Congratulations to all the traders, the market is continued for the OPR fever on Monday! And it is expected to retrace on today without the support of surprise news and taking profit from the traders. From the volume traded, it seems the sellers are just minimum. I'm surprised that PBBANK led the banks to shoot to the month high, just right after my previous post.
If you read financial news today, you'll noticed an article talked about "Berjaya Corp Deeply Undervalued". It was written by AmResearch. It mentioned that BJCORP will be having higher earning this year, due to the upward revenues from some of the important subsidiaries and businesses, such as Cosway and Mazda. Apart from that, the management will also try to minimize the heavy debts by selling non-core businesses such as retail mall, hotels and company shares. With such improvements, shareholders will benefit from BJCORP's share price.
I'm impressed with the projects Berjaya Group doing in Vietnam.
What do you think after you read it? Are you thinking the same way too? Do you trust Tan Sri Vincent Tan and BJCORP management?
Well, BJCORP share price has been adjust more than triple since early of last year. Perhaps many investors are looking good at it, including AmResearch analyst. For me, I won't touch this kind of company. This is not because I don't trust Tan Sri Vincent Tan and his sons, or even it's future business outlook. I do think it is positive as well. I just think that BJCORP has too many business divisions, a total of 20 over businesses under 10+ divisions. They really confused me. It will be very hard for me to keep track which are growing well and which are making a loss. Adding an existing semi-heavy debts issue, I would choose to stay away from it for the time being.
On the other hand, if it is really heavily undervalued, the output of this research should be able to boost up the stock price for at least 5-10%, no? If you like one of it's strongest division, you can just invest the subsidiary shares, such as BJTOTO or BJLAND.
Note: Above are just my personal opinion, I'm not responsible for any of your trading decision.
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