BUY TA ENTERPRIZE FOR ITS 4.1 SEN DIVIDEND (ABOUT 6% YIELD WHICH IS TWICE THAT OF BANK FD RATE)

LAFARGE CEMENT UP 100% FROM RM2.25 TO RM4.50 TODAY. TIME TO BUY MASTEEL (5098) AS IT IS A LAGGARD

Hi guys,

BOTH LAFARGE (CEMENT) & MASTEEL (LONG STEEL) WILL BENEFIT FROM ECRL (EAST COASTAL RAIL LINK) CONSTRUCTION

 

LAFARGE IS ALREADY UP BY 100% WHILE MASTEEL REMAINS A LAGGARD

 

THESE ARE SOME SALIENT FACTORS FOR MASTEEL

 

  1. AT 51.5 SEN WITH NTA OVER RM1.50 MASTEEL IS SELLING AT ONLY 1/3 OF ITS NTA. HIGH MARGIN OF SAFETY

2. WITH THE FLOODING OF VALE IRON ORE MINE RAW IRON ORE PRICES ALREADY UP BY MORE THAN 70%

MASTEEL WISELY TURNED TO SCRAP METAL USE WHICH IS CHEAPER. SO AMONG ALL 4 LONG STEEL PLAYERS MASTEEL WILL HAVE THE LOWEST FEED COST FOR STEEL

3. LIKE LAFARGE FACTORY IN RAWANG MASTEEL FACTORY IN KLANG IS ALSO VERY NEAR THE ECRL. THIS WILL SAVE TIME AND TRANSPORT COST. ANOTHER PLUS FACTOR

4. SO EASY TO BUY LONG STEEL STOCKS AS MASTEEL IS ONE OF TOP 3 LONG STEEL PLAYERS. THE OTHER 2 ARE ANNJOO & SSTEELAND MASTEEL BEING PURE LONG STEEL WILL HAVE THE MOST EXPOSURE (FOR CONTRUCTION COMPANIES BIDDING FOR ECRL JOBS THERE ARE THOUSANDS. WHICH ONES WILL BE CHOSEN. WHY SO DIFFICULT LEH? JUST BUY MASTEEL AS ALL CONSTRUCTION PLAYERS WILL STILL NEED TO BUY LONG STEEL TOGETHER WITH  BUYING CEMENT

 

5. LONG STEEL IS USED FOR BRIDGES, RE INFORCEMENT & RETAINING WALLS NEAR EMBANKMENT TO PREVENT SOIL EROSION & GIVE STABILITY TO TERRIAN

JUST AS CEMENT FOR THE BODY THE BACKBONE SUPPORTS A PERSON. MASTEEL GIVES SUPPORT FOR INFRAR WORKS

 

6. OTHER WORKS NEEDING LONG STEEL ARE PAN BONEO HIGHWAY & BANDAR MALAYSIA AS WELL AS THE UPCOMING HIGH SPEED RAIL NEXT YEAR LAUNCH

 

7. BEST OF ALL IS THE PRICE

AT 51.5 SEN NOW MASTEEL IS AT ITS CYCLICAL LOW

 

CALVIN HAS A MODEST TARGET PRICE OF RM1.00 FOR MASTEEL

 

BEST REGARDS

 

Calvin Tan Research

Singapore

 

Please buy /sell or keep cash after doing your own due diligence