1.4b outstanding shares, don't think is so easy to push up to RM2, need how many rounds to reach this price. About 90% current price, if can reach 1.60 already very good.
Tropicana is rich in asset because they own a lot of land. Property price may be stagnant....but land price especially in klang valley will only increase!..
On its on-going de-gearing initiatives, Tropicana has disposed RM510m worth of land bank and has recently signed an agreement to dispose its Tropicana City Mall and Office Tower worth RM540m. Tropicana has also signed four SPAs to dispose four pieces of land worth RM633m. We forecast its net gearing to fall to 0.45x in 2015E vs. 0.68x in 2014. (source: Affin Hwang Investment Bank)
Fong7, you are right. The whole market and the analysts only look at its gearing ratio and ignore all other good things and the potentials of Tropicana. What a pity for Tropicana which is a bad name in Cantonese dialect, (very tough)
Most people just choose to ignore the good profits ( be it from fair value gains, land sales or operating profit) over the last 3 years, its superb prime land banks and huge potential GDVs.
Morale of the story: Don't pick a wrong name for the company. And its public relation department or its CEO must be able to sell and articulate the growth story and potential regularly to the public via newspapers.
The government stress that no more cooling measure for property in 2015.
Reason being 70% of Malaysian with properties wanted property price to move higher, versus only 30% of Malaysian that do not own property and wish to see property price down which is not happening. Therefore government is with the 70% majority.
Demand still exceed supply.......In Malaysia all developers combined can only construct 300,000 houses per year.....Population keep increasing.....divorce rate increasing......graduates increasing... can't avoid...price of property keep increasing.....
Property prices keep rising.....developer make more money and more profit...
lately property/construction stocks gaining momentum....Mitra is a classic example.....Gained 60% within one month..
Tropicana reported RM333 mil net profit for FY2014 and its market capitalization is less than RM1.5 bil, trading well below its NTA. Eco World reported RM7 mil net profit for FY2014 and its market capitalization is close to RM2.9 bil, trading well above its NTA. This may be the biggest shame to the boss and the management team of Tropicana Corp. Its weak share price is a clear reflection of the public doubt and lack of confidence in the company.
Why the analysts are so critical about the gearing ratio of Tropicana despite the company consistently churning out good profits for the last few years, not to mention that it can always monetize its superb prime land banks to de-gear accordingly? There are many other companies which are more highly geared than Tropicana but they are still highly recommended by the analysts. Weird?? Can't the management team justify to fund managers and analysts that Tropicana can manage its gearing and cash flow comfortably for the next 3 years??? http://klse.i3investor.com/servlets/stk/fin/8206.jsp http://klse.i3investor.com/servlets/stk/fin/5401.jsp
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....
inikalilah888
689 posts
Posted by inikalilah888 > 2015-02-12 10:28 | Report Abuse
salted fish....cannot see any green light