After our successful investment in TRIPLC - Sure win Zero Risk,
(now name as PEB still up after special dividend), now it's time we
found another one look similar and still have big % to move up.
Yes, it's DUTALND (3948)!
A company remain cheap and safe to invest !
Why?
I put it very simple for this case as I hope you can understand immediately !
Everything start with Dutaland sell off their plantation land in Sabah.
source:
Lets us check the latest quarterly result of DUTALND on May 2018.
Many might not realize that the company already receive the money of RM 675 million !
To understand this amount is significant or not, let me show you my very simple calculation.
We know that total share issued of DUTALND is 846.118 million share.
RM 675 million / 846.118m = RM 0.7977 cash per share !
Current stock price only RM 0.52. What is this mean??
RM 0.7977 - RM 0.52 = RM 0.277
Still got RM 0.277 cent potential upside and it's 53% potential upside now !!
Definitely this company is already showing undervalues !
Well of course we need to check whether the company is nett cash position !
Dutalnd short and long term borrowings not even more than 4 million ! That mean the land sale of RM 675 million will be a big cash that going to pump into Cash and Bank balances during August quarterly result !
This is how up coming result possible look like ! Cash big increase !
By the time quarterly result release, then many people going to realize the big value of this money !
Beside this, the company boss already taking action lately !
Kenny Height Developments is actually own by the boss family, in annual report 2017, they owned 28.23%, on 26/7/2018 has increased to 29.14% !! If you check back past few years annual report, all the while just maintain ! Duta Equities also from total 22.21% increased to 23.49 %
Why all of suddenly the company and the family start buying their own company shares?
It's obvious !
DUTALND is very undervalues after plantation land sale off !
The Family increase stake for aiming the future return of this big cash of RM 675 million !
What is the potential of this RM 675 million ? Special Dividend ?
Yes !!!
Many did not know company already planned to payout RM 85 million for special dividend which is equal to:
RM 85 million / 846.118m = RM 0.10045 cent dividend !!
Dividend RM 0.10 / Current price RM 0.50+ = 20% dividend yield !
SOME more !
The company receives property worth RM 45.4 million ! It's equal to RM 0.053 cent per share !
SOME more !
And look Duta Grand hotel this property worth RM 334.184 million which valuation at 1996 !
If revalue it could be double up !
Just take RM 334.184 / total share 846.118m = Worth RM 0.394 per share !
Let us see the price movement lately :
Technically hit low of RM 0.47 where the place company start buying
back their own shares. Once break RM 0.54 definitely can see big push up
again.
As a quick conclusion,
Just imagine you buy this company at RM 0.50+,
with big cash worth RM 0.79,
with property / land development worth RM 0.40+,
You are actually buying RM 0.79 + RM 0.40 = RM 1.19 with only RM 0.50+ at market price ! !!
And already have RM 0.10 special dividend for sure coming into pocket soon !
My own short term hope to reach RM 0.64 mid term hope RM 0.78.
http://klse.i3investor.com/blogs/logictradinganalysiss/167659.jsp
