Monday, November 8, 2010
CEPATWAWASAN GROUP BHD 8982
Yesterday do a quick review on this plantation stock. Cepat currently is holding 10,302 hectar of plantation land in Sandakan, Sabah.
Current share price is RM 1.35, outstanding shares are 215 million. Which equal to RM 290 million market capital.
If we use RM 290 million divide with 10,302 hectar of lands, then we will get RM 28,150 per hectar.
I have made a research on internet, Sandakan oil palm land is worth more than RM 40,000 per hectar.
So thats mean if you buy with the current price RM 1.35, you are actually paying RM 1.00 to get RM 1.40 thing. Do not forget, above calculation is just based on its oil palm plantation land only, we are not yet include other assets yet. If we calculate all, then this stock is worth far more than this current price.
Based on its latest quarter report, it is holding RM 31 million cash & cash equivalents, which equal to 14.4 cents.
So if merely base on RM 40,000 per hectar and the cash in hand, it should worth about RM 2.06 or above.
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