Mjperak: u got land u got value

Must be land sell good news...

MJPERAK - May the force with you

MJPERAK - Injection theme park business and live in Bursa

My 5 simple steps will lead me to simple but effective value investing. My way to minimise the risk and maximise the gain.

Step 1: Check the PNL. Profit? Potential turnaround to profit?

Aim the bull: Yes, 2015 profit mainly from sale of land. The rest of businesses so so only.
But, new sales pipeline is coming like affordable housing project but still in early stage.

Step 2: Check the cash flow. Where is the money generate? Where is the money go?

Aim the bull: After cash received from land sale, pay to the mother company for the borrowing, it is still in net cash. Good news is dividend will be given.

Step 3: Check the Balance Sheet. Is it only left the shit (e.g debt)? Cash status? Retained earnings for potential bonus issue? NTA vs price? Fair value vs price vs NTA?

Aim the bull: Book value still undervalue as assets still in historical price. NTA 1.13 vs price 0.30. Damp, too cheap. But this is normal property stock trading below NTA. Therefore, need more land sale for book value update. So, risk to buy at 0.30 is damp low, safe and save.

Step 4: Check the price status? Which wave? Uptrend? Downtrend? Consolidation? At peak? Measurement of margin of safety?

Aim the bull: Mega sale discounted price! Margin of safety is best.

Step 5: How is the outlook of the existing business and any potential sales pipeline?

Aim the bull: Green tech business, Movie Animation Theme Park might use MJPERAK to list in Bursa. This is purely my outlook only, not an insider information.

If score 1 or 2 points...forget it
If score 3 points...monitor closely
If score 4 points...collect slowly
If score 5 points...full force...sai lang

Overall 4 points...the risk is no sustainable and profitable business as is now except land sale business.

MJPERAK - Question: Shoul I keep?

Yes, you should do that.
My outlook for future:
1. Special dividend ~ 3 cents (still pending announcement ). Yield around 9%. Much better than bank. This is special payout from land sale. Refer my previous post.
2. Assets player with huge land and still carry history value. Market value can be surprising.
3. Price now in wave 1 ( my definition ). Quite and consolidate. Minimum risk of margin of safety
4. Rumours of PERAK CORPORATION take over.

MJPERAK (8141) MAJUPERAK HOLDINGS BERHAD

What is next motivation to the price if the sale of land successful (now pending finalisation of payment according to the latest bursa announcement)?

Estimated 3 cent dividend given, translate to around 8% to 9% dividend yield (based on price 0.33). Still a better than savings in the bank.

Debt of the company will reduced substantially. Gearing will reduced to minimum 0.01.

The price likely reflect positively with this corporate exercise news.

This big gain is only one time off gain and not recurring unless another land sale again as the company has big land reserve.