Why BJCORP again? I hope you are yet to sick about it. We all learn from mistaken, isn't it?
It became the star of KLSE on yesterday, after the government told reporters that they may issue soccer betting licenses, and the speculation goes to Berjaya and MPHB. It's a good news and wise decision from government, I guess? By right, they should legalize it in many years back.
I personally prefer simple business, because it uses less brain and time to take care. Problem may be easier to spot, in addition. By removing the complexity of the businesses from BJCORP, it really has many positive earning outlooks for the coming 3 to 5 years, the corporate's plans including:
Tan Sri Vincent Tan, 10th richest man in Malaysia and 828th in the world.
(1) Strong development projects at Vietnam
With the purpose of mimic what BJCORP has done in Malaysia, it is aggressively developing Vietnam projects that worth US$12 billions. This year should be falls at phase 3.
(2) Thumbs up for Cosway
I believe you have seen how Cosway grows. It's strong growth is one of the strong key for BJCORP. For the coming 5 to 10 years, it will continue to expand the business to around 50 countries around the world. So the future Cosway income shall be contributed by overseas revenues.
(3) Car making venture with BYD Auto Co Ltd.
If BJCORP managed to obtain car making and parts license, the production factory shall be setup in Malaysia. If the venture goes well, Tan Sri Vincent shall make the vehicle division another listed company in Malaysia.
(4) Expansion of gambling business
So far BJCORP has successfully obtained betting licenses at Philippines and South Korea. Tan Sri Vincent is now applying an official license in Malaysia itself. And now we talk about gambling license for soccer in Malaysia. It's cool, isn't it?
Tan Sri Vincent is aggressively restructuring it's current businesses in order to walk out from the past failures. With these 4 strong positive earning outlooks in mind, do we still need to take it's current poor earning and negative ROE into consideration? Well, based on the current Malaysia economy and earning outlook of BJCORP, the profits will definitely improve, with the support from BJTOTO and Cosway revenues.
The corrected price of RM1.43 on yesterday morning at 61.8% retracement seems a very good investment entry point.
Happy investing, folks!
Note: The post above is just my personal opinion. I'm not responsible for any of your trading decision. ;)
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