Short term punters alrdy exit,then can fly alrdy..
Salcon has 36% stake in the 1B project which means total anticipated portion for them is RM 360 million..current capitalization is RM 485 million based on 79c value..
Thus there is a lot of upside potential for Salcon!
aku dok fikir sape ler NetResearch, rupanya This report has been prepared by Netresearch-Asia Sdn Bhd for purposes of the CMDF-Bursa Research Scheme ("CBRS") administered by Bursa Malaysia Berhad, and has been compensated to undertake the scheme. Netresearch-Asia Sdn Bhd has produced this report independent of any influence from CBRS or the subject company.
Short term contra player sell on news..but once contra period is over the stock is going to climb..36% stake in Langat 2 project is worth RM 360+ millions..
Salcon is going to get 36% stake in Langat 2 project, why the price is not going up still? Dsonic gets 10million my card contract worth rm292million (which is less than Salcon) but it is shooting up. Someone pls edecutate me :)
Blissleen, Salcon's portion of 36% is RM357 mil, however, this is a construction project, usually the profit is less than 10%, say 5%. Salcon will only profits about RM18mil for the duration of 3 years. Meaning RM6mil each year. Salcon has a share base of 600mil shares, meaning this project, at most, only contributes 1 sen to the earning per shares. Not a significant news. Moreover, insider already accumulated Salcon's share since 60sen+, so the share price of 79.5 sen now is almost the value of Salcon now.
Makes sense, the original contract value supposed to be 1.2B but scaled down to only circa 980M. so the profit margin sure has been scaled to skin. Knowing MB Khalid, this is exactly what he would do. but the plus would be the Langat2 Phase 2. more profit is expected in that parcel.
Hi blissleen, the profit margin for construction project is always very thin, at most 10%. For property development, will be around 20-25% from the GDV for mixed development, commercial or highrise. 30% for landed. This is from my friends from the industry
guys, think carefully, the management or company people who not allow the warrants to go out of the money:
they need to support mother counter to let warrant expire in the money, for warrant holders to pump in 75cents per share into their company, so mother shares will rise soon this week or next week, all the warrant holders will be tempted to exercise it, so guess what, buy the mother now !!!! darn cheap!
NEXT, buy the warrants if you are a gambler! 50:50 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....
Investhor
532 posts
Posted by Investhor > 2014-04-18 08:20 | Report Abuse
Short term punters alrdy exit,then can fly alrdy..
Salcon has 36% stake in the 1B project which means total anticipated portion for them is RM 360 million..current capitalization is RM 485 million based on 79c value..
Thus there is a lot of upside potential for Salcon!