MULPHA - Too Undervalue

[undervalue]

Mulpha should run up after the mulpha-OR taken off the market next week.
Reason:-

1) The company need more OR holders to exercise the OR and get more funding. The higher the mother share price, then more incentive to exercise.

2) The company is way undervalue; Its holding in  Mudajay & FKP Property (Australia) alone is worth > 40sen/share now in term of its listed value. Other assets eg. listed co in HK, Leisure Farm, Sanctuary Cove all not included yet

3) Honest Opportunity Ltd, one of the substantial shareholder bought additional 17.23mil shares (See Bursa's site)

4) Latest quarter result turnoround in black. EPS:5sen just for this quarter. Annualised it will be PE:2x only

5) Looking at the price trend of its Australia's FKP during Right Issue; Days before right issue AUD$0.44 (July'09): now AUD$0.75

[ten10]

cannot be... mulpha cannot one... say wanna buy eoncap stake... bnm oso spit on its face.. now if it go up to 80 sen, i potong my aiskrim potong..

[mynewuser]

By looking on the OR cheap sales. I don't think the right being taken successfully.

[zigzag]

By looking on the OR cheap sales. I don't think the right being taken successfully.

wrong timing

[undervalue]

Looks like its making its move.

[allencck]

undervalue, did u study the share TIME & TIMECOM?

[undervalue]

Sorry allen. not following Time.

[stockwinner]

A case study by Stockwinner shows that if Mulpha are unable to service the short term debt which is expiring by june (3 months to go), mulpha will have no choice but to sell it's assets at huge discount to raise money for repaying debt, or become a new member of PN17.
The current fund raising target (right issue) is way too little to serve the liabilities. The main reason are weaken ringgit against Aussie Dollar (It was 1 AUD to 2.4MYR, Now 1 AUD to 3.03MYR), and slow down in Australian tourism industry.
The NTA will cut to half after the right issue, or even less if mulpha sells it's asset to serve the debt.

Stockwinner's advice is, run for you life....
There are so many undervalued share which you can hold and sleep well in bursa.
Why risk your life saving?

[ccteh]

If they sell Mudajaya : 23.5% stake X 372m shares X RM5.34 (today's price) = RM467m - $$ in 3 days?

Rights 1,526,559,774 shares X 0.40 sen = RM610m

Bank borrowings next 12 mths due (as at 31 Dec 2009) = RM1.2b.

Assets in books are worth RM3.4b.  NTA is RM1.92 while share price is RM0.43.

Why a substantial shareholder suddenly buy RM18m shares just yesterday?

Undervalued in my opinion.

[DR KIM]

If they sell Mudajaya : 23.5% stake X 372m shares X RM5.34 (today's price) = RM467m - $$ in 3 days?

Rights 1,526,559,774 shares X 0.40 sen = RM610m

Bank borrowings next 12 mths due (as at 31 Dec 2009) = RM1.2b.

Assets in books are worth RM3.4b.  NTA is RM1.92 while share price is RM0.43.

Why a substantial shareholder suddenly buy RM18m shares just yesterday?

Undervalued in my opinion.

further umphhhh ahead

[Mohseen]

CHIAKKKKKKKKKKKKKKKKKKKKKKKKKKK.....  1 lot (100 shares) only 

[undervalue]

A company need not necessarily fork out 100% of its cash to repay borrowing when its due. Bank will be more than willing to refinance / rollover if the company has good collateral and able to servise the loan. My view is, with its assets holding it won't be too difficult to rollover or restructure the loan.

[ccteh]

I agree with you.  Undervalued and financing risk seem to be manageable.  It is the confidence of the investors into this counter and also thinking 40 sen on the new shares is too much to pay.  I was looking the debt levels over the last few years and it appeared high for many years already.  I think I am right on this one, but I am also affected by the negative sentiment on this stock.  I hope it turns out to be a good investment for us faithfuls.

[mengong]

 

[undervalue]

Its moving slowly but surely.
Bought at 42.5 on 1st Mar.

