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Friday, July 30, 2010

Gamuda Bhd- Analysis Research Report Fair Value Target Price- PEGGY Method

Gamuda Bhd (5398)- RM3.32
Analysis Research Report Fair Value Target Price- PEGGY Method
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Let us do my PEGGY method test:
PE: P/E ratio 24.4x, Jul 2010
G: Growth 9.6% per year. Jul 2010- Jul 2012
G: Gearing- 0.2
Y: Yield (Dividend). Gross 3.6%
Figure I saw from the rhbresearch web
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POLITEMARKET'S COMMENT:
PE ratio is 24.4x. Very high
The Growth is 9.6% per year, ok, BUT lower than PE
Gearing-ok
Dividend yield-3.6% OK. I think net should be 2.7% (depending on tax)
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PE is high but growth is ok only. Dividend is ok only.
I will NOT buy.
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Buy if:---
You disagree with the above growth, you think is higher, eg 15%.
You think they will pay more dividend
You think they will secure more projects (MRT/LRT, road, etc)
You saw in other research that the figure is much better
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Advantage of TRADING in Gamuda (non-PEGGY Method)
High volume and volatile, good for trading (buy low and sell high)

MyEG Services Analysis Research Report Fair Value Target Price

My E.G. Services Bhd (0138)- RM0.78
Analysis Research Report Fair Value Target Price
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Let us do my PEGGY method test:
PE: P/E ratio 21.1x, June 2010
G: Growth 45% per year. June 2010- June 2012
G: Gearing- Nil, net cash
Y: Yield (Dividend). Net 1.3%
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POLITEMARKET'S COMMENT:
PE ratio is 21.1x. Very high
The Growth is 45% per year, very high.
Gearing-net cash good.
Dividend yield- 1.3%, low.
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Very high growth company. But everybody knew about the growth already.
That is why the PE is VERY HIGH. So if the company profit grow 45%, the
stock price will not grow 45%, because already factored in.
You cannot make much money from short-term.
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Dividend is low because need cash to grow.
But it is stable because they didn't borrow much. Good.
By June 2012, as the profit grow, the PE will drop 9.6, average.
RHB Fair value is just RM0.96 (only 23% upside with little dividend).
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I will not buy yet. We will have to find out WHAT HAPPEN AFTER JUNE
2012.
If still can grow, then can consider.
If they may pay higher dividend, then can consider.
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You can buy if:
The price drop but the growth and profit didn't drop.
Profit still can grow >10% after June 2012.
May start paying higher dividend.
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How to Import PEGGY PE and Growth figure

Stock Price RM1.00

Earnings per share:
Year end Dec 2009  RM0.08 (Actual)
Year end Dec 2010  RM0.09 (forecast)
Year end Dec 2011  RM0.11 (forecast)
Year end Dec 2012  RM0.125 (forecast)

Example now is July 2010. You can use 2009, or coming year end 2010 forcast earnings because actual coming year end should be quite close to forcast.
RM1.00 divided by RM0.09 = 11.11x
So PE ratio is 11.11x

Growth is from what earnings you have used (RM0.09) up to maximum forcast you can get (RM0.125 year end Dec 2012).

RM0.035 for two years. So, RM0.09 grow 17.9% per year, for two years to reach RM0.125.

PEGGY Vs BISS

Using PEGGY method
PE- Bonus (B)
G- Increment (I)
G- Security (Job Security) (S)
Y- Salary (S)

To understand PEGGY better, I compare PEGGY with a job.


PE:
If PE now, example 7, due to increase in trading volume and more research coverage, the stock will trade at higher price and higher PE, example 10, then you receive 3 months bonus.

Growth:
Growth rate of 10% means increament of 10%

Gearing
Low Gearing (low borrowings) means the company is more stable, means you have better job security.

Yield (Dividend)
Dividend Yield of 3% means salary of RM3,000.00


How it works:
PE 7
Growth 12% per year next two years
Gearing high
Yield (dividend) 1.5%


Imaging you just graduated, this job pays you RM1,500.
Increament 12% per year for next two years,
with potential of bonus. But not much job security.
Want to take this job?

Undecided right? Me too.

That's why you need to find a job with high salary (high dividend yield), with potential bonus (low PE), high increament (high profit growth) and high job security (low gearing).

If some figure just average, I am also just like you, undecided. Up to you to judge whether to buy.
If all PEGGY figures are good, just take the job (just buy the shares)

Thursday, July 29, 2010

Proton Holdings- Analysis Research Report Fair Value Target Price

Proton Holdings Bhd (5304)- RM4.58
Analysis Research Report Fair Value Target Price
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Let us do my PEGGY method test:
PE: P/E ratio 7.0, Mar 2011
G: Growth 7.5% per year. mar2011- Mar2012
G: Gearing- Nil, net cash
Y: Yield (Dividend). Nil. Kosong
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POLITEMARKET'S COMMENT:
PE ratio is 7. Low.
The Growth is 7.5%, low. Same as PE ratio
Gearing-net cash good.
Dividend yield- Nil
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If you buy this counter, the growth is low and no dividend. You keep few
years also nothing much can gain.
But because the PE is low, there is a possibility for share price
increase.
But I doubted it, the most is slight increase.
I will NOT buy.
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You can buy if:
You think that the growth is higher than 7%, maybe >10%.
You think that they will start paying dividend.
You think that there is news that stir up the price, example merger, new
product development, newspaper business front page, cut car tax, etc
You think that you are good in trading, buy low and sell high, buy low
again and sell high again.
Saw from web that RHB fair value is RM5.50, Affin (RM4.10), OSK (RM6.94)
If you really interested in Proton, please check with OSK why fair value
is so high.
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About Call Warrant, for low growth mother share, is only for trading not
investment. I am not good in trading. No comment on this.

He Sold Proton at Fair Value Loss RM36000

Don't know whyy I publish this post the font size is so small. So I publish again.

He Sold Proton at Fair Value Loss RM36000

In year Aug 2000, some1 bought proton wira at RM44000
2010, sold it for RM8,300 at fair value or market value.
Loss RM35,700 in ten years time. Loss 80%

Proton shares was at 5.00 (dividend adjusted) in Aug 2000
Now is RM4.42, loss 12%
If he use RM44k and buy proton shares, and now the loss is RM5,100

Whether you buy the proton car or buy the proton shares, still making losses.

The stock selection is very important.

If anybody interested in proton shares now, then I can write something on Pronton, base on analyst figure.
But I will not talk about Lotus, who going to buy over proton holdings bhd, development of small hybrid car, joint venture, export to overseas, etc.
Because I dont know.

Wednesday, July 28, 2010

Ivory Properties Group Bhd Research Report Analysis- PEGGY Way

Ivory Properties Gropu Bhd.
IPO RM1.00, Now is RM1.30. Sorry for late posting. Kind of busy.
So I shall use RM1.30 to do PEGGY Method

Let us do my PEGGY method test:

PE: P/E ratio 9.15x
G: Growth 23% per year. 2011-2012
G: Gearing- Net cash 2011
Y: Yield (Dividend). Net 1.0%

POLITEMARKET'S COMMENT:
PE ratio is ok at 9.15
The Growth is 23% per year, good and above PE ratio
Gearing-ok.
Dividend yield- 1.0% Low.

If you buy this stock, every year not much dividend, but you can expect the share price to grow. Profit grow 23%, hopefully price also up 23%.
But if price up and you don’t sell, suddenly something bad happen and collapse, you get nothing, because low dividend.
Can hold if you have bought it and trust the growth.
The risk is this is a new counter, and no trend for you to follow.
Analyst write one article on this IPO and end of story.

The IPO price of RM1.00, the PE was at 7x and yield was 1.43%.
Although the yield still low, but the PE is low and growth is high to justify to CONSIDER buying.

I will not buy at RM1.30. If I am having, I will hold if I don’t need the cash and trust the growth. If I need cash to buy a better counter, I will then switch.
Fair value from RHB is RM1.18

KPJ Healthcare Research Analysis Fair Value Target Price PEGGY Way

KPJ Healthcare Research Analysis Fair Value Target Price PEGGY Way
KPJ Healthcare (5878) RM3.64
Let us do my PEGGY method test:
PE: P/E ratio 15.2x, Dec 2010
G: Growth 11% per year. 2011-2012
G: Gearing- 0.3x
Y: Yield (Dividend). Gross 3.9%

POLITEMARKET'S COMMENT:
PE ratio is 15.2x. High
The Growth is 11% per year, good but below PE of 15.2x.
Gearing-low, ok.
Dividend yield- 3.9% gross. So so only.
If you buy this stock, what you gain is just growing with the company.
If their profit grow 11%, hopefully the price also up 11%.
PE is high and their dividend is just so so.
I am not interest.

You can buy if
a)You think they can grow more than 11% per year because everybody is health conscious and health is a necessity. They will continue to grow year after year.
b)You trust analysts because they are the expert. Saw from web that OSK target price is RM4.62 and RHB fair value is RM4.25
c)You believe in comparing peer/ competitor PE ratio. Regional hospital health company trading also trading at high PE or 16x - 18x
d)There is a high price for health company, eg recent fighting between Khazanah and Fortis over Parkway Holdings.

Actually back in October 2009, KPJ fit into my PEGGY Method. Because I am doing Dollar Cost Averaging (DCA), I hold back, then the price start to jump and now is 100% more. If anyone apply PEGGY Method in October 2009 and has really buy it, already make 100% after share split and bonus issue.
I have no regret I miss KPJ due to DCA. DCA will miss few counters, but it reduce my risk substantially.
I want to prove a point that PEGGY Method works in October 2009 when I was evaluating KPJ.

He Sold Proton at Fair Value Loss RM36000

In year Aug 2000, some1 bought proton wira at RM44000
2010, sold it for RM8,300 at fair value or market value.
Loss RM35,700 in ten years time. Loss 80%

Proton shares was at 5.00 (dividend adjusted) in Aug 2000
Now is RM4.42, loss 12%
If he use RM44k and buy proton shares, and now the loss is RM5,100

Whether you buy the proton car or buy the proton shares, still making losses.

The stock selection is very important.

If anybody interested in proton shares now, then I can write something on Pronton, base on analyst figure.
But I will not talk about Lotus, who going to buy over proton holdings bhd, development of small hybrid car, joint venture, export to overseas, etc.
Because I dont know.

Tuesday, July 27, 2010

Dividend Payout Ratio Policy- Why Important

Dividend Payout Ratio Policy- Why Important

What is dividend payout ratio?
It is the percentage of profit to pay as dividend.
Why is it important?

a)So that we no need to guess how much is the future dividend. The higher the profit, the higher the dividend. If don’t have a policy, the company forecast to make RM1.00, but you are not sure how much they will pay as dividend.

b)So that every year we will receive dividend if the company make profit. Higher profit, higher dividend. If no policy, they make huge profit but may not pay you good dividend. So, if after few years the company collapse, then you get nothing.

Example of company with dividend payout ratio policy:
Topglove 40% (previously 30%)
Mamee‐Double Decker (M) Bhd 50%
Tecnic Group Bhd 50%
Homeritz Corporation Berhad 40%
Freight Management 40%
Zhulian 60%

If you know any company having Dividend Payout Ratio Policy, appreciate to update me. Thanks

Notion Arbitrage?

