Let me make it formal. I am recommending everyone to buy MSPORTS at 12sen.
After hearing many people here losing money, I am giving you this recommendation so that you can win back some money.
Why MSPORTS ?
The only thing that is causing MSPORTS price to drop to 12sen is the fear of fraud in China stocks. Today after the RA incident... even with local counters we still face the same danger. Be it China or local, we have to keep alert. MSPORTS definitely do post a concern because it has not been giving out dividend despite, very good profits over the years, PE 1.8X, NTA about 90sen and a very strong financial conditions in their books and their huge cash pile.
Why it has not given any dividends ? Their excuse is they are expanding into fashion http://www.evidoma.com.cn/ and needs a lot of cash to do it. This is a good thing actually but some how investor cannot accept this reason for China based company. If we look at the other China company, XINQUAN.. also shoes and expending into garments and also not giving dividend for a long time, also share price being battered badly into PE=2x. Then XINQUAN was being pressured into giving dividend, and finally XINQUAN did it by giving a 2sen dividend... immediately it rose from 39sen to 60sen. At 60sen, dividend yield is about 3%... which is more or less what most companies give.
Coming back to MSPORTS, there is a good chance MSPORTS will also be pressured to give dividends. Having only 500 million shares, if they were to give 1 sen dividend, it will only cost them RM5 million. Chicken feed for them. 1 sen dividend for a 12sen counter is a lot, its about 8% yield... adjusting to 3% yield, MSPORTS share price should be 30sen... So I believe MSPORTS share price will easily hit above 25sen if 1 sen dividend is announced ( easily 100% gain from 12sen ). With the new Chief Financial Officer from GreenYield Berhad, chances of dividend is very high because GreenYield Berhad gives regular dividends to their shareholders. This CFO may be able to influence MSPORTS to do the same.
Other than dividend, everything else is in MSPORTS favour, low oil price for the past few month will give them cheaper raw material.. meaning next financial results will be good. New business unit Evidoma should be contributing also.
Coming back to fear of fraud, MSPORTS is also listed in TAIWAN, so we have another layer of protection. Slightly safer than some other China based company and even some of our local companies. No matter China or local, we have to keep our eyes on any shares we hold.
Good luck buying into MSPORTS at 12sen. Target within this month.
To me, very unlikely it can fall below 12sen.. even if it falls below, it will be a brief and will bounce back very quickly. Chances for it to move upwards are very high because everything seems to be favourable to MSPORTS.
KUALA LUMPUR (July 4): Bursa Malaysia has issued a notice to show cause on delisting of Multi Sports Holdings Ltd’s shares from the exchange, following the bourse’s rejection of the company’s application for a further extension of time for the submission of its financial statements.
In a filing today, Multi Sports said it had failed to issue the financial statements for the financial year ended Dec 31, 2015 (FY15), and for the quarters ended June 30 and Sept 30, 2016.
“Multi Sports has failed to announce the outstanding financial statements to Bursa on or before June 30, 2017, and no further extension of time is granted to the company.
“Multi Sports is required to make written representations supported by documentary evidence, if any, to Bursa, within five market days from the date of the above notice i.e. on or before July 10, 2017, as to why the securities of the company should not be delisted from the official list of Bursa Securities,” it said.
Meanwhile, in the event the bourse decides to delist the company, the securities will be removed upon expiry of seven market days from the date of notification of the decision, unless an appeal is made within the prescribed timeframe.
“In the event Bursa decides not to delist the company, other appropriate action/penalty(ies) may be imposed, pursuant to the Main Market requirements,” Multi Sports said.
Trading in Multi Sports’ shares has been suspended since May 10, 2016. The stock was last traded at 3.5 sen, giving it a market capitalisation of RM21.24 million.
*There goes Johnmaster brilliant analysis on MSPORTS!.....to the jamban!
