Not a bad buy. It has solid assets - freehold land with oil palm on them. 30% premium above the net assets is reasonable. If CPO prices are maintained around the RM3k level, plantation counters will be in the spotlight again. There are already signs of interest picking up in this sector. Will have to wait and see whether this company will also pay dividends.
30 yrs ago , agric land per acre was around RM5k, now it should be in the region of 80-120k in Pagoh, Tangkak given its proximity to the newly targeted growth area ; in addition the building of speed rail will be passing thru this area. Thus its potential apart fr agric will be great given the industrialization and housing are taking place there. Thus if your investment is 5k then, you must multiply 16-20 times to get your land value back . Not so when the share is trading at 14-15c coz your returns is equate to 3-4 times your initial investment ; it fell short of the actual intrinsive value of 16-20 times. unless u got 60 plus cts , then you have achieved your actual value for the initial investment. My 2c analogy...
Uncles and aunties invested in this share at the age of 40+, now they are near 80 and will not have time to enjoy their fruits of investment. Really a doom generation
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....
char1234
5,299 posts
Posted by char1234 > 2017-01-17 09:08 | Report Abuse
is this a new listing ?? TP ??