[ccteh]

46 sen!!!! More steam to come!

[undervalue]

Right issue completed with 96.89% takers. Raised RM456mil. Will have no problem meeting short term liabilities now. Sure good stock to buy at this level.

[undervalue]

making its move. 1st TP: 60sen

[allencck]

wallappp... dun forget WA!!! $$$$$

[mynewuser]

Time being will not move much due to MCA crisis.

[stockraider]

Wait until Mulpha fall far below RI price, then only buy !
By doing that Raider ensure make safe monies !

[allencck]

Time being will not move much due to MCA crisis.

the result tis sunday will influence the share?

[undervalue]

Stockraider, you'll miss the boat if you wait. Biggest owner has exercised the most on Right issue, therefore won't let the price fall below that. It it's to fall it would have. If you study the price pattern of their FKP Australia after right issue you'll notice that the pattern is the same. Before right issue FKP dipped till 40cts level and after right issue climb up till 70cts level now and stay right there.
The company is worth at least RM1 the way i see it based on its asset value.

[stockraider]

These right issue subscriber surely borrowed alot of monies to take up their entitlement...!
Surely need to repay the bank sometime later..!

If tak boleh tahan, sure need to sell, even below right price !
Need to be patient mah...!

Leech system at work.....!

[ccteh]

A vote of support for Comrade Undervalue.  This counter is deeply discounted to its assets at current prices (mostly not even revalued - check the Annual Report esp list of properties - see carrying value and date of acquisition).   These are prime assets.  I foresee a recovery of this counter moving fwd.

[stockraider]

Raider says....if Mulpha properties undervalue, then DrB properties more undervalue....!
Furthermore DRB net cash, Mulpha net borrower !

Leech 009 investigation at work !!! Jangan main-main 1

[hsong]

Could someone pls provide the trend chart of Mulpha and interpret what is the trend!

Thanks

[ccteh]

Bro Raider, I would agree with you on the net borrower and you are spot on.  This is the risk with Mulpha and this is the reason why it is trading low at 47 sen (though a huge increase in weeks % wise from 41 sen).  This risk however is reduced with the rights.

I refer to http://www.klse.com.my/website/bm/listed_companies/company_announcements/announcements/historical.jsp , i.e. YTDQ4 results NTA per share is RM1.92 (not rights adjusted), EPS is -0.83 sen.  Huge bulk of the NTA are properties (majority in Australia followed by M'sia, HK).  Refer to Annual Report pg 128 to 132 (source : http://www.klse.com.my/website/bm/listed_companies/company_announcements/annual_reports/index.jsp ).  If we look carefully on the list of properties, we will realise that these are not revalued and prime properties.  Current value is way higher than what's in the books.  At 47 sen we are paying a small fraction of what these 5 star assets are worth.

We won't be wrong however to equate this to a very, very much smaller comparative ... Karambunai - nice resort but making huge losses.  I prefer to hold shares with a much larger group and hope for a business rebound/recovery.

[hsong]

Time being will not move much due to MCA crisis.

Now that the election result is out what will be the direction?

[undervalue]

On the move again.

[Johnnysts]

what is TP for mulpha for short and long term?

[ccteh]

TP short term 60 sen.  Long term RM1.

[Johnnysts]

PETALING JAYA: Mulpha International Bhd has proposed to list its wholly-owned subsidiary Manta Holdings Co Ltd (MHCL) on the main board of the Stock Exchange of Hong Kong.

In a filing with Bursa Malaysia yesterday, Mulpha said the listing of MHCL would involve Manta Engineering And Equipment Co Ltd, Manta Equipment Rental Co Ltd (Manta Rental), Manta Equipment Services Ltd (Manta Services) and Manta Equipment (S) Pte Ltd (Manta Singapore).

Manta Far East Sdn Bhd holds about 88% stake each in Manta Engineering, Manta Rental and Manta Services. The balance stake is held by Pan Ocean International Ltd while Mulpha Trading Sdn Bhd owns one share in each company.

