Privatization is old news le, if cheap that time they dun wana privatize, you tink with sky high valuation now they want? Sad to see knee jerk reactions of small investors rush in while big investors let go of the stocks.
Bought more Naim @ 81c, finding it RIDICULOUS that its price is so much less than half that of Dayang when its holdings there is already approaching $1 per share!
According to Peter Lynch's interpretation, buyers are being PAID 23c to own all of the co's net cash balance sheet including all its investment properties & land.
Naim owns 25% of Dayang. Dayang at 2.05, Market Capotalization is 2.4 billion. Thus, 1/4 of this is valued at RM600million, for 510million share holders or more than RM 1/ share. Naim s NTA alone is RM 2.50 for a Sarawak share.!! Charts also bullish as broke Resistance, on its way to RM 1.00. !!
We have been told that to minimize risk, we should have a portfolio of stocks. Does it mean that we can have any stocks (assuming that they are fundamentally sound and cheap)
Take the example of Bursa construction/property company Naim and Bursa oil and gas company Dayang. You can see from the revenue trend chart that there is not much correlation between them. Actually there was a negative 10% correlation. https://i.postimg.cc/L5GkR9p9/Dayang-vs-Naim.png But then Naim owns about 25% of Dayang and probably influened its decision making. So are they uncorrelated stocks?
From a statistics perspective, as long as 2 stocks are not 100% correlated, having them in a portfolio will result in a lower volatility compared to their individual volatility. If you looking for less volatility, then having them both is better than just investing in one. https://ujianehc.blogspot.com/2023/12/dayang.html
Of course, the big picture question is if part of the performance of Naim is tied to the performance of Dayang, would it be better to look for another oil and gas stock?
Dayang PAT of 235m, Naim 24% will get 57m.. Divide by it's 513m shares,. EPS is as high as 10sen.. if say using PE of 12 only, its fair price could be RM1.20
Good QR! Grahamian net-net improved by 3.4c to 88.55c while net cash improved fr 14.8 mil to 23.9 mil (4.65c per shr) Rock solid financials + Dayang shareholding as a HUGE financial buffer on top of it!!!🤗
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....
shareprofit
489 posts
Posted by shareprofit > 2023-09-04 17:11 | Report Abuse
NAIM is sooooo SMOOTH to RM1, and beyond...