GADANG (9261) - SOS Is Gadang still a gem at RM2.80?


GADANG (9261) - SOS Is Gadang still a gem at RM2.80?


WHAT ANALSYTS SAID?
TA report @ 26/8/16 - TP3.01, after the announcement of share split, bonus and free warrants.
RHB report few months ago TP - 2.85
My fund manager recommended at RM2.06 few months back, since the announcement of share split, bonus, and free warrants, and price has went up to RM2.80, he did not recommend to sell.

SOME FRIENDS ASK, CAN STILL BUY OR NOT at RM2.80?
I remember telling some of my friends to buy Gadang when it was around RM2.10.  Hence, they are asking now, can still buy or not.  Lets take a look at some points (positives and negatives)
  1. Announcement of split, bonus and warrants is positive news.  May be a positive expectation of a better quarter as well.
  2. TA's target price is about RM2.85 to RM3.00.  Hence, it is close, but still about 7.5% to RM3.01.
  3. Good thing, next two years visibility is good from property and construction.  Bidding for RM9.0 billion project, also positive, because, if the company is not confident of delivering, it won't bid for so much contract.  But recently, Gadang yet to announce any major contract secured (so have to wait)
  4. So, the million dollar question is, can still buy or not?  Any catalyst for rerating? Well, if they can secured more projects in 2H of 2016 (4 months to go), it would be positive news.
  5. FA perspective, so so.  TA perspective, I can't said much other than a few sifus said it is great.  Sentiment perspective, is good, many like it, can be seen from the volume, how long it will last, I don't know.
  6. So, one have to ask some basic questions here, do you have a plan for this stock? Invest or trade on the positive news? Have you already bought some at RM2.10? What is your target gain? Are you very positive about new projects coming?  You may have different asnwers (depends on your plan).  
  7. Let's assume TA is conservative, it is worth to buy for only a 7.5% upside? Are there downside?
Feel frustrated? Yes.  There is no right or wrong answer here, it depends on your "plan" and "situation you are in (first time buying or averaging upwards)" and your "expectations".  Different answer will give you different "risk profile".

CRYSTAL BALL?
What does the crystal ball said about Gadang? At the moment, looking at volume and forum discussions, appears positive (for short term trading).  For a longer run, one have to take into account replenishment of new projects or contracts.
So buy or not? sifus?

GADANG (9261) - SOS Is Gadang still a gem at RM2.80?
http://klse.i3investor.com/blogs/sosfinance/103119.jsp