost the stock price then.
By adopting the Discounted Free Cash Flow (FCF) Model, with the assumption that the expected overall revenue growth rates would have recorded 32.00% (which is based on the CAGR projection estimated by the company management) for the next three financial years, namely from FY 2014 to FY 2015, the target price of share is supposed to be RM 3.06 and traded at forward exit multiple of 5.73x (on three-year average basis). This represents an upward potential of 75.67% and thus, having conducted a detailed and careful stock analysis, an "OUTPERFORM" rating follows.
It is believed that the recent stock price hike by approximately 70% in April was primarily attributed to the investors’ optimism about the expected substantial earnings contribution from Capital 21 Joint Venture Development Project in Johor Bahru as well as the speculation hype which rode on such positive news to reap whooping profit in stock trading. However, the speculation hype does not last long and the price has been undergone correction, approximately by 12.64%, and is expected to enter consolidating phase for these few days. Waiting for upcoming catalysts to re-rate the company, it is advisable for value investors to accumulate the shares whenever there is any technical weakening sign in the market. In long term, this analysis report is optimistic about the growth prospect of the company and maintain “OUTPERFORM” rating in medium/long term.
Recently there are many small cap stocks dropped drastically. So scary.. This stock is a good fundamental stocks.. I hope sharks don't play with us (small investors). Thanks.
When there is an up, there is a down; when there is a down, there is an up. Why worry? The company is worth about RM 3.06 based on Free Cash Flow to Shareholders valuation. As long as the company is not filing bankruptcy, I am alright.
Beginner1989, based on TA, the TP1-1.545, TP2-1.447 & TP3-1.13. Since the news have been announced, I strongly believe the TA will be the guidance of the stock movement at the meantime. That my observation. It
short term it will be rm1.5X... and long term should be RM2.XX... that's my observation
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Posted by limputong88 > 2014-05-02 16:52 | Report Abuse
Rangebound for a while la.