A GEM OVERLOOKED: POTENTIAL DARLING OF THE MARKET
Investors and funds alike might have overlooked this counter MASTER-PACK GROUP BHD or MASTER (Code:7029); The price & volume has been creeping up slowly since early this month but the underlying fundamental of this company has been grossly overlooked.
It caught my attention today as this counter entered my radar net yesterday (Friday 15-Mar 2015) with a 1st day substantial increase in volume after being a normally quiet counter for some time. On Friday the volume spurt to 4.6 mil and the counter closed at the highest of the day at 0.84 which is also its 52-week high.
WHAT COULD HAVE TRIGGERED THE SUDDEN INTEREST?
After doing some homework; I realised that MASTER has on 27 Feb 2019 announced a Revaluation of Non-Current Assets of the group yielding a revaluation surplus of RM11,615,000 which will be captured into the unaudited consolidated financial statements for the financial period ended 31 Dec 2018.
Being one of the smallest paid up capital on the Main Board of Bursa Malaysia with only 54 million shares issued and small public float; together with stellar financial performance; I believe this gem should attract a lot of investors interest.
At the price of RM0.84 /share; it is trading at a P.E. of only 7.97 with EPS of 10.54.
The NTA stands at 1.67 which is grossly undervalued.
It has been paying dividend year after year and registered profit without fail
Additional based on the Asset Revaluation Surplus of RM11.615 million which should be captured into the Earning Per Share(EPS) ; This counter should be price much higher; my personal TP is between RM1.50 to RM2.00.
LET’S SEE HOW THE SHARE PRICE MOVEMENTIN THE NEAR FUTURE FORBEARING ANY GOOD CORPORATE NEWS.
I WILL PLACE MASTER INTO MY INVESTMENT PORTFOLIO BEFORE FUNDS START BUYING INTO IT.
I ANTICIPATE A GOOD RETURN ON THIS INVESTMENT.
LET'S SEE HOW THIS COUNTER PERFORM NEXT WEEK COMES MONDAY 18-FEB-2019; HOPEFULLY ANOTHER NEW HIGHS AND CONTINUED THEREAFTER
The above opinion is not a BUY CALL but only sharing my observations.