Are you still hunting a gem under the drain?
Recently, I noticed one of the 50 cents penny stock with the following information:
1) PER 3.75
2) NTA 0.57
3) D/Y 3.5%
4) ROE 23.4
5) EPS 0.133
6) Consistent profit and never make a quarter loss in the past 5 years
How does it sounds? Does it sounds like a gem? Will you buy if it is too good to be true?
May be you know which company it is, RCE Capital Berhad (RCECAP). RCECAP is engaged in the provision of general loan financing, including consumer financing and commercial financing. The investment holding and management services and others segment is engaged in investment activities and provision of management services. The factoring and confirming segment is engaged in the provision of confirming and factoring businesses.
Well, every gem has a story behind. RCECAP share price has been falling more than 25% since Dec last year, due to KOWAJA unable to make any further loan disbursement to RCECAP from 1st Dec onwards. KOWAJA is the latest borrower for RCE Marketing Sdn Bhd (RCEM), which provides personal loans to its member who are primarily in the civil service via an on-lending arrangement for funds borrowed from RCEM.
On yesterday evening, RCECAP announced that KOWAJA has received approval from SKM to obtain funding from RCEM, subject to a limit of RM200m. If this is the case, we would expect RCECAP earning to shoot up, follow by it's share price.
After this news announcement, I saw that RCECAP share price has grew 8%. If compared to it's peer like MBSB and after considered the possible risks, RCECAP should worth at least RM0.90.
What do you think?
Posts
RCECAP share price is still remains stagnant after 6 months time. I believe it will comes soon, if everything is all right.
It is now the lowest PER finance company in the market. That's very cool!