For case studies purposes only.
Assuming Notion is RM2.75
Every five you get one warrant
Warrant exercise price is RM2.55

Assuming you have five thousand Notion, so total cost is RM13,750
You get one warrant and convert to Notion at RM2.55.
And sell your warrant at RM2.75 to make RM0.20 profit?
No. On ex date, Bursa will adjust the price of Notion.

RM13,750 + RM2,550 = RM16,300
Divided by six= RM2.716
So on Ex date Bursa will adjust Notion price to RM2.72

1)Your total cost is RM16,300
You now have six at RM2.72, = RM16,320 (RM20 is the rounding effect)
So, you have no gain no loss.

If not exercising warrant
2)Your total cost is RM13,750
Now you have five at RM2.72 = RM13,600
Plus warrant worth RM0.17 X 1,000 = RM170
So you have RM13,770 (RM20 is rounding effect)
No gain no loss.

Conclusion
1)For Notion, there is no arbitrage
2)In theory Notion will be adjusted to RM2.72, but actual price trading
is still subject to demand (buyer) and supply (seller), but they will
use RM2.72 as reference.
3)But generally, Notion will trade lower that RM2.72, and warrant higher
than RM0.17. Also no gain no loss.
3)You don't get warrant immediately. Weeks. So there is a risk

Foucs Point- Postponement of Listing IPO (FOCUSP, Stock Code 0157)

I heard that the listing of Focus Point Holdings Berhad (FOCUSP, 0157)
is postponed until further notice. Don't know why yet. Now still not
opened yet, and under forbid/suspend/suspension.

Fajarbaru Builder Group- PEGGY Method Test- Fair Value Target Price

Fajar (7047) RM0.97
Fajarbaru Builder Group


Let us do my PEGGY method test:


PE: P/E ratio 7.1, Jun 2010
G: Growth 6.2% 2011-2012
G: Gearing- Nil, net cash
Y: Yield (Dividend). Gross 5.6%


POLITEMARKET'S COMMENT:
PE is low 7.1x. Good
The Growth is only 6.2%, below PE 7.1, Bad. ROE 19%.
Gearing-net cash good.
Dividend yield- 5.6%, Average good.


Everything good except Growth.
This stock can make money if they trade at higher PE (example due to
better research coverage or increase in trading volume). Every year you
also receive average good dividend. Don't worry about collapse because
net cash.
BUT lack growth. I get the growth % from RHB. If you see other research
shows growth is higher, or your friends work in the company and they say
growth is higher, or you ok if slow growth, then buy. I saw from web
that RHB fair value target price got RM1.39.

Monday, July 26, 2010

SKP Resources Analysis Research PEGGY Method Fair Value Target Price

SKP RESOURCES BHD (RM0.19)- Manufacturing of plastic products and components for electronic and electrical products
SKP Resources Analysis Research PEGGY Method Fair Value Target Price

Let us do my PEGGY method test:
PE: P/E ratio 9.1, Mar 2010.
G: Growth ? ? ? ? ?
G: Gearing- Minimal
Y: Yield (Dividend). Net 2.6%

POLITEMARKET'S COMMENT:
PE ratio is ok 9.1x (Earning RM0.0208)
The Growth? I don't have any research report on this.
Gearing- Cash RM39mil easily pay off all current liabilities. No long term liabilities.
Dividend yield- 2.6% (RM0.005), so so only.

Dear Sir, I don't know why this counter seems cheapest stock with high rating 6.5 in Dynaquest Stock Performance Guide. I don't have research or analysis or fair value target price on the future figure. PE normal and dividend just normal. No gearing- good. The key is Growth. Maybe Dynaquest know the growth rate. Without growth of at least 10% per year, I will not buy because I am just getting 2.6% dividend. Maybe can check with Dynaquest.


 

SCC Holdings IPO Analysis Research PEGGY Method Fair Value Target Price

SCC Holdings Bhd IPO
IPO Price RM0.78
Tentative Listing date 03-08-10

Let us do my PEGGY method test:
PE: P/E ratio 5.7, Dec 2010
G: Growth 10% per year. 2011-2012
G: Gearing- Nil, net cash
Y: Yield (Dividend). Gross 8%

POLITEMARKET'S COMMENT:
PE ratio is low 5.7x only
The Growth is 10% per year for next two years. Good, also above PE. Gearing-net cash good.
Dividend yield- 8%, good.

Client: Base on PEGGY Method, all are good right?
Dealer: Yes.
Client: Can buy if open near RM0.78?
Dealer:
I need to CAUTIOUS you. This is a new counter WITHOUT track record. If you trust the NEW counter, then ok. PE is just 5.7x and will pay 35% of profit as dividend (35% dividend payout ratio). But I feel that this counter may not be excited for public, I saw from web RHB fair value is just RM0.80, so you may need to hold.
Client:
I am NOT a long term investor, so not interested. But my sister like fundamental cheap stock, so maybe I can suggest to her. Thanks, bye.

Info:
Founders: Chee Long Sing @ Cher Hwee Seng, Cher Sew Seng and Goh Ah Heng @ Goh Keng Chin
Year Start: 1972
Supplier of animal products to many local livestock farms and feed millers, and food service equipment.
Clients include KFC Malaysia, Golden Screen Cinemas and Giant Hypermarkets, Charoen Pokhand Group.


 

Saturday, July 24, 2010

Nikko to be delisted- Don't be Sad

AMENDED PN17 : NIKKO ELECTRONICS BERHAD TO BE DE-LISTED

Bursa Malaysia Securities Berhad ("Bursa Securities") would like to
announce that the securities of Nikko Electronics Berhad ("NIKKO" or
"the Company"), an Amended PN17 Company will be de-listed and removed
from the Official List of Bursa Securities on Tuesday, 27 July 2010.
Source: Bursa


POLITEMARKET'S COMMENT:
Dear Nikko shareholders, don't be sad. The maximum of your loss in Nikko
is 100%. If you invest RM5,000 then your loss will be RM5,000.
Please keep investing, the maximum gain is unlimited, can be 200%
(RM10,000).
Use PEGGY Method to select stock or make decision.
Like me, use PEGGY turn from small profit to big profit.

Bursa Malaysia Counters Old Name B- Research and Analysis

Bursa Malaysia Counters Old Name- B
For easy reference for analyst to do Research and Analysis, I list down counters that have changed new name, with stock code and short name

5258  BANK ISLAM MALAYSIA BHD 
BIMB  BIMB HOLDINGS BHD 

2755  BATA MALAYSIA BHD 
FCW 
FCW HOLDINGS BHD


 
1899  BATU KAWAN PLANTATIONS BHD 
BKAWAN 
BATU KAWAN BHD 

1481  BATU LINTANG COMPANY BHD 
ASB 
ADVANCE SYNERGY BHD


 
7366  BELL & ORDER BERHAD 
SCOMIEN 
SCOMI ENGINEERING BHD 

3395  BERJAYA GROUP BHD / INTER-PACIFIC INDUSTRIAL GROUP BHD 
BJCORP BERJAYA CORPORATION BERHAD


 
2763  BERJAYA INDUSTRIAL BHD 
REKAPAC  REKAPACIFIC BHD


 
4219  BERJAYA LEISURE BHD 
BJLAND  BERJAYA LAND BHD


 
4812  BERJAYA SINGER BHD 
COSWAY  COSWAY CORPORATION BHD


 
5452  BERJAYA SOUTH ISLAND BHD 
PRIME  PRIME UTILITIES BHD


 
4383  BERJAYA TEXTILES BHD 
JTIASA  JAYA TIASA HOLDINGS BHD


 
2127  BERJUNTAI TIN DREDGING BHD 
IRCB  INTEGRATED RUBBER CORPORATION BHD 

9156  BESCORP INDUSTRIES BERHAD 
WCTLAND  WCT LAND BHD 

8184  BINAAN SETEGAP BHD 
SETEGAP  SETEGAP BHD 

1538  BOLTON PROPERTIES BHD 
BOLTON  BOLTON BHD 

9458  BRIDGECON HOLDINGS BHD 
PREMIUM  PREMIUM NUTRIENTS BHD


 
8737  BUILDCON BHD 
YTLCMT  YTL CEMENT BHD 

1023  BUMIPUTRA-COMMERCE HOLDINGS BERHAD 
CIMB  CIMB GROUP HOLDINGS BERHAD

 

Friday, July 23, 2010

Mamee Research Analysis- RM4.00 OSK Research Fair Value Target Price

Read from the web that OSK has initiate coverage on Mamee-Double Decker
(M) Berhad (5282, RM3.70) with fair vale target price of RM4.00.
This will be good for OSK to initiate on a good stock.
For Mamee price also, because more coverage and more volume traded will
deserve higher PE ratio and higher price.

Shall I Support My Own Stocks

If I buy a counter, shall I support the counter by buying the product?


If yes, then I have to ... ... ... ..
Use Adevnta & Hartalega glove
Go Summit for shopping (AMFIRST)
Stay in J W Marriot (Stareit)
Wear Bonia shirt
Buy Homeriz furniture
Eat mamee and mister potato (Mamee)
Stay in Tanjong Puteri Golf Resort Johor (Kseng)
Stay in Doubletree Alana Waikiki Hotel Hawaii(Kseng)
Use 012 handphone line (Maxis)
Use Premium tissue or Intimate pad (NTPM)
Buy Nikon camera (Notion)
Use Signature Kitchen for build-in cabinet
Etc etc


POLITE MARKET'S COMMENTS:
I am not holding MAS or AirAsia, so I can not support them.
If I need to fly, I have to pack myself into a container and transport out to my destination by using FREIGHT MANAGEMENT BHD service.

How to use PEGGY Method to select stock

If you want to buy a good stock, you need to know a lot of the company info, eg industry PE, economy, profit margin, competition, industry growth, exchange rate, new project, management, cash flow, major
customer, geographical risk, etc.

Everybody is so busy, where got time or knowledge to check or how to know so much. But if you buy without knowing a bit of info, also very dangerous. So I come with PEGGY Method for stock selection.

PE, G, G, Y
PE: PE ratio, price over earning per share, the lower the better.
G: Growth of future earnings/net profit. The higher % the better.
G: Gearing. About the company's borrowings. The lower the better.
Y: Yield, dividend yield. The higher the % the better.

PE: Low
G: High
G: Low
Y: High


If remisier recommends a stock, example ABC:
You: What to buy?
Remisier: Can try ABC at RM1.95. Fair value RM2.40
You: PE low?
Remisier: 11.2, Average
You: How about future growth?
Remisier: 14%. Indonesian and Thailand operations just started
You: How about gearing or borrowings
Remisier: No borrowings, net cash
You: How about the dividend yield?
Remisier: Got 5%-6%, paying 60% profit as dividend.
You: Sound good, buy 2 lots at RM1.95


If remisier recommends a stock, example XYZ:
You: What to buy?
Remisier: Can try XYZ at RM44, good dividend
You: PE low?
Remisier: high, about 18.
You: How about future growth?
Remisier: Next few years negative or no growth
You: How about gearing or borrowings
Remisier: High borrowings
You: How about the dividend yield?
Remisier: Got 5% dividend yield or less.
You: Dividend yield 5% good, but other things are bad. Not interested


From the above, you can use PEGGY method to select stock. If you are not familiar with stock market or financial term, no need to know the exact figure or percentage. Just need to know whether is high or low. Just ask your remisier PEGGY questions. Very difficult to get all PE G G Y perfect. So, if example PE, G, G are good, but the Yield a bit low, then can be considered. No need so rigid, up to you. The above example
ABC, the PE is average but all are good, so can considered. If you can find one counter all PEGGY is good, just buy it and then let me know. I will buy.

