The purchase consideration of RM171,000,000 was arrived at, on a willingbuyer willing-seller basis, based on the aggregate profit guarantee of RM114.0 million ("Total Profit Guarantee") provided by the Vendor to Vivocom, for the 3 twelve-month consolidated financial years ending ("FYE") 30 April 2022, 30 April 2023 and 30 April 2024 ("Profit Guarantee Period") of V Development. This translates to an average profit guarantee of RM38.0 million for each financial year ("Average Profit Guarantee").
The purchase consideration of RM171,000,000 was arrived at, on a willingbuyer willing-seller basis, based on the aggregate profit guarantee of RM114.0 million ("Total Profit Guarantee") provided by the Vendor to Vivocom, for the 3 twelve-month consolidated financial years ending ("FYE") 30 April 2022, 30 April 2023 and 30 April 2024 ("Profit Guarantee Period") of V Development. This translates to an average profit guarantee of RM38.0 million for each financial year ("Average Profit Guarantee").
Based on the Total Profit Guarantee, the profit attributable to Vivocom based on the Average Profit Guarantee would be RM17.1 million per annum (the aggregate will be RM51.3 million for 3 financial years), calculated based on the 45.0% equity interest of V Development to be acquired by Vivocom. Therefore, the Purchase Consideration represents a price-to-earnings multiple of 10 times based on the apportioned Average Profit Guarantee to be attributable to Vivocom. file:///C:/Financial/Financial/Vivocom%20Intl%20Holdings%20Berhad_Multiple%20Proposals_Announcement_5%20November%202020%20(Final).pdf
Construction job averagely 10% profit. So again (2600*0.1)/4= 65 m. So total projected profit per year from this purchase of 45% vdevelopment share will bring estimated profit of 95m per year.we need to minus out some bank interest during development let say 10m it will be 85m per year
Plus others communication tower for coming 5g ang the project obtain from sung. Estimated another 40m. So the future share price should be (125/566)*18=3.9
Pls read my last two comments over the past 5 days .... the announcement is only the second gear in the revitalisation of V. Mark my words, there is likely to be a charge to limit up tomolo. The self imposed moratorium for 3 years by owner says a lot. 2.00 very soon...
From a construction perspective, Vivocom is only a 2nd tier company where it will subcon the work to contractors. From a property perspective, it's only small mid sized compared to big boys like Mah Sing, Gamuda, SP Setia etc. Reading the V-development projects shows many are still in very early construction stage or in discussion/planning stage etc. The Kuching development project may be a game changer, but that is only conjecture at this point of time. What's really special about V-development for the developer to join venture with them?
The rally is good from technical analysis and corporate news, but fundamentally there is no real business to support the high price unless coming quarter is good. Even so, the PE for profit making construction company ranges around 10 - 30 in 2020. At current PE of >100, the coming quarter report need to be historically high or else force of nature will bring it back to baseline price without the support of sharks later.
Say me sour grape etc whatever you like, but would like to caution newcomers not to put too much of your capital here at the price now. From probability and risk/reward perspective, buying at today's price is pure speculative and gambling. Of course sharks can still push higher according to plan, but there is no fundamental to support when things turn the other way.
One example is Careplus. The exceptional rally during MCO is well supported even today because the past few quarters are historically high. And Careplus has a real glove making business. People who did not bought are skeptical that time because of the crazy rocket, but the price today shows that this counter with real busines and profits will be well supported, at least for now.
Smart money is here no doubt, but at current price would prefer to hunt for other potential smart money counters. Don't get me wrong, I've profited twice here already, the feeling right now for this counter is very good (subjective), but looking at it objectively paints another picture. I'm a very probabilistic player and risk/reward based person, so it's a no-no to re-enter at this price hence the caution above.
Datos commitment to not sell any shares for 3 years shows that he is serious in building an empire and isn't just trying to goreng. Anyone who knows how to read will know this. Even a 9 yr old understands this. Don't know what you guys are on about.
