I am not here to proof a point but purely taking a position that Ekovest-WB's pricing is 20 cents different to Ekovest (the warrant exercise price is RM0.48). Hence, with all these fluctuations, I have decided to sell Ekovest-WB and buy Ekovest. Let's call it I decided to do my exercise this morning at a 28 sen discount.
On whether Ekovest can be purchased as at now fresh from the news of Bandar Malaysia's termination, I actually do not know.
It is true that Ekovest has many ongoing projects and there are higher likelihoods that they may not be terminated. In fact, the SPE has already commenced and DUKE 2 is completing soon.
In this debacle, one will also see the benefits of EPF being a project shareholder for DUKE 1 and 2, as it is harder for government to terminate a contract with EPF as shareholder.
The reason I am also sticking to the share is that I do not see enough details to sell the shares especially fresh from my earlier article last month. This I want to proof a point. Fundamentally, there are not much difference. I am not here to share with you that I am a good trader, which I am not. In fact, in writing this blog, I have some responsibility to share my experience in evaluating situations and businesses. I may be right - I may be wrong in some situations - but hopefully there are much more rights than wrongs.
Physically the group which also include IWCITY, there may be some impact which I cannot deliberate too much. It all depends on the owners and management as some may take a different approach like expanding overseas rather than locally. Some may take it with stride and move on with another project.
Definitely, I do not know what's behind the scene. However, in my opinion a large scale project such as Bandar Malaysia, there sure are many challenges. I do not see money as the largest concern especially for the purchase of the land which costs more than RM7.4 billion. It is a huge sum but with a partner which involves CREC, it is doable. Let's just say, as a government, there are many ways to kill a project.
IT IS MUCH LARGER THAN THIS.
Anyway, I do not have the clout to comment much on this but to continue looking for good investments.