Did We All Just Miss the Trading Opportunity on OCR Group?
OCR Group Bhd (Bursa: OCR), currently trading at just 3 cents per share, appears to be significantly undervalued, especially following their recent rights issue with free warrants.
With a modest market capitalization now and solid fundamentals (over RM100.0 million in revenue easily every financial year) in the property development and construction sectors, this undervaluation presents an attractive entry point for investors.
The company has a strong pipeline of projects, backed by years of experience in developing residential and commercial properties.
What makes OCR particularly interesting is the court case they are pursuing. OCR, through its 50.01%-owned unit, O&C Makok Isola Sdn Bhd (OCMI), has filed a lawsuit against Kumpulan Jetson Bhd (Bursa: JETSON) and its subsidiary Jetson Construction Sdn Bhd (JCSB).
The lawsuit involves a RM88.03 million contract for a project in Jalan Yap Kwan Seng, Kuala Lumpur, which JCSB allegedly failed to complete as per the contract terms. If OCR wins this case, it could potentially claim RM30.88 million, or an amount to be assessed by the tribunal, for the additional costs of appointing a replacement contractor.
This legal victory could prove to be a bonus for OCR shareholders, potentially leading to a special dividend distribution.
With the current undervalued share price, strong business fundamentals, and the possibility of a favourable court outcome, OCR is definitely a company worth watching closely. Investors could see significant upside if the company secures a win in this legal dispute, unlocking further shareholder value, especially when the major shareholders are openly buying back $OCR (7071.MY)$ shares in the market.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
103468530 : 0.035 hits very strong, not easy to rise
小小兔子 103468530 : It's been several days, and there's no improvement.