Chart: KBunai's 60-min chart as at Oct 20, 2010 (Source: Quickcharts)
The gift that keeps giving! First, Pemandu at the Economic Transformation Plan (ETP) open day on September 22 announced that an integrated resort (IR) - including a mangrove centre, water theme park and waterfront properties- will be developed on a 500-acre “eco-nature” resort in Karambunai, Sabah. This IR may come with the option to build a casino to ensure a higher return on investment (ROI). Later, Karambunai denied that the IR would include the development of any casino (here).
At the Budget announcement on October 15, it seems that the government would be developing this resorts at a cost of RM3 billion. Now, it is made clear that it’s a public-private partnership with the government contributing RM100 million to the total development cost of RM3 billion (here).
Like the saying goes, “If wishes were horses, then beggars would ride on them.” My concerns are as follows:
· Would the project be any more successful than MK Land’s Bukit Merah resort?
· Should the RM100 million be spent to build up an area which can cater for more than one resort? Taman Negara could be a good model to follow. Imagine a similar RM100 million allocation for Mutiara Taman Negara as compared to funding the development of the infra-structure around Taman Negara.
· Would a RM3 billion “eco-nature” resort be so massive that you can’t see any more “eco-nature” in the resort?
All in all, I am not sold on the idea of Karambunai as a stock nor Karambunai as “eco-nature” resort, with or without a RM100 million contribution from the government.
22 comments:
What is the next stage for me to buy it?
Hi Stephen Pui
The immediate strong support is the recent high of RM0.20 & then the gap at RM0.195.
YTL Cement announced to buy Perak-Hanjoong Simen from Gopeng for 200mil cash,which is almost equivalent to its market capitalization.
How is your view on Gopeng?
Today's price wander at RM 2.35, could it goes higher?
Hi Xavier
Gopeng will get a large sum from the sale of Perak-Hanjoong Simen. However, this associate contributes 60-65% to its bottom-line. Without it, Gopeng's pre-tax profit would drop to RM12 million (or net profit of RM9 million). This would give a EPS of 4.5 sen.
I guess you can't have the cake & eat it at the same time.
hi Alex
May i have your comment on ipo CHINA OUHUA WINERY HOLDINGS LIMITED,it is worth to subscribe??
Thanks in advance.
Hi JOY
The pertinent details for the IPO of CHINA OUHUA WINERY HOLDINGS LIMITED:
1) No of share issued: 668 million
2) Net Profit attributable to S-holders for FY2009: RM63 million
3) IPO Price: RM0.60
Based on EPS of 9.4 sen & IPO price of RM0.60, the PE for this new stock is about 6.4 times. That's normal PE for PRC companies to be listed on Bursa. While the IPO is relatively inexpensive, I have no opinion about a Chinese wine maker producing red & white wines. Anyone for Chinese wines???
Hi Alex ,
Genting HK is waiting taiwan for the proposed gaming legalisation.Will this boost the GenHK price to go up?
David
Hi Alex,
what is the next best entry price for Eksons. It has been dropped sharply these few days.
Dear Alex,
What do you think of Mitra? And your fair value for Mitra will be? Alliance gave it a TP of 1.70 in June. After some major surging, what would be a good entry price?
Thanks!
Hi Alex,
What's your view on IJMLAND? It seems the property sector is correcting a little.
regards
Hi Alex,
Good day,
Any comment on MPCorp as this stock move alot with high volume recently.
thanks.
Dear Alex:
I had bought Kbunai at 0.235 but the stock is undergoing corrections n trading around 0.2 . Is there any future for me to keep the stock for long term investment seeing its potential or better to sell it at a loss?
Your suggestions are greatly appreciated. Thanks
Hi ayseng52
One can only hope that Kbunai would put in a strong rebound at the support of RM0.195-0.20. With the huge volume traded in the past few days, this hope will wear very thin indeed. If it break this support momentarily, should you sell, say at RM0.18?
This stock could be a target of a syndicated pool which could play this stock against retailers riding on hope, greed & fear. Even experienced traders are drawn in & the pool could even use technical or management rules to draw in the buyers or push out the sellers. You are swimming in dangerous water, infested with sharks. I don't envy your position.
Hi David Chan
Why Genting HK? Does it have a special vehicle to venture into Taiwan?
Hi NiCol Lim
Eksons should have good support at the horizontal line of RM1.00 & then the accelerated uptrend line at RM0.97-0.98. Its immediate resistance is at RM1.10 and then at RM1.20 & RM1.35-1.40.
I think the correction over the past few days is quite healthy after a sharp run-up.
Hi steve
Mitra has formed a 'rising' flag, with resistance & support at RM1.33 & RM1.03. You can buy at the support of RM1.03 or when it break above the resistance of RM1.33. Alternatively, you can sell at the resistance of RM1.33 or when it breaks below the support of RM1.03.
Good luck.
Hi hkloon
IJMLAND may have a bullish breakout of a long-term downtrend line or a descending triangle at RM2.45. Its immediate support is at RM2.55-2.60 & immediate resistance at RM2.85-2.90.
Property stocks are enjoying rotational play, with minor correction in between short price run-up.
Hi @h Tong
MPCorp is a 'swing trading' stock, with the range between RM0.30 & RM0.60. In between, it has resistance at RM0.46-0.47 & RM0.56-0.57. It has on a few occasions broken above RM0.60 & went as high as RM0.66-0.67.
MPCorp is now trading at RM0.48. If you must trade this one, try to get in near RM0.46 & get out at RM0.56 or RM0.60. To be frank, I don't like the chart of MPCorp nor the trading proposition at the present price level.
Dear Alex:
Thanks a lot for your apt comment . I should have thought earlier to enquire more on this stock b4 plunging into the depts full of sharks and crocodiles . Anyway your prompt n good suggestion will reduce my loses in this counter. Again thanks
Regards: Lim Ay Seng
Dear Alex:
Do u think CCB is a good buy ? This share has been traded in the upside to RM8 but now is trading at RM4.70-RM5.05 due to failure to fullfill yearly special dividend which usually amounted to RM1.25-1.35 sometimes more than RM2.00 for a period of 2 yrs. Do u think accumulation now can bring bumper harvest next year ? Thanks
Regards: lim ay seng
Kbunai maintained its strenghth n stronger each day . So your prediction of this stock going south never once appears ? Your suggestion of sindicated play may be true but its volume is still maintained whenever the price breaks 0.225 . More buyers come into play and stir it up to 0.245 and above ? Chart-wise n all news though not positive yet , still attracts many into play. Not many r worried of any setback.
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