Hi to all fellow investors and traders !
Today I would like to share my thoughts the following counter:
COMINTEL CORPORATION BERHAD or COMCORP (Code 7195, MAIN Market, Industrial Products & Services)
COMCORP - WOW !!! WHITE KNIGHT COMING IN TO SAVE THIS COMPANY !!!
1.
COMCORP Signed MOU With Dhaya Maju Infrastructure (Asia) Sdn Bhd and
the Latter's Executive Director, Datuk Seri Subramaniam Pillai Sankaran
Pillai
COMCORP fell into PN17 in January 2018, after disposing its core business for RM 123.8 million and then rewarding shareholders with a handsome dividend of 45 cents. Since then their price have slided downwards.
But looks like the worst is over for COMCORP. Article below is referred
from The STAR (appreciate if The EDGE could also do some write up for
COMCORP, I think even PN17 company deserves the right for media
coverage)
A few salient points of the MOU for those who would like to read summary instead of whole article:
i) Dhaya Maju and its Executive Director considers to explore jobs worth no les than RM 115 mil in railway construction-related communications, system integration and support services
ii) COMCORP regularization plan will include the material content of this MOU
iii) This regularization plan
would comprise repayment of existing debts, disposal of its loss making
subsidiaries and subscription of private placement by the white knight
COMCORP's current market cap is only RM
12.6 million. Therefore, should the white knight be able to assist and
award jobs worth up to RM 115 million, this would help increase value of COMCORP market cap to between 5-10 times that of current market cap (long term valuation of about 45 to 90 cents).
2. ABOUT DHAYA MAJU INFRASTRUCTURE (ASIA) SDN BHD
Their website can be referred below.
This company was incorporated in 1996. Registered in Malaysia as a "PKK
Class A" Bumiputera and CIDB G7 Contractor. They are qualified to
undertake projects of unlimited value. Their management system has been
awarded ISO 9001:2015 quality certification by Lloyd's register Quality
Assurance since 2004.
They have successfully completed a number of prestigious projects, for example:
i) Central Link KLIA Expressway (Package 1A)
ii) Rail Link to West Port (all balancing culvert and drainage work)
iii) LHDN building in Bangi
iv) Major slope rehabilitation works along North-South Expressway
One of the recent major highlights for them, is that they
managed to secure the 2nd phase of Klang Valley Double Track (KVDT2)
rehabilitation contract, 10 months after it was terminated. They are in a 80:20 JV with LTAT. Total contract value is RM 4.475 billion. Refer news link below:
Therefore, based on the above fact, it
is clear that they have the capacity to subcontract works to COMCORP,
with their backing of the company once they have entered thru the
private placement.
YB Datuk Seri Subramaniam Pillai is the Group Executive Director.
3. CHARTING - Forming Rounding Bottom, With MACD Cross Indicating Bullish Momentum
Let us first look at the monthly chart of COMCORP. A few observations:
i) A Rounding bottom pattern is forming, indicating the the worst might be over and trend is changing
ii) MACD has started to cross upwards to indicate bullish activity ahead
iii) Stoch and RSI are oversold, but are trending upwards indicating buying strength entering the counter
Let us look at the daily chart. A few observations:
i) Price managed to achieve a break out of EMA 14, 43 and 200 at closing today to close at 9 cents.
ii) Volume has significantly increased on 23/1/2020.
iii) Should the price be able to break EMA365 of 11.5c, then the sky is no longer the limit for COMCORP
CONCLUSION
Based on my opinion, I believe COMCORP should be seeing better future ahead, based on below:
i. Signing of MOU with White Knight to inject new Work worth RM 115 mil into COMCORP
ii. White knight is major contractor , and among jobs in hand are KVDT2 Project worth RM 4.475 billion
iii. Chart shows rounding bottom forming in monthly chart, signalling worst is over for COMCORP
Thanks for reading and see you in the next post.
THE ABOVE IS NOT A BUY OR SELL CALL AND IS ONLY A PERSONAL OPINION ARTICLE AS A SHARING TO BSKL COMMUNITY MEMBERS.
Yours Truly,
INVESTHOR
https://klse.i3investor.com/blogs/InvesthorsHammer/2020-01-23-story-h1482903340-WOW_WHITE_KNIGHT_COMING_IN_TO_SAVE_THIS_COMPANY.jsp
