Chart 1: SPB's daily chart as at Dec 31, 2013 (Source: Tradesignum)
Chart 2: SPB's weekly chart as at Dec 31, 2013 (Source: Tradesignum)
From Chart 2, we can guesstimate that if SPB can recruit enough support, the stock may rally to a target price of RM6.00. This target price is arrived at by adding the distance traveled from the trough in 2012 to the 2011 high (about RM1.40) to the breakout level at RM4.55 (or, RM4.60).
SPB is a profitable property developer and investment company. The biggest complain among its shareholders is the conservative management that failed to realize its valuable land bank. I have tabulated its past 12 years results in the form of a table and a chart below. If you look through its annual report for 2012 (go here), you will see its substantial land bank.
Table: SPB's past 12 years results
Chart 3: SPB's past 12 years results
Are investors finally recognizing the under-valuation of the land bank in SPB. That's my view after analysing HELP's annual report. I feel that HELP could be a target for takeover because of its land bank in addition to its business. I have listed below the 3 properties owned by HELP.
Wisma HELP, Lorong Dungun Kiri, Damansara Heights, 50490 Kuala Lumpur11-storey building known as Wisma HELP (University Campus)Freehold Land: 43,292 sq ftBuilt-up:269,086 sq ftAge: 33 yearsNBV: $30,058,000Date of Acquisition: 27.11.2003
HELP Residence No. 28, Jalan Damansara, Damansara Heights, 50490 Kuala Lumpur21-storey building known as HELP Residence (Hostel Building)Freehold Land: 11,969 sq ftBuilt-up: 151,955 sq ftAge: 5 yearsNBV: $46,097,000Date of Acquisition: 5.5.2010
PT 12291 Seksyen U4 (Subang Delima), Mukim Sungai Buloh, Daerah Petaling, Negeri SelangorLand for private educationLeasehold for 99 years expires on 5.5.2109Land area: 23 acresAge: N/ANBV: $22,615,000Date of Acquisition: 17.6.2010
Map: HELP's premises in Damansara Height area
If HELP's properties are enticing, SPB's properties will be equally enticing. Thus, the play on this stock.
Based on technical breakout, SPB could be a good stock for trading BUY.
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, SPB.