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MULPHA (3905) : MULPHA INTERNATIONAL BERHAD

petracot
Mulpha is a very interesting company, with lots of fairly quality assets in Australia, Malaysia and few other countries. It is an asset rich but earning poor company. It had hit as high as RM6 in 1994 and RM2 in 2008. It is a kind of Yo-Yo company with no dividend payment. The strategy to play this company is "buy low sell high". The current price of 40 sen looks low but it may not go up so soon. The reasons are these:-

1. JP Morgan (hedge fund) bought 100+ million Mulpha shares 3 years at 50 to 60 sen for speculation purpose but failed to make money; they sold shares heavily in the last two years and currently still keep about 11 million shares. They may continue to sell.

2. Another Hedge fund called Honest Opportunity from Hong Kong owns about 170 million Mulpha shares a few years ago. For reasons unknown, the fund began to sell shares last year and is still selling. Currently, they still hold about 100 million shares.

Though Mulpha price would go up one day, it may not be so soon. I estimate it may take another 1 to 2 years for the two hedge funds to dump all their shares. Mulpha itself is buying back shares fairly aggressively and they have bought back 174 million shares. However, company buy backs are neutralized by hedge funds selling.
08 Apr 2013, 03:44 PM
petracot
Mulpha seems to come alive this morning, moving up 3 sen to touch 42.5 per share. One broker is recommending Mulpha as a trading buy; they reckon that Mulpha would play Iskandar Region catch-up game along with others such as Tebrau and UEMland.

It is true Mulpha has quite a chunk of land in Iskandar currently being developed as a high-end residential area known as Leisure Farm. The gated housing development is in fact very near to Second Link to Singapore, about 15 minutes to Singapore Immigration Check Point.

Mulpha has about 1,000 acres of land left in Leisure Farm. Based on the currently price of development land of about RM40 to RM50 psf, that piece of land is worth about RM1.74 billion to RM2.17 billion. Based on paid up capital of 2.356 billion shares, that value works out to about 73 sen to 92 sen per share. The cost for that piece of land is only RM300+ million which works out to about 14 sen per share.

Can price of Mulpha rally? It is hard to predict. There are two factors to consider:
1. Yes, there is some good thing in Mulpha worth looking at but there is no earning.
2. There are 2 hedge funds holding a total of more 100 million shares who may sell their shares as soon as price moves up.

assessment of the situation could be this:

If volume of Mulpha can remain in top five position for the next two weeks, there is a chance that all the selling can be absorbed and a rally may take off. Otherwise, it would be another dead cat bounce!
12 Apr 2013, 11:31 AM
petracot
As expected, the selling is very heavy this morning, by blocks of hundreds of thousand thrown onto buyers. Hopefully, the price can hold at 40 sen and absorb all the relentless dumping. As mentioned earlier, if high volume can be maintained with steady price or gradual increase, there is likelihood of a rally. If the price slides with large volume, it will be another big flop.
15 Apr 2013, 11:34 AM
petracot
Mulpha made a post-election recovery to close at 41.5 sen this morning with a volume of about 8 million shares. Don't expect Mulpha to move too fast or too soon due the potential selling from two institutional fund managers. However, if one has patience and accumulate some shares at the current price, one will not be disappointed in the future.
07 May 2013, 12:43 PM
petracot
Just some updates for those who are looking at Mulpha. As of today, the company has bought back a total of 196,004,700 shares. The company has the option to purchase up to a maximum of 10% of paid up capital, which works out to 235,600,000 shares. The company can still buy up to about 39.6 million shares from the market, which may take a couple of months.

What does the company do with the bought-back shares? There are 3 options: (a)keep the shares but they can't buy any further; (b)distribute the shares to existing shareholders which is unlikely; (c) cancel the shares and they can start buying another 10% of paid-up capital.
11 May 2013, 03:39 PM
petracot
Mulpha is fairly active today, moving up 2 sen with a volume of 30 million to close at 44.5 sen. While today's performance looks promising, it is too early to tell whether a rally can take off. As mentioned before, two fund managers may take this opportunity to unload their combined holding of 100+ million shares.

However, if the volume continues to expand for the next two weeks and the price breaks the 50 sen barrier,a short to medium rally could be in the making. Happy trading!
15 May 2013, 11:17 PM
petracot
Technically, Mulpha's 50 MA has just crossed the 200 MA line. This is a good sign which chartists call it as "golden cross". It is a bullish signal. However, the golden crossing is very small and is not significant enough to be excited with. The 50 MA line has to move much further north above the 200 MA line. This means share price has to move up further accompanied by heavier daily volume of say 30 to 40 million.

