In case you didn’t know this company is a property developer. There has been a lot of hype in the press about this counter’s undervalued land bank and strong balance sheet (low debt, cash rich). As you can see from its scorecard, sales is also enjoying consistent growth. Its only weakness is low cashflow, which is not surprising for a property development company (and the reason why it only scores a 7). However, it traded at a deep discount to its larger competitors like Ioiprop and Ytlland until very recently.
As you can see from the chart below this counter has received a great boost, no doubt helped in part by the announcement of property launches for 2007 which should further improve its sales figures. I have no doubt that a lot of property bulls were responsible for the recent move.
Am I convinced? I think so - for the long term. Remember that this counter is susceptible to pumping and dumping like we witnessed in Feb this year and April last year. I am kicking myself for not taking the breakout buy signal on 30 March as I was on holiday, but I am going in now (rather more expensively at 2.68). Wish me luck!!
Sir,
You have a watchlist of the “companies who have passed
my test for determining what is a good company which
am currently monitoring…etc.”
Plenitude is NOT on this list.
You also said
“Am I convinced? I think so .. for the long term”.
Are you trading this counter or investing for longterm?
If longterm, does Plenitude make it to your Watch list ?
Rgards
As you can see I’m also a bit slow to update my watchlist and portfolio! That’s what happens when you maintain your own website. Plenitu is now up.
Anyway I like this stock for the longterm but wonder whether it might be a bit expensive now.