Ekovest : catch the falling knife?

source: The Star

I did expect there will be spillover effect to Ekovest, but i cant imagine that it hit limit-down (max decline 30%) to 1.01, before closing down RM1.17 today, with 230.13m shares transacted.

Im thinking what's wrong with those so called investors (or speculators)? losing their mind and selling like there is no tomorrow!!! my friends asked me whether i am selling my Ekovest-WB or not, i reply them that im going to buy on weakness, why sell? Ekovest, at this point, to me, is still a good company with strong fundamentals & bright prospect, and i dont see any direct impact of Bandar Malaysia deal to Ekovest currently

I have sold 70% of Ekovest-WB when it hit all time high in march, market was crazily chasing after Lim Kang Hoo related counters at that time ( IWC proposed merger with IWH), and i knew Ekovest should not worth that much at that time, but in deep i know Ekovest is going to be a legendary company in 5-year time, so i sold 70% to lock in my profit and the rest is free shares to me (my avg price) and i dont have to worry if it is going to plunge, and can probably buy back during a big correction.

Technical Outlook

breakdown with super high volume, and the price drop below 200sma, definitely not a good signal. Falling knife? i cant precisely predict how low it can drop further, so i will just buy batch by batch, mother share is apparently more appealing at this point since son is trading at premium of 22.65%

p.s.: trading of IWCITY has been suspended until Friday, so Monday it could negatively affect the price of counters linked to Lim Kang Hoo again

Disclaimer: it is not a buying recommendation, your money, your decision

Brief Analysis on Market Outlook & Construction Stocks (GGGE)

At 1st, let' take a look on KLCI index

Sign of strong upward trending, immediate resistance at 1730 (hopefully can break above it)
Interest hike? it seems not affecting our market at all this time, why i said so?

http://www.businessinsider.my/fed-interest-rate-hike-march-probability-100-percent-2017-3/?r=US&IR=T#srMm0QOzxG8PF3DI.97

Foreign funds were dumping Malaysia Stocks like there is like no tomorrow at the time FED raised interest last year. In contrast, they have been buying non-stop for 3 consecutive days though they anticipating FED will be raising interest rate next week, dont u smell something?
If KLCI index can break above 1730 with high volume in next 2 weeks, i will then sailang all my available cash into equities market.

In stock investment, stock selection is important, but what equally important is sector to be focused, a stock will only 'rise and shine' if and only if overall industry is doing good, for 2017, im still anticipating construction stocks could outperform others because value of construction jobs highlighted in Budget 2017 totalled RM99bil.

for full article, pls refer:http://www.thestar.com.my/business/business-news/2016/10/25/construction-stocks-rally-following-budget-2017/

Constructions Index

immediate resistance at 313, the index is now sloping upward and supported by 20 days EMA
do note that the 20 days EMA cross above 70 SMA in Jan (Golden Cross),  which means superbullish

Gkent (my favorite construction stock)

my 2nd stock that went above 100%

Gkent is trending sideways since Dec 2016, im not worrying about it, in fact im buying it and averaging up since Feb. Why? As the project delivery partner (PDP)  for LRT3, Gkent will be including the very 1st revenue from LRT 3 in coming quarter result.
How much is the revenue?
9 billions revenue is shared by Gkent and MRCB and to be completed in 5 years
estimated will bring in 900m revenue, which translates 225m for each quarter, impressive huh?

Gamuda

Known for being a reputable and reliable operator in multi-billion ringgit infrastructure projects, Gamuda’s name is usually the first to crop up when it comes to high-profile government projects.
Gamuda Bhd is set to have a busy 2017 as it outlines two major projects with staggering figures, namely the RM28bil MRT2 project and four townships with an estimated gross development value of RM45bil. http://www.thestar.com.my/business/business-news/2016/12/13/busy-2017-for-gamuda/

Gamuda have finally broken above its strong resistance, the sky is the limit now?? It depends whether the foreign funds manage to push it or not as EPF is dumping it recently, for risk taker, i can suggest to consider Gamuda-WE as the premium is only 6.8%

Upcoming project that might benefit Gamuda:
ERL worths 55 billion
HSRl worths 40 billion
Penang Transport Master Plan worths 27 billion
MRT3 projects which are all underground, will be announced in 2017

Gadang

Gadang is definitely one the the most undervalued construction stocks, currently trading at P/E of 8
the price hardly move though it announced a spectacular quarter result on 25 Jan
Gadang surge up 6.2% on 3 march as it is rumoured to be awarded one of the packages of MRT2 project, im not suggesting to buy Gadang-WB as premium of 38% is unacceptable to me

Ekovest

For more info, pls refer my prev post
Ekovest is surprising me as it keep breaking new high after special dividend and share split

2nd quarter result is came in above expectations as net profit surging 7.8x yoy to RM41m, driven by a strong construction division.

my 3rd stock that break 100% gain mark, more to go

New catalyst
Ekovest has drawn up plans to list its property and infrastructure units on Bursa Malaysia

http://www.nst.com.my/news/2017/02/208902/ekovest-targets-listing-2-more-divisions-bursa


In a nutshell, construction sector looks promising to me in 2017, the aforesaid 4 stocks make up more than 50% of my new investment portfolio, and i will probably keep these stocks till year end unless there is major changes announced.


Disclaimer: it isn't a buying recommendation, your money, your decision

Ekovest -RM10 billion company in making

Original source: http://www.thestar.com.my/business/business-news/2017/01/18/ekovest-orderbook-to-exceed-10bil-in-18-to-24-months-time/

First bought Ekovest because it's defensive, dont expect it manages to grab so many projects in a short time, it's kind of unstoppable :)

Recent happenings

• Sale of a 40 % stake in the Duke concessionaire for RM1.13 billion and invites EPF to be its partners

• Won the biggest-ever project (DUKE-3) worth RM3.74bil, with a 50-year concession to collect tolls and keep construction segment busy for the next 3 ½ years
• River of Life

• Awarded two contracts to improve and beautify the Klang and Gombak rivers

• JV work package worth RM2.1bil for Pan Borneo Highway project

Oh, don’t forget the big one, RM6.32 billion job to build an expressway that consists of Kampung Baru Link, Istana Link and Kapar Link Expressway in the Klang Valley

I like the ambitious managing director of Ekovest Bhd, Lim Keng Cheng, he set the target to become the top 30 listed companies on Bursa Malaysia within five years.

Although market is full of uncertainties currently, but Ekovest looks super promising to me

It would be one of my core holdings in 2017

will definitely add more on weakness

For a detailed fundamental analysis on Ekovest, i suggest to take a look at http://klse.i3investor.com/blogs/wealth123/104926.jsp
it's written by WealthWizard in a professional manner


Disclaimer: it isn't a buying recommendation, your money, your decision