Monday, December 13, 2010

Gallant - Gallant Venture +6.9%; Still Undervalued: Kim Eng

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


Gallant Venture (5IG.SG) +6.9% at $0.385, extending its recent gains (+45% since start of November vs STI +1.5%) as interest in Gallant -- which has landbank in Bintan about a quarter of the size of Singapore -- has been revived after Kim Eng initiated the counter at Buy with a $0.75 target on Nov 23.



Then, the brokerage noted “with land sales in Bintan going at 36 times its book value, it is becoming clear that the company’s landbank in the island is grossly undervalued.”


Today, Kim Eng says despite the stock’s 41% rise since initiation, it still maintains its view “that the company is undervalued and if tourist arrivals to Bintan should beat forecasts, the upside to our target price will increase as more developers will come on board to speed up the rejuvenation of the island as a regional tourist hub.”



Orderbook quotes suggest a $0.40 cap.



No comments:

Post a Comment