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L&G is a lagged property developer worth some attention. First, it has a net cash balance sheet. Second, it has two large tracts of land that are quite valuable: 2,000+ acres of estate land in the vicinity of Proton city with potential for future industrial development; 200+ acres of golf course land near Seremban with potential for residential development
One more plus point about L&G, the management has been very fair in rewarding shareholders, paying dividend consistently for the last recorded 10 years except 2020 COVID year. The latest dividend declared is 0.5sen, most likely payable this coming October, which works out to just under 5% yield. Don't think anyone would lose money at the current price of 10 - 11sen
The company raised a right issue @ 21sen per share in 2017; that's why it has quite a sum of cash in the coffer. Current investors are buying at a big discount.
I think near term target is about 13.5sen; medium term should hit 16sen. Exercise patience, property sector has very likely turned around. It has been in the doldrums for more than 7 years. Every dog has its day, including LG!
16sen would probably come, but with the current uncertain market, one might have to wait until end of the year. Not too bad a game, a decent dividend of .6sen will be handed out in October.
Wow! At 13.5 sen a share, a dividend of 0.6 sen a share would give it a dividend yield of 4.5%, higher than over 90% of counters listed on Bursa Malaysia.
L&G is long-range stock; don't expect to make any quick bucks in the short term. Perhaps, when hot property counters like UEMS, Mahsing and Simeprop have doubled the present prices, only then L&G will begin to move. Fortunately, there's a decent dividend to collect while waiting for the big day to come
