Get rid of it. The company is partially insolvent . It owes more than what it is worth. Loans of 250mil vs market cap of 210 mil and falling. The boss for sure will try to keep it around 50 sen to avoid margin call and he can't do it forever
While the target price is 2.40, the current price is 0.49 - wouldn't they change the TP is the condition is bad? How reliable is the TP mentioned in this site?
The TP was by an Aminvest analyst who would have been fired by now unless their management is really substandard. I've read the initial IPO write up and I already know that it was a load of crap.they were the underwriter of course but the way they exagaratted the growth rate was way too obvious. One anaylst that graduated from London business school agreed with me . I have a postgraduate degree in finance not from a Malaysian college but from quite a renowned business school. I know analysts that got fired in Hong Kong for far less than that. Using the most mundane calculations, the company has to be making more than 150 mil a year to justify 2.40. Their latest quarterly profit is 6 mil and the 1st quarter profit (although high on the surface ) was one off . In fact , they didn't make any money from operations.
Good buy at current level. So far no annoucement of director selling recently.
IVORY PROPERTIES GROUP BERHAD (673211–M) UNAUDITED INTERIM FINANCIAL REPORT FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER 2012 PART B – EXPLANATORY NOTES PURSUANT TO PART A OF APPENDIX 9B OF THE LISTING REQUIREMENTS (Cont’d) B1 Review of Performance (Cont’d) Profit before Tax: The current year quarter ended 30 September 2012 recorded profit before tax of RM2.3 million as compared to RM5.6 million in the preceding year’s corresponding quarter ended 30 September 2011. A lower profit before tax in current quarter was because most of the new projects have just commenced.
B3 Prospects for the current financial year In addition, the much anticipated The Wave project, which launched in 3rd quarter and the up-coming City Residence and City Mall projects which will be launched by end of this financial year, will spur the sales of the Group towards the end of the year.
Q2 profit came from revaluation of properties. Profit from operations is almost zero. It is a "one off" item that analysts have to exclude because it is a one off item. The latest profit is not even 1/3 of its rivals in Penang such as Hunza and Tambun indah. I do not deny that Ivory is profitable bit it has to make a lot more than q3 excluding revaluation to convince analysts that its share is even worth 1 ringgit which is just the IPO price
Ivory will be launching five residential projects in the second half of this year and early 2013 with a gross development value (GDV) of over RM800mil. Among the projects are the phase three and four Penang Times Square in Jalan Dato' Keramat with a GDV of RM300 million.
At a press conference after the group's AGM, Murly said the first phase of residential development in Bayan Mutiara would be launched year-end or the first quarter of next year with a gross development value of between RM700mil and RM800mil.
Other developments include the Island Resort bungalow project in Batu Ferringhi with 22 exclusive units ranging from 5,000 sq ft to 8,000 sq ft at a GDV value of between RM20 million and RM25 million to be launched year-end. - Bernama
Brave words when no planning permission has been given for the bayan mutiara project. The BN govt must thank them as PDC has not done any due diligence before selling the land to them . Payment for the land is far from settled and no wonder why they are desperate for joint venture partners . I won't name who has been approached . by the way , the nanyang article has nothing to do with q2 results , it's merely what the boss says . A quarterly revenue of 30 mil does not tally with the sales figures above
i agreed with impartiality, ivory is overtrading and the gearing ratio is too high, any delay in the projects execution will affect the viability of the company
penang world city phase 1A condo sneak preview for 4 blocks,total 800 units near fully sold @$670/sf to $800/sf from built up of 615sf,800sf,1000sf,1300sf & 1500sf.
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....
diablo88
1,215 posts
Posted by diablo88 > 2012-09-07 16:58 | Report Abuse
nice one! More to come next week