Thursday, December 18, 2008

MMC Corporation Berhad - Highly Oversold.

What has really happen to MMC Corporation Berhad ? Lately we can see that the MMC share prices has been going down until its break the RM 1.00 level. The stock had been sold down recently due to rising corporate governance and growth concerns as MMC would be paying RM1.7 billion cash for the proposed acquisition of airport operator Senai Airport Terminal Services Sdn Bhd (SATS) and land.

Recently MMC Corporation Bhd is in the advanced stage of negotiations for a proposed disposal of a minority stake in Pelabuhan Tanjung Pelepas Sdn Bhd (PTP), the country’s second largest container port. The selling of a minority stake is to fund its expansion plans. MMC currently owns 70% of the port.

The acquisition of SATS will be paid in cash instead of a share issue. The new acquisition price of RM 1.7 billion comprised of RM 580 million for airport operations and RM 1.1 billion for SATS' 2,718 acres of freehold land.

Whether this acquisition is worth of money to invest by MMC but some of the MMC Corporation shareholders feel it the different ways. The share prices has been sold down continuously without making any gain these past few tradings days. Yesterday selling have created a large volume traded among these few days transaction.

I was thinking whether there would be any technical rebound been perform by this counter ? Since the share prices has been highly oversold lately any technical rebound will likely to happen in these few days.


OTAI (Otak Tenang Akal Inovatif) said...

salam dari

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