I must hv missed the post by Rockford. Even base on 51% it is approx RM2b just for phase2A. So yes it is very deeply valued that's why Amresearch was very gung-ho when they valued it at RM9.47 whereas the calculation range showed RM8.22 to RM10 is very real. Even if lower range ie RM8.22 was used and applied 60% discount, the value would have been RM3.30 very close to the RM3.50 calculated by EnO_Turboblast and the mention July16 2014 RM3.18. The only difference being this time it will be completed with the tender award and the UK solution. For understanding of general, UK Properties will hv UK PLC having 100% control on each Loxley and Hammersmith Properties while Hammersmith Properties will hv Hammersmith Development under it flagship.
Will it be a breakout at 1.64 or breakdown at 1.59? At this point I am betting more on a breakout due to the positive development coming up however if breakdown may see it going down to 1.57
Wondermama, accurately at 1.57. Below 1.57 how ? Pls share..
Wondermama Will it be a breakout at 1.64 or breakdown at 1.59? At this point I am betting more on a breakout due to the positive development coming up however if breakdown may see it going down to 1.57 26/10/2015 14:07
Many doji appearing. Means indecisive at the moment. Ball is in E&O management side as the precarious doji shows exactly that the investors are awaiting the announcement
Wondermama, the payment for dividen is thru buy back which ended on ex date and today is payment day actually. So my question is if buy back is done at lower price earlier to pay the investors it should start moving up ?
Few reason to Buy E&O - SUMMARY 1. Today closing volume @encouraging 1.356 Million transaction w 608k queuing to buy at 1.56 with buyrate at 80+% 8minutes from closing 2. Buy back treasury for dividen payout completed, distributed and should go up tomorrow onwards 3. Last 1 week - High buy rate but price remain suggest collection in progress 4. STP2 announcement anytime now which will add the deep value and RNAV of E&O and more options to move forward (JV, sell, develop, ...) With valued Ph2A at RM3.9b. This does not include Ph2B and 2C 5. UK PLC will ensure debt ratio is reduce to 0.38 (fr 0.6) while contributing 30% to parent. Listing on AIMS will happen by year end 2015. Noting that Loxley and Hammersmith Property will be 100% owned by E&O PLC 6. Target earning for 2015/2016 remain unchanged at 173Million and overall 3 year target at 450Million still on track. Noting that E&O has in last 10 years achieved 9/10 of the target earning. 7. With low debt, high RNAV, with earning on target and past earning target achievement, E&O valued at between RM8 to RM10 per share upon the STP2 tender award (expected within this 1month -anytime now to November end), will be at steep discount 80.5%.. Even at TP2.60 (Public Bank call) it will be at 67% discount from it actual value.
As mention if breach 1.57 will drop to 1.55. I am expecting movement north today. Failure to move up today may cause down spiral tomorrow due to prolong failure to support
X Wondermama Next drop after 1.57 is 1.55 after which maybe a free fall however I don't see any reason for it to fall further unless something serious happens. 26/10/2015 16:50
If everyday the support is at 1.55 with high volume buy queue, what it means is basically it will form a very strong support over time when and if the price goes up this will be the base.
Thanks Wondermamama. Wow did you all see the 1.55 queue ?? The 1.55 ppl just queue and open their mouth for whoever want to sell and it got done. Ironic. They are big players gulping 300k shares. Something up??
Hahahaha....sudah Mari....announcement as all anticipated!!!!
OTHERS EASTERN & ORIENTAL BERHAD ("E&O" or "COMPANY") AWARD OF LAND RECLAMATION CONTRACT TO CHINA COMMUNICATIONS CONSTRUCTION COMPANY (M) SDN BHD ("CCCC(M)") FOR SERI TANJUNG PINANG PHASE 2
EASTERN & ORIENTAL BERHAD
Type Announcement Subject OTHERS Description EASTERN & ORIENTAL BERHAD ("E&O" or "COMPANY") AWARD OF LAND RECLAMATION CONTRACT TO CHINA COMMUNICATIONS CONSTRUCTION COMPANY (M) SDN BHD ("CCCC(M)") FOR SERI TANJUNG PINANG PHASE 2 We refer to the announcements dated 12 April 2011, 14 April 2014, 10 June 2014 and 8 December 2014 in relation to Seri Tanjung Pinang Phase 2.
