depend on how soon you want your thing to be harvested. If think you can built a condo in one day and sell all in one day then u can keep on gambling on stock market...
If you see the history of L&G (previously known as Nanyang Holdings) 1) They owe RM1 billion of debts and the reason is they face the econimic crisis in 1997. 2) Their property not selling very good. 3) Billionaire of Mayland HongKong appointed Mayland Malaysia to buy the share of L&G and Debt Restructuring has been very successfully until now. 4) L&G realised that cash flow is very important to them. This the reason they not give any dividend until recently. They will annouced dividend policy in near future. 5) They need a lot of cash to buy land and built property. 6) Their land is mainly brought by previous management. That means their cost is very low compare others. But the main concern is once they use up their old land, their cost will increase if buying new land according to the recent price. 7) Their share price been up to RM7-RM9 previously before 1997. Means they have good management. 8) Their aim is to be middle to high range of property constructor like IJM. 9) Compare to TAMBUN, MATRIX, HUAYANG...they are better, just lack of confidence in investor due to their history.
They need to keep consistant with their earning to earn back confidence in L&G. YES i think they will do it better in future and we should keep the stock longer.
Eric, your points below seem to be contradict with each other, if the mgmt is good why they have so much uncontrolled debt last time and property not selling good? 1) They owe RM1 billion of debts and the reason is they face the econimic crisis in 1997. 2) Their property not selling very good. 7) Their share price been up to RM7-RM9 previously before 1997. Means they have good management.
I mean the management now is very good.. but their old management is good either. Debt in company is a normal thing. U see Maybank or YTL they have many Cash but they still keep their borrowing increase for development. This is normal fir those doing business. 1997 economy crisis hits all sector in many ways. Even Public bank hits a lot in that time. So for l&g, although their management have debts n unsold Property on that time, but still they manage to survive until now. That means their management is well done.
Well I'm not the management and cannot do anything. As investors this is an under value stock. What we do is be patient and wait their value unfold. You cannot plant a tree today and want the profit tomorrow.
Doing business have its up and down time.. If you do business then u will know there is no forever growth in business.. Is a normal thing when there is up and down time... Plus L&G just finish its project and started another project yet they will have better result in future...
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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....
bracoli
2,579 posts
Posted by bracoli > 2015-05-03 20:42 | Report Abuse
No benefits to shareholder..