Since the last article frm Felicity about WCEHB , until now news or article anymore frm Felicity about WCEHB .....
wondering is he cut loss and sell already ? Or everage down slowly and quietly ? Or put WCEHB in freezer and open it after the highway complete in year 2019 ?
I think the whole idea of wcehb is still intact, the concession is still theirs. Ph government will not be able to give free tolls and I doubt that issue will resurface again until the next election. There are more important things to do than spend billions to give the people free tolls. Once profit rolls in through toll collection, I think the market sentiment will change.
I can't tell you without risking my job. That should tell you enough.
I'm not super confident. But with important data im privy to (pcukm for each section, and revenue for each toll pcukm etc), and using very very conservative estimates. Like seriously damn conservative, you know how kiam i am.
It still looks like a decent investment. If you use normal estimates, it becomes bloody amazing at this price.
I queued to increase my stake by 30% today. Will be doing the right issue. Having said that, its only 3% or so of my portfolio on current market value. If i do the right issue, will probably push it up to like 5%.
Why did i not buy more? They are other bloody amazing investments now in KLSE, that you can buy using conservative estimates. But wce, if you have a 10 year perspective, have very very interesting kickers.
Just remember PLUS was taken private at 4.50 years ago.had it been still listing,its price probably 6.00.Look at Litrak.same end result.During intervening years plenty of dividend.This is how WCE will be like.Just keep it or keep buying for those with bullets.
Very likely WCE is the first to be bought back because of the low capital base.At 1.50 the total cost to the government will only be 1.50 billion as after all the bulk of funding the construction cost came from the government.
If govt cancel toll, they need to pay cost at the very least. Even then, it would be considered as nationalisation, which no govt will do unless you want to destroy your economy.
Now this toll is selling below cost d.
==== Posted by RainT > Oct 9, 2018 04:40 PM | Report Abuse
So if WCEHB toll is buy back by the government ...so all the potential profit frm the toll collection gone lo??
High profit margin of toll operation , high cash flow potential of toll operation also all gone ...
every which way is a winner for this stock at this price at 0.65.If government buy out now,it would not be less than 1.25,the entry cost of major shreholders. if allowed to operate as toll highway for 60 years,looking at 3.00-4.00
base on latest update of status, the project is only completed 54%, I doubtful whether it is possible to completed on 2019? Higher possibility the project will be delay. Somemore any update regarding for the loans after cancel right issue plan?
RainT: if you go look through old bursa announcements, you can find the entry price of the major shareholders. 1.25 i believe is the entry price of MWE (lower after entries further down the line), Pang family entry ~1.11 i think... but IJM's entry only 0.26 (when they went in to rescue talam).
Jon Choivo If govt cancel toll, they need to pay cost at the very least. Even then, it would be considered as nationalisation, which no govt will do unless you want to destroy your economy.
Now this toll is selling below cost d.
If government cancel toll.
They have to pay compensation They will be losing cashflow from the concession when the government already has cashflow problem if they are thinking of pairing down their debt
Its very unlikely. I think its unlikely to even reduce the toll charges. Let alone cancel it
I’ve been doing some calculation on this company .after completion of highway. Provided this company achieve 10% irr which translate to around 600m/year take out its portion left with 480m. Provided the company give 30% as dividend.its around15m. At this price future dividend yield at 25%. I’m in
raint - u need to think harder what makes sense what doesnt. at this price, just look at the future dividend it can potentially give u. ull get your return in 3-4 years in dividend
from close door meeting with LGE yesterday at St.Regis, confirm unlikely to cancel toll in next 3 years because no money. and even so, it will be selective toll only and will be according to respective contracts. The new govt is prepare to respect the contracts and they will honor, Toll operators continue business as usual loh
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Posted by RainT > 2018-09-23 11:54 | Report Abuse
Jump in at rm 0.70