DOLMITE (5835) - These mind blowing facts of this company almost blew me off my chair
While we are still in the mood of the Chinese New Year, I continue to wish everyone with good health and prosperity. However, today I am going to be very straight to the point on why you should look at Dolomite Corporation Berhad (Dolmite - 5835).
Being a very objective person in life, I would like to point out 2 very important pointer for you to invest in Dolomite now.
The First Point is - Result speaks for itself
As you can see, the latest 3Q FYE 2016 result for Dolomite is quite impressive. Albeit there are some forex adjustment from it's investment in China (Power Plant), the company had been able to recognize some progressive revenue from it's property development. Based on the current result, we can do a projection on the 4Q FYE 2016 result to perform around 2 to 3 cents, which can sum up to a whole year EPS of 7 cents in FYE 2016 for Dolomite.
Now that the result is already in hand and going to be publishing out soon in this month, you know what is best for yourself now. If the FYE 2016 EPS can hit 6 cents (Skeptical projection), that can easily value Dolomite at 60 cents at PER x 10.
So at the current price of RM 0.40, that is definitely a good bargain now.
Second Point - Director buy in at RM 0.50
So, I know some of you guys might not be convinced with the Result factor. As a matter of fact, I would agree with you, because sometimes, it is valid to argue that even though the result is according to the projection, the share price just doesn't move. Hence, this 2nd point can reaffirm you why Dolomite is worth the buy at the current price of RM 0.40.
In order to show you this, I will need to dig out some facts for the past few year and show it to you in your own good eyes for your own good judgment.
Here I will be showing you what is the price that the major shareholder and director of the company is paying for 1 unit of his share. According to the records, the major shareholder Mr Huang Jen Soong had been converting it's warrant in a batch by batch basis at the exercise price of RM 0.50. Yea, you did not read wrongly, at the exercise price of RM 0.50.
I will trace the last 3 batches of warrant conversion. So on 18 December 2015, he converted almost 2m unit of warrant into ordinary share, paying 50 cents each in exercise price.
So, as of Annual Report 2015, Mr Huang is left with only 3,848,842 units of warrant.
Interestingly, on the 29th November 2016, Mr Huang had fully exercised all his warrant at exercise price of RM 0.50 each.
So, in total, Mr Huang had converted 9,074,073 warrants at RM 0.50,
injecting RM 4.5 million into the company. And most of the time,
Dolomite had been trading at a discounted price, which is below RM 0.50.
(Including now, which is only 40 cents)
Now, can you tell me if the director is mad? Or you are mad not to
buy when director are converting warrant at a premium price? I leave
this to your own to figure out.
Director pay RM4.5 million to acquire 9 million share at 50 cents, what are you doing now?
Based on these 2 pointers, I think I do not need to talk much more for
now, especially on the 2nd point. Probably in the next round, if
permitted, I can share with you about some strategic advantages of
Dolomite in it's property scene, as well as "when will the power plant"
come online.
Chart wise, very interesting. 3rd time challenging on major resistant on RM 0.42, potential breaking out, and flying out.
But for now, if you want to act, don't think too much, because John Wick doesn't like a slow cooker.
DOLMITE (5835) - These mind blowing facts of this company almost blew me off my chair
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