WCT’s post-results briefing centred on changes to its de-gearing initiatives, future newcontract targets and updates on its property developments. WCT has abandoned plans for an outright sale of its properties and will instead create a WCT REIT. The group has also recently signed an MOU with a Chinese contractor for a potential collaboration and brushed off rumours of it taking part in Bandar Malaysia. Maintain HOLD and target price of RM2.03. Entry price: RM1.80.
Don't just look at the share price value of 2.5 2.8.. etc. When someone buy a controlling stake, someone can CONTROL the way the company operate. Including the preferred supplier, preferred vendors, preferred contractors.. and this is probably how the money go back to someone..
It good time to accumulate the shares now especially WD, because the fund manager will push up later once the new project awarded is out.
The reasons why dropping because previously those retailers who purposely pushed up the stock for the Bandar Malaysia projects news. Now they don't have holding power, that's why they keep selling, but internal people keep buying.
If you were a wise investor, you should know that the warrant price will follow the mother share price movement. Thus, if mother price now is 1.80, then if exercise price is 1.71, supposingly the WD price should be RM 1.80- 1.71, which is RM 0.9.
However, the attractive things here are that the WD premium is very very low, so it will be "Goreng Up" when mother price is up.
Anyway, the focus here is that the mother share price will go up. It can foresee that the share price now is at resistance level between RM 1.79 to RM 1.81. When it breaks the level of RM 1.83, it will definitely go up to RM 1.90 and onwards.
Furthermore, there will be good news coming in for the new projects being awarded to WCT. Keep an eye and see.
So when it goes up to RM 1.90 for mother share, the WD will be traded around 0.19 to 0.20.
Again, according to the fund manager, they now slowly collect the mother share and together with the warrant which is WD. When the time is right, the mother share price will be back to RM 2, and will be speculated around Rm 2.25 to RM 2.35 level.
Lets hope now no any sudden economic tension like north Korean war, 1ndb, etc which will affect the performance of the share price.
Desmond has an army of CF ppl and analyst working for him. You think he made a wrong decision taking into account his strong connections and synergy with the Pavillion / Malton group?
Actually based on my reliable source, WCT will obtain at least 3 contracts this year, and they will bid for 1 mega project. They will JV with one China BIG construction company with special expertise to bid for this mega project. This mega project might be KL-Singapore Railway project. They have very high chance to get this project awarded to them, as Desmond lim his main purpose of acquiring WCT is to handle this Mega project together with the above 3 projects mentioned.
Anyway, WCT has secured its first small project which is LRT 3. But this is not that attractive as its profit margin is low, that's why it wont move the share price up. Now we are waiting for 2nd and 3rd project with very attractive profit margin to come out.
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....
linges
2,701 posts
Posted by linges > 2017-09-11 13:04 | Report Abuse
Newbie...u cashing out all ur investment?