Gadang Holdings Berhad ("Gadang") is pleased to announce that its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd has on 12 June 2014 accepted the Letter of Award ("LOA") dated 11 June 2014 from PETRONAS Refinery and Petrochemical Corporation Sdn Bhd for the award of contract known as "Provision of Phase 2 Site Preparation Works for the Proposed Refinery and Petrochemical Integrated Development (RAPID) Project - Package 18C" ("the Contract") for the total estimated provisional contract price of RM350 million.
The Contract shall commence from the date of the LOA and is expected to be completed by 30 September 2015.
The Contract is expected to contribute positively to the earnings of Gadang Group for the financial years ending 31 May 2015 and 31 May 2016.
None of the directors or major shareholders of Gadang or persons connected with them has any interest, whether direct or indirect, in the Contract.
RM350 mil contract to be implemented over 15 months. Even based on conservative assumption of 5% margin, net profit will be RM17.5 mil. This works out to be RM14 mil over 12 months. Gadang reported RM36 mil net profit in past twelve months. This RM14 mil will boast earnings by closed to 40%.
yeah agreed with Icon8888.. this is considered significant to Gadang.. but I think the profit should be minimum at 10% because this is not their first project in Pengerang.. They have already invested in equipment/machineries for their earlier project in Rapid which can be reused.
before news coming out, the share price will climb up slowly, insider will know first. after that insider will inform big hands, big hands will spread so-called insider news, first batch retail buyer that heard the rumour will fry the share price together with big hands, the share price just shoot up all in sudden, when the news coming out only the retail investor rushing to buy, manatau the share price didn't up as expected. that's a saying call buy on rumour, sell on news. it's very true especially at current market condition. anyway if you are long term investor, just ignore the price movement @ short term.
by the way, due to world cup season, the share market seems like a bit quiet recently, not to mention those active counter, as in overall the KLSE volume is low, so please bear in mind if you are planning to buy stock now, you need to stay calm, steady and relax.
Typically, those "coward and short-sighted" investors would sell on positive news to lock in profit. However, shrewd investors with foresight would wait for dumping and collect them at lower price then. When the price drop upon the announcement of good news, ask yourself, "who mess with the stock price and why is there such an irrational price movement?"
No right issue. please go and study the company's release a few days ago. The company is going to raise fund through private placement (10% of registered capital). Given the expectation that the company's profit in future is galloping, why worry the dilution effect of private placement? Anyway, it is a good buy.
Coward investors dump it and I take it at cheaper cost.. lots by lots....haha... I reckon it is going to break 2.00 by end of year, better still with additionally some potential for surprises.
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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....
Beginner1989
822 posts
Posted by Beginner1989 > 2014-06-12 10:56 | Report Abuse
but dropping now le... :(