The Board of Directors of E&O is pleased to further announce that Tanjung Pinang Development Sdn Bhd (“TPD”), a subsidiary of E&O, had on 28 October 2015 issued a letter of award (“LOA”) to CCCC(M), a wholly owned Malaysian subsidiary of China Communications Construction Company Limited, to undertake the land reclamation works for Seri Tanjung Pinang Phase 2.
The LOA serves primarily as an acceptance of the tender to reclaim Phase 2A of Seri Tanjung Pinang Phase 2, an area of approximately 384 acres (inclusive of the 131 acres Gurney Drive foreshore) (“Package 1”) for a contract sum of approximately RM1.035 billion. The prescribed period to complete reclamation works under Package 1 shall be approximately 30 months from the formal acceptance of the LOA by CCCC(M).
The LOA also includes the conditional award for the proposed land reclamation works for the remainder of Seri Tanjung Pinang Phase 2, made up of Phase 2B and Phase 2C covering an area of approximately 507 acres (“Package 2”). The contract sum for Package 2 is approximately RM1.285 billion subject to adjustments arising from fluctuations in exchange rate and the price of fuel, and changes in cost if applicable. The award of Package 2 shall be strictly conditional upon the approvals of the board of directors of TPD and E&O and of the relevant regulatory authority on the scheduling of works.
Following on from the previous announcements on approvals in hand, and now with the award, physical works in regards to Seri Tanjung Pinang Phase 2 will commence in the near future.
Stock: [E&O]: EASTERN & ORIENTAL BHD Oct 7, 2015 07:42 AM | Report Abuse
There will be another revelation either late Oct or November. E&O has amongst the most foreign channels for marketing in Singapore, Japan, UK and Taiwan. That's why they are confident of 173M. The difference between E&O and other high end, is lifestyle.
Base on the report, the Phase2A + Gurney Foreshore = Package 1= 253+131 =384 with cost RM1.035B
During the EGM it was mentioned that the cost would roughly be 150psf reclamation and the delay then for the award was due to fuel cost and construction cost adjustment which was downwards.
When I use the 150psf to calculate, I got RM2.51B =1.673e+7*150 (where 1.673e sq feet conversion from 384 acres) = RM 2.51B This means they got additional substantial reduction from the expected 150psf reclamation cost
The drop was due to UK foray 3rd buy where debt ratio increased to 0.6 while STP2 was not awarded then. With UK Plc expected next month the debt ratio reduce to 0.38 or lower, it will retrace back to RM3 above. But for now TP1 first RM2.60
Do your homework on the warrant purpose, and then study the RM3.18 on July 16 2014 against the analyst comment on debt followed by STP2 value with and without development, GDC and GDV and other options.
Once E&O UK PLC complete, and the option for package 1 identified (JV or Sell right or ...) it will be definitely in the RM3 region or higher. As of now, just the DEIA approval, State Govt approval, fed govt approval, reclamation start approval and reclamation tender awarded with a low cost alone is already worth a billion and the low price at RM1.56 maybe a take over possibility
Bro I think your points on takeover is very true and logical. For one, Sime as a GLC would hv trouble obtaining Penang State Govt Approval if they bought over E&O too early as LGE is PRO Penang homegrown developers.
But let us focus on the value that E&O bring to the table first. STP1 Tamarind 1 was a huge success while Tamarind 2 has registered interest. E&O will also bring to the table, their foreign marketing to Singapore, Taiwan, Japan, UK, . And their UK properties once listed on AIMS can taken private with additional 3% for MGO when times are better
Very very good news indeed. Now that the first announcement is out of the way, the valuation starts. This is the one that will determine their asset holding value.
X Wondermama Many doji appearing. Means indecisive at the moment. Ball is in E&O management side as the precarious doji shows exactly that the investors are awaiting the announcement 27/10/2015 10:39
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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....
Gregorian
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Posted by Gregorian > 2015-10-24 22:17 | Report Abuse
I must hv missed the post by Rockford. Even base on 51% it is approx RM2b just for phase2A. So yes it is very deeply valued that's why Amresearch was very gung-ho when they valued it at RM9.47 whereas the calculation range showed RM8.22 to RM10 is very real. Even if lower range ie RM8.22 was used and applied 60% discount, the value would have been RM3.30 very close to the RM3.50 calculated by EnO_Turboblast and the mention July16 2014 RM3.18.
The only difference being this time it will be completed with the tender award and the UK solution. For understanding of general, UK Properties will hv UK PLC having 100% control on each Loxley and Hammersmith Properties while Hammersmith Properties will hv Hammersmith Development under it flagship.