Cut throat price war is increasing between 7-Eleven & Bison. They fight head-on for new locations of convenience stores. 7-Eleven was down six sen to RM1.63 yesterday. CIMB Equities Research is maintaining its 'Reduce' call after the company proposed a rights issue via the issuance of new warrants, purportedly to build up a war chest to fight competition. 7-Eleven is believed to be using its size to its advantage, as the market leader, to hold off much smaller competitors like Bison.

Basic Salary system of Malaysia is compressing the profit margin of convenience stores.
價格控制反暴利法影響微 Hi酬腰明輔輻 消費領域同行對比 i ★达+ 卜企业价值丨阖息率j股本回酬 2年磁PEG 公司 丨本显比|倍数丨—(%) ： (%) 复成长率丨指标 2017! 2018 12017 2018 201712018! 2017 ！ 2018 ( % ) ！(倍) 7-11运股 40.7~： 33.FM 6.5 14.1 1.2 i 1.5 ！105^8! 80.2 7.9 丨 4.3 " 柏昇 ：27.4 ： 23.4 118.8 14.9 0.7 0.7 15.1 i 15.6 22.0 ！ 0.9 资料来源：《彭博社—马银行金英 " (吉隆坡25日讯）政府价格. 構:stg/报.'首 控制和反暴利法对该便利店领域 影响不大，但基本薪金制将压缩 该领域公司赚幅。 大马便利店密度不高 银行进一步分析，便利商店业者

More bad news. Oil price to go further south. http://marketrealist.com/2017/03/could-crude-oil-prices-fall-to-40-in-april-2017/

Yes 'Cancer', you are correct to say Perisai has problems talking to their Creditors. They have been talking for 22 months. Talk left and right, until today Perisai finally gone into PN17. Worst still now their major shareholder (Ezra) is bankrupt so the legal tussle for Perisai's assets has become more complicated. The intended sale of any asset will need at least signatures of 30 major creditors (all these Creditors cannot agree with each other).

After applying 15% discount on the adjusted net realisable value (discount is due to soft market), the realisable resale value of the net assets value is at 56 sen per share. Given the company has to serve interest on debts at annual rate of average 5.8%, NAV per share will be 50 sen by end June, and 35 sen by end August.

Target price RM0.59

The problem is super high stockpile of Brent Crude. And there are no economic excitement around the world to consume that stockpile. Most likely oil price to dip again soon to usd42 bbl
http://www.thestar.com.my/business/business-news/2017/04/19/oil-prices-dip-on-bloated-us-market-mixed-saudi-signals/

Perisai continues to sell assets to par down debts. But NTA will not clear the mountain of debts which are piling up every month. The restructuring plan for Perisai is to turn itself into a mini player of O&G, and still have to pay off its debts in 3 years. Target price Perisai RM0.035

Cement production in Malaysia shot up extremely high (highest in 5 years record) in January. And then February it dropped towards very low production, due to oversupply. http://www.tradingeconomics.com/malaysia/cement-production

Cement Production in Malaysia decreased to 1520 Thousands of Tonnes in February from 2442 Thousands of Tonnes in January of 2017. With poor environment of property development ahead, price war of cement is looming. Target price YTL RM1.42

Some YTL hotels will need major renovation (high Capex spend) soon as margin depletes due to new hotels mushrooming everywhere and AirBNB takes increasing stake in hoteling business. Unsold serviced apartments and bungalows being turned into hotels, posing greater challenge to existing hotels.

Oil price rise early this year is not sustainable: https://www.fool.com/investing/2017/02/27/can-you-guess-which-country-has-the-worlds-largest.aspx

USA intends to produce oil through shales despite OPEC cutting back production. Oversupply in reserves will remain stubbornly high, hence depressing oil prices. https://www.forbes.com/sites/judeclemente/2017/02/27/u-s-oil-production-to-increase-in-2017/#5f0c507278e8

Penetration rate of convenient stores is NOT low in Malaysia. And if there are a lot of room to expand in Malaysia then Bison will not think of going for overseas market (where there are higher operational risks). Also, convenient stores depend highly on strategic locations so the rentals they bear are high. Profit margin is definitely squeezed, that is why Bison has started acquiring food processing companies.

What is the competitive advantage between Bison and 7-eleven and other competitors? Answer is nothing. Given that there is no special plans, no differentiation strategy and fighting in a crowded space, can't see why Bison will grow big. The dream about setting up money exchange services inside News.com has been ditched because rejected by Bank Negara yesterday. And today I see the price moved up a lot with small volume. Very speculative counter. Be careful.

Yes will recover. You must know that the counter is not very liquid. Can only be moved by the owner himself. Johan did not come to this high price just due to speculation. Bigger hands are inside it. Hold & wait.

My guess is counter will hit RM0.48 this week before counter is suspended for big announcement. Won't even need UMA.

There's no panic selling,.... it is smart tactic to push down a bit and then collect more before the big news comes out. Johan is the lucky star for Tan Sri. Remember that he sits in Johan office, not Gkent. It's not important what Johan was, it is important what it is going to be soon. Good luck guys.

There is a plan for asset injection, in the equity form (probably with entry of a new strategic partner). And then followed by asset injection via acquisition in the space of either Property Development or Oil & Gas Services. The Chairman cannot introduce new businesses into George Kent because the potential liability that Gkent now bears is very high with all the mega infrastructure projects that it has won. Johan, on the other hand, has been cleaning up its balance sheet and ready for venture into new businesses.

