MD is buying & senior officers are selling, very interesting case. There is a reason why the MD sits on the other side of the table. Is it a "considered valuation" before they made their decisions? The sellers think it is over valued, and the buyers think it is under valued. I think it is under valued. Add pop corn + bought some tickets. If you want to watch the movie, get your tickets before it is sold out.
I bought gadang at rm 1.5 and sold them in 2015 at rm1.4 due to the bear came out..the most stupid thing i have done in my life.. so gadang holders, u know wat to do? juz sharing the lesson i have learnt..
Gadang is a laggard compared with some of its construction peers. YTD, Gadang is up only 22%, while other peers like GKent, Ekovest and Econpile have gone up 32%-35%, with PE of 12-18x and valued at 1.5b, 2.3b and 1.3b.
The other laggard is Suncon, up around 20%, PE 21x and valued at 2.6b.
YTD, Gadang value has increased 22% from RM700m to RM840m, and during this period, it secured effectively about RM1.13b of construction contract. Every company has different composition of sectors they are in and within the same sector, risk is also different, The value from RM1.1b contract is easily 2-3x the increase in price of RM140m.
Gadang's PE is among the lowest at 8.4x and lowest Mcap at RM840m. The rest is at least RM1.3b to RM2.6b. With one more project of RM500m, market cap can hit above RM1.2b.
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Posted by keke > 2017-05-18 16:57 | Report Abuse
kakaka, smartyalek, now u know leh, no up no down, play die u.