EKSONS(9016) : High NTA, 7% Dividend Plus Brighter Business Prospect Make It A Good Value Buy, Calvin Tan Research Author: calvintaneng | Publish date: Thu, 21 Jun 2018, 08:14 PM

June 21, 2018 By Calvin Tan Smart Investment

Hi guys,

 

EKSONS is now in my Investment Radar due to some Very Fundamental Changes Now:

 

And these are some Salient Factors

 

1) At 71.5 sen with NTA of Rm2.77 EKSONS is now selling at a Huge 75% Discount to NTA.

This is Another Very Defensive Stock with Deep Hidden Value.

 

2) A LOOK AT ITS NTA Reveals That It Has RM153 MILLIONS IN CASH & CASH EQUIVALENTS.

THIS IS 93 SEN NET CASH PER SHARE.

So at 71.5 SEN EKSONS is SELLING AT A NICE 24% DISCOUNT TO NET CASH ALONE.

THIS SHOWS THAT BY BUYING EKSONS AT 71.5 SEN YOU ARE GETTTING

 

BACK ITS VALUE IN CASH PLUS FREE CASH OF 21.5 SEN

PLUS ALL OTHER INVESTMENTS IN LANDS & FACTORIES FREE

ALL INVENTORIES OF PLYWOOD FREE

EKSONS ALSO GOT ANOTHER RM76 MILLIONS IN INVESTMENT SECURITIES WHICH TRANSLATE TO ANOTHER CASH HOARD OF 46 SEN

 

MAKING THE NET CASH POSITION OF EKSONS TO 93  SEN+ 46 SEN  = RM1.39

 

SO AT 71.5 SEN COST ALL ARE NOW GETTING 67.5 SEN FREE CASH (CASH, CASH EQIVALENT & INVESTMENT SECURITIES)

 

WHOA! EKSONS LOOKS LIKE TOO GOOD TO BE TRUE. BUT WHY THE PRICE SELL DOWN THEN?

 

IS EKSONS ANOTHER RED CHIP CHINA STOCK WITH COOKED BOOKS WITH FAKE ACCOUNTS?

 

3) HA! THE ACID TEST IS FINALLY OUT!!   2 TESTS IN FACT

ONE) INSIDERS ARE BUYING EKSONS SHARES FROM OPEN MARKET WITH THEIR OWN HARD EARNED MONIES

SEE

 

TWO) COMPANY HAS DECLARED A 5 SEN DIVIDEND WHICH IS AMOST 7% YIELD

AS DIVIDENDS CANNOT LIE ABOUT THE REAL HEALTH OF A COMPANY. CASH IS NOT JUST ON PAPER WHICH YOU CAN SEE IN XINQUAN BUT CANNOT TOUCH OR VERIFY..

FOR EKSONS CASH IS REAL & USEABLE AND SOON TO BE GIVEN TO ALL SHARE HOLDERS.

 

4) AND WHY THE SUDDEN DECLARATION OF A CASH DIVIDEND? IS THERE A POSITIVE SANGUINE SCENARIO GOING FORWARD. 

IN NATURE WHEN TREES ANTICIPATE GOOD TIMES THEY FLOWER MORE – THUS YIELDING TO MORE SEED AND A BOUNTIFUL HARVEST.

ANIMALS, TOO, WILL MULTIPLY AND PRODUCE MORE OFF SPRINGS IF THE CLIMATE AHEAD IS CONDUCIVE WITH ABUNDANT FOOD AND WATER.

IN BLEAK TIMES WHEN WEATHER IS BAD THERE ARE FEWER FLOWERS AND FEWER REPRODUCTION IN ANIMAL KINGDOM

SO EKSONS’ MANAGEMENT SEE BETTER TIMES AHEAD?

I THINK THERE ARE SOME GOOD REASONS FOR SO DOING

A) THE ATMOSPHERE PROJECT IN SERDANG  IS NOW COMPLETED AND SOLD. SO CASH IS COMING IN.