SIG Gases Bhd IPO

SIG Gases Bhd
IPO Price RM0.58
Opening Date 22-07-10
Closing Date 29-07-10
Public Issue 49,200,000 shares
Offer For Sale 3,000,000 shares
Private Placement 35,700,000 shares
MIH 498
Main Market
Tentative Listing date 09-08-10

SIG Gases Bhd, an industrial gases manufacturer, will invest RM11mil to set up a production-cum-refilling plant in Sarawak. The construction was expected to begin in mid-2011 and would be built in the Similaju Industrial Park, some 60km from Bintulu, Sarawak. RM9.74mil from its initial public offering (IPO), balance from internally-generated funds.
SIG currently has one production-cum-refilling plants each in Senai, Johor, and Nilai, Negri Sembilan.
The new plant in Sarawak will be the group's third plant and will also enable it to explore opportunities in Brunei and Kalimantan, Indonesia.
Lau said SIG currently held a 27% market share of acetylene gas in Malaysia, 7% for oxygen and 2% for nitrogen.

SIG is expected to raise RM28.54mil from its IPO. RM4.2mil from the proceeds to repay its term loan. As at April 30, SIG had total bank borrowings of about RM19.43mil.
Executive chairman is Peh Lam Hoh


 

Thursday, July 22, 2010

BJcorp-JA hit Call Price and Suspended

Berjaya Corporation Callable Bull Certificate suspended.
What will happen?
Call Price- RM1.06
Exercise Price- RM0.98

Now when BJCorp hit RM1.06, the CBC gets suspended immediately.
What settlement price to use? They will select the LOWEST traded price of BJCorp from the time of CBC suspension until next morning session.
If BjCorp trade higher tomorrow, then will be RM1.06 (so shareholder get back RM1.06- RM0.98= RM0.08). The best the shareholder can get is RM0.08, because they select the LOWEST price.

If BJCorp trade lower, example RM0.97 in the morning, and then close at RM1.10 in the morning, they will still select RM0.97. So shareholder get ZERO.

For info, the issue Price of BJCorp callable bull certificate was RM0.16.
Risky? 

For the cash settlement, because two JA convert into one BJCorp, so the above RM0.08 get back only RM0.04.

Zhulian- PEGGY Method Test- Fair Value Target Price

Zhulian (5131) RM1.89
Let us do my PEGGY method test:
PE: P/E ratio 11.1, Nov 2010
G: Growth 14% per year. 2011-2012
G: Gearing- Nil, net cash
Y: Yield (Dividend). Net 5.4%

POLITEMARKET'S COMMENT:
PE ratio is 11.1x. Average
The Growth is 14%, good and also above PE of 11.1x. ROE 25%
Gearing-net cash good.
Dividend yield- 5.4%, Average good.

Catalyst is growing their profit in Indonesia and Thailand and planning
to expand to Philippine and Vietnam.


Everything good except PE ratio. The PE is average, so the price will
not jump if no growth.
I like their 60% Dividend Payout policy. If they earn more, they pay
more dividends, no need to guess, they already said is 60% of the
profit.
So, if you buy this stock, you wait. Every year they pay you good
dividend. They will grow about 14% per year for next two years and your
dividend also increase by 14%, and hopefully the price also grow by 14%.

This is a multi level marketing company. Whether the new rulings on MLM
will affect the earnings, you will have to check with analysts. The
above figure I got it from the web by RHB, they already incorporated it.
RHB give a fair value of RM2.40.

Various News- Car Sales, Bank Kerjasama, Bolton, Paris Hilton Low Taek Jho Low

The Malaysian Automotive Association (MAA) is confident that the
domestic new car sales will hit a record high this year, helped by
strong first half performance and economic recovery.
The MAA has revised upwards its full-year sales forecast by about 20,000
units to 570,000, up from 550,000 units for a three per cent growth
originally.
The industry's all-time high stood at 552,316 units recorded in 2005.
MAA president is Datuk Aishah Ahmad.
Passenger vehicles continued to dominate the Malaysian auto market in
the first half, with 293,783 vehicles sold. This accounted for 90.3 per
cent of the total industry volume.
Within the passenger vehicles category, passenger cars formed the
biggest segment in the first half with a 76 per cent share, followed by
multi-purpose vehicles (MPVs) with 21 per cent. For the first half,
passenger vehicles sales grew 28 per cent, while commercial vehicle
sales increased 15 per cent to 23,899 units.

RAM Rating Services Berhad has upgraded Bank Kerjasama Rakyat Malaysia
Berhad's (Bank Rakyat) long-term financial institution rating, from AA3
to AA2, with a stable outlook.

Bolton Bhd, a Malaysian property developer, was rated a new "buy" at
HwangDBS Vickers Research Sdn Bhd. Due to "compelling turnaround story"
with strong earnings growth potential. Target is RM1.50.

Is Malaysian millionaire Taek Jho Low or Low Taek Jho the man that
spotted with Paris Hilton? OK! Magazine also had identified Hilton as
the girl in a sexy pink outfit in a photograph of partygoers aboard a
boat in Paris, France.

Wednesday, July 21, 2010

CBIP Up 15%

CB Industrial Product Bhd (CBIP 7076) RM2.99
CBIP up 15% in less than two weeks from RM2.59 in my article on 8 July
2010.
Just for info, I check from the web, RHB fair value target price is
RM3.70.
I was amaze it went up so fast.
I want to suggest to those who seldom invest in stocks or who didn't
make money from stock market, START investing.
1)Use PEGGY Method to select stock
2)Use Dollar Cost Averaging (DCA) to keep buying- i)to get better than
market average, ii)reduce the risk of lump sum investment if market
collapse, iii)will not TOTALLY not miss the opportunity.

EA Holdings vs DSC Solutions

DSC Solutions Bhd (0152 / DSCSOL) IPO RM0.50
First Day Listed 09/12/2009, High 0.92, closed RM0.75
But now is just RM0.155

EA Holdings Bhd (0154 / EAH) IPO RM0.25
Listed 27/07/2010, High 0.70, closed RM0.66

Do you think EA Holdings Berhad will be the same fate as DCS Solutions
Bhd? Gradually down to way below IPO price? I don't think so.

Tuesday, July 20, 2010

Dear Keck Seng Directors

I read from Keck Seng..
UTILISATION OF THE SALE PROCEEDS FROM THE PROPOSED MANDATE
If Keck Seng dispose their Parkway shares, the proceeds from the disposal will be utilized for investment opportunities that may arise in the future. Pending the identification of the investments, the funds will be placed in bank deposits and/or money market funds.

Dear Keck Seng Directors,
You plan to use the Parkway proceeds (about RM1.28 per share) for reinvestment.
How much return you expect to get? If not yet got investment opportunity, why sit in the bank? 
May I suggest you pay the RM1.28 to shareholder? Now Kseng is RM5.60, if pay RM1.28 the price may drop 24% to RM4.32. The PE ratio will drop and dividend yield will increase. Shareholders cost is lower and the return will be higher. But in reality, if you announce RM1.28 special dividend, the price will shot up.

My cikgu taught us that a director's responsibility is not just to maximize company's profit, BUT the most important thing is to MAXIMISE SHAREHOLDER'S RETURN.

Please maximize shareholder's return by giving back RM1.28 to the shareholders.

Efficient E-Solutions Berhad- PEGGY Method Test

Someone asked me about EFFICIENT E-SOLUTIONS BERHAD (0064) RM0.18
Main Market. Vision is to be a Trusted and Preferred Business Process
Outsourcing (BPO) service provider to organisations in key segments of
economies in the region and beyond
Let us do my PEGGY method test:
PE: P/E ratio 7.1, Dec 2009
G: Growth ? ? ? ? ?
G: Nil/minimal
Y: Yield (Dividend). Net 2% (ordinary), 7.5% special
POLITEMARKET'S COMMENT:
PE ratio is 7.1x. Good
But not sure about the Growth, I don't have the info.
Gearing nil/minimal. Just the cash in bank easily can pay off all
borrowings.
Dividend yield- excluding the special dividend, so so only but. . .
2009 First interim RM0.002
2009 Second interim RM0.0015
2009 Special RM0.0135
About the dividend, I think they will stop the special dividend but
paying more ordinary. Or what ever the method they use, so will be more
than 2%.
Net profit:
2003 RM3mil
2008 RM15.8mil
2009 RM16.7mil
Look at the growth achieved since 2003!! I am interested on this stock.
But I am not sure of the Growth for next two years. If you confirm the
company can grow, then can buy.
If anyone have research report on this, appreciate can email me. I think can buy, "if' confirm profit can grow.

Selected Index Performance year to date

Selected Index Performance year to date

FBM KLCI 1,333.35 (+4.8% year-to-date)
Singapore FSSTI 2,945.42 (+1.6%)
USA Dow Jones 10,154.43 (-2.6%)
Hong Kong Hng Seng Index 20,090.95 (-8.1%)
China Shanghai SHCOMP 2,475.42 (-24.5%)
China Shenzhen SZCOMP 993.07 (-17.3%)
Japan NKY 9,408.36 (-10.8%)



All negative except Malaysia and Singapore. South East Asia Thailand, Philippines and Indonesia (+17.4%) also positive.
How is your fund or investment doing? You need to examine your investment and determine how to improve your strategy. Do NOT repeat the same mistake.
My stock crashed in second quarter this year, but now recovered and overall positive for this year.

EA Holdings Bhd Listing Oversubscribed 19.4 times

EA Holdings Berhad IPO
Issue price RM0.25
Listing date 20/07/2010

For your information, the IPO was oversubscribed 19.4 times.

If you applied 49,000 shares, your chances is 90.6% strike. But if you
strike, you only get 1,000 shares.
If you applied 200,000 shares, your chances is 93.8% strike. But if you
strike, you only get 4,700 shares.

I was surprised by the huge oversubscription rate and small allocation.
Hope this will be an indicator that the first day listing price will
fly.

Monday, July 19, 2010

Bina Puri Fair Value Target Price RM1.77

I saw Kenanga Research has just upgraded Bpuri (RM1.42) fair value
target price from RM0.97 to RM1.77. Quite amazing that a 40% joint
venture LCCT project, the fair value jumped 82%.

Not just dollar and sen, the completion of the project may give Bina
Puri a track record and better chances of securing other projects.

No further comment at this moment.

Berjaya Retail Fair Value Target Price below IPO RM0.50

Berjaya Retail IPO Price RM0.50.

Let us do my PEGGY method test:

PE: P/E ratio 15.6, Dec 2010
G: Growth 10% 2011-2012
G: Gearing- refer below.
Y: Yield (Dividend). Gross 3.3% (50% payout ratio)

POLITEMARKET'S COMMENT:
PE is 15.6. High.
But the Growth is 10%, which is lower than the PE 15.6, Bad. ROE is superb low at below 3%.
Gearing- Huge borrowings with very little REAL asset. When market bad, your debtors cannot pay you but you have to pay your creditors.
Dividend yield- average.

