Is Dutaland still cheap after up by more than 66% from 39.5 sen to 67 sen now?

October 9, 2017 By Calvin Tan Smart Investment

Dear Friends,

Dutaland already up 66%! Time to be cautious? Yes, if you go short term punting as Bursa is filled with day traders and gamblers. But Calvin still think it has more room to go up on these reasons:

  1. A Cash Proceed of Rm750 millions will come in a month’s time. Since total paid up shares are 846,118,039 it tanslates to a 88.6 sen Cash windfall. That’s 21.6 sen more than current price of 67 sen today.

2. Some Cash will be deployed to complete the Grand Duta Hotel. Already 33 storey or more up. So less Cash will be needed. Will there be a surplus for a Cash Payout?

3. Why there is a POSSIBLE CASH PAYOUT?

Pm Corp did that & paid out 8 Sen Cash

RceCap did that and paid out 7.5 Sen Cash

So for no reason why go for Capital Exercise?

See

Company Announcements

So Duta Yap has in mind to give a Cash Payout after Disposing Assets?
For that we must wait.
4. DUTA YAP’s Holding Cost for Dutaland shares ABOVE RM1.00!!
Even at 67 sen Dutaland’s Shares still cheap compared to Duta Yap’s Buying price at Rm1.05
See

[DUTALND] Change In Director’s Shareholding – DATO’ YAP YONG SEONG on 03-May-2007

Stock [DUTALND]: DUTALAND BHD
Announcement Date 03-May-2007

Director’s Particular:

Name DATO’ YAP YONG SEONG

Details of Changes:

Currency RM
Date of Change Type Number of Shares Price
18-Apr-2007 Acquired 7,320,793 1.000
18-Apr-2007 Acquired 20,000 1.000
04-Apr-2007 Acquired 248,571,429  1.050 (THIS IS THE ENTRY PRICE!!)
21-Mar-2007 Others 65,887,130 0.000
21-Mar-2007 Others 50,400 0.000
Nature of Interest Direct and Indirect
Shares Ordinary
Reason 1) The no. of securities change of 50,400 represents the difference in no. of shares held by Dato’ Yap Yong Seong before and after the capital reduction and consolidation. 2) Acquisition of 20,000 shares through a subscription of Rights with Warrants. 3) The no. of securities change of 65,887,130 represents the difference in no. of shares held by Duta Equities Sdn Bhd (“DESB”) before and after the capital reduction and consolidation of Mycom Berhad. Dato’ Yap Yong Seong is deemed interested by virtue of his spouse, sons and his shareholdings in DESB. 4) The acquisition of 7,320,793 shares by DESB through a subscription of Rights with Warrants. 5) Consideration shares received by Kenny Height Developments Sdn Bhd (“KHD”) under the Restructuring Scheme
Consideration Cash and otherwise than in cash

Total no of securities after change

Direct (units) 25,600
Direct (%) 0.00
Indirect (units) 263,213,015
Indirect (%) 46.62
Total (units) 263,238,615
Total (%) 46.62
Date of Notice 27-Apr-2007
On 4th April 2007 Duta Yap bought 248,571,429 Shares of Dutaland at Rm1.05
Securities after change was 263,238,615 shares
So  248,571,429 Shares of Dutaland means Duta Yap holding cost is Rm1.05 at 94.4% of his Total Cost
Less see how much if we take a 30% Discount off Rm1.05
So i.05 x .0.7 = 73.5 sen
Yess!
Anything below 73.5 sen we have a 30% margin of safety compared to Duta Yap
THIS IS IT!
Rgrards
Calvin

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