Land & General (L&G), famous for its Bandar Sri Damansara township development, was previously a well-known developer but quickly vanished from the scene after being badly hit by the Asia financial crisis in 1997/98.
L&G latest quarter FY14Q2 result
Furthermore, Foresta is 100% owned by L&G but Elements is only 50.01%, and the land cost of Foresta is far lower than Ampang. Thus, it is not a surprise if its profit attributed to owners improves significant in the next few quarters.
However, investors should bear in mind that all those ICULS will be converted into common shares within 5 years (2018). This means that its total outstanding shares will double from 598.3mil before ICULS to 1,196.6mil shares after all ICULS are converted. This represents a massive earning dilution.
So far about 6% (35mil) ICULS have been converted into shares 2.5 months after listing.
Besides, the ICULS dilution factor also makes it slightly less attractive.
Since I already have 3.5 property-related stocks in my portfolio, and also inadequate fund, I can only watch L&G's share price going up day after day... But surely, it will be in my stock watch list.