Extract of Selected Balance sheet items...
Property RM170mil
Other investment RM62mil
Inventories RM121mil
Trade debtor RM355mil
Other debtor RM54mil
Cash RM22mil

Liabilities.
Borrowings RM257mil
Trade payable RM242mil
Other payable RM110mil

Got analyst doubt whether they can commit to their 50% dividend policy.
Many people like to trade in Berjaya Group of companies stocks. Maybe volatile and high volume, good for trading. But I will not hold it for long term. For me, it doesn't worth RM0.50.

I Make Profit BUT Why Need to Pay RM900??

Why I made money from stock market but still have to pay RM900?

What happened was, many people asked me for tips or advice. The problem is the counter that I suggested, the accuracy is ONLY 80%. AND it only works if keep buying using Dollar Cost Averaging (DCA) method.

This person NEVER invest in stock market, suddenly buy Stock A that I suggested. The stock A drop, cut loss. In order not to make this person feel so bad, I paid RM900 to make the loss looks smaller. For your info, the Stock A recover and I made profit. I invest in Stock A made money but this person invest in Stock A made loss.

What went wrong???
Due to uncertainties, my stock pick accuracy is only 80%.
It is better to invest using Dollar Cost Averaging rather than lump sum.
Keep investing, never give up.

Saturday, July 17, 2010

Unisem- Bonus then Rights (warrants) Issue

EX-date : 28/07/2010
Renounceable rights issue (“Warrants”) at an issue price of RM0.10 per Warrant on the basis of one (1) new Warrant for every four (4) existing ordinary shares in Unisem (M) Berhad  (“Unisem Shares”) held after the bonus issue involving 155,575,704 new Unisem Shares to be credited as fully paid-up (“Bonus Shares”) on the basis of three (3) Bonus Shares for every ten (10) existing Unisem Shares.

The warrant exercise price is RM2.18

Friday, July 16, 2010

FIFA Latest Football Ranking

The latest FIFA ranking. Australia is at 20, higher than France 21. Spain deserve to be number. Malaysia is at 142. Many countries that I have never heard of are ahead of Malaysia, Tajikistan, Sierra Leone, Antigua and Barbuda. Malaysia Boleh. England is at number 7. Then Malaysia can argue that this ranking is not accurate. Please comment.

1 Spain

2 Netherlands
3 Brazil
4 Germany
5 Argentina
6 Uruguay
7 England
8 Portugal
9 Egypt
10 Chile
11 Italy
12 Greece
13 USA
13 Serbia
15 Croatia
16 Paraguay
17 Russia
18 Switzerland
19 Slovenia
20 Australia

Freight Management Bhd Fair Value (FV) Traget Price increase to RM1.53

Someone told me Freight Management fair value target price is no longer RM1.40. It has been increased to RM1.53 by RHB. I went to check and yes, the fair value is now RM1.53. I didn't manage to check the reason, maybe is due to RHB monthly review. Anyway, is a good stock to buy and keep. Low PE with growth, no gearing and high dividend.

CIMB issued first Callable Bull Certificates (CBLC) in Malaysia

You have to know the risk. Read more about callable bull bear in my blog.

__________________________________________________
CIMB Bank Bhd has issued the first four Callable Bull Certificates (CBLC) in the country, on AirAsia Bhd, Gamuda Bhd, Genting Bhd and Berjaya Corp Bhd.

The certificates, which were recently incorporated in Bursa Malaysia's listing requirements, will start trading today.

While Call Bear/Bull Certificates (CBBC) are an established form of investment in mature financial markets such as Hong Kong and in Europe, it is relatively unknown in Southeast Asia.

"CBBC is a new investment vehicle, which gives fresh option to the equities market and brings greater depth to the structured warrants market," Bursa Malaysia Bhd chief executive officer Datuk Yusli Mohamed Yusoff said at the launch of the certificates in Kuala Lumpur yesterday.




CIMB Bank plans to issue about four CBBCs a month progressively.

While CBLC bears similarities to call warrants, its main features are a Mandatory Call Event (MCE) and the fact that settlement is only done in cash.

A MCE is the issuers' right to call the CBBC, which leads to the suspension of the CBBC, should it reach the call price, prior to the expire date of the certificates.

For CBLCs, the call price is either at or above the exercise price of the underlying instrument.

If the call price or level is equal to the exercise price, investors will not receive any cash amount. If the call price/level is different from the exercise price, cash settlement will be done based on an established formula.

The call prices of AirAsia CBLC, Gamuda CBLC, Genting CLBC and BCorp CBLC are RM1.05, RM2.70, RM6.15 and RM1.06.

More than 50 per cent of the total structured warrants currently listed on Bursa Malaysia are issued by CIMB Bank.

Sorce: Business Times


Read more on my callable bull beart certificates, especially the risk.

Bina Puri (BPuri) up on LCCT projects

Works Package: TB01 – Design, Construction, Completion, Testing and Commissioning and Maintenance of Main Terminal Building, Satellite Building, Sky Bridge and Piers for Proposed Development of New LCC Terminal and Associated Works at KL International Airport, Sepang, Selangor

Contents : YB Senator Tan Sri Datuk Tee Hock Seng, JP, Group Managing Director of Bina Puri Holdings Bhd., would like to announce on behalf of the Board that we have accepted the letter of award in the name of UEMC – Bina Puri J.V. from Malaysia Airports Holdings Berhad on 16 July 2010 for the project known as “Works Package: TB01 – Design, Construction, Completion, Testing and Commissioning and Maintenance of Main Terminal Building, Satellite Building, Sky Bridge and Piers for Proposed Development of New LCC Terminal and Associated Works at KL International Airport, Sepang, Selangor” for a contract sum of RM997,227,000. With the award, the Group’s current book order stands at RM2.7 billion as at to date. The project is expected to be completed within twenty months. The total value of contracts secured in 2010 for Bina Puri Group is RM1.51 billion.

The contract is expected to contribute positively to the earnings of Bina Puri Group for the financial year ending 31 December 2010.

Please note that no directors, major shareholders and/or persons connected with them have any interests, direct or indirect, in the above transaction.


Source: Bina Puri

Octopus Paul of Malaysia

Thursday, July 15, 2010

SCOMIEN (RM1.15) but pay high Dividend RM0.295

SCOMI ENGINEERING BHD
Share price is only RM1.15, but pay high dividend RM0.295.

EX-date : 28/07/2010
Special Interim Dividend of 29.5 sen per ordinary share as follows:
(i) an interim dividend of 6 sen per ordinary share (gross) less 25%
income tax;
(ii) an interim tax exempt dividend of 11 sen per ordinary share to be
paid out of income exempted under Schedule 6 Paragraph 28 of the Income
Tax Act, 1967 and is exempted from Income Tax in Malaysia in the hands
of shareholders under Schedule 7A Paragraph 5(3) of the said Act; and
(iii) an interim single tier exempt dividend of 12.5 sen per ordinary
share.
In short: RM0.06 need to pay 25% tax, amount to RM0.015 only.
The balance RM0.235 no need to pay tax

Why KSeng up? Profit RM1.00 per share?

Why KSeng up?

I think maybe is due to the following news:
Gain RM245 million, based on 241 million shares, can gain RM1.00 per share?

Source: Keck Seng
KECK SENG (MALAYSIA) BERHAD
- Proposed Mandate in respect of Keck Seng (Malaysia) Berhad's interest in the Quoted Shares of Parkway Holdings Limited ("Proposed Mandate")

Contents : The Board of Directors of Keck Seng (Malaysia) Berhad ("KSM" or "the Company") wishes to announce that the Company proposes to seek a mandate from its shareholders in respect of its holdings in the quoted shares of Parkway Holdings Limited.
The details of the Proposed Mandate are set out in the attached document below:

EXPECTED GAIN IN THE EVENT OF DISPOSAL OF ALL THE PARKWAY SHARES
KSM and KSI are the beneficial owners of 35,203,468 and 379,750 Parkway shares respectively. The combined cost of investment of their 35,583,218 Parkway Shares is RM67.3 million or RM1.89 (S$0.82) per share.

However, assuming KSM and KSI were to accept the Cash Offer by RHC Healthcare for all their Parkway shares at S$3.80 per share, the expected gain arising from the disposal would be RM245.0 million.
The above calculation assumes a Singapore Dollar to Malaysian Ringgit Exchange rate of 2.31.

Focus Point IPO Fair Value Target Price RM0.40 PEGGY Method Test

IPO price RM0.39
Focus Point IPO Fair Value Target Price RM0.40


Let us do my PEGGY Test:
PE:    PE ratio 6.9x  Dec 2010
G:   Growth 12% 2011-2012
G:  Gearing net cash
Y: Yield (dividend), gross 1.7% ? ? ? ?


The PE ratio is just 6.9, good.
Growth is 12%, good, and also higher than PE ratio. Good. ROE more than 20%.
Gearing nil, net cash good.
Dividend, this is the tricky part. They don't have a dividend payout ratio policy. RHB analyst assume it at 10%. It is very low.


The RM0.40 is RHB fair value I saw from the web. I personally does not like this stock, maybe after seeing what happened to England Optical (I getting my glasses and saw many customers holding voucher, I ask them from where, they said England Optical pay vendor by voucher).

But analyst is the EXPERT, not me.  PE is low and growth is high. Please call Focus Point office, and ask them how much dividend they will pay. If high, then can buy. If low, then still can buy but if the price doesn't go up, and after few years company collapse, you get nothing because few years getting very little dividend.

Just find out the dividend.

Wednesday, July 14, 2010

Why Some Upside is low some is high- Because of PE Ratio

Please look at the BUY recommendation by analysts:
This is an old report (July 2010), for STUDY PURPOSES only.
Prices have already changed.


PLUS Expressway Bhd
RM3.50
PE Ratio 14.2x
Fair value RM4.06 (just 16% upside)



High PE Ratio Company
Public Bank RM11.90- PE ratio 16.2x FV 13.75 (only 15.5% upside)
Maxis RM5.29- 17x (FV 6.20) 17% upside only
CIMB RM7.06- 17.8x (FV 8.40) 20% upside only


Low PE ratio Company
CBIP RM2.69- PE ratio 9x (FV RM3.70) upside 37%
Emas Kiara RM0.52- 4.6x (FV 1.52) upside 192%
Freight Management RM0.81 7.3x (FV RM1.53) upside 89%


POLITEMARKET's COMMENTS:
All are BUY recommendation, but those with high PE, the upside
percentage is very little. Those with low PE ratio, the upside potential
percentage is much higher.
This is because in history, good stocks trade around 16 to 18 PE ratio.
So if the stocks already 16-18, in order for the price to go higher, the
company profit need to be increased. If profit grow 20%, stock price
increase 20%.


The stock price CAN NOT move up SUBSTANTIALLY without profit growing. If
the company is not growing, the stock price will not go up.


For stock with low PE, if the company is not growing, but the stock
price still can go up due to higher buy sell volume traded and more
research coverage. Example PE ratio 7x, due to better research coverage,
higher volume, the stock price can trade up to 10x, 43% increase. So the
stock can grow 43% even no growth in the profit.
If the profit grow 20%, then the price increase another 20%.
So, total is 43% + 20%. Meaning you can gain by TWO WAYS, not just one.


CAUTIOUS: you should not just buy base on PE ratio, but also growth,
gearing, dividend. Please use my PEGGY method.