Nov 5th - Market Report Vivocom. Close RM1.07 volume 83.67M.
Today Vivocom turned in yet another stunning and solid performance, Gap Up Opening and Gap Up Closing. With strong convincing volume and a healthy yet hefty price hike of 15c for the day. Wow!
That’s an increase of 238% to RM1.07 from RM0.45 on 27th Oct.
I am anticipating today to be another bullish day.
With my over 20 years of experience in trading and market risks assessment, I remain highly optimistic on Vivocom heading into today’s outlook on Nov 6th, based on the following technical justifications :-
1) First and foremost, the Gap Up by 4 price level yesterday morning with high volume break out away from RM0.94 was simply brilliant.
2) Consequently on the 15 min chart and market closing matching and traded at Gap Up Closing by 2 price levels, this formed a supremely bullish Marobozu candle stick.
From A Volume Price Action Analysis interpretation this is a most healthy bullish rally indeed. Traders get highly excited when a Marubozu candle emerges as it augurs well for another hefty Rally.
The Prices spread & volume traded for the past week have robustly healthy and impressive with strong follow-through buying. This confirmed there is more than ample liquidity in the stock, in fact one of the best liquidity I have seen.
Elliot Wave developed wave 5/3/5/3 on M15 chart and super duper strong wave 3 on daily chart. Because price move up with scarcely any retracement on 4 consecutive days, volumes on wave 3 is higher than wave 1.
Base on Elliott wave rule, the target price for the wave 3 is calculated 161.8% which is RM1.14, or 261.8% (RM1.59) and 423.6% (RM2.35) extension of wave 1.
I will leverage up(add some position) right after the price cross RM1.14, as the share price will have high chance to go to next level at RM1.59 & RM2.35.
With the announcement made after close of market today however it is worth noting that the price may hit Limit Up due to massive demand chasing after limited supply of shares, especially after the past 5 days of sharp price hikes with over 62.5% buy up rates.
Nov 5th - Market Report Vivocom. Close RM1.07 volume 83.67M.
Today Vivocom turned in yet another stunning and solid performance, Gap Up Opening and Gap Up Closing. With strong convincing volume and a healthy yet hefty price hike of 15c for the day. Wow!
That’s an increase of 238% to RM1.07 from RM0.45 on 27th Oct.
I am anticipating today to be another bullish day.
With my over 20 years of experience in trading and market risks assessment, I remain highly optimistic on Vivocom heading into today’s outlook on Nov 6th, based on the following technical justifications :-
1) First and foremost, the Gap Up by 4 price level yesterday morning with high volume break out away from RM0.94 was simply brilliant.
2) Consequently on the 15 min chart and market closing matching and traded at Gap Up Closing by 2 price levels, this formed a supremely bullish Marobozu candle stick.
From A Volume Price Action Analysis interpretation this is a most healthy bullish rally indeed. Traders get highly excited when a Marubozu candle emerges as it augurs well for another hefty Rally.
The Prices spread & volume traded for the past week have robustly healthy and impressive with strong follow-through buying. This confirmed there is more than ample liquidity in the stock, in fact one of the best liquidity I have seen.
Elliot Wave developed wave 5/3/5/3 on M15 chart and super duper strong wave 3 on daily chart. Because price move up with scarcely any retracement on 4 consecutive days, volumes on wave 3 is higher than wave 1.
Base on Elliott wave rule, the target price for the wave 3 is calculated 161.8% which is RM1.14, or 261.8% (RM1.59) and 423.6% (RM2.35) extension of wave 1.
I will leverage up(add some position) right after the price cross RM1.14, as the share price will have high chance to go to next level at RM1.59 & RM2.35.
With the announcement made after close of market today however it is worth noting that the price may hit Limit Up due to massive demand chasing after limited supply of shares, especially after the past 5 days of sharp price hikes with over 62.5% buy up rates.
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....
buylowsellhighinvest
124 posts
Posted by buylowsellhighinvest > 2020-11-05 20:59 | Report Abuse
Rest in peace in advance