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Monday, February 1, 2010

WILLOWGLEN MSC BHD

I wrote about this company a few months ago and swore that if you didn't make money buying Willowglen,i rather shut down this blog.



I believed you have made good $ out of it. But this company has more to offer.



Willowglen has a market cap of 85.5 million at current price RM 0.345 per share.

It made about 8 mil for the past 3 years and its net profit is set to increase to RM 10-12 mil with the new contract lately. This will set its forward P/E at 8x


Wong Ah Chiew has been buying in and increased his stake in Willow to 51.97%

1) Willow has very healthy balance sheet. In 3Q2009,its current asset amounts to 56.7 mil against total liabilities of 9.1 mil with no long term debt. In this net cash position, Willow can easily expand its business through acquisition or new market venture.From what I see,it's very likely to distribute its cash back to investors by bonus issues / special dividend.


2) Willow is a closely held company. Its shareholders have strong experience in this industry and that bodes well for Willow to get new contract through networking.Willow is set to get new business as the economy recovers

3) Besides acquisition and special dividend, Willow has announced its plan to list itself in Main Board. This is absolutely great news for investors.It's expected that Willow share price may hit RM 0.50 per share.


I don't know what to say anymore if you don't buy this stock.

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