I am writing a personal note to you because I believe in L&G under your helm. I have also experience a bad decision when picking Tropicana (formerly Dijaya) to invest in earlier. I have since renounce this share as there were many off market trading, Esos, and family trades (officially announced on Bursa) at the expense of investors. Like L&G, Tropicana too achieved new historical highs in their revenue with addition abundance of Landbank and GDV. They too have family involvement in the company just like David Chiu and family at Mayland. To date no investor as I have been told are brave enough to buy Tropicana after the share price drop below the 2013 Private Placement and to a low of 50% of peak price within weeks. I hope my letter to you can help avoid a similar situation as you good reputation has grew on my trust. Kindly note after the drop, it has taken 1 year and yet the price is still below par
I have converted since last year by batches when there is a discount, why so silly go and buy mother share ? buying La and convert , you will get 2 cents cheaper,the ex-date is quite likely to be in October 2014 after AGM in September 2014.
Let me show an example , if you bought 50 biji L&G-la at 0.300, if you sell them now, your profit will be (0.415-0.300)x 50 = 6k (ignore all the brokerage fees, stamp duty and etc) If u add another 0.13x50 to convert them to the mother shares, your profit will be (0.565 - (0.300+0.130))x 50 = 6.75k If u have free cash, u can do it =)
Its EPS will be halved if all the LA r converted to mother. Hence, the forecast annualized intrinsic eps is 6.5cts only. PE is still below 10 but less attractive.
Hate to admit. But yeah. The dilution effect from LA is at play here causing roadblocks. Fat profit wwon't come as fast. But. After due diligence, I still believe this company will pperform in medium term.
According to my sifu oversold position is delicate in this instant because the price did not move northern or attempt to move north.which means the seller is only filling the sell gap as oppose to standing their sell position and wait for buyers to take the price of seller which is higher.
Bravo I can use flower and other garden plants except banana. It would state the obvious kekeke.....share market also cannot state obvious.....becoz obvious like sell on new and buy on rumor is certainly true
hahahha Linabee, this is funny, can use roti canai to cover also :P ohhh Barbarian, meaning the price still can cheaper again? how's the chart going =)
It may get worst before it gets going however with the 50 years Jubilee, I believe they are going to start the change. We have financial performance doing well all these while but without dividend. Now they throw in dividen as the game changer and value to investors. Only weakness I see is lack of marketing about the company.
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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....
Sp BoiBoi
11 posts
Posted by Sp BoiBoi > 2014-05-30 12:53 | Report Abuse
then how about the dividen , if i get my mother share after the ex date still get it ?