Keck seng needs a big time operator to goreng up the stock, I have noticed the stock price is controlled. the liquidity is artificial and the management is unfriendly.
Shareholders need to band together and form a voting block of 10% of the company shares and requisition for an EGM under S144 of the companies act following the procedures guided by S144(2) of the companies act
Minority shareholders should table a resolution to payout 50sen a share in special dividends as the company is holding excess cash on their balance sheets which is not necessary for the operation of their business
These bunch of directors won't do anything proactive. After divesting Keck Seng's stake in Parkway Holdings about a decade ago, instead of buying some properties in Singapore or bought some Singapore bank shares which by now could have doubled or tripled in value, they increased Keck Seng's cash holdings in US and Singapore dollars. I have kept some Keck Seng shares for 25 years, it looks like I have to keep them for another 25 years.
Fair Value of Keck Seng is easily 11RM/ share after marking to market their land and hotel investments. Keck Seng is also in a net net cash position with 500RM MILLION EXCESS CASH
Keck Seng has net cash of over RM800 million after deducting RM210 million short and long term loans, mainly kept in US and Sing dollars. It has sizable investments in the stock market, worth over RM400 million. The most valuable asset is its land, about 9,000 acres of plantation, golf course and housing lands almost entirely located in Johor Bahru.
The company directors haven't acted proactively all this while. They just hoard cash, mainly in Sing and US Dollars and seldom sell the company's share investments. In 2007, Keck Seng's share investments were worth RM720 million. It plunged to just RM360 million the following year as a result of the world financial crisis.
Keck Seng group is worth RM5-6 billion or over RM13 a share. The directors may just offer minority shareholders RM5 to RM6 a share to take the company private.
Huge spike in earnings for the April to June quarter due to record palm oil price and weak Ringgit. Hopefully this can translate into a record interim dividend.
Keck Seng failed to pay any dividend in 2020 and 2021. This year it paid 5 sen a share dividends in April and July. The company normally pays an interim dividend of around 4 sen a share in November of the year. Looks very likely that it is not paying this year.
Yea, good news for Malaysia as the Ringgit has been rising over the past several weeks against the US dollar and other currencies but bad news for Keck Seng as its foreign exchange gain so far this year has been drastically reduced.
Companies reporting much improved earnings will see their share price register handsome gains but not this company. Don't dream also that the directors will reward shareholders.
As at beginning of November last year, Keck Seng's total foreign exchange gains on its holdings in US and Singapore dollars was more than RM50 million. I am quite doubtful if it has pared down on its US and Sing dollar holdings.
When the company wasn't profitable during financial years 2020 and 2021, it didn't pay any dividend. The yearly dividend has been quite consistent at 10 sen a share for over 10 years.
Posted by prudentinvestor > 10 hours ago | Report Abuse
When the company wasn't profitable during financial years 2020 and 2021, it didn't pay any dividend. The yearly dividend has been quite consistent at 10 sen a share for over 10 years.
I started to buy Keck Seng over 30 years ago. Still keep a few thousand shares bought during the mid 90s. It needs to revalue all its assets to current market values before privatization.
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....
valueinvestor96
28 posts
Posted by valueinvestor96 > 2022-05-24 14:41 | Report Abuse
Keck seng needs a big time operator to goreng up the stock, I have noticed the stock price is controlled. the liquidity is artificial and the management is unfriendly.
Shareholders need to band together and form a voting block of 10% of the company shares and requisition for an EGM under S144 of the companies act following the procedures guided by S144(2) of the companies act