This week, Totomaster's stock portfolio has risen a mere 0.67% compare to the Main Composite Index of 2.20%. The KLCI has rallied up to over 2% during the first trading day of 2007 and manage to stay at the current levels despite profit takings from major bourses across Asia and Europe.
Over the week, I have disposed TANJONG @ RM14.70 and it did manage to close at RM14.90 at low volume. The remaining proceeds are used to purchase LIONDIV @ RM5.85 because I think LIONDIV has alot more to offer compared to TANJONG. This week itself, LIONDIV has drop from the high of RM6.40 to closed @ RM5.90 last Friday. With its nett cash position of RM1.426 billion and its ever robust retailing and property development unit, I do not think the current price is justifiable. Excluding the exceptional gain, the 1st Qtr 2007 EPS is approximately RM0.115, est. EPS FY07 : RM0.55; est. PE FY07 : 10x @ RM5.85. Not too demanding noting that the share price of Parkson Group (Hong Kong) which has been scaling new heights everyday coupled with agressive expansion in China. In my opinion, the main reason for the drop is because of SC has rejected the Proposed Extension ("Rejection") against AMSTEEL & SILVERSTONE and shall commence with the de-listing procedures next week. However, this does not change the fundamentals of LIONDIV. Check out the tabulation below.
WCTLAND, the property developer arm of construction giant WCTE has recently gain attention due to its low valuations. Over the years, a major chunk of WCTE profits came from property development section due to its higher profit margins. However, investor chose to shunt WCTLAND due to its high debts, limited development and a slowdown in construction sector. It is normal for development entities to have high debts due to acquisition of land assets. It has been proven that WCTLAND is able to translate its assets to profits with its high end development. For financial year 2006, WCTLAND has managed to obtained a PAT of RM59.19 million couple with an interim dividend of RM0.05. Previously, WCTLAND has recently risen for the 6 days to acheive a high of RM0.825 on 28/12/06 and soon succumed to profit taking. During this short trading week, WCTLAND did drop to RM0.775 at low volume but manage hit a high of RM0.82 before closing at RM0.81 at the end. An interim dividend of RM0.05 is expected to be declared again in the coming quarterly results which is equivalent to 6.1% at current prevailing price. Trading at a steep discount to its NTA of RM1.22 and its dividend policy, I think WCTLAND should be able to trade above RM1.00 in no time in this current uptrend market. Check out it's homepage http://www.wctland.com.my for current & upcoming projects. Another thing to note is that WCTLAND has also been actively sourcing for recurrent incomes, in this case would be rental incomes; one of those successfully secured is AEON or to most people recognised them as Jaya Jusco.
This update is getting too long, will continue to blog on the other stocks in my portfolio in the coming posting.
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