I have written about GOB not too long ago.
When I wrote it, the share price was half heartedly 77 to 78 sen. But these few days I can see proactive buying.
As such, I would like to alert those who are interested in property stocks to take a look, before price run.
Among all the property stocks I have written about, the biggest position I have is in GOB.
(1) I feel extremely comfortable with this stock as going forward, their main projects will be Seberang Prai Selatan, which is relatively immuned from property sector slow down
(2) of course there are other stocks for exposure to Penang mainland. But none is as undiscovered as GOB
(3) They are in the process of doing a rights issue. Based on my experience, company which do cash call would usually make sure their profit is good in next few quarters so as not to scare away investors
(4) the rights shares + free warrants will help to average down the entry cost, in the event of a downturn
(5) the stock has not been actively traded. Nor had it been going up a lot. That means there are no early birds out there waiting to dump at you
(6) Gearing will drop to below 10% post rights. Strong balance sheet allows property company to expedite launches and construction, or land banking.
(7) One of the points I forgot to mention in my previous article is the credibility of owner Desmond Lim. If you are familiar with Pavillion's success story, you should know what I am talking about
My average cost is 79 sen. So it is not late to buy now.
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