Auditors have qualified their Annual Report 2018 noting that current liabilities exceed current assets , casting market uncertainties......now PN 17 or not ?
(iii) Planned disposal of lands of the Company Ketua Pengarah Tanah dan Galian Persekutuan (“JKPTG”), had on 5 April 2018 published gazette under section 8 of the Land Acquisition Act 1960 for Phase 1A mainly for the construction of the rail link line affecting Company’s land under Lot 8911 with estimated area of 15.79 acres. However, the proposed acquisition of the remaining lands for the Phase 2 (two) development, which is mainly for building the depot and maintenance centre has yet to be announced and gazette at this juncture.
Assume all the assets except the 450 acres land and cash are written to zero, what would be the net asset value per share of this Eden as at 31.12.2018?
450 acres of land near Kuantan port, assume at rm15 per square ft, take a Conservative figure.. 450×43,560 ×15=294,030,000
Cash 11.2 million
Total asset 294 millions +11 millions =305 millions
Total liabilities is 155 millions
Net asset is 150 million
Total number of shares 395 million
Net asset per share 150 ÷ 395=0.38
Net asset per share is 38 cents if we assume all other assets has no value except the cash and the land has a market value of rm15 per sq ft ..
You can try with other assumed market value of the land and arrive at the net asset value per share... written off all other assets, since the prime asset is the 450 acres land.
Please correct me if you think if there is anything I overlooked.. tq.
The company's 450 acres land near the kuantan port is the prime asset regardless the QR results as all other assets or business could be treated as NIL and still arrive at a good value per share..
About 16 acres of the 450 acres land would be acquired by ECRL for the first phase. The 2nd phase acquisition would be for building the depot and maintenance facilities....
The balance of the land not acquired would be very valuable and could fetch good market price. This counter is a long term asset play. QR or PN 17 or not, is insignificant.
Any suitor eyeing the precious piece of land would quietly acquire the share from the market cheaply and then could make a GO, he would make maximum profit from it. Let's see how this pan out but it probably would take quite a long time..
Land will not varnish.. That's is for sure... So long as you are holding the shares, you have a cut out of the piece.. If you don't have any share, you don't have any share of the land..
If you have sold, that is it, what for still hang around here and peep around what is happening here..
Let's say the listing would be delisted and the company sued for bankruptcy and go into receivership and liquidation, shareholders would still get the net sales proceeds from liquidation.. So what should the value of this share? Very likely much higher than the current market price.. Can anything worst than that?
This forever losing company, at least for the past 5 years, is not a surprise to post a losing QR result.. It would be almost a miracle for it to post a profit without disposing its prime land.
The 450 acres prime land at the Kuantan port is its lifeblood and hope.. Once its value is realised, please check for yourself, how much will be the share price. Haha!
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....
10216947882952046
23 posts
Posted by 10216947882952046 > 2019-04-24 14:45 | Report Abuse
go eden go go go~