OWG had finally prevailed and is inching higher, but the main question here is, can OWG still go higher? Is OWG still worth your investment? What is the future prospect of OWG? These are pertinent question that one should always ask when investing in any company, because I am sure every investment that you make, you are looking to make money, and in order to make money, you need to have the right company doing the right thing, have a good management, good opportunity, business luck and a lot more, and most important in the context of share market is you are going in at the right price where there are still room of appreciation for the share price to move up in the future.
To clarify, I had first covered on this company when it is trading at 57 cents.
Proof is here to show
https://klse.i3investor.com/blogs/targetinvest/192654.jsp
On my first piece of article, some people think I am coming in as a pump and dump writer, and con investor and trader. But as a matter of fact, I had saw the potential of OWG when it is trading below 60 cents, and had held on to this company for various reason, most importantly is that OWG is linked to Genting Highland, Malaysia most visited and most making money tourism area.
I am still holding to OWG, and in fact continue to buy bit by bit when it is going up, because i know the potential of OWG is very big considering that the current quarter result does not really reflect the real potential of OWG when it is operating at a 100% level.
By partnering with Genting group, which had a combine market capitalization of RM 50 billion, there isn't anything that can go wrong with OWG, considering Genting is going to through face lift and upgrades on facilities and also increasing its hotel to cater for more tourist, as well as shopping area.
OWG can be considered as Genting biggest associate in non gaming sector
1 - Food & beverage
2 - Indoor themepark operator
3 - Outdoor themepark operator (Biggest potential to get more share since Disney put a big vacant after leaving)
The most lucrative earning does not come from Food & beverage, but themepark / amusement park/ children playground activities. The margin is more than 50%. Now can you tell me which business do not need you to do heavy advertisement but you will have a lot of visitor every week and have 50% gross margin from revenue ?
The biggest question mark now is "HOW BIG A SLICE IS OWG GOING TO GET IN THE OUTDOOR THEMEPARK OPERATION?"
This I believe is a very big revenue factor for OWG in the future.
By looking back at the share price today, you can see solid purchase in OWG share with more than 5 million share transacted. Obviously it is not from me, but from smart investor that see the opportunity in OWG.
Beside the owner having more than 50%,
there are other fund such as EPF, Etiqa fund and CIMB Small cap. More
over, there is a 10% private placement done previously at RM 1.00.
Now is 70 cents, which is a 30% discount from those private placement party.
Assumption case
Based on the previous visitor, now with
the new upgraded and expanded themepark, analyst is putting up a
potential figure of 2.5 to 2.7 million a year just on themepark
Imagine 2.5 million people paying RM 100 per entrance, the theme park alone will be raking in RM 250 million in revenue.
If OWG is going to operate 30% of the
outdoor theme park play, that will probably see RM 75 million allocated
for OWG, minus out all the other cost and maintenance with margin of
40%, OWG still can get RM 30 million a year from outdoor theme park.
That again is not factor in F&B business in the outdoor theme park which is lucrative as well.
So at 70 cents, OWG is still very
attractive looking at the prospect. I would probably looking for OWG to
trade back at RM 1.20 region on outdoor theme park full operation.
However, please do note that all these
are my rough assumption and calculation. Do not take it as factual and
solid data. This is just a rough idea on OWG potential on the outdoor
theme park. For those thinking I am having ill intention, do note that I
had already covered this stock at 57 cents before everything went wild
towards 70 cents. If you are that sour grape, too bad for you.
I am in OWG, and will be with OWG for
more years to come to see the benefit of the theme park operation
towards the earning of OWG.
** This is just my sharing, and any
decision you want to make, please consult your own dealer or make your
own study. This is not for you to determine your buy sell trade
decision.
https://klse.i3investor.com/blogs/targetinvest/194311.jsp
