1) 100%-stake in KL Airposrt Services Sdn Bhd ('KLAS') for RM766.16 million; andAny RPT is viewed suspiciously and these two acquisitions will be no exception. The main concern is the bigger transaction involving the acquisition of KLAS.
2) a piece of land measuring 9.9 acres in Pekan HICOM, Section 28, 40400 Shah Alam for RM69.0 million.[This information was accidentally left out earlier.]
Firstly, the purchase price of RM766.16 million is very high relative to KLAS's most recent profits. For FY2015, KLAS made a pre-tax profit of RM7.2 million. This means POS is buying KLAS at a PER of more than 100x. Going forward, we can expect POS's PER to above the 20x.
Chartwise, we can see that the stock has broken below its long-term uptrend line, SS. Its immedaite support will be the horizontal line at RM2.50. If that support is violated, the stock may test the next horizontal line at RM2.00. For now, I would re-rate POS as a HOLD if you have bought into it. If you have not bought into it, you should wait until the stock has found its support - be that at RM2.50 or RM2.00- before getting in.
Chart: POS's monthly chart as at Dec 14, 2015_9.30am (Source: ShareInvestor.com)
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, POS.