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Sunday, September 12, 2010

Willowglen MSC is extremely undervalued

Willowglen is in the process to join the big boys in the Main Board.This will attract more investors and hence more liquidity or volume can be expected for this stock.

What really attracts me is Willowglen 's balance sheet is very strong. Check out my previous blog on this company too.

If you check on its balance sheet,Willowglen has about RM 50 mil but the company market cap is around RM 90 mil (at current share price 0.37).That means the business is only selling for about RM 40 mil.But past records revealed that the business is producing about RM 10 mil p.a in net profit.

Assuming a P/E of 7x for Willowglen (post transfer to Main Board), it should be selling at RM 120 mil (market cap). This means the price can shoot up to RM 0.48 post transfer to Main Board.

Investors can expect 30% upside, bonus issue, share buy backs and special dividend from Willowglen within this financial end.

1 comment:

  1. Hi,
    Could you please compare with Willowglen's peer, Efficient.
    Thank you.
    KC

    ReplyDelete