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1 17-07-10
Saturday 9.00 am - 1.00 pm
Mandarin AmFutures Grand Paragon Hotel, Johor Bahru 1800 181 262
Amfutures Sdn Bhd futures@ambankgroup.com
2 17-07-10
Saturday 2.00 pm - 5.00 pm English Phillip Futures Ever Green Hotel,
Penang 603-21621628 Pah Wai Kiat phillipfutures@poems.com.my
3 20-07-10
Tuesday 7.00 pm - 9.00 pm English Inter -
Pacific Securities Bursa Malaysia, Kuala Lumpur
603- 21427586 Tan Soh Kean tansk@interpac.com.my

4 22-07-10
Thursday 7.00 pm - 9.00 pm English Phillip Futures Pullman Hotel,
Kuching 603-21621628 Pah Wai Kiat phillipfutures@poems.com.my
5 24-07-10
Saturday 9.00am - 12.30 pm English HLG Futures
Wisma Hong Leong, Kuala Lumpur 603-21636288
Nancie Tham SFTham@hlgs.hongleong.com.my
6 24-07-10
Saturday 10.00am - 1.00 pm English Phillip Futures Hyatt Regency,
Kota Kinabalu 603-21621628 Pah Wai Kiat phillipfutures@poems.com.my
7 31-07-10
Saturday 9.30 am - 12.30 pm English Oriental Pacific Bursa Malaysia,
Kuala Lumpur 603 - 2162 3512 Ricky Chin rickychin@opf.com.my
8 31-07-10
Saturday 10.00 am - 1.00 pm English
Phillip Futures Phillip Futures' Seminar Room, Kuala Lumpur
603-21621628 Pah Wai Kiat phillipfutures@poems.com.my

Source: Bursa Malaysia

Goldman Sachs eyes Paul the Octopus

Goldman Sachs Eyes Paul
By Sefal Opod - July 8th, 2010, 4:32PM
$4 Million p.a. Package on Offer

NEW YORK, NEW YORK-Top US Investment Bank Goldman Sachs is said to be
offering a US$4 million per year package for the Paul the Oracle Octopus
to head up its proprietary trading book.

Goldman will convert part of its trading floor in its New York
Headquarters into a fish tank for Paul and put boxes representing
different markets, stocks, indices, equities and bonds for Paul to
choose from. They hope this will translate into more profitable business
from them. Paul will work closely with the Head of Global Strategy to
recommend asset allocation strategies.

Also the rounds is a rumour that Merrill Lynch are bidding for Paul to
replace their entire research team.

Focus Point IPO Target Price RM0.44

Focus Point Holdings Bhd
IPO price RM 0.39
Tentative listing date 27-07-10
ACE Market
I saw from the web that OSK fair value target price is RM0.44.

PLUS- Buy? Fair Value Target Price PEGGY Method

PLUS Expressway Bhd. (5052) RM3.50
Can buy?

Let us do my PEGGY test:
PE: P/E ratio 14.2, Dec 2010
G: Growth 19% 2011-2012
G: Gearing- 150%
Y: Yield (Dividend). Net 5.2%

POLITEMARKET'S COMMENT:
PE is 14.2. Average high, but for big cap stock, normal.
But the Growth is 19%, which is higher than the PE 14.2, good.
Gearing very high, at 150%. But this is a mature industry and generating cash, so should be ok.
Dividend yield- average good.

This stock is good, with growth. Dividend also ok. Should gearing be a concern, not really, unless there is a major development or change in government policy. Example PLUS borrow money to build highway but dispute that cause delay in toll collection, etc. But I think no worry.

The PE is fairly high, meaning the stock price CAN NOT move up SUBSTANTIALLY without profit growing. If the company is not growing, the stock price will not go up. NOTE: For stock with low PE, if the company is not growing, but the stock price still can go up due to higher stock buy sell volume traded and more research coverage.

To make myself understand better, whether can buy this stock or not..
I try using PEGGY method in comparison with a job.

So, base on above figure, this JOB will be...

PE: PE fairly high, little chance of getting big BONUS
G: Growth 19%, so can expect INCREMENT of 19%
G: Gearing- high. But not a concern for PLUS, so still got JOB SECURITY
Y: Yield (Dividend) average to good SALARY.

So, the major factor is GROWTH. They really need to achieve the 19% growth, then only worth buying. PE high, so, no growth no gain. For info, someone told me Affin has a BUY recommendation with target price of RM4.06 (just 16% upside). You know why so little upside? Because the PE already high. Worth to buy if the company continues to enjoy high growth. IF.

Tuesday, July 13, 2010

MBM Resources Bhd Fair Value Target Price 77% Upside

MBM Resources Bhd (5983) RM3.00
Major Partner Brands: Daihatsu, Misubishi motors, Heico, Hino, Volvo,
Perodua, Volkswagen. Owns 86% of Federal Auto Holdings Berhad, 71.5% of
Daihatsu (Malaysia) Sdn Bhd, 20% of Perusahaan Otomobil Kedua Sdn Bhd
(Perodua)

Let us do my PEGGY test:

PE: P/E ratio 6.4, Dec 2010
G: Growth 5% 2011-2012
G: Gearing- Net cash
Y: Yield (Dividend). 4% gross (net 3%)

POLITEMARKET'S COMMENT:
PE is low, at 6.4. Good
But the Growth is 5%, which is lower than the PE 6.4, not good.
No gearing, good. I heard net cash is RM111 million
Dividend yield- average only, at 4%

The net asset per share is RM3.83 as at 31/03/2010.
About the net cash of RM111mil, they plan to spend a total of RM100m
capex between 2010-12 to expand their distribution and dealership of
Perodua, Hino and VW network with 3S centres in the country.

This stock is good, but the growth is low. If growth is low, company
should pay more dividend, but they are not paying high dividend.
2008 dividend RM0.12 (RM0.06 + RM0.06 special)
2009 dividend RM0.06 tax-exempt
2010 if RM0.12, the yield is only 4%. If RM0.06 then lower yield.

To make myself understand better, whether can buy this stock or not..
I try using PEGGY method in comparison with a job.

So, base on above figure, this JOB will be...

PE: PE low, got chances of getting BONUS
G: Growth 5%, so can expect INCREMENT of 5%
G: Gearing- nil. Got JOB SECURITY.
Y: Yield (Dividend) average SALARY.

This job pay me average salary, got job security, with chances of
getting bonus. But increment low. I will take this job if there is no
better job.

This is just based on RHB research, saying that the growth is only 5%.
RHB fair value target price is RM5.31, 77% upside, they are the expert,
so is worth buying. The growth and the dividend hindering me from
buying.

Corporate info:
is an automotive Group with diverse investments in distributorship and
dealership of major international brands of vehicles in Malaysia. It is
well represented in all segments of the market from light trucks to
medium and heavy duty trucks and buses in the commercial vehicle market
and, from compact entry level cars to luxury cars in the passenger
vehicle market. Its auto parts manufacturing division supplies to all
the major brands in Malaysia.

Freight- Is it going up now? Can buy now? FV RM1.40

Freight Management Bhd (7210).
The price has been trying to break RM0.80, but unable. Now the price has broken the RM0.80 resistance.
I received few calls when it broke the RM0.80 level.
I am not good at technical chart analysis.
Is it starting to go all the way up?
I bought because the fundamentals are very good (refer to my posts on Freight) and RHB fair value target price is RM1.40.

I hope it can go up to RM1.00 and take a rest at RM1.00. And go up again.

Foreign Currency Fixed Deposit Rates

Source: The Star

EA Holdings Berhad IPO Fair Value Target Price RM0.27

EA Holdings Berhad
Provision of software solutions, sales and distribution of RFID (Radio Frequency Identification) and ICT services.
IPO Price RM0.25
Tentative Listing 20/07/2010

First day listing can go as high as RM1.25 or as low as RM0.005. If got syndicates want to push up, it can go very high. I don't know how to predict the first day listing price, I am not an octopus, hahaha....
EA Holdings Berhad IPO Fair Value Target Price (I saw from the web that RHB is RM0.27)
Let us do my PEGGY test:

PE: P/E ratio 8.4, Dec 2010
G: Growth 20% 2011-2012
G: Gearing- Net cash
Y: Yield (Dividend). Nil 2010. 2% 2011 onwards
POLITEMARKET'S COMMENT:
High growth 20% for the next two years, PE will drop to 5.7, good.
No gearing, good.
Dividend yield- No dividend. So if the company doing well for few years, and then collapse, you get nothing.

Risk: New company (no track record). Many people told me IT stock is cyclical, meaning few years good, few years bad, then few years good, then bad.....

Conclusion: I will not buy because new company and no dividend. If they payout example 40% profit as dividend, the yield is already 4.8%, and will grow 20% for next two year, so I will buy. But they are not paying the dividend.

I will consider, if they start paying dividend. If you are holding or consider buying, don't worry, because price is about demand and supply. As long as got people keep buying, the price will goes up even no dividend.

BMW M-Sports

BMW have finally unveiled the M-Sports equipped version of the F10 5-Series.

________________________
I accidently publish this article. Actually is not ready yet.

Monday, July 12, 2010

Tatt Giap IPO Fair Value Target Price RM0.595

Tatt Giap Group Bhd IPO Fair Value Target Price (I saw from the web that
RHB is RM0.595)
IPO price RM0.58
Let us do my PEGGY test:

PE: P/E ratio 10.0, Dec 2010
G: Growth 40% 2011-2012
G: Gearing 120%
Y: Yield (Dividend) Kosong. Nil

POLITE MARKET'S COMMENT:
High growth 40% for the next two years, PE will drop to 5. Very good.
But gearing is very high at 120%. With the interest rate going up and
market uncertainty, this is quite risky.
Dividend yield- No dividend. So if the company doing well for few years,
and then collapse, you get nothing.

Conclusion: High gearing and no dividend.

For easy understanding, recently I have tried using PEGGY method in
comparison with a job.
So, base on above figure, this JOB will be...

PE: PE low, got chances of getting BONUS
G: Growth 40%, so can expect INCREMENT of 40% (no use, because no
salary)
G: Gearing high, no job security
Y: Yield (Dividend) nil. So NO SALARY.
You want to take up this job?

You can refer to my post titled SALARY BONUS INCREMENT IN STOCK MARKET
for more info. Can also go to LABEL. I think I put under the LABEL name:
Bonus Increment Security Salary.

Info
Tatt Giap started in 1978. Now in the stainless steel processing
industry.
Manufacturing of stainless steel pipes and tubes, cold drawn and
polished carbon steel/stainless steel bars, electro galvanised (EG)
steel coils.

Also involved in the distribution of third party steel products for
various types of users, ranging from automotive part producers to
construction companies. Rank 5th (by revenue) in the steel processing
companies.

Competitors: Choo Bee Metal Industries, Engtex Group, Hiap Teck Venture

Why is The Netherlands called Holland?

Why Holland is called Netherland? Why is The Netherlands called Holland?
Nowadays The Netherlands consists out of twelve provinces: Groningen, Friesland, Drente, Overijssel, Flevoland, Gelderland, Utrecht, North-Holland, South-Holland, Zealand, North Brabant and Limburg.
North and South Holland are just two out of twelve provinces of the Netherlands, both located at central-western region. The major cities (Amsterdam, Rotterdam and The Hague) are located in these two provinces.
When the Dutch went out into the world during the Dutch Golden Age (starting in the 17th century) to establish our trading routes, most ships came from North Holland and South Holland. The Netherlands did not exist at that time yet. So when you would ask the sailor where they were from they would respond with the name of their city-state (province). Most of the time the sailor response would be that he was from Holland.
Holland has long been an acceptable alternative informal name for The Netherlands including most those who live there and is not considered as incorrect or potentially insulting as refering to Great Britain as "England". Yet care should still be exercised as some Netherlanders, especially among Frisians, may still not appreciate Holland being used as a synonym for their country.

