Look like its going to fly Feb 2020and March 2020.Please read; Michael Kwok 1244 posts Posted by Michael Kwok > Jan 10, 2020 8:18 PM | Report Abuse X
Trying some new method here.Seing 57-67 cent as worst case scenario.I call it a buy.Cut loss at 33 cent below(made sure below after 4 pm on that day).price 36 cents.
COUNTER : SARAWAK CABLE BERHAD or SCABLE (Code 5170, Main Market, Industrial Products & Services)
BASIC FACT SHEET - Market Capital : RM 69.75 million - Total Floating Shares : 317.05 million - NTA : 50 cents - Major Shareholder - DS Mahmud Abu Bekir Taib (27.38%), Sarawak Energy Berhad (16.53%)
BUSINESS PROFILE
i. SCABLE is a Sarawak based conglomerate involved in sales of power/telco cables, galvanised products & steel structures, transmission lines, power generation and helicopter services ii. Sarawak Energy Berhad is a majority shareholder and therefore is considered a state-backed company iii. Revenue is consistent between RM 150 - 250 mil a quarter for the past few years. Has a strong client base
PROSPECTS
#1- Right now trading at discount of about 60% to its NTA of 50c
#2 - Has a cash position of RM 87.9 mil (market cap now is only RM 69.75 mil), therefore able to storm the short term volatility caused by COVID19
#3 - Currently undergoing restructuring so that costs can be managed better for company to make profit
#4 - Among the initiatives are disposal of its helicopters which are loss making (in March 2020) and also sales of land to Mexter Glove Manufacturing (Oct 2019). All these will improve company balance sheet
#5 - Also, SCABLE 78% owned Indonesian unit, will complete its hydro power dam project by end May 2020, which will be able to generate RM 40-50 mil revenue by having a 20 year power purchase agreement with Indonesian energy authorities
TECHNICAL ANALYSIS
i. Hit a high of 41c in December 2019 ii. Price went to a low of 10c in March 2020, however low volumes were traded at the bottom of market iii. Broken EMA14 at 20.5c. Next EMA200 is at 26.4c and EMA365 at 32.5c iv. Volume increases indicating healthy trading momentum towards higher prices vi. Possible to make a V-shape recovery should there be any forthcoming good news in announcements
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....
Hope123
144 posts
Posted by Hope123 > 2020-01-16 14:42 | Report Abuse
Good news coming soon.