B) DEBT AND GEARING IS MINIMAL (ONLY RM20 MILLIONS) . SO WITH SO LITTLE DEBT AND SO MUCH SURPLUS CASH THE POSITION IS VERY COMFORTABLE

C) AND THE TRIGGER?

YES! SABAH GOVT HAS BANNED LOG EXPORTS. SO COMPANY WILL GET MORE LOGS AS RAW MATERIAL FOR ITS PLYWOOD MANUFACTURING PLANTS IN TAWAU, SABAH

D) LAST QUARTER RESULT WAS IMPACTED BY STRONGER RINGGIT. NOW THAT RINGGIT HAS AGAIN CRASHED TO RM4.00 PER USD PROFITS SHOULD REVERSE

E) USA HAS LOST LOTS OF HOUSES DURING THE RECENT TORNADOES, CANADA LOGS AFFECTED BY FOREST FIRES PLUS JAPAN WILL NEED PLYWOOD FOR ITS OLYMPIC STADIUM 2020

 

ALL THESE ARE INDEED VERY POSITIVE FACTORS FOR EKSONS

 

5) ONE MORE THING I NOTICED IS SAVVY INVESTOR LIM PEI TIAM IS TOP 6 HOLDER OF EKSONS

 

HA! I FIRST SAW HIM IN SUPER ENTERPRIZE. LIM PEI TIAM IS TOP OWNER WHO CHASED SUPER FROM RM1.25 TO RM3.80 UNTIL IT WAS TAKEN PRIVATE FOR A 200% UPSIDE

AGAIN I SAW LIM IN POHUAT (HE IS THE TOP TWO HOLDERS IN POHUAT (OR POWER HUAT) LIKE SUPER I ALSO CALLED FOR A BUY AT RM1.25 (EERILY POHUAT ALSO UP 200% TO RM3.80 & SPLIT)

AND WHEN I BOUGHT INTO DRB AT 92 SEN I ALSO SAW LIM PEI TIAM IN TOP 30 HOLDERS. DRB UP 200% TO OVER RM2.70

FINALLY WHEN I ISSUED BUY CALL FOR DUTALAND AT 39.5 SEN I SAW SAVVY LIM PEI TIAM HOLDING 4 MILLION DUTALAND SHARES.

WHO IS LIM PEI TIAM?

IN POHUAT TOP DIRECTORS LIM PEI TIAM IS AN EXPERIENCED BANKER WITH MORE THAN 20 YEARS EXPERIENCE

SO I AM HAPPY TO SEE HIM HERE IN EKSONS

 

SEE FROM EKSONS 2017 ANNUAL REPORT

 

UNDER 30 TOP HOLDERS OF EKSONS

 

COMING IN AT TOP NO.6

Is Lim Pei Tiam @ Liam Ahat Kiat 3,364,700………………….. 2.05%

LIM IS HOLDING 3.36 MILLION EKSON SHARES AT 2.05%

 

6) QUESTION NOW IS

WILL EKSONS FOLOW SUPER ENTERPRIZE, POHUAT, DRB-HICOM AND GO UP 200%?

 

THAT IS NOT WHAT I EXPECT, MY FRIEND

IN TODAY’S CARNAGE I HOPE TO GET 50%.

ENOUGH IF EKSONS IS GREEN GREEN IN A SEA OF RED

 

WARMEST REGARDS

 

Calvin Tan Research

Singapore

 

Please buy or sell after doing your own due diligence

 

I HAVE CHOSEN EKSONS AS A DEFENSIVE STOCK FOR ITS NET CASH, 7% DIVIDEND & AWAY FROM THE CONTAGION OF MALAYSIA AUSTERITY IN SCRAPPING CONSTRUCTION PROJECTS INTO A RESILIENT EXPORT STOCK NOW MADE BETTER BY SABAH GOVT BANNING LOG EXPORT

 

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