Manta Far East is a wholly-owned subsidiary of Mulpha Trading, which in turn is a wholly-owned subsidiary of Mulpha.

Manta Singapore is 88% owned by Mulpha Trading and 12% owned by Pan Ocean.

Mulpha said MHCL, Chief Strategy Ltd (CSL) and Gold Lake Holdings Ltd (GLHL) were incorporated to be the investment holding companies to facilitate the listing of the MHCL group of companies, which are involved in trading and leasing of construction machinery and spare parts, and provision of repair and maintenance services.

As part of the proposed listing, Mulpha would undertake an internal restructuring and reorganisation that will see CSL becoming the parent company of Manta Engineering, Manta Rental and Manta Services, and GLHL the parent of Manta Singapore.

CSL and GLHL would in turn be wholly owned subsidiaries of MHCL, which was incorporated in Cayman Islands and currently has an authorised share capital of HK$50,000 comprising 5 million shares of HK$0.01 each.

In conjunction with the proposed listing, MHCL proposes to undertake a public issue of 50 million new shares, representing 25% of its enlarged issued and paid-up share capital of HK$2mil.

The public issue comprises 45 million shares for placement to professional, institutional and other investors, and 5 million shares for application by the public in Hong Kong via a balloting process.

Mulpha said the rationale of the proposed listing was to enable MHCL to raise funds from the capital market to fund the group’s business activities and expansion plans.

“Being accorded listing status will allow MHCL group greater financial flexibility when pursuing its growth plans, enable MHCL to gain recognition and corporate stature and enable Mulpha to unlock the value of its investments,” it said.

[DARAI]

so must watch out  the mulpha-wa ( a cheap entry ) maa ?

like LBALUM-WA suddenly steaming eventhough  to die very soon

[ccteh]

Seems to be a very small IPO in terms of $$$ for Manta holdings.

[undervalue]

Mulpha's Australia listed subsidiary FKP Property's share price is already on an uptrend.
[link removed]
Mulpha will the same soon.

[ccteh]

Short term TP 60sen coming!

[atoi10]

Agree...mulpha will move soon to break 60cent. than rm1.00.

[ccteh]

Mmmm ... puzzling.  Share buyback of 2.5m shares - why??  Any comrade knows reason.

High volume today.

[peyton]

Mulpha: Capital reduction will help clear losses

http://www.btimes.com.my/Current_News/BTIMES/articles/MULPA6-2/Article/

[ccteh]

Comrade Peyton, I believe the cap reduction is on Mulpha Land, not Mulpha International.

[ten10]

uh oh!!!!!!!! nearly heart attack!!!!

[ccteh]

No need to heart attack la ... this counter is super cheap at 41 sen.  Just wait aje.  I am only concerned about its current debt levels - though the risk is reduced with the rights and asset/investment sales revently.

[rememberyou]

going to buy mulpha 1000 units... anyone wan follow ? 

[ccteh]

comrade rememberyou ... I sudah masuk during the rights issue already ... just sitting and waiting.

[peyton]

Mulpha unit to raise RM21mil from HK listing

http://biz.thestar.com.my/news/story.asp?file=/2010/6/18/business/20100618153631&sec=business

[Mohseen]

for those who hv high hope on this counter, just be careful, dont think it will give any +ve surprise, i will rather invest in other more stable counters! 

[fish]

Mulpha? hahaha..... Just look at its 10years chart( if you can ). Your money might stuck there forever.

[Mohseen]

Mulpha? hahaha..... Just look at its 10years chart( if you can ). Your money might stuck there forever.

fully agreed with your view, this's a dead end counter. 

[ccteh]

comrade fish/mohseen, why do you think this is a dead end counter or $ will be stuck forever?  This is a pure asset play counter with 5 star assets and deeply discounted.  It is trying to get out of the D/E trap where it expanded its 5 star assets - the D/E ratios are improving.  Plain, good sense strategy by the Mgmt. 

Would be good if you can share the fundamental analysis to this counter - thanks.