Gkent is very clever to rush the 1-for-4 bonus issue now, becoz if they wait later maybe economy turns sour and very difficult to raise public money. Gkent raise money to boost capital for LRT3, perhaps due to risks of (i) Govt delaying D.Os, and (ii) Ringgit going south (exposing Gkent to higher currency risk) while stretching the cashflow, and (iii) Gkent perhaps cannot find a proper hedge instrument externally.

Beware external global news next week.

Correct,..... wait next quarter. But nx quarter quite far. By then global issues will come up again.

I sold everything at 1.82, now waiting to buy back at 1.58

Jace888,.... thanks for your analysis. My own analysis is Gkent will hit floor 1.58 before rebounding to touch 2.10 during Q2 reporting, provided no change in contribution from Hongkong meters output and Kelana line final lumpsum.

All news out already. Performance within expectations. Sell on news. Wait another 3 months. Next quarter will be challenging as Gkent will not have HongKong meters profit tapering off. Also contribution from Kelana LRT will decline substantially.

Price looks good and high. Hey guys, do not forget about Tan Sri's other vehicle which he is keen to revive to stardom. I heard he is very keen to be a player in Oil/Gas. And the vehicle will be JOHAN HOLDINGS BHD !

News already out before published. So most ppl will sell at the time of news published. I will start exit 1.76.

Hospital project? Small hospital, maybe tens of millions only? If only tens of millions then i think the market over-reacted. Profit in building hospitals are very thin at 10% only. Be careful guys.

All pre-annoucement news already factored in. Expect water meter sales to rise for last FY. LRT3 positive impact on cashflow. That's it for now. Need another booster.

Yes, Gkent very lucky (and smart). Water meter business is almost protected due to importance of clean drinking water and the water conservation programs everywhere in the world. Second is their major rail projects are all government protected with allocated funds. Pheww...!

China government may announce before Chinese New Year, on measures to relax lending to its citizens and SMEs. Gkent will also announce in March on significant improvement of water meter sales margin due to depressed Ringgit as they are exporting in USD.

I'm not just holding it,... but buying it every time it is below 1.56

Drop 15 cents is good. Can sapu more before February. Don't worry about floor price or support price. Gkent counter still not very liquid, that's why easy to manipulate. Stick to facts that Gkent P/E ratio should already be much higher but not yet reflected.

Small volume but price drop so much. --> Manipulation !!

There will always be corrections. And if you see the corrections are rippled in small waves, you know that there is a potential rigging activities, and some parties familiar to Gkent are accumulating. Hang in there.

No need to wait until June. Something will happen in February. Now Gkent has a lot of New Year yamcha with new investors. Gkent needs visibility.

Hahaha. Accumulation time is always like that.

Govt won't cut budget of mega projects. Govt hands too deep in these projects and also they need these projects to complete as much as possible b4 next election. Meanwhile, they can cut subsidies to rice/sugar/etc. Also can dig from strong conglomerates like Khazanah, Tabung Haji, EPF, DRB Hicom and Sime Darby.

Gkent has not got into strong relationship with investment firms. When they do (soon), the price will rise dramatically. It is clear, Gkent's P/E ratio should actually be much more than what it is now.

Watch what happens to this counter just before CNY. It's going to be positive and fun!

With low ringgit, Gkent is becoming ever more attractive as an OEM that exports water meters. TPPA means a sudden increase in opportunity for Gkent to penetrate USA, which today is not yet an export destination for Gkent water meters. Preparation needed! Go, go, go...!

Be prepared for the next hike in Jan, to reach RM1.93

There is a rumour.... Gkent now shortlisted to be Elster's sole OEM for certain water meters. The other OEMs of Elster especially in Europe is too expensive, so now shutting down those OEMs and big volume will give to Gkent. Some more Ringgit so low now and will stay low for 3 years.

Price will stagnant until second week Jan, where it will ramp up again. Gkent can win another project soon, in the private sector. Also, this year end will be xmas-cum-newyear dinners with all the excited investors, some of them new institutional investors..... all this will give new momentum to January rise.

A weak ringgit does not go against Gkent. For water meters, yes they buy some raw mat in USD, but they sell the entire water meters in USD. Their overseas market should increase next year!. As for LRT projects, risk management clause is always inserted into big projects, where it protects against forex risks. No issues for Gkent.

PE:15 is considered low. With the 9B win, Gkent just entered the space of Gamuda, IJM and Hati Muda. Although Gkent is a new player in that space, i would put Gkent at PE: 25 easily in the next 2 years.

You can see that in Gkent's annoucement to Bursa, they stated clearly that Gkent's LRT work is delivered on time!! So to all those who still think Gkent can't do LRT work, think again lah.

Very good Hoos3h...... that is the wonderful news before christmas that i was expecting two months ago. Now one more super news before CNY. Hahaha!

Choppy trade and small ripples. Indication of solid accumulation by big fishes. They will ramp it up in the next 6 weeks. We small fish just ride the wave. Hang in there.

@yeekarwai88: yes no worry,.... l always encourage you on Gkent yah. I bet you before CNY price will be RM2 at least.

Something exciting you will see early next year. This year nothing to show.

Extremely good. Looks like a couple of big syndicates just got on board. Next week Monday, mostly likely a good news. Or else the week after. Let's see.