Terrible finance. Negative FCF all the way since IPO (6 years), right issue, high leverage and poor liquidity. To me this is a rubbish company. But anyway I ll put a fair price to it at 0.5x NTA @ 0.24.
Even got 1 bil budget under PH, these will be through open tender. OCK only do well during previous government. As we all know, OCK is not competitive in pricings
Affin Hwang related company selling huge amount of OCK but if you see clearly, those stock are buy by another big banker (those buy 100k-300k unit in 1 transaction )
The director is a conman. Spending too much but no results. Need to review and keep instigate new measures to turnaround the Company including reviewing back on how all the money have been spent for the last few years. To cancel on the directors renumeration and also ESOS if any
My target PATAMI for FY18 is RM20mil max. At the current price, the valuation is already 17.9x PE. Not sure if FY2019 would be any different as the company has a lot of debts in its book and with the trend of even higher interest rates, this might effect the company's financials going forwards.
There is an article on the company in this week EDGE Weekly. The MD, Sam Ooi Chin Khoon believes the downtrending of the stock price is mainly due to selling pressures from institutional syariah funds given that OCK is no longer a syariah compliant stock. He expect the selling pressure to continue as there is still 1.5% shares or 13.1mil shares outstanding being held by these funds. However once the syariah funds are out, the stock will rebound back.
In my opinion it still depends on the company's financial performance. Hopefully they will post better 3Q and 4Q results which would help bring down the valuation of the stock. At the current price it is still expensive (given that PATAMI growth is also a doubt).
Can anyone else share their PATAMI target for FY18 and FY19? Analyst has an average of PATAMI target or RM26mil and RM32mil for FY18 and FY19 respectively. This values the company at 11.1x fwd PE.
director Low brought at 0.435 and cut loss half at 0.4... what is he doing? trading at closed period is very sensitive one...not scare of kena accused insider trading ah?
Sorry not sure how i can share it since the article is in Edge Malaysia (weekly edition). I bought the physical newspaper. not sure if we can find it online. Its on page 24 titled "OCK mulls spin-off listing of towerco business".
Anyone can say positive or negative news from here....depend how investors look at this ind. key point = 5,000 towers....and Sam has highlighted this 3 yrs ago.
But you have to give it to Mr Sam Ooi Chin Koon. He has been acquiring the shares when others seems to be selling. I think he started acquiring them since the price drop to RM0.80. The last time he sold his shares was back in June 2015.
So you can be sure that at the current price he himself thinks it is undervalue.
Guy, we need to have prepare OCK going to drop further to 0.360 due to shariah issue because those financial institution sold 0.400 or 0.360, the return they get is the same anyway, just 10% more
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....
warchest
1,818 posts
Posted by warchest > 2018-11-02 14:40 | Report Abuse
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