Now since there are ten other provinces with each having their own proud history, it is not recommended saying Holland when you are actually trying to refer to The Netherlands.

Allianz-PR

As more and more people understand about Allianz-ICPS, I think Allianz-PR will have more buying interest.

Allianz-ICPS should trade at a premium over Allianz ordinary share.
Because Allianz-ICPS will get 20% more dividend than Allianz ordinary share.

Assuming Allianz-ICPS trade 10% higher than Allianz.

Now Allianz is RM3.70
RM3.70 plus 10% = RM4.07
So the new Allianz-ICPS may trade at RM4.07

RM4.07 minus RM3.18 (exercise price) = RM0.89
So, the Allianz-PR should trade near RM0.89
Now that the Allianz-PR is trading near RM0.50, option.......
1) Investor may wish to buy into Allianz-PR and sell at higher price, contra, if they are confident.

2) Those who want to buy Allianz (RM3.70), may buy Allianz-PR (RM0.50) and add RM3.18 (Total RM3.68), to get Allianz-ICPS which will trade higher than Allianz

3) The holders Allianz may consider selling Allianz (RM3.70) and buy Allianz-PR (RM0.50), and add RM3.18 (Total RM3.68) to get Allianz-ICPS which will trade higher than RM3.70 (if 10% higher is RM4.07)

I didn't follow Allianz, so unable to comment on it. The above is for calculation purpose.

World Cup Final Octopus 1:0 Parrot, Paul 1:0 Pauline

Octopus 1:0 Parrot
Spain 1:0 Holland
Paul 1:0 Pauline
Male 1:0 Female

For info, this Paul the Octopus predicted wrongly in Euro 2008 Final. It predicted German win, but it was Spain who won in 2008 Final.

This Singapore also got one parrot I think is called Mani. Trying to predict also wrong. This Holland also got one female octopus Pauline, trying to predict also wrong.

I am EXPERT of Stock Market- ask me question

I notice many of my friends making losses in stock market but still
behaving like an expert and refuse to get advice.

They Be Their Own EXPERT
1) They never refer to analyst reports. They do their own stock selection don't know base on what. They can tell you to buy the counters without knowing the PE, Growth, Gearing and Yield (dividend). Without studying the technical chart.
2) They will say market will go down further without studying the
technical chart. Wah!!!! They can predict market.

POLITE MARKET'S COMMENTS:
95% of my buying decisions are recommended by analysts, they are the expert, NOT me.
The 5% is because sometimes I was naughty.

Friday, July 9, 2010

CapitaMalls Malaysia Trust (CMMT) Fair Value Target Price IPO

CapitaMalls Malaysia Trust (CMMT)
IPO price is RM1.08
Final Institutional struck Price is RM1.00
Final Retail Price is RM0.98

CapitaMalls Malaysia Trust (CMMT)
Three assets: all are retail estate
Gurney Plaza in Penang RM850 million
part of Sungei Wang Plaza in Kuala Lumpur RM740 million
The Mines in Selangor RM540 million.
Total value RM2.1 billion.

I read from RHB (fair value target price is RM1.10) that the distribution income are as follows (for yield purposes, assuming the price is RM1.00):
RM0.72- 7.2%
RM0.75- 7.5%
RM0.79- 7.9%
Gurney Plaza and Sungei Wang Plaza are freeholds
The Mines is lease hold 99 years expire on 20 march 2091

Can the value of the properties go up?

EAH bidding for over 10 projects

KUALA LUMPUR: Enroute to a listing on the ACE Market on July 20, EA Holdings Bhd (EAH) is bidding for more than 10 projects locally involving radio frequency identification (RFID) and access control systems, software solutions and information and communication technology (ICT) services.
EAH group chairman and CEO Mohammad Sobri Saad said the projects were in government-linked companies (GLCs), colleges and the financial services sector but was tight-lipped on the potential amount the projects could add to its order book.

"We only bid for projects that we have more than a 50% chance of success. But that doesn't mean we will definitely secure all the projects we bid," he told an analyst and media briefing here yesterday.

According to its listing prospectus, EAH had participated in bids for a total of 20 projects worth a total of RM39.97 million, of which six projects valued at about RM6.04 million had been secured as at May 18.
Sobri said EAH would continue to invest in research and development (R&D) to enhance and broaden its range of products and solutions for local as well as overseas markets, stressing that 20% of its expected RM10 million listing proceeds would be used to enhance R&D capabilities.
He said EAH's growing source of revenue came from the RFID and access control systems segment, which is expected to steer future growth of the group.

The products, he said, included long-range active tag or RAIN tag for car parking, lattice wireless access control system (LWACS) for security card access and time and attendance system as well LR1000 Series biometric reader.

Sobri said the group's revenue would be mainly generated from domestic operations although it had "channel partners" in Singapore and Indonesia and was in the midst of expanding its business to China.
"Our focus market will still be in Malaysia. For other countries, we either appoint someone to represent our RFID solution and services or have channel partners," he said, adding that the group had 50 personnel currently.
The company is making a public issue of 40 million new shares of 10 sen each at an issue price of 25 sen per share, comprising two million shares for application by the Malaysian public, seven million shares for eligible directors and employees of EAH and the balance of 31 million shares for application by way of placement to investors.
An offer for sale of 18 million existing shares at 25 sen each will also be made to identified investors.
For the year ended Dec 31, 2009, EAH's net profit rose 87% to RM3.64 million from RM1.94 million the year before, while revenue jumped 68% to RM13.89 million from RM8.28 million.
In a filing to Bursa Malaysia yesterday, EAH announced a net profit of RM1.39 million on a revenue of RM5.43 million for the first quarter ended March 31, 2010 (1Q10). Basic earnings per share stood at 2.1 sen while its net asset per share as at March 31 was 11 sen.
EAH said RFID and the access control system was the largest contributor to the group's revenue and pre-tax profit, at RM2.84 million and RM942,000 respectively for 1Q. The particular segment contributed 52.3% of the group's revenue and 67.5% of its pre-tax profit.

The group said other contributors to its revenue were ICT services (RM1.09 million) and software solutions (RM1.5 million).
This article appeared in The Edge Financial Daily, July 9, 2010

You LOSS RM1,700

In early June 2010, everybody was bearish, in my post I challenge
whether anybody want to sell/short the futures at 1279. Refer to my post
titled "What to Short/Sell KLCI?"

When the futures contract expired on 30/06/2010, it closed at 1313.

So, meaning loss 34 points X RM50 = RM1,700 per lot.

Conclusion is, most people don't know how to predict the market.
Everybody bearish but short/sell the futures ended up loss money.

Various News BPuri Wilmar Hartalega

Bina Puri Holdings Bhd, a Malaysian builder rose for a fifth session in Kuala Lumpur trading after the Edge newspaper reported in may have won a RM1 billion (US$310 million) contract for a new budget airline terminal.
The stock jumped 6.4 per cent to RM1.17 at 9:11 am local time, set for its highest close since June 23. -- Bloomberg

Wilmar International Ltd, the world's largest palm oil trader, agreed to buy CSR Ltd's Sucrogen sugar unit for A$1.75 billion (US$1.5 billion), countering an offer from China's Bright Food Group Co.
"Sucrogen has a good strategic fit with Wilmar's existing portfolio of high quality, processed agri-products," Kuok Khoon Hong, chief executive officer of Singapore-based Wilmar, said today in a statement. The offer includes A$1.347 billion in equity and A$403 million in net debt, Wilmar said.
Buying Sucrogen will give Wilmar mills that produce 45 per cent of Australia's raw sugar and account for about 4 per cent of international trade. Bright Foods intended to trim its offer to between A$1.65 billion and A$1.7 billion after a review of the business compared with an earlier proposed bid of US$1.75 billion, the Australian Financial Review cited unidentified people close to the deal as saying.
"This looks to be a very good price for shareholders, as well as providing certainty after months of negotiations with China-based Bright Food Group," Ben Potter, a strategist with IG Markets, said in an e-mailed note. - Bloomberg

KUALA LUMPUR: Hartalega Holdings Bhd has succeeded in getting an alleged patent infringement suit filed by Tillotson Corp dismissed.
In an announcement to Bursa yesterday, Hartalega said its lawyers had on Tuesday informed the company that the US District Court Northern District of Georgia had on June 25 granted an order for dismissal of the "Georgia Suit".
Hartalega and its related companies, Hartalega Sdn Bhd and Pharmatex USA Inc, were among the defendents of the the suit that included other Malaysian glove makers.
The suit relates to a patent infringement complaint originally filed in May 2007 by Tillotson against a total of 12 glove makers using nitrile glove technology.
On Dec 14, 2009, the US Court of Appeals for the federal circuit had ruled that the Tillotson patent was invalid, upholding an earlier US International Trade Commission decision.
Hartalega said its board was "of the view that this order for the dismissal of the Georgia suit does not give rise to any material or adverse impact to the financial performance and net asset value of the company and the group".
Top Glove Corporation Bhd had on Tuesday announced an out-of-court settlement with US-based Tillotson.
This article appeared in The Edge Financial Daily, July 8, 2010.


 

Genting Malaysia Bhd Fair Value Target Price RM2.48

Genting Malaysia Bhd (GenM 4715) RM2.66
Formerly know as Resort World Bhd.

From the web I saw Affin Fair Value target price is RM2.48, with REDUCE recommendation. REDUCE is similar to underperform, indirectly is SELL

Let us do a PEGGY test:

PE: P/E ratio 14.4 Dec 2010
G: Growth 6% 2011-2012
G: Gearing, nil, net cash
Y: Yield (Dividend) gross is 3.5% (net 2.63%)
POLITE MARKET'S COMMENT:
Growth is JUST 6% which is much lower than PE ratio of 14.4. Not good.
Gearing nil, good
Dividend yield is average

Conclusion not good, except net cash, don't know what they going to do with the cash. I found out RHB fair value is RM2.90 with market perform recommendation. OSK is SELL, target price RM2.55

For easy understanding, recently I have tried using PEGGY method in comparison with a job.
So, base on above figure, this JOB will be...

PE: PE normal, so difficult to get BONUS
G: Growth 6%, so can expect INCREMENT of only 6%
G: Gearing nil, got JOB SECURITY
Y: Yield (Dividend) average, very year pay average SALARY
You can refer to my post titled SALARY BONUS INCREMENT IN STOCK MARKET for more info. Can also go to LABEL. I think I put under the LABEL name: Bonus Increment Security Salary.

Buy Allianz-PR

If you buy Allianz-PR, and add RM3.18, will get one Allianz-ICPS (preference shares). This preference share will get 20% more dividend than Allianz shares(RHB fair value is RM5.32). So, the price may trade at 20% higher than the Allianz shares price.

Now Allianz is RM3.68
RM3.68 plus 20% = RM4.42

Assuming just 10% higher, then RM3.68 + 10% = RM4.05

RM4.05 minus RM3.18 (exercise price) = RM0.87

Currently the Allianz-PR is trading at just RM0.40, but should be RM0.87.

Let you think whether can buy or not.

