QUOTE(cherroy @ Jul 16 2008, 10:38 PM)
Still at 16 cents, it implied around PE of 15, which is not cheap (just a fair value) by market standard or market average.
Genting is cheaper than that with PE around 13. Anyway, not fair to compare, as it is apple and orange if compared with different industry.
What I mean volatile is their financial report which can swing both way quite extreme depends on economy situation which eventually reflect on share price movement.
Sorry for the mis-understand part.
No doubt, it is hardly beaten stock but not without the reason. As there is not possible for share price to sustain at RM4-5 level with EPS of 16 cents. May be that's the reason why its MD sold his signficant stake of it because of overly rich valuation of share price at RM5 he saw.
You need improvement in economy situation eventually for construction industry for Gamuda to stage a return which in near term, highly unlikely. Some rebound in share price may be after being beaten hard, but not huge move. Anyway, this is across the board also, not only Gamuda.
Just my opinion though.
I think if you want to buy as investment, gamuda is definitely out as there are a lot of uncertainties. y the CEO want to reduce his stake . Are you sure it is just because of valuation? PER to high?Genting is cheaper than that with PE around 13. Anyway, not fair to compare, as it is apple and orange if compared with different industry.
What I mean volatile is their financial report which can swing both way quite extreme depends on economy situation which eventually reflect on share price movement.
Sorry for the mis-understand part.
No doubt, it is hardly beaten stock but not without the reason. As there is not possible for share price to sustain at RM4-5 level with EPS of 16 cents. May be that's the reason why its MD sold his signficant stake of it because of overly rich valuation of share price at RM5 he saw.
You need improvement in economy situation eventually for construction industry for Gamuda to stage a return which in near term, highly unlikely. Some rebound in share price may be after being beaten hard, but not huge move. Anyway, this is across the board also, not only Gamuda.
Just my opinion though.
Or there are some more othere issues. But for the CEO suddenly reducing the stack there must be something not right. Is very risky.
Jul 26 2008, 10:33 PM

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