Why so many people ignore WCT-WB????
Hot Stock WCT-WD surges 143% on maiden trading day
Business & Markets 2012
Written by Mohd Kamarul Azhar of theedgemalaysia.com
Thursday, 20 December 2012 17:18
KUALA LUMPUR (Dec 20): WCT BHD []'s warrant WCT-WD attracted huge interest on its maiden trading day today (Thursday), adding 20 sen to its listing price of 14 sen to 34 sen per unit.
At today's price, the warrant carries a premium of 8.8% to its mother share, which hovers at around RM2.38 per share. WCT-WD's strike price is RM2.25 per unit.
As many as 3.26 million units of WCT-WD were transacted.
According to a market dealer, the 14 sen listing price of WCT-WD is undervalued because WCT's performance as a CONSTRUCTION [] to property development company is good, which renders a lot of interests from investors.
"At current price, there is still room for the warrant to increase. As long as the mother share continues to increase, the warrant price can also keep increasing," said the dealer.
WCT's share price however, dropped to RM2.38 today from yesterday's closing price of RM2.39. The stock has fallen from its year-to-date high of RM2.45 on Dec 10, 2012.
For the nine-month period ended Sept 30, 2012, WCT made RM119.89 million of net profit, an increase of RM5.4 million or 4.7% over the RM114.48 million it made during the same period last year.
Known as one of the major construction outfit in the country, WCT is in the midst of restructuring its business pillars to give greater prominence to its property development and management division.
Its property development and management business will be parked under WCT Land Sdn Bhd, while its construction business will be undertaken by WCT itself.
Currently, the group has about 1,000 acres of undeveloped land banks located in Klang and Rawang. It has also recently acquired 18 acres of land in Medini to be developed into mixed development project worth RM1.5 billion.