- Should an investment in LITRAK be aborted altogether?
- Is ...
As at 7 August 2018, Lingkaran Trans Kota Holdings Bhd, commonly known as LITRAK, is trading at RM 4.49 a share. It is a recovery from its lowest: RM 3.76 on 18 May 2018. But nevertheless, it is 25% below the stock price of RM 5.50 – RM 6.00 before GE14 in Malaysia.
Source: Google Finance
Evidently, LITRAK was rocked by the GE14 results as Pakatan Harapan, the newly elected ruling government of Malaysia has stated that it would review all highway concession agreements and take them over so that it can abolish tolls gradually. The affected concessionaires would be fairly compensated by the Pakatan Harapan Government.
To-date, the mechanism to work out a ‘fair compensation’ to concessionaires is not disclosed. Thus, it adds to an uncertain future to LITRAK. In this case, the question is: