Honestly i don't understand why the share price is going down. I believe it is the UK PLC which needs to be announce ASAP. Reason why I say that is because the share price was at the highest in July 2014 after the second UK foray but only started dropping after the 3rd foray Esca House..I believe once UK PLC is announce whereby E&O Bhd will hold 30% and gearing reduce to 0.3x the share price will move again.
Once UK PLC completed, it is at a better position than July 2014. As for STP2, there is no stopping the start reclamation now because any stop work, the govt will have to pay a very very high compensation for the delay.
As for the debt concern, as explain earlier, firstly the unbilled is at RM 937 Mil with 635M new sales in 1HFY2016 and on target for 3yr PAT of RM450M which was not revised.(even at down time)
Value is there no doubt but idea to sell the value is where Eric failed miserably. If the same condition was presented end of last year (ie all approval obtained, start work ready, UK plc ready to go,etc) I assure you the price will sustain above 2.60.
This is where Eric failed miserably, he announce the 3rd UK buy Esca while without any idea of what they will do with the debt esp when STP2 was abt to get all approval. It shows E&O under Eric was on a buy first worry later spree without knowing then abt the buying and developing policies and rules in the UK. Terry himself fork out personal money for the buy in UK. Now that all the dust has cleared, the price has fallen too much and to build momentum for the uptrend again E&O must ensure the price don't fall anymore.
The federal govt is not provisioning budget for Penang despite the state contributing to national coffers. If there is outcome and no income the move done by Penang is actually the best solution.
Firstly sorry for the delayed New Year greetings. I was up and about abroad in Europe on a long business trip. Came back last week and took a journey up to Penang to see for myself the reclamation. Though many of the markings and base already set up, at that point work has not start. I believe it's partially due to the current sentiment. There are 2 reclamation, one down south and the other up north of the island.
The one down south of the island (Bayan Lepas) has been given green light by the state government and the north should follow suite. For those who are not aware, north is where the STP2 reclamation near Gurney will start. I hv no doubt that the reclamation will proceed because the commitment and compensation is sizable.
I would like to bring to your focus 3 things which will be happening 1. Start work 2. UK PLC 3. Partner for STP2
This 3 will bring in the revenue, valuation and reduce the debt. When that happens, the share price will be 2 times more attractive than the July 2014 when the price was pass RM3.
Curse on fatty Tham and Eric Chan on the monkey year. Caused everyone to lose money because the two dungu farts keep delaying the project and announce it will start. ooooiiiIiiii sudah 1 tahun since the earlier delay.....delay some more.
Better change the Eric Chan fella to a proven MD like Liew Kee Sin. LKS got nothing he sell air also fly. Eric fella got approvals and 1B worth project also die. Hope Fatty Terry change a new person to take over. Really Beh tahun liao
I remember when I went for the AGM, all the statements made by Terry has happened but for Eric, most are wishy washy. Pls do all a favor demote yourself Eric, you are not MD level
Bro Saturn thinks Sime will take E&O eventually and today i read this in CIMB Highlights note the part on Sime Darby to undertake more PD projects in Europe
News Highlights: Media Prima’s STMB signs JV agreement with CJ O Shopping Co Ltd
Sime Darby plans to undertake more property development projects in Europe
OWG proposed a private placement of up 10% issued share capital
Boustead Holdings looking to raise RM1.05bn via 2:5 rights issue & bonus issue
Indonesian Anthoni Salim’s company bought 9.1% stake in CAB Cakaran
Eco World's first phase of BBCC project to take off by Q2
CIMB Group says no plan to lay off more staff
DRB-Hicom to spend RM600mil on new engines
Malaysia Building Society gets more time to negotiate on merger with Bank Muamalat
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....
HakChai
535 posts
Posted by HakChai > 2015-12-18 17:56 | Report Abuse
Sad day