Monday, 11 July 2011

Bayan Mutiara: Ivory vs SP Setia

Ivory's share surged last week as Penang Development Corporation is going to announce Bayan Mutiara 24.8ha land award in Penang south-east coast this week. There are only 2 bidders, which are Ivory and SP Setia.

Last week, Ivory's share price rose almost 20% but SP Setia's share price fell almost 3%. Seems like the result is already known???

Pros for Ivory:
  • Penang base developer
  • "Reported" to have submitted a higher bid of RM200psf (rumour?)
  • SP Setia just rewarded the sPICE project in January. Is it possible to get another in a short period of time?
  • Ivory's share price up last week, why not SP Setia's?
Cons for Ivory:
  • SP Setia is best developer in the country
  • SP Setia still has no development in the hot south east coast
  • Ivory's recent Penang Time Square is a failure (I think)
Both are good companies, way better than those RM1 "empty" companies which used to get this kind of project  in the past. Both have the ability to come out with an impressive development. So I think the higher bidder will get it (Penang needs money!).

P/S: stock alert on SPSETIA-WB

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