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Keck Seng Berhad is undervalued

Written by Ben   
Saturday, 12 January 2008
The escalating price of palm oil prompts me to take a look at Keck Seng Bhd. To me this stock is definitely undervalued.

As at 30.12.2006, the company has 10,000 acres of land in Johor. These lands are mostly in oil palm and  of which are 3 housing estates namely: Tanjong Puteri Resort, Taman Daya and Bandar Baru Kangar. These developments are all in the Iskandar Region which is an economic zone established under the 9th Malaysia Plan for fast growth.

The company has under “other investments” RM150, 411,000. The market value of these investments as at year end 2006 was RM570, 784,000.  I understand that about 75% of these investments are in quoted shares of Wilmar International Ltd which is controlled by Robert Kuok. As year 2007 is a bullish year for the stock market, these quoted shares should be worth very much more by now.

For your info, Keck Seng is the 4th largest shareholder of Chin Teck Berhad which is a plantation stock. Chin Teck closed at RM9 last Friday. It was selling at about RM5.45 per share a year ago.

All in all, I consider Keck Seng cheap at its last traded price of RM5.15 per share. This counter is a quiet and an unpopular stock. Only those who have the patience and the ability to buy and keep for the longer term will find it rewarding.

Stock prices can go up and down. Do consult professional advice before you make any commitments. This blog is not responsible for your winnings or losses. As usual you buy, sell or hold at your own risk absolutely.

Cheers and best of luck.

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Comments
tstan0 (Registered) 2008-01-15 16:07:08

Please recommend properly, no volume, share stagnant...this stock is not suitable at this market condition, now market condition is to hit and run, not long term, during 1997 crisis, Maybank were at RM 2.00, Tenaga at RM 1.50 and TM at RM 2.00. even good stock like Kseng were not spared. please dont simply shoot.
tstan0 (Registered) 2008-01-15 16:09:30

show to me proof that you make more than 100k in 1 trade, then i can consider to listen to your advice.....
tstan0 (Registered) 2008-01-15 17:21:33

dont talk coc k please, i just lost 50K, so please dont simply shoot, today is bad day for me
Ben (Manager) 2008-01-15 22:58:17

tstanO,

I am indeed ashamed to have you here with us. You were banned and you have chosen to sneak in here not to contribute positively but to seek cheap publicity. You have no respect for this website and its members. This is clearly reflected in the vulgarity in your expression and the way you brag about.

Anyone who knows no shame and has no honour to protect dares to do anything. But do you dare to admit that Edmund Tan, Ken, and tstanO are not the one and the same person?
Leno has warned you that if you used too many names to represent yourself, you can actually go insane. Watch out!

How much you have lost is none of my business. You can keep on losing and feel proud about it. When you tell people that you have lost so much and so much, you are actually trying to show others that you have the money to lose. I assure you, you didn’t impress me at all.

I post at my pleasure, not at yours. You are not qualified to advise me on how I should go about it. If you try to do so, you are trying to teach your daddy how to suck eggs.

Why do you think I want you to listen to me? If you think that I am trying to get your support to jack up the price, then you have a simple mind. For what you can do is really a drop in the ocean.

Don’t try to be too smart, young man. Please respect others. If you don’t, very soon you will find that no one respects you eventually.

Reminder: Do not use vulgar language if you do not want to be banned again.
devilMAYcry (Registered) 2008-01-17 15:59:00

Mr Ben,

i do very agreed wit u...
1st of all tstan0, u had make a big mistake on ur investment, that is u think u can gain a lot of money within a few years or mayb faster... But that is a wrong concept, cz nothing can b gain instantaneously... Wat tat u do is just keep gambling but nt investing in the stock market.

From the research, average return rate of stock market is ard 11%-13%... u better go n check out 1st b4 u drop ur personnal commet here... do some homework pls man, u can get a lot of information through the internet, so dn simply invest b4 understand the fundamental of investment.. otherwise, u will keep loosing ur money...[/color]
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