Mulpha is certainly not an investment grade stock despite having some valuable assets. It is kind of a hit-and-run stock: buy low sell high and sell high buy low. Currently, Mulpha is in the buy-low-sell-high phase.Hence, keep your eyes on the chart instead researching for fundamentals!
18 May 2013, 11:28 AM
petracot
Mulpha is at the cross road as it approaches the threshold of 50 sen. There will be quite a bit of turbulence in the range of 48 to 50 sen. The stale bulls will be coming out in droves to recover their cost. Those with chicken heart will dump their shares and get out; those with lion heart will hold on to their shares and sail through the mini storm.
22 May 2013, 08:31 PM
petracot
As forewarned, Mulpha took a dive last week to close at 44.5 sen. I don't think the share price will go down very much further, the most another 1 or 2 sen. Be careful the bear trap; those who are too bearish may get caught. The beaten-down share price may suddenly spring back within a week or two and charge through 50 sen barrier.
26 May 2013, 01:55 PM
petracot
Mulpha is recovering very well from the sell off last week, rising from 44.5 sen to close at 47.5 sen today. The buying rate is 63% indicating demand is greater than supply. What is the underlying factor for Mulpha's fairly strong share price performance? The answer is Iskandar story. UEMland is priced at RM3.65 per share today. The share price has doubled compared to that of last year.

I shared in previous posting: Mulpha has about 1,000 acres of land left in Leisure Farm, which is located in Iskandar Development Region. Based on the currently price of development land of about RM40 to RM50 psf, that piece of land is worth about RM1.74 billion to RM2.17 billion. Based on paid up capital of 2.356 billion shares, that value works out to about 73 sen to 92 sen per share. The cost for that piece of land is only RM300+ million which works out to about 14 sen per share.
28 May 2013, 09:53 PM
eelyn


Good input.. i am also looking at this counter.. as i noticed why did the share price not moving up, it is high likely due to the losses that dragging it down.

and the result js came out today, its down again! will it continue to drift down the shares price?
29 May 2013, 11:18 PM
petracot
Just like a few other Iskandar-related counters, Tebrau and even UEMland, the underlying theme is not earning but asset. Both Tebrau and UEMland do not have good track records of earning but they have some valuable assets- land. Similarly, Mulpha's price movement will depend on land assets and not on earning. Comparatively, Mulpha's share price at 45 sen is dirt cheap; the downside is very limited. But of course, Mulpha is not an invest grade stock but high beta volatile counter. When it moves substantially high, run for your life!
30 May 2013, 11:40 AM
petracot
Despite being a penny stock, Mulpha has a long list of institutional investors including many foreign funds on its top 30 shareholders. The only reason these investors are attracted to Mulpha is probably due to the company's valuable landed properties in Australia such as Sanctuary Cove, Cayman Island Resort and quite a number of 5 star hotels.

But Mulpha is not making good profits now. So, you really got to be very patient to make some money out of Mulpha!
11 Jun 2013, 09:12 PM
rich

i am newbie ..love to venture in mulpha.. whatis good pirce to in.. seem now is high 45cts lokking into ?
26 Jul 2014, 11:45 AM
panda

why la this one, there are so so so so so.. many other better ones..starmad
13 Mar 2015, 10:59 PM
skysoh

any update for mulpha?

11 Sep 2018, 10:37 PM
meme
Mulpha just sold the 4-star Esplanade Cairns hotel for 60% premium to book value. Increases NTA from 10.19RM to 10.32RM/Share (Share price 2.15RM). Reduces Gearings from 42% to 40% Interesting to note that the salary of the management here is much less than other less shareholder friendly companies in the space like KSL where the family gets compensated 10 mill while it is closer to 1.5 mill at Mulpha. A detailed and recent writeup can be found here: https://sites.google.com/view/TheBadInvestor#h.p_UYnq7upShHG5 Never the less, I would like to hear of specific examples where members know that Mulpha has acted in the disinterest of shareholders. I know that there was talk of the company canceling non marketable during the consolidation 10:1 a few years back. Not sure if this was true
22 Jul 2019, 07:17 PM
Grokinos

Well I have read only the first post here and decided not to deal with them if all of this is true really. But how true is all that ? Somebody even knows or something like that from the start ? I do not see how it really matters for many many things.

24 Jul 2019, 02:21 AM
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