Khairul Azwan Harun, Perak Umno Youth Chief, has taken a substantial stake in Ideal Jacobs last week. Although the stake was just 5.83%, it would be silly to assume that that will be the beginning and the end of the story. The rumoured plans include making Ideal Jacobs as part of a river based hydroelectric power plant project in Perak. The said project was on the books but was put on hold pending the recent elections.
The company is relatively clean with losses stemmed judging from the last couple of quarters. Of course the hydro project will require funding, RM100m for 10MW and RM127m for 15MW. Khairul Azwan is also a director of Lumut Maritime Terminal.
Bottom line its current market cap of just RM28m makes it a relatively cheap and safe play. Its a bit speculative but given that we have had a plethora over crowding for marginal oil fields, Iskandar and Penang property counters as theme, ... an early Perak play could be in the works.
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