If LRT3 is going to give gkent such a boost, dont SBB 10k or 20k or even 50k. SBB 100k or 200k daily. Show the public you have confidence in your own company.
Remember do not believe Philip false assumption loh....even gkent get more LRT n MRT jobs, it may mean more losses bcos profit margin quite thin loh.....!!
To be fair, Philip wont have the LRT3 margins but TKH will have some preliminary figures by now. If the margins are as good as some suggest, spend $10m of the $200m in the bank and SBB 200k daily. Assuming at $1 a share, you'll need 50 trading days to do it. SBB 20k shares like today is an insult to the minority shareholders.
SBB just to support closing price. I would prefer them to keep the money for expansion. No point guessing. Just wait for LRT3 revenue and profit factor in later, then we will know the actual number. LRT3 revenue may defer as projects too complicated. Gkent is a very small paid up capital company. No point taking too many jobs. Just concentrate on LRT3 until 2024.
I have to agree with SHQuah with this. Focus is key importance over many jobs that may dilute profitability. But the LRT3, once a darling in Gkent's pipeline until Pakatan took over - so the profit margin has gone considerably smaller. Being a small player also means they can only afford a small margin of error. Any delay, any mishaps or mishandling large project is very risky to their business. JAKS couldn't deliver The Star building and see what they got into? In fact, I always wonder why they even want to commit such large project until I realize, if my golf buddy request it plus a promise of a handsome return, why not? More Wahyu Beef for me.
The government role is to conserve and increase national reserves. Not that they want to employ overseas workers but circumstantial to do so. Its a double edge sword thing: We all need the subway to be up because it will increase profitability over time but we are short on budget as well. Hence, foreign intervention comes to play.
The negative is they will lose monies in their LRT jobs, thats why despite share buy back, dividend and management promotion the price cannot sustain & keep coming down loh...!!
2 points why LRT project will lose monies...1. Govt had cut the contract price. 2. Gkent dispute with its partner MRCB a potential indicator how they will share the potential losses loh....!!
Posted by SHQuah > Jan 17, 2020 9:31 AM | Report Abuse
I still feel that it's over sold due to past history.
1) Small paid up capital 2) Company cash rich 3) Continue making Profit 4) Good Dividend. 5) Higher NTA
Stockraider....how do you know they are making losses. Are you working in Gkent account department ? Please do not assume if you don't know which may be misleading. I am also not sure if they can make profit in Rail projects. But I am sure they are doing well in water meter and they are still cash rich. One thing for sure they won't go bankrupt. PH has cut the LRT3 projects cost at the say time projects has been simplify with lower cost.
GKENT (3204) - Technical and Fundamental Analysis Technical Analysis ============ - After 14th General Election on 9 May 2018, GKENT shares price slashed by 63% from RM3.845 to RM1.415 within three working days. - Then, it entered a long term consolidation phrase for around 1.5 years (Upper Line: RM1.315; Bottom Line: RM0.910) - Recently, GKENT break-out the Triangle Pattern on Nov 29, 2019, and It tried to re-bounce back to RM0.985. - It failed to sustain above RM0.985 and continue the downtrend after the Q32019 financial announcement. - RSI become
@scotthong from the technical readings, what is the likely direction of GKENT's price movement and is it time to switch to a stock with better growth excitement ? tq
If you want to lie, then at least make some factual ideas, not brainless remarks.
1. Contract price cut yes, but new scope of work, based on revised design. That means less stations, less underground work ( which costs so much more), no more double track and double rail car. Everything cut by half, and no more interference from political crony to fit into the companies.
2. Dispute is because of conversion from PDP to fixed contract, meaning now they are a maincon charged with looking for funding for the project and completion. So the dispute is to finalize how the payment for the project will be carried out ( which gkent wants 50/50 to look for funding on both sides). Already done and over with.
Now we are only waiting for the project to collect money and complete on time.
Why tell lies stockraider?
You told lies when you said hengyuan going to 35. You told lies when you said sapnrg going to be rm3. You told lies green you say bjland confirmed buyout by major shareholder. You told lies when insas going to do mgo and bet big on insas warrants. You tell lies everyday.
How can you look at yourself in the mirror? >>>>>>>
stockraider The negative is they will lose monies in their LRT jobs, thats why despite share buy back, dividend and management promotion the price cannot sustain & keep coming down loh...!!
2 points why LRT project will lose monies...1. Govt had cut the contract price. 2. Gkent dispute with its partner MRCB a potential indicator how they will share the potential losses loh....!!
I do not have accounting back ground but I hope I could understand how to calculate actual worth of Gkent - NTA
1) Land and Building (Gkent got a big piece of land and building) how much it's actual worth after revalue to actual market price ? 2) Fixed assets- Machines and equipment's 3) Inventory ? 4) Cash in hand and retain profit ? 5) Good will ?
NTA (net tangible Asset ) = 0.9178 Current price = 0.86 ? Why so many people keep on selling ? Maybe should go private like Suiwah holding.
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....
malpac63
208 posts
Posted by malpac63 > 2020-01-14 18:20 | Report Abuse
The days of gk at $3-$4 was because they had LRT3, MRT3 and bidding for HSR as well.