GAMUDA BERHAD-(CODE:5398)

Background:-

Gamuda is a leader in turnkey and B.O.T. civil engineering infrastructure and township development, with projects and investments in South East and Far East Asia, Indochina, South Asia and the Middle East.

We have delivered more than USD3billion of civil infrastructure, operate and maintain 230km of highways that serve more than two million road users daily, provide water supply to more than 2 million consumers as well as built more than 14,000 homes in our lifestyle townships.

Our scope of expertise covers highways and expressways, bridges, tunnels, dams and hydropower, hydraulic engineering and water treatment, railways and mass-rapid transit systems, marine works and ports, and building, which are delivered through general contracting, design & build, turn-key, as well as Build–Operate–Transfer methods.

We are also a major township and property developer with four township projects that will eventually provide more than 30,000 homes when completed.

Our emphasis on differentiation and value-creation, as well as on operational excellence has enabled the group to consistently deliver distinctive infrastructure and homes bearing Gamuda’s hallmark traits of innovation, superior quality, outstanding value and assured completion.

for Gamuda corporate website: http://www.gamuda.com.my


Trading Strategy For Gamuda- WD (RM1.35):-

Expiry Date : Year 2015
Exercise Price= RM2.66

Gamuda : Target price given by some broker house range from 4.20-4.80 level.

If you think Gamuda futures performance will be able to benefited from Malaysia construction project e.g Mass Rapid Transit (MRT) and tunneling works of which Gamuda already has good track record ( includes the SMART Tunnel, Penchala Tunnel and Kaohsiung MRT). Then the Gamuda share price may be able to go up to RM4.20 - RM4.80 level from now on till the next 2-3 years.

Therefore, buying into Gamuda-WD may provide good return and leveraging effect.
Assuming Gamuda shares price go up from RM3.60 - RM4.30 and :

			Potential Return
Gamuda	Intrinsic Value	10% Premium	Current Price
Shares Price	2.66	2.66	1.35
3.60	0.94	1.30	-4%
3.70	1.04	1.41	4%
3.80	1.14	1.52	13%
3.90	1.24	1.63	21%
4.00	1.34	1.74	29%
4.10	1.44	1.85	37%
4.20	1.54	1.96	45%
4.30	1.64	2.07	53%

Note: the 10% premium given because Gamuda-WD will only expired in another 4 years.

6 month high and low price :-
Gamuda 3.46 -4.26
Gamuda-WD 1.29 - 1.82


Good Luck !