Worth a Go?

Value Investing in KLSE has put up another recommendation.

I am not sure what is the current position of the share in terms of appeal since property shares are not as attractive as other more defensive stocks.

Be that as it may,it's good reading. Let me quote it in verbatim.

" This is another stock which I've recommended but it didn't go up much.Those who bought it at RM 1.60 in April 09 is making some quick 20% return @ current price of RM 1.76 plus RM 160 dividend.

Mah Sing Group involves in construction, management, and development of residential, commercial, and industrial properties in Malaysia. The company also involves in the manufacture, assembly, and sale of a range of plastic molded products in Malaysia and Indonesia.

Around 80% of its revenue originates from property development and another 20% from its plastic division.Currently,Mah Sing is in net cash position.In times of turbulence,”Cash is King”.
By comparison to other property developers,its landbank is small.Moreover,it does not have revenue from property investment unlike Sunway and IGB.It does not have a REIT as well.

With current financial strength,Mah Sing is well positioned to:

1) Buy cheap lands in M’sia and other countries. Take note that Mah Sing has not venture overseas unlike SPSETIA,GAMUDA and GUOCOLAND

2) Eat up competitors to enhance landbank because good lands are limited

3)Increase J.V projects and benefit from current low construction cost

4)Capital repayment and buy back shares if Mah Sing does not have any future plan which I doubt

If you check its shareholders, Tan Sri Leong owns around 40%,Capital Group 9.7% and Amanah Saham Bumiputra owns 14%.

What intrigue me was Amanah Saham Bumiputera has been accumulating Mah Sing ’s shares in an aggresive mode.Could there be insider news?

Currently,Mah Sing declared 16sen dividend for the year.This stock has little probability to fall to RM 1.25 level again due to high percentage of institutional owners which are actively investing in this company

Risk of investing in Mah Sing:
1) Weakening property industry outlook
2) Bad capital deployment strategy

Weighing its risk and reward,Mah Sing is a good buy at around RM 1.76."