Can't reveal yet, because the plan not materialized yet.
However, I can throw some other candy here first. If you refer to the annual report 2016, you will realised that Digistar has bought two piece of Industrial Land at Melaka Tengah. If you know the current market price there, and you compare with the purchase price that Digistar bought, you will see that Digistar is currently sitting on at least RM7mil paper gain already.
Currently Digistar has more that RM60million on hand, and very soon there will be another RM66mil to be received from Government, after paying off some bank loan and bond coupon, Digistar should have at least RM100million on hand.
With this RM100million on hand, Digistar can venture into many opportunity. Do you see the potential?
Albukhary, you are a savvy investor... Spot on regarding Melaka land.. Owner can't hold price low forever... Under valued counter with PE ratio of 8.81..... Watch out!!!
Guys, I offer you a deal, you see whether you want it or not?
My company is a Multi National Company, and recently we has construct a research laboratory. In this new laboratory, we need to purchase a lot of advance equipment.
So, I offer you to buy RM2.4mil equipment for my laboratory, and we will lease the equipment from you for 15 years. We will signed a fixed price contract with you, each month pay you RM30,000, for 15 years, and at the end of 15th years, all the equipment will be outdated and the market price will become ZERO (in total you will received RM30,000 x 12 month x 15 years = RM5,400,000).
So you might thinking that you don't have money to fund for this project, no worry, my company will issue you a guarantee letter, and with this letter, I am sure all the bank will lend you money for you to buy the equipment.
Let said the loan interest is 5%, and based on RM2.4mil loan, you monthly installment is RM19k. Since I will pay you RM30k each month, that mean your positive cash flow per month is RM11k, and you are going to earn this RM11k per month for the next 15 years.
Let said many investor are interested on this project, but my boss will only select one investor for this project, how much would you wiling to pay to my boss (under-table) , in order to secure this project.
RM100k, RM200k, RM300k, RM500k, or RM1mil?
Let said RM1 mil, if we include the RM1 mil into loan, that mean in total you need to borrow RM3.4mil from bank. Based on RM3.4 mil loan @ 5% interest @ 15 years tenure, your monthly installments will be approx RM27,000. Since I will lease from you at RM30,000, so you still have positive cash flow of RM3000 per month.
Remember, you no need to fork out any single sen from your pocket, all the money you need to invest you can get from loan, because my MNC company will issue a guarantee letter to help you to secure loan from bank.
Will you invest in this project? Please share your opinion.
lchits, yes, the above example is refer to the JKR concession project. A lot of people cannot see the whole picture, they only know that Digistar is making loss, huge borrowing, revenue drop...etc. They don't understand the concession deal, they don't know how to calculate the value. I create the above example is to give them a better understanding on the concession deal.
But both of them hv signs of counter that going to surge...both also from multi years low, limited downside with huge upside potential. Latest announcement is one of the signs. Let's see.
Back to year 2011, Digistar has surge from 13 sen all the way to 60 sen. I bought it at 13 sen, sold at 16 sen, bought back 19 sen, then sold again on 24 sen, then bought back again on 32 sen, sold at 37 sen.. and not dare to chase again. and it go up to 60sen.
Digistar used to be a technology company, but now it is more like a concession company, because now its main revenue is from the JKR concession project. Digistar will back to technology company once it successfully secure the Broadcast Equipment installation project for RTM Media City, or its has secure any big CMS project from the government.
What is concession business? It is same as toll operator, you build a highway with your own pocket money, then government give you the right to collect toll money for XX years.
The best example you can refer to MENANG, this company secured a lot of concession project for UITM (University Teknologi Mara). Back to year 2011-2012, this stock only hanging around 25sen.. But after its successfully completed the UITM campus, it start to received recurring income. With this recurring income, it secure more UITM concession project. And today, the share price is at 80sen.
For Digistar, now it only 18.5sen, do you think it is very hard to go back to 30sen?
Good TheEdge article on Digistar.... Boss says his counter is under valued.... Asking You to please buy b4 it's too late...... ;-) I guess price will jump up this week.... Watch closely now.
Datuk Lee said Digistar is also bidding for two projects — a total security solution for a government agency and an infrastructure-related project along with other related system integration jobs, which he estimates to be worth a total of RM2 billion.
Aiyah, when the great bomoh comes, stop all those worries!!! when he comes, he heralds the coming aof the great expectation!! he bot @ 0.19! believe the great bomoh!!! hahahahah
kelly89 is a rich guy!!! he doesnt buy things cheap! he will wait till > 0.30 then buy!! moneykj, u cant compare to him leh, one step beolw!!!!! kikikiki
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....
Loy88
164 posts
Posted by Loy88 > 2017-03-06 13:18 | Report Abuse
Whats the good news bro? Mind sharing?