Dijaya at 6 1/2 year high
Posted on | April 14, 2007
By THE EDGE
The share price of Dijaya Corporation Bhd surged to a 6 1/2 year high of RM1.49 on April 13 after an InsiderAsia article in theSun that it is an undiscovered property gem.
It rose to a high of RM1.62 in intra-day trading before settling at 13 sen or 12% higher, with 8.84 million shares done. The intra-day low was RM1.40.
InsiderAsia on April 13 said as investors sought out undervalued and laggard property stocks, Dijaya was shaping out to be an undiscovered gem.
“Dijaya may be an under-researched stock, but the company is far from being an unknown property player,” it said.
InsiderAsia said Dijaya was synonymous with the development of Tropicana Golf & Country Resort, which pioneered gated luxury living in the Klang Valley.
It said Dijaya’s share price had lagged the property and market rally, which was spurred on by the waiver of real property gains tax with effect from April 1.
Its net tangible asset per share was RM2.16 as at end-2006 and InsiderAsia said its estimated revised net asset value (RNAV) was RM3.62.
“Its NTA itself is severely understated due to low land costs. The company’s Tropicana landbank is carried at RM7.98 per sq ft compared with current value of RM135-RM145 per sq ft,” it said.
Dijaya also has sizeable cash reserves with net cash of RM164.1 million or a significant 63.2 sen per share at end-2006.
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