Monday, May 20, 2013

GMutual- a small-cap property stock at all-time high

GMutual is a relatively small developer with projects in residential, commercial & industrial sectors. It seems to concentrate its development in the Southern part of Peninsular Malaysia. For more, go here.

GMutual reported a net profit of RM22 million on a revenue of RM104 million for FYE31/12/2012. This is a slight improvement over the result for FYE31/12/2011 where its net profit was RM21 million while its revenue was RM96 million. Its EPS for FY2012 was 5.9 sen while its NTA stood at RM0.71 as at 31/12/2012. At RM0.345 on May 17, GMutual is now trading at a PE of 5.8 times or a Price to Book of 0.49 time. At these multiples, GMutual is deemed fairly valued for a small-cap stock.

Chartwise, GMutual has surpassed its high which was recorded on its listing day. A stock that trades in all-time territory tends to go higher. Thus, GMutual's technical outlook is deemed bullish and could be a good trading stock. This bullish outlook should be revised if the share price failed to stay above the RM0.34 mark.

Chart: GMutual's weekly chart as at May 17, 2013 (Source: quickcharts)

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, GMutual.


clongviews said...

Thanks. Had a hard look and made some money.

Alex Lu said...

Hi clongviews

The good news is that you made money. Read the blog, check out the numbers and pull the trigger.

Good luck in your NEXTTRADE!

MuiKee said...

Hi Alex, How about invest in REITs? How to choose the stock in REITs? Thanks

Alex Lu said...

Hi MuiKee,

I have not gone back to studying REITs since 2007. Back then, I was very comfortable with that asset class and I was expecting a similar play like what happened in US. What a play it turned out to be!!

I ignored REITs because the individual REIT's performance is dependent on two things- the yield of the portfolio of properties owned & the appreciation of these properties. I find it hard to analyze them, so I did not bother to try. Someday I might revisit this sector when the valuation is more attractive.