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Friday, May 05, 2017

PRKCORP: Risk & Reward Go Together

All listed companies have 4 months to submit their Annual Reports ('ARs') to the exchange. If a company failed to do so, it will be given 5 market days to rectify its failure. The fifth day is known as the Suspension Deadline.

PRKCORP's FY2016 fell on Dec 31. It should have released its AR by 30 April 2017. The exchange has issued to PRKCORP a Suspension Deadline to submit the 2016 AR on or before 8 May 2017. Failure to do so would lead to the suspension of the trading in its shares with effect from 9.00 a.m., Tuesday, 9 May 2017 until further notice.

For the following reasons, you should not rush to sell your shares in PRKCORP.

1. PRKCORP is a profitable company, albeit reporting a loss in FY2016.

Diagram 1: PRKCORP's last 10 years' P&L (Source: Shareinvestor.com)

2. PRKCORP is financially healthy, with low borrowing & high liquidity position.

Diagram 2: PRKCORP's last 4 years' current & gearing ratios (Source: Shareinvestor.com)

3. For the above reasons, PRKCORP was subject to a privatization offer by its major shareholder, PKNP in 2014. The offer price was RM3.90! For more, read www.thesundaily.my/news/923309

4. This is not the first time the company exceeded its 4-month deadline for AR submission. It had happened 5 years in a row, in FY2010, FY2011, FY2012, FY2013 & FY2014.


via BursaMalaysia

In fact, you may consider buying the stock at the current price as the share price is not far from its long-term uptrend line. I think it is fairly a good buy at RM1.70-1.80.


Chart: PRKCORP monthly chart as at May 4, 2017 (Source: Shareinvestor.com)

Good luck!

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