Tuesday, November 23, 2010

Gallant - Gallant Venture rises 12% on broker's Buy call

Stock Name: Gallant
Company Name: GALLANT VENTURE LTD.
Research House: Kim Eng

Shares of Singapore-listed Gallant Venture, which develops industrial parks and resorts, rose as much as 12% on Tuesday after a broker initiated coverage of the firm with a "buy" and noted its assets were "grossly undervalued", local traders said.


At 9:39 a.m., its shares were up 9.8% at $0.28 with over 18.4 million shares changing hands.


Kim Eng Securities started Gallant at "buy" with a target price of $0.75, and said the firm, which has several ongoing projects to build resorts in Bintan, Indonesia, will benefit from rising tourist arrivals on the island.


Gallant currently trades at half its book value, which Kim Eng said ignores the growth potential of its Lagoi Bay project, a resort development in Indonesia, as well as other investments.



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