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Thursday, March 24, 2016

MINETEC - Blasting and Meletup the Bursa Market

MINETEC started as a drilling and blasting service in 1977 by the founder, Mr. Michael K S Chin, has since developed into one of the largest aggregate mining business in Malaysia. To date, Minetech Resources Berhad (MRB) operates an expanding network of 9 quarries around Malaysia and overseas. With over 30 years of industry experience, MRB has also positioned itself to provide quality and specialised civil engineering works including drill and blast services, earthworks, road pavement projects and building construction.

Why this company caught my attention? It's again very much related to construction theme and when I zoom detail onto this company, it's seems very interesting and I decided to invest onto it.

Although the company making a few quarter of losses, to me it's very normal because construction company always have their bad times and I hope it's good time coming soon. However look at their latest balance sheet, it's nett cash company !! RM 30.512 million cash while debt total around RM 19.33 million. 

30.512mil-19.33mil = RM 11.182 nett cash / total share issued 665.094mil = net cash per share RM 0.0168

Not much PENNY STOCK are net cash plus their business prospect are looking healthy and potential to growth when all the big projects roll out !

Imagine with so many quarry and premix at Most important Selangor state, MRT projects, highway will for sure need those product in futures.

We all know that MRT2 projects will be awarding soon, and the Tunneling job worth a big value of RM 12 billions. souce: http://www.thestar.com.my/business/business-news/2016/02/11/bidding-starts-for-mrt-2/

*Apart from having a more expensive tunnel, MRT 2, also known as the Sungai Buloh-Serdang-Putrajaya line, will offer more main civil engineering and construction packages from the first line.

Is this all really going to benefit MINETEC? Looking at MINETEC, they are specialize in drilling, blasting, infrastructure works, rock drilling ! What else company can do all this? Yes it's MINETEC.

According to many professional in construction field, before starting this tunneling projects, soil stabilizing job needed to be done and who can do? MINETEC again !!

I can't explain too much on how much MINETEC will indirectly benefit from those big projects, it's all on future outlook and own views.

Lets looking some other reason that Buaya maybe interested to goreng this stock. A few good result here:

1. Share issed only 665 mil, 58% 385 mil floating on market only (easy to move)
2. Got warrant at price only RM 0.025 !! Exercise price RM 0.15 and expired Nov 2019 (still many years)

Buaya will definitely take the opportunity to collect the warrant because it's so damn cheap. And once they push the mother to above RM 0.10, it's easily turn double or triple for the warrant. (wild guess) I saw this happen to MPAY few year backs.

Looking at technical chart part, some collection and volume appear lately. I strongly believe this stock going to Meletup very soon. And it's very lucky we caught it before it Meletup. 

First time closing at RM 0.08 cent strongly after almost one year (about 9 month price below RM 0.08) , is it indicating a strong will of going higher? Why those buyer at below 0.08 don't want to take profit immediately?

DID YOU SEE WHAT I SEE or YOU still can't see ??

Something is going to Blast and Meletup kuat soon !! 

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