Bro armt, i think you misunderstand, maybe i didnt write it clearly, ok megb nta now is 59 cents right inclusive all the properties ma, if they sell all it will still be 59c or more, buttt they will be holding close to 42c worth of cash, if they dividend out the cash lets say 40c, the stock would be repriced down to 19c at today price, do u think a business like megb is worth 19c only? Probably 60c, that is why you buy more you are buying cash plus 19c worth of business !
Hey Alpha Trader, I re-read your analysis. I understand where you are coming from, but the key factor here is the speed of the earnings turnaround. If it does achieve the earnings level which you have stated, and assuming sector multiples remain steady (do note that the earnings multiples for Prestariang has been declining lately) I suppose your TP could be achieved. In long run, this is definitely possible. Perhaps the investors currently have no assigned any value to the future earnings. We shall wait for further clarity/information from the parties acting in concert (SMRT and Creador)
yeap, in fact I think they will be able to make it in 2016, profit of RM15m should be no problem to them give their size, number of programmes and better management in the company, this is a longer time frame stock
So far ,for KLCI the only sign lacking is the volume (30k-50k), I would be more convinced to see 200k/30min -- I guess the EPF boys is not certain yet themselves....
Significant watch level for KLCI = fib 1811 at 50% retracement. If reversal not materialised today then sign is the KLCI manipulator is very determined to close the gap at 1800.
Maybe my calculation got problem, how they get 220m net cash i am not sure, if it is 220m then megb business is only worth 30m at current price?! 8c? Whack on monday before you regret
Other than that, this stock is a no brainer. I will be happy if MEGB returns cash to the shareholders while share price remain stagnant. This will give me a chance to whack an education business at RM 30m which has a high opportunity of earning millionsssss in future.
Assuming one course being offered in MEGB is RM 36k for three years. That is RM 12k per year. WIth a net profit margin of 10%, that is RM 1200 per student per year. To hit RM 5 million net profit per year, MEGB has to recruit 4000 students.
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....
Alpha Trader
1,983 posts
Posted by Alpha Trader > 2014-11-13 18:37 | Report Abuse
Bro armt, i think you misunderstand, maybe i didnt write it clearly, ok megb nta now is 59 cents right inclusive all the properties ma, if they sell all it will still be 59c or more, buttt they will be holding close to 42c worth of cash, if they dividend out the cash lets say 40c, the stock would be repriced down to 19c at today price, do u think a business like megb is worth 19c only? Probably 60c, that is why you buy more you are buying cash plus 19c worth of business !