Wednesday, September 9, 2009

Glomac Berhad & Glomac-wa




Lately I have been trying to search for some good trades. I try to search for safe trades. I always think that it is safer and better to enter a trade after a correction has just ended. Beside Brem-wa, I also find Glomac-wa interesting.

Glomac Berhad is an investment holding company that, through its subsidiaries, is primarily engaged in property development and the holding of investment properties. It is organized in three segments: Property development, which is engaged in the development of residential and commercial properties for sale, and sale of land; Construction, which is engaged in the construction of buildings, Property investment, which is engaged the investment of land and buildings held for investment potential, and rental income. During the fiscal year ended April 30, 2008 (fiscal 2008), it launched three projects, such as Glomac Tower, Glomac Galleria and Sri Bangi. In fiscal 2008, its ongoing projects included Suria Stonor, Plaza Glomac and Bandar Saujana Utama. In fiscal 2008, it acquired Glomac Segar Sdn. Bhd., Glomac Al Batha Mutiara Sdn. Bhd. and Glomac Mauritius Ltd. In February 2009, the Company acquired 100% of BH Interiors Sdn Bhd (BH).

One of the reasons i like Glomac Berhad is Glomac is so actively buying back its own shares since 28 July 2009. To be exact, Glomac Berhad acquired 482,000 shares of its own shares with price ranging from RM0.94 to RM1.08. That are a lot of shares! Besides, Glomac's independant non-executive director (Professor Datuk Ali Bin Abdul Kadir) also bought a lot of Glomac Berhad shares last August. This is a good sign!

Fundamentally, Glomac's P/E is 9.94. It is reasonable comparing to its property sector peers. Glomac's NTAB is RM1.85. Glomac is trading at RM1.08, so it is trading below its NTAB. Good! Besides, Glomac has a proven stable earning record. Glomac makes profit for the last 9 consecutive quarters (at least)! Good! Glomac is actively buying back its shares. Good!

Technically, Glomac is supported by its 14-d, 25-d and 50-d moving average. MACD, stochastic and RSI are rebounding. Glomac is trading at thin volume too. Good! Refering to the chart, we can see that it is better that we trade Glomac by buying them when volume is thin and selling them when volume is high. Simple!

Now i think we just need a catalyst to make Glomac/Glomac-wa jumps. Glomac is going to announce its quarterly result at the end of this month. Let's hope this quarterly report can jump start the rally.

Glomac-wa's premium is 29.6%. Gearing is 3.6, expiry date is 24/10/2012 (another 1141 days to go). The high premium should not be a problem since it is still have another 3 years to go before it matures.

Ok, good luck in your trading.

GOon

1 comment:

  1. Hi GOon,

    Read the Glomac Info of your opinion, interesting, observant + good comments, a "plus-plus" for u.

    Glomac had released their 1st quarter report(NTAB 1.88 todate) by showing profit increase but a decrease in its revenue compared to preceeding year quarter, Glomac are active buying back their shares for the last few months but resale almost all (99%+)its cummulative treasury shares from 25/09/09 to 28/09/09, besides Tan Sri Mohd Mansor disposed 700,000 shares on 28/09/09, whereby the AGM is round the conner on 30/09/09 with a dividen of 3.5 + 1 sen ?? Does this indicates of any of anything? what is the strategy should apply by minor investor (count me in too)at this point of time, of its price of 1.21? what is your point of view and comments?

    Besides, need your opinion of these 2 stocks , Kumpulan Fima and Metro Kajang.....if your are willing to.....thanks...

    OK, good luck in your trading too.

    Regards,

    Winter Chill

    ReplyDelete