This week we have 2 market news, one is Ho Hup Construction and the other one is Lion Ind.
My friend has told me that his friend ask him to buy Ho Hup because they has won a legal case that they can now to develop a land in KL that worth billions.
It's important to note that, yes! they has won the case, but this is only for the termination of the joint venture, not an extra land suddenly given to them, the land is always in their book, & most importantly this does not alter the fact that Ho Hup is still a -20 sen shareholder's fund PN17 company. Do you want to use 0.80 to buy a negative NTA PN17 company ?
A BIG NO! NO!
For Lion Industries, The news of Baosteel being a strategic partners is indeed a Very Good News for Lion Group. Investment from Baosteel will instantly solve partially of the Financial problem faced by Lion Group and unlock the value inside Lion Ind. As we all know Lion Ind hold most valuable assets under the Lion Group of companies.
If you buy under the current price of 1.80, you will not lose much if Baosteel investment not materialise, But you definitely will gain more than 30% once the deal is confirm.
I believe the chances is high now because William Cheng has not much choice, he need a white knight urgently.