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Please advice. It just gone ex rights for 30cts. Now the R are sold at 62cts and main shares trading above 1 dollar. wouldn't buying the R make more sense? either that or the main shares should close the gap soon?
Good for you vested. This is one counter that's fundamentally solid and small free float. So what this means is that the price will fly if it gets noticed by EVERYBODY. Buy on dips and hold. It should cross $2 easily. I like the rights issue at 30c. This counter can literally buy until weak!
Trending up steadily towards $2.00 breakout for the past 1 week. RSI > 70 overbought, volume less than 400 lots a day. Stock cornered or/and good quarterly results in the making.
Any comments. I'm vested at $1.87.
1Q 07 Loss making despite doubling revenue Q on Q due mainly to squeezed margins
Period FY05 1Q06 FY06 1Q07
Rev 54,666 12,719 72,709 25,757
Change in inv 1,394 583 1,018 2,040
Raw Material (44,092) (10,213) (60,615) (23,616)
Gross Margin 21.35 % 23.22 % 18.00 % 15.04 %
Earnings per share cts (0.5) (1.74) (9.12) (1.38)
NAV $1.80.....so current price is discount to NAV.
Co claims that margins will improve with added capacity in their specialty cement.
I prefer to wait till 2Q07 results are available before investing in this counter.......just my personal opinion.
DBSV targets $1.8 (NAV) this morning. Grossly undervalued and undiscovered gem!!!!!!
tks nos, took yr advice and got 5 lots CPF.
Nostradamus Sir, what a waste that I did not go in. Another good TA on Engro. Well done once again. Many thanks.
Hi Nos, you mentioned that Engro will have to exercise Section 44 tax credits, so by when do they have to disperse it?
tks Nos, I will look at this under-rated counter. Cheerz!!
Analysis from KE:
Engro has a 10% stake in Ho Bee Cove while Ho Bee Investment holds the remaining 90%. Ho Bee Cove was formed to undertake the 3 parcels of land @ Sentosa Cove, known as the Baywater Collection.
The issued shares for Engro are 77.2m while that for Ho Bee Investment is about 10x more at 737m. Ho Bee last traded @ $1 while Engro''s last traded price was $0.84cts. Thus, despite Engro holding only a 10% stake in Ho Bee Cove, the EPS contribution for Engro is similar.
The stock could also be a potential section44 play, as their retained earnings on December 2002 stood at about $111mil, or $1.43/share.
Although the stock is illiquid, there is potential value for medium term investors. The chairman/CEO had bought shares from the open market at $0.87-0.90 since last year.
Support is at $0.83, there should be initial upward bias to $0.95. Accumulate at current levels.