Stock on the move: Online debate if JAKS worth a punt

Moody's outlook on the Korean banking system has been negative since May 2016.

KUALA LUMPUR: Shares in JAKS Resources Bhd is on a retreat from a 12-year high on what seems to be some mild profit taking activities following the stock’s recent price surge. 

At 3.24pm, it was down five sen to RM1.67 but it is up 66% year-to-date. 

There is an interesting debate online on whether JAKS, which made a loss of RM24mil in its last quarter ended Dec 31, 2016, is actually worth a punt.

The huge loss in the last quarter put the company barely in the black for the full year.

But one of its substantial shareholders has launched a spirited defense of the company online. 

Koon Yew Yin, who together with his wife had amassed 129.2 million shares in JAKS in recent months, said the company commands a higher valuation largely based on its power plant potentials.

Koon is one of the co-founder of Gamuda Bhd, IJM Bhd and Mudajaya Bhd.

JAKS and its Chinese partner, are building a 1,200mw coal-fired power plant in Vietnam. The project is expected to be completed by 2020, with a concession period of 25 years.

Critics argued that is a long way off and there is still construction risks that needed to be factored in.