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[GEM IN THE MAKING] Why Kseng is typically undervalued in terms of Asset backing , cash reserves and other investments ?

Some analysts said Kseng is already overvalued and set its target at 4.60 ??? Some analysts put the target as high as 17.00 or higher ? If one were to base on fundamentals , Assets , reserves , earnings and other quoted and unquoted investments ; it will definitely put this stock at the forefront of other stocks coz surprisingly this stock is zero gearing ? Given all the good news published since mac and later around october 2010 and the new regulations on accounting to reflect its actual value . This stock has been moving slowly and steadily after hovering at 6.10 at its support level. It takes quite long for this stock to move up the ladder and stabilised at 6.70-6.75. Everybody is expecting this stock to hit 7.00 and later to unchartered territory at its peak (15.00-20.00 ) or higher is anyone guess. Surpringly the mgt only announced bonus 1 for 2 ? In fact given the abundant cash reserves accumulated since 1995 , this company can afford more than this . Whatever given until now is peanuts compared with other companies. As minority shareholders we hope that the mgt will not keep all in their coffers but were willing to share with the minority shareholders after all these years....
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Ya, thanks to the great potential of "asset revaluation" impact to the NTA of KSENG. Other than that, I do not fancy with this stock due to the current less convincing revenue & profit growth. Compare to TWS, TWS is direct benefiting from the current commodities booming and it has officially reflected in the financial situation.
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Kseng is indeed asset-rich and equity-rich as well. When it sold its stake in Parkway Holdings Ltd, it got back RM327.49m. It's profit from the sale was RM260.14m. Considering that its paid-up capital is only RM241.39m, the amount earned is substantial. Without a special dividend and just a bonus issue of 1 for 2 is indeed frustrating. I hope the bonus issue is a prelude to something more tangible.
Fortunately, the stock reacted to the bonus announcement and opened with an upside gap in its share price. Since then, it has been trending higher. How high will it go? This is anybody's guess. To ride the trend, the only way I can think of is to use a trailing stop.
For more about Kseng, click here: http://www.keckseng.org/
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