Hi James, I only notice your notes today, sorry for that. Below is my view on PJ Development.
PJ Development is a well established conglomerate with activities covering sectors as shown in the above figure. The numbers in red are its pre-tax profits in 2012 for various sectors.
At Rm 1.20, its PE is about 10, Net Assets per share is RM 2.12. With 453 million shares, it is a sizable company.
I would like to consider its 2005's low as the bottom. Immediate resistance is the Rm 1.20 level. So far it has completed its mega wave (1)-(2), it is forming its major wave 3 at this moment. There are two possibilities for this major wave 3 depending whether its can break the Rm 1.20 resistance level.
Possibility 1 : Able to break Rm 1.20
Forming major wave 3 of mega wave (3), then Rm 1.20 may not be the end of major wave 3, Rm 1.40 is a more likely level to end the major wave 3 ( 1.618 x magnitude of major wave 1 ) to be followed by major wave 4 correction that can go to below Rm 0.90 over a few months.
If the mother share can move higher, the Warrant-C should move in tandem to a higher level
Possibility 2 : Unable to break Rm 1.20
Forming the major wave 3 of wave B.
It can go back to Rm 0.40 again to complete the wave C of mega wave (2). This scenario is not so likely unless the assets bubble has burst. In a bear market, never touch any warrant.
Dow Jones Industrial Average :
It is either major wave (5) has not yet completed
Or major wave (5) has been completed and the next down is the wave c of its major wave (6).
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Many thanks again Uncle Chan for taking the time to prepare and share your opinion on PJDev.
ReplyDeleteLooking at the GDV of the properties launched and the unbilled sales to date, I think PJDev is poised to do very well. I have analysed their quarterly earnings for the past 4Q and saw the earnings from their property side of business is expanding both in turnover and earnings margin wise. PJDev will be releasing the Q1'2014 results soon and I anticipate a rather robust projection for their property business. Furthermore their other businesses are very stable.
This coupled with their assets not valued over the past 10 years indicate that the RNAV is probably much higher than the NTA, in the region of RM4-5.
I find PJDev a value play and with the main shareholder buying of late only spells good news is just around the corner.
Thanks again Uncle Chan.
Cheers,
James