Malayan United Industries Bhd (Rm0.20)

Mui is another greatly undervalued stock.

Since 2008 Mui has been moving side way until today. Its movement has been confined by an upper declining trend line and a horizontal bottom trend line.

Very likely Mui has completed its mega wave (2) by end of December 2016. Since January 2017 Mui has formed its major wave 1-2 and it has started forming its major wave 3 since December 2018.

If I am right, Mui is currently forming its sub-wave v. It has just completed its mini wave 2 and is about to start the mini wave 3 of its sub-wave v. My bet is - Mui is going to punch through its upper trend line soon.

On 30 April this year, Mui announced that its has appointed an international investment bank, N.M. Rothschild & Sons, as its financial adviser on the sale of Corus Hotel Hyde Park in London.

In fact in 2014, The Edge Financial Daily reported that Mui was seeking to divest the hotel for 200 million pounds or Rm 1.06 billion.

From Mui's latest annual report, the book value for this hotel is Rm251.661 million. If Rothschild is able to sell the hotel for say Rm1.0 billion, the surplus above its book value is about Rm748 million or 25.5 sens a share.

Mui with cash in hand of Rm241 million and borrowing of Rm115 million, net cash is Rm126 million. If the hotel can be sold for Rm1.0 billion, Mui would be having cash of Rm1.126 billion. If divided by its total number of share of 2,932 million, cash per share is about 38.4 sens, which is 18.4 sens or 92% higher than its current price of 20 sens.

Excluding Corus Hotel Hyde Park, Mui has another 7 hotels in the UK and 2 Corus Hotel in Malaysia with a total book value of only Rm264 million. I believe the total current market value for these hotels can be another billion Ringgit or more.

Besides hotels, Mui has other properties all over Malaysia, in Singapore, Hong Kong, Australia and in the US.

Mui's retailing division are Laura Ashley Holdings (UK) and Metrojaya Bhd (Malaysia).

Mui is also the major shareholder of Pan Malaysian Corporation Bhd, Pan Malaysian Holdings Bhd and Mui Property Bhd.

Mui at 20 sens a share is definitely undervalued.

.