One more HUMAN being Knock OUT by Stock Market

Another of my friends being knocked-out by stock market.
He made money during 2007
Loss in 2008
Didn't buy in early 2009 because he think will drop lower
Didn't buy in middle of 2009 because already up
Bought a few in end of 2009 but didn't move and call it quit

POLITE MARKET'S COMMENTS:
If you are NOT a remisier or dealer, you can ask around your friends,
colleague, and family members, only about 7% are actively in stock
market. And only less than 1% are consistently making money AND grow in
total investment portfolio value.

Why so many not actively making money?
Afraid of stock market (heard from many people stocks are gambling + risky)
No patience, want fast
False Rumours (rumours can be true, but they always got false rumours)
Uneven value investment
Wrong judgement
Refuse to cut loss
Refuse to continue to invest
Etc etc
If you use combination of Dollar Cost Averaging and PEGGY, you can be the 1%.

Allianz-PR Fair Value RM1.37

Read from the web that Allianz-ICPS, the ICPS should trade at a
premium of 20% from the ordinary share, or at RM4.55, because of 1.2x dividend payout for the ICPS.
Current Allianz price is RM3.79, so X 1.2 = RM4.55
Meaning RM4.55 minus RM3.18 (subscription price), so the trading of Allianz-PR may near RM1.37
But this is just theory.
For info, RHB new fair value target price for Allianz is RM5.32.

EA Holdings Bhd IPO- Financial Result 31 march 2010

Announced on 08/07/2010.
Review of the performance of the Group:
For the current financial quarter ended 31 March 2010, the Group recorded
revenues of RM5.438 million and profit before tax of RM1.395 million.
RFID and access control system is the largest contributor to the Group's revenue and profit before tax with RM2.846 million and RM0.942 million respectively.
These amounts constituted 52.3% of the total Group's revenue and 67.5% of the total Group's profit before tax. The other contributors to the Group's revenues are ICT services (20.1%) and software solutions (27.6%).
Notwithstanding the performance of the different segments of the Group for the current financial quarter, the Board of Directors believes that the contribution of each segment going forward will vary quarter to quarter due to the project-based nature of the Group's revenue under ICT services and software solutions.
Comparison To The Results Of The Preceding Quarter:
No comparative figures are presented for the immediate preceding quarter as this is the first interim report being announced by the Company.
Prospects for the current financial year:
With the domestic economy showing signs of recovery, the local ICT sector is expected to record higher growth in 2010, fuelled largely by government incentives and tax breaks, introduction of new applications and services; and the expected release of pent-up spending on ICT, which resulted from curtailed spending in the recent years.
The Group is expected to benefit from these positive developments. In addition, the proposed listing of the Group on the ACE Market of Bursa Securities is expected to boost the Group's market presence and awareness, whilst equipping the Group with the necessary resources to enhance and improve its products, solutions and services; and to better penetrate the local and overseas market.
Barring any unforeseen circumstances and in view of the positive developments mentioned above, the Board of Directors is optimistic of achieving a satisfactory performance for the financial year ending 31 December 2010.

Source: EA Holdings Bhd

Thursday, July 8, 2010

CBIP Fair Value Target Price RM3.70

CB Industrial Product Bhd (CBIP 7076) RM2.59

I saw RHB Fair Value target price is RM3.70, with outperform
recommendation.
Let us do a PEGGY test:

PE: P/E ratio 6.3 Dec 2010
G: Growth 12% 2011-2012
G: Gearing 30%
Y: Yield (Dividend) gross is 5.4% (net 4.05%)

POLITE MARKET'S COMMENT:
Growth is 12% which is higher than the PE ratio of just 6.3. Good.
Gearing is ok, just a bit high, but I don't think is a concern.
Dividend yield is OK.

Conclusion is ok or good, except gearing. I have one comment on this. I
follow CBIP for few years, but not in depth. I notice that past few
years, their profit always below analysts' estimation or forecast. Even
the above forecast figure looks nice, but question is whether this time
the analyst can correctly forecast on CBIP or not, because previously
result always below forecast.
If you think the analyst figure is ok, then the figure looks good.
For easy understanding, recently I have tried using PEGGY method in
comparison with a job.
So, base on above figure, this JOB will be...

PE: PE low, so can expect to receive BONUS
G: Growth 12%, so can expect INCREMENT of 12%
G: Gearing 30%, if economy not good, slight chance of no JOB SECURITY
Y: Yield (Dividend) average, very year pay average SALARY
You can refer to my post titled SALARY BONUS INCREMENT IN STOCK MARKET
for more info. Can also go to LABEL. I think I put under the LABEL:
Bonus Increment Security Salary.

New Counter- CIMB Callable Bull Bear Certificate (CBBC) on Bursa Malaysia listing

Bursa is launching new product, Callable Bull Bear Certificate (CBBC).
I heard CIMB will be the first one to launch the Callable Bull and or
Bear Certificate counters.
There will be a mock run or testing on Saturday 10 July 2010. So I
believe it will be very soon.
Whether to buy or not, I have to remind you that this is a very risky
product. Please read my posts on Callable Bull Bear Certificate for more
info.

QL Fair Value Target Price raised to RM4.90

Read from the web that RHB has raised QL Resources Bhd fair value target price from RM4.60 to RM4.90. In the report, they commented on QL Resources Berhad's proven track record, staple food-based business, resilient earnings that withstand economic downturns and recessions.

Wednesday, July 7, 2010

Tomypak Holdings Bhd- Bonus and Share Split

Tomypak Holdings Bhd, a Malaysian flexible-plastic packaging company, rose to its highest level in almost 13 years after announcing plans for a share split and bonus issue aimed at boosting liquidity in the stock.
It climbed 6 per cent to RM3.55 at 9.04 am local time, set for the highest close since July 30, 1997. - Bloomberg

The Bonus issue and Share Split are as follows:
(a) Proposed share split involving the subdivision of every existing one (1) into two (2)
(b) Proposed bonus issue on the basis of one (1) Bonus Share for every four(4) Subdivided Shares held by the entitled shareholders of the Company on the Entitlement Date.

Meaning if you have 1000, it will split into become 2000. And then will get bonus 500. So total 2500

SUNWAY REIT IPO- Final Price

SUNWAY REIT- Final Price
IPO price RM0.97
The institutional price has been fixed at RM0.90
So the Final Retail price is fixed at RM0.88

MIDF Consultancy and Corporate Services Sdn Bhd (MIDFCCS) announced that
the Initial Public Offering of SUNWAY REIT which was made available for
application by the Malaysian Public has been oversubscribed.

For the 134,005,600 offer units made available for subscription by the
Malaysian Public, a total of 5,519 applications for 135,262,900 offer
units with a value of RM131,205,013 were received from the Malaysian
Public. This represents a subscription rate of 1.01 times.

Can you believe it? Oversubscribed by 0.01 times? If minus out those
rejection, maybe undersubscribed I think. The second & third largest
applications are 200,000 and 153,000 respectively. But suddenly the
largest application is 2.5 million.

7-Eleven Berjaya Retail Bhd IPO 7-11

Berjaya Retail own 100% of 7-Eleven Malaysia Sdn Bhd and Singer
(Malaysia) Sdn Bhd
7-Eleven Malaysia Sdn Bhd own 100% of Convenience Shopping Sabah Sdn
Bhd, Teluk Juara Sdn Bhd and 7 Properties Sdn Bhd
Singer (Malaysia) Sdn Bhd own 100% of Biofield Sdn Bhd
Just 3 million share for the minority shareholders of Berjaya
Corporation
Just 2 million share for the Malaysia Public
So, I think the chances of striking are quite low
Offer For Sale Of Ordinary Shares Of Rm0.50 Each In Berjaya Retail
Berhad ("B-Retail") Comprising:-
* A Minimum Of 61,875,000 And Up To 91,875,000 Shares Reserved For
Bumiputera Investors Approved By The Ministry Of International
Trade And Industry;
* 5,000,000 Shares Available For Application By The Bumiputera
Public;
* 3,000,000 Shares Reserved For Application By The Minority
Shareholders Of Berjaya Corporation Berhad ("Bcorporation");
And
* 2,000,000 Shares Available For Application By The Malaysian Public
Comparison (quantity for public):
EA Holdings Bhd 40,000,000
Tatt Giap Group Bhd 14,560,000
Sunway Real Estate Investment Trust (5176 / SUNREIT) 1,654,969,300
Homeritz Corporation Bhd (5160 / HOMERIZ) 9,000,000
Oversea Enterprise Bhd (0153 / OVERSEA) 56,900,000
SCC Holdings Bhd 11,117,000

EA Holdings Berhad IPO- Corporate Info

EA Holdings was incorporated in Malaysia on 6 November 2009 under the Act as a private limited company under the name of EA Holdings Sdn Bhd.
Subsequently converted into a public limited company on 19 February 2010 and assumed our present name. Commenced operations as an investment holding, management and consultancy services company after the Acquisitions and to facilitate Listing.
On 8 February 2010, EA Holdings Berhad acquired EASS Group (which comprised EASS Sdn Bhd and EA MSC Sdn Bhd) and CSS MSC Sdn Bhd

Through subsidiary companies, we are involved in the business activities as follows:
Provision of software solutions mainly in Business Intelligence and data warehousing solutions and automated invoices processing solution
R&D, sales and distribution of RFID-based tracking systems and the provision of access control systems
Provision of ICT services mainly in system and infrastructure integration services and ICT consultancy services.
The present corporate structure of our Group is as follows:
Board of Directors
Mohammad Sobri Bin Saad
Group Chairman/ Chief Executive Officer/ Executive Director
a Malaysian aged 49, is our founder and was appointed as our Group Chairman/ Chief Executive Officer/ Executive Director on 6 November 2009. He is responsible for the entire operations the strategic planning and direction of our Group. He holds a Bachelor of Science (Hons) Degree in Mathematics and Computing from The Polytechnic of Wales, Pontypridd, Wales , United Kingdom . He started his career in various local corporations as well as multinational companies such as Harrisons Malaysian Plantation Berhad, Bank Simpanan Nasional and ESSO Malaysia Berhad who were users of ICT technologies like IBM, SAP and Oracle. He started a new phase of career to become a supplier of ICT technology by working and consulting in Infotech Consultants Pte Ltd, Singapore, Platinum Technology Inc, an US-based software company, Teliti Computers Sdn Bhd, Swift Applications Sdn Bhd and EASS Sdn Bhd. His experiences encompassed the usage of advance ICT technology supplied by IBM, Computer Network Technology Corporation, LANdesk Software Inc, ReadSoft and his clients comprised of large corporations in the banking industries, oil and gas, and utilities companies in Malaysia and the ASEAN region. He is also the Director of EASS Sdn Bhd, EA MSC Sdn Bhd and CSS MSC Sdn Bhd.
Tan Siow Hui
Executive Director
a Malaysian aged 44, was appointed as our Executive Director on 6 November 2009. He is responsible for the operations and R&D development of EA MSC Sdn Bhd. He obtained his Bachelor of Engineering (Hons) Degree in Electrical and Computer Systems Engineering from Monash University , Australia in 1989 and has accumulated vast experiences in the area of hardware, firmware and software development for micro-controller, RFID-based device, system integrations and customisations. He started his career as a process engineer with Texas Instruments Malaysia Sdn Bhd before leaving to join Powermatic Sdn Bhd. He later joined Sierra Technology Sdn Bhd as its Managing Director. During his tenure in Sierra Technology Sdn Bhd, he was in involved in the R&D, hardware, firmware, software development for in-house designed micro-controller controlled hardware, for example card access controller, RFID readers/ controllers, systems integration and customisations for additions features/ requirements of projects implemented and management of a R&D team for cutting edge product development. He is also the founder of EA MSC Sdn Bhd and is currently the Director of EA MSC Sdn Bhd.

