Gamuda and Cimb motoring along …different type shareholders and of course better governance altogether …! We still have some hope with but it is not in the laps of ordinary shareholder but those who own 40% of the stock! They control the destiny of the where the price goes. If they need money for new private adventures we had it …they may source funds by disposing of large chunks of shares or pay themselves very high dividend instead of paying off debt …these are challenges with this stock.
The Consumer index covering weakest sector in Bursa has broken out from 564 last week and the break out has been confirmed today. As it is new break out, future index is expected to extend the most (alongside with plantation index, energy index, industrial index which are laggards) compare with other indexes in near term. Genting today is considered 1st day above 4.90 if close above 4.90, will monitor if can stay 3 day convincingly above 4.90, purely from technical point of view. We should monitor US treasury yield curve if any huge pulling back from US market especially after Nasdaq index breaking new high.
Provided Genting's major shareholders and other big institutional investors want to sell Genting shares at this price to this big guy. This would forever remain as "if".
We are getting into realms of fantasy if current owners will sell GB at this price! People don’t get it they can hold Gb price at this level and make money by buying and selling shares or buying poor assets from their non listed private entity and selling them for higher price to GB. It is big game. I feel people, really don’t know how share prices works and how a listed company should be run. The Bursa needs to do a better job to protect minority shareholders ….by being vigilant in share transactions or transferring of assets …than again there is conflict of interest as Bursa promotes activity and high volume ! That’s is a conundrum
Genting lost out from a big gambler from Singapore getting arrested causing havoc in the highway and could not spend big bucks at the resort! 😀😀 This could be a reason why the price has not gone up! Just a joke…moral of the story we all find excuses for share price underperformance …some have a case others jsut a fantasy!
Biz has fully recovered. Share price still at the stage of post-mco. Dont know what is in the boss mind. Maybe there is something tricky that we as outsiders dont know?
KooSan….well done. One very important principle in closed funds ( limited to No of shares issued) is that the share price is dependent on demand (buys) and supply (sells) …more buys will result in rise in share price and vice versa….totally independent of net asset value or business growth. Hence, share price can be manipulated by big shareholders particularly founding family. Governance is also an issue with a single large shareholder who often controls the company and the board. That’s why you need strong regulators and auditors!
These are the stocks analysts favour for 2024. Gamuda, TM, YTLP, Genting top big-cap picks.
Genting top big-cap picks Among companies with a market capitalization above RM10 billion, conglomerate Gamuda Bhd tops the list with an overwhelming 20 'buy' calls out of 21 analysts. Analysts cite Gamuda's healthy overseas expansion progress, and their consensus TP of RM5.58 represents 8.3% upside against the stock's Feb 15 close of RM5.15. The counter has risen over 29.7% in the last year.
Another notable mention is Genting Bhd. After a flat 2023, analysts have raised the annual earnings forecast for the group for 2023 to 2025, with more upside projected in tourism recovery in markets it operates in, such as Singapore and the US. Consensus TP suggests an upside of 20.2%, compared to its last close of RM4.88, which is down 4% from a year ago.
Huge difference between Gamuda and Genting and for that matter CIMB in relation to shareholding and lack of independent governance. Genting suffers from owners share dealing and party related transactions.
Businesses of course are different …I was referring to shareholders …one has significant ownership by one individual / family as well as known poor governance standards which create uncertainty as at any time shares may be dumped in open market or some related party transaction can be made ..which causes havoc to share price. It does not mean Genting share price may not perform it is just that the risks from these actions are high and consequently we are seeing share price being held in a tight pattern.
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....
Riaz1954
1,321 posts
Posted by Riaz1954 > 2024-02-13 15:01 | Report Abuse
Gamuda and Cimb motoring along …different type shareholders and of course better governance altogether …! We still have some hope with but it is not in the laps of ordinary shareholder but those who own 40% of the stock! They control the destiny of the where the price goes. If they need money for new private adventures we had it …they may source funds by disposing of large chunks of shares or pay themselves very high dividend instead of paying off debt …these are challenges with this stock.