NCB (5509) - NCB: Is it the real thing?

NCB (5509) - NCB: Is it the real thing?

From recent reports on Westports Holdings Bhd ("WPRT"), we learn that there are 2 possible positive news for WPRT and also its direct competitors, NCB. The 2 positive developments are:

• The possibility of a third port being developed in Port Klang and this concession may go to WPRT or NCB or a new third party.
• The Port Klang Authority has submitted a proposal to hike port tariffs to the Ministry of Transport. If approved, this could lead to an immediate jump in Westports’ earnings. However, the quantum of the proposed hike has not been disclosed.

The 2nd development will favor both WPRT as well as NCB, while the first development will favor the winning party. In addition, NCB has substantially cleaned up its books with regards to the negative impact from its loss-making subsidiary, Kontena Nasional Bhd. It is also reported to be a target of a buyout by the Syed Mokhtar group. Some of these possible developments may pan out and could lead to a recovery in NCB's share prices.

To be sure, NCB share prices had tumbled down significantly from a high of ~RM4.80 in late 2013 to a recent low of ~RM2.20. This stock is like a RM10 note on the foyer of the Mid-Valley Mall. Thousands of footfalls had stepped on it and yet no one picks it up. Is it the real thing?

At the time of writing this post, NCB was trading at RM2.70. That's a gain of 10% over the past 2 days, on relatively thin volume. Has the next upleg has just started? Is it about to rally? Who knows!! However, on weakness, I think it is a stock worth considering for long-term investment.


Chart: NCB's monthly chart as at April 22, 2015_11.00am (Source: Share Investors)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, NCB.

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