DATAPRP (8338) - Dataprep - Walk the Talk, Make the Change
Since the heat is had started to grow on Dataprep starting this new year of 2017, the next best option is to pump in more oxygen into the glowing embers. After all, since there is a fire, it is not good to waste the fire without cooking a good meal, don't you agree with me?
Before Dataprep continue to unleash into the unreachable universe, I am here to tell you that I still think Dataprep is a good buy at this price at RM 0.165. Yes, you might doubt my intention for saying this, but I had to point out some facts to you for your consideration as well.
As you would know, Dataprep saw VXL coming in as a strategic shareholder in 2002. And through the journey, VXL pump in a lot of money in order to keep this listed company alive, and while doing so, VXL had the opportunity to increase it's stake until the current substantial portion of almost 65%. That means, Dato Lim Chee Wah already had a plan for Dataprep, and he had been keeping this listed company status alive for a freaking 15 years!! Do you know what is the feeling of 15 years? That is the period of time where you go to Standard 1 and study till Standard 6, and then go to Form 1 and study again to Form 6, and then go University and study for 3-4 years. So it is not funny to wait for 15 years.
But why Dato Lim Chee Wah have to wait for 15 years?
It is very simple, in this business world, big business is not a one shot one talk and straight on kind of business. Just take an example for Japan, it took them 3 years to approve the casino bill. Then the cabinet will need probably 2 to 3 years to craft and implement the detailed bill. Thereafter further planning and building will take another 4 to 5 years before Casino can be operational in Japan. Give some allowance, that could come to almost 15 years from the approval to operation. (Source - CNBC Japan Casino)
So as you can see, it takes a long time, and there are a lot of uncertainty in between. And that is one core reason why Dato Lim Chee Wah did not opt for an IPO for his casino venture. In fact, slowing eating up into an ailing company will be a better choice, because you can
- keep the company afloat with existing business while waiting for approval
- slowly increase stake in ailing company through corporate exercise such as share placement
- avoid high level of attention
- ailing company divert retail attention away from the main focus
I think you will seldom see an IPO company where major shareholder still hold 65% share after IPO right? But now, VXL is holding 65% of Dataprep, which is considered very high threshold of ownership.
At this moment, your most impetus question could be - Where is VXL casino going to be? Since this is a very attractive topic by itself, I will leave this part for my next episode, where I will pour down my analysis with news reference for you to have a thinker on it.
Now, probably what you need now is - show you the proof of transformation in Dataprep
Aside from the corporate exercise that had been completed in 2016, I would like to show you more in depth development inside Dataprep itself.
Attached is the course that is being partake by staff and executives in Dataprep in 2015 and 2016.
Courses offered in 2015
Courses offered in 2016
Wow!!! So Dataprep, an IT company, is asking staff and executive to
attend CIDB Green Card course, INDUCTION and Site Safety Supervisor
Competency Course ???
This is one of the solid proof that the company is indeed getting ready
to venture into where they want - Leisure, Hotel, Property Development
and Gaming. As a matter of fact, things are deploying to work since
2015, which is quite in line with what the Annual Report 2015 had to
mention about the company going to diversify and create new stream of
revenue.
To add on, Dataprep had also changed their Managing Director in 2016 as well. Now Mr Tan Hock Chye is the new Managing Director.
This change is rational because the former MD which is Encik Ahmad Rizan
Bin Ibrahim is more skillful in IT businesses, while Mr Tan Hock Chye
has more than 34 years of management and financial experience spanning
across several industries in retailing, manufacturing, publishing,
offshore marine transportation, FMCG, industrial goods and hospitality.
Since now you can see that the company indeed had changes in both
corporate level as well as internally, this is the best time to bet on
this turnaround company with Dato Lim Chee Wah as the White Knight. Best
time means, before Dataprep fly too high above, which is now!
After all, Dataprep is now NET CASH from cash injection by major shareholder, what are you going to worry ?
Coming up next - Where is the Casino!
DATAPRP (8338) - Dataprep - Walk the Talk, Make the Change
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