Wednesday, October 19, 2011

BRDB- a good property stock at an attractive price

Let's revisit one of my recent post, BRDB. This stock was highlighted in an earlier post for illustrative purpose (here). Since then, BRDB announced its plan to sell four properties for RM914 million to substantial shareholder Ambang Sehati Sdn Bhd, controlled by its chairman Datuk Mohamed Moiz Jabir Mohamed Ali Moiz, may not fly with the minority shareholders. Amongst the properties being sold is the successful Bangsar Shopping Center (BSC). After strong objections from minority shareholders, the company has decided to carry out the sale via an Open Tender (here). The negative publicity of the earlier proposal & the overall poor market sentiment have dealt a cruel blow to the share price. The stock is once again hanging onto its long-term uptrend line support at RM1.90-1.95. I think this could be a relatively safe level to buy into this well-known property stock.


Chart: BRDB's weekly chart as at Oct 19, 2011_4.00pm (Source: Quickcharts)
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5 comments:

  1. AnonymousWednesday, October 19, 2011 5:36:00 PM

    Hi Alex

    Can you comment on Malton? Share has been outperform, i wonder what is fair value for Malton? I'm expecting some dividend from Malton after it record strongest EPS of 20sen.

    Compared to last year dividend of 1.5sen against its earning of 6.3sen (payout ratio 24%). Assuming Malton adopt more conservative dividend payout of 20%, it could potential declare dividend of 4sen or yield of 6.7%. What do you think?

    ReplyDelete
  2. Alex LuWednesday, October 19, 2011 5:52:00 PM

    Hi Hng,

    I think your assumption on the dividend payout is reasonable. Malton is rising on news of the listing of Pavilion REIT (the link below). If the stock can break above the medium-term downtrend line at RM0.65, it may test its horizontal resistance at RM0.70. If that is also taken out, it may even revisit its high in 2004 of RM0.90.

    http://www.theedgemalaysia.com/in-the-financial-daily/194609-malton-surges-on-pavilion-reit-ipo-talk.html

    ReplyDelete
  3. Ai LingWednesday, October 19, 2011 6:10:00 PM

    Hi Alex,
    Would appreciate if you could comment on KUB? As you mentioned earlier on your blog back in Sep'11, KUB is the political stock. As the election is expected to be on very soon, thus just wonder whether we should watch out for this counter now?

    Thanks a lot for all the sharing!

    ReplyDelete
  4. Alex LuThursday, October 20, 2011 3:58:00 PM

    Hi Ai Ling

    I saw the upside breakout of the short-term downtrend line at RM0.55 for KUB on Oct 7. It is now hanging onto the intermediate downtrend line at RM0.70-0.72. Has it surpassed that level? Can it go higher? If it can go higher, it may test the long-term downtrend line at RM0.8-0.90.

    KUB has secured a sizable contract of >RM200 million recently. While it is a poorly managed company, it has its purpose. It's a village bicycle that everyone can ride whenever he/she feels that election is around the corner.

    ReplyDelete
  5. Ai LingThursday, October 20, 2011 10:33:00 PM

    Thanks again for the info shared, Alex!

    ReplyDelete