Basir Bin Bachik
Executive Director
a Malaysian, aged 51, was appointed as our Executive Director/ Chief Operating Officer for ICT Services on 22 February 2010 . He is responsible for the operations of EASS Sdn Bhd. He holds a Bachelor of Science Degree in Computer Science from Edinburgh University , United Kingdom . He is also a certified PRINCE2® Practitioner. He has over 26 years of experience in the IT industry, serving both local and multinational companies such as Malaysian Airline System Berhad, ESSO Malaysia Berhad, IBM Singapore Pte Ltd, SHELL Refining Company (Federation of Malaya) Berhad, IBM Malaysia Sdn Bhd, Petronas Group of companies and iPerintis Sdn Bhd. He has also consulted for various financial institutions in Malaysia including Bank Simpanan Nasional and Permodalan Nasional Berhad. He started as a systems programmer, moving on to IT systems management to become a consultant specialising in ITIL. He has also managed large IT infrastructure projects for a petrochemical complex and a government agency. He is currently managing an IT application project with a local bank. He is an accomplished system architect specialising in IT infrastructure. He is also the director of EASS Sdn Bhd.

Ow Pung Hock
Independent Non-Executive Director
a Malaysian, aged 58, was appointed as our Independent Non-Executive Director on 22 February 2010. He holds a Bachelor of Science (Hons) Degree from Universiti Malaya in 1974. He has over 30 years of experience in IT consulting, having served as a Partner of PricewaterhouseCoopers' IT Consulting Division in Malaysia and a Partner in IBM Malaysia Sdn Bhd prior to his retirement in 2005.
Azahar Bin Rasul
Independent Non-Executive Director
a Malaysian, aged 48, was appointed as our Independent Non-Executive Director on 22 February 2010. He holds a Bachelor of Science in Business Administration Degree from Central Michigan University in 1988 and a degree of Master of Science Accounting from the University of New Haven, Connecticut, USA in 1990. He has over 26 years of experience in the field of corporate accounting, finance, banking and administration. His last employment was with Land & General Berhad as its Senior Manager for Administration and Finance until 1995, when he left to set up set up his own business.
Abdul Fattah Bin Mohamed Yatim
Independent Non-Executive Director
a Malaysian, aged 54, was appointed as our Independent Non-Executive Director on 22 February 2010. He obtained a Bachelor of Science in Electronic and Electrical Engineering Degree from Loughborough University of Technology, United Kingdom in 1978. He practised engineering with the National Electricity Board (now Tenaga Nasional Berhad) where he specialised in engineering software development and simulation and long range transmission planning. He has served various companies in various manager and consultant positions such as Esso Malaysia Berhad and its subsidiaries in Malaysia, System Consultancy Services Sdn Bhd and since 2003 to present, Fattah is the Project Director in Matrix Business Consulting Sdn Bhd, and also a Principal Consultant in Teknimuda Sdn Bhd, providing consulting on ICT Application Delivery, ICT Security, ICT Project Management, Change Management, Project Management and Business Continuity Planning to clients in the public and private sectors and also in Brunei.
Choo Seng Choon
Independent Non-Executive Director
a Malaysian, aged 36, was appointed as our Independent Non-Executive Director on 22 February 2010. He is a Fellow Member of the Association of Chartered Certified Accountants, a Chartered Accountant of the Malaysian Institute of Accountants, a Chartered Member of the Institute of Internal Auditors Malaysia and a Certified Internal Auditor. He has over 15 years of professional experience that includes internal audits, risk management, forensic and investigations, business management consulting, business process re-engineering, corporate governance advisory, due diligence, financial projections and financial audits. He began his career as an external auditor with international accounting firm, KPMG Peat Marvick in 1994. He subsequently joined the Assurance and Advisory Division of Ernst & Young in and later transferred to the Risk and Business Solutions Division. Thereafter, he joined Audex Governance Sdn Bhd, a professional services firm that specialises in the provision of internal audit, risk management and management consulting services, where he served a wide range of multinational and public listed conglomerate clients operating in the Asia Pacific Region. Later, he was made the Chief Operating Officer of the Audex Governance Sdn Bhd in 2007 and subsequently as Executive Director. He currently sits on the Institute of Internal Auditors Malaysia's Research and Technical Advisory Committee and has given talks on risk management, corporate governance, company law and internal
MANAGEMENT TEAM
Mohammad Sobri bin Saad
Group Chairman and CEO
Group founder and major shareholder of the Group with more than 25 years' experience in the ICT industry
Highly experienced in implementation of advance ICT technology supplied by IBM, Computer Network Technology Corp, LANdesk Software Inc, Readsoft, etc
Responsible for the strategic planning and direction of the Group

Tan Siow Hui
Executive Director
Co-founder of EA MSC with En. Mohammad Sobri
More than 20 years' experience in the area of RFID-based devices and solutions, hardware, firmware and software, system integrations and customizations.
Responsible for the operations and R&D of EA MSC Sdn Bhd


Basir bin Bachik
Executive Director, Chief Operating Officer for ICT Services
More than 26 years' experience in the ICT industry, having worked with various large corporations and MNCs - MAS, ESSO, IBM, SHELL, iPerintis
A certified PRINCE2 Practitioner and an experienced system architect
Responsible for the ICT services operations of EASS Sdn Bhd


Siah Jiin Shyang
Chief Operating Officer for Business Intelligence, Data Warehousing & Banking Solutions
Founded CSS MSC in 2005
Experience in the implementation of business intelligence, data warehousing and banking solutions
A certified Information Technology Infrastructure Library (ITIL) service manager
Responsible for the operations and R&D of CSS MSC Sdn Bhd
Eddy Lee Sin Ti
Chief Technology Officer for Business Intelligence & Banking Solutions
Experienced in working on various software platforms, amongst others, open source, and JAVA platform
Responsible for designing, modeling, development and consultancy and project implementations
Oversee the technological aspects and directions, develop human capital and intellectual properties for CSS MSC Sdn Bhd

Eugene Surendran
Chief Technology Officer for RFID
Experienced in designing and development of customized RFID and access control system
Was involved in the team as a member and trainer for his previous company in obtaining the ISO 9000:2001 for Quality Management System certification
Oversees the RFID hardware design and customer support for EA MSC Sdn Bhd

Tay Mun Kit
Manager, Accounts, Admin and HR
Experienced in corporate matters, particularly in relations to compliances with statutory, listing and other relevant requirements
An Associate Member of The Association of Chartered Certified Accountant (ACCA)
Oversees the Group's accounting, administrative and HR functions.
Nasruddin Mokhtar
Sales & Business Development Director


Azhar Affendy Chik
Director of Project

PRODUCTS AND SOLUTIONS:

System & Infrastructure Integrations
Banking Applications
ICT Consultancy Services
Business Intelligence & Data Warehousing
Automated Invoices Processing Solutions
RFID Access Control Systems
REAL-TIME Location System (RTLS) Solution

Customers including:
Petronas, Petrnas Gas, Takaful Malaysia, Bank Simpan Nasional, AmBank Group, EON Bank Group, Alliance Bank, Bank Negara Malaysia, Indah Water

Address
EA Holdings Berhad (878041-A)
Units J-3A-7 & J-3A-8, Level 3A,
Block J, Solaris Mont Kiara,
No.2, Jalan Solaris, 50480 Kuala Lumpur

Telephone / Fax
Tel : 603 - 6204 0050
Fax : 603 - 6204 0051

Source: EA Holdings Bhd

EA Holdings IPO- Extract

EA bound for ACE Market
Wednesday, 10 March 2010 23:09
KUALA LUMPUR: Software solutions provider EA Holdings Bhd, which is seeking a listing on the ACE Market of Bursa Malaysia, will undertake a public issue of 40 million new shares of 10 sen each, and offer for sale 18 million
existing shares to identified investors.

In a prospectus exposure released by the Securities Commission today, EA Holdings said out of the 40 million public issue shares, 31 million will be issued to identified investors, seven million to directors and employees of the company, and two million to the public. The shares were fully underwritten.

OSK Investment Bank is the sponsor, adviser, underwriter and placement agent for the initial public offering (IPO).

EA Holdings, which was incorporated in November 2006, is primarily engaged in investment holding, management and consultancy services. Following a restructuring exercise, EA Holdings, through its subsidiary companies, is
involved in the provision of software solutions mainly in business intelligence and data warehousing, and automated invoices processing solutions.

The group said the funds raised from the IPO would be used to continue its operations and for expansion. "Our immediate focus is to extend our RFID (radio frequency identification)‐based product lines to cover major key
applications of the RFID TECHNOLOGY, namely in supply chain management, asset tracking (real‐time locating system), security and access control and inventory warehouse," it said.

EA Holdings also intends to recruit more resellers overseas and collaborate and partner several large multinational system integrators.
"In addition, our group is planning to establish a presence in the overseas market by setting up regional and overseas offices, starting with China, via our international marketing arm to be set up this year. Part of the IPO
proceeds will be utilised to finance this endeavour," it said.

EA Holdings' wholly‐owned unit EASS Sdn Bhd was granted bumiputera contractor status by the ministry of finance in 2007. This status allows EASS to bid for tenders reserved for bumiputera companies, giving it a foothold in the lucrative government‐linked companies sector.
For the financial ended Dec 31, 2009, EA Holdings posted a consolidated net profit of RM3.64 million on the back of RM13.9 million in revenue.

Source: EA Holdings Bhd and The Edge

Tuesday, July 6, 2010

Do NOT Tell My Wife

Due to my negligence, my baby's leg was accidently hit with a hot water
container. He didn't cry and I dare not tell my wife, afraid to get
scolding from her.

POLITE MARKET'S COMMENTS:
If you buy a stock and it drops 60% in few months time, you dare to tell
your spouse? I dare.

I explain to her that the maximum loss of each investment is 100%, but
the maximum gain is unlimited.
I don't always right in every investment decision. But I am not worried,
because the maximum loss is 100% of each decision but the maximum gain
is unlimited.
If you invest RM2,000 and got it wrong, the max loss is RM2,000. But if
you are right, the gain can RM500, RM1,000, RM3,000 or even RM10,000 or
more.

Will QL shares Pass The RM5

Will QL shares Pass The RM5

Someone ask will QL shares price pass the RM5?
It depends on when? Within 3 months? 6 months or 12 months?
I have checked, so far I found out RHB fair value target price is RM4.60.
Not an issue, because I noticed that as long as the profit keeps going up, the fair value keeps adjusting upward.
If profit down, then fair value will adjust downward.

For info, for the past 9 years since listing, even during recession, QL profit has increased every year.

OSK Research maintains Target Price Fair Value of RM13 for Public Bank

Read from the web. Extract.
OSK Research maintains Public Bank Bhd target price fair value at RM13.
They said more intensive capital usage and greater focus on capital light high ROE, as well as high fee income are expected to help sustain the group's robust profit generation trend.
The risk of potentially onerous regulatory core equity capital requirements, may result in the possible dilution of less than 10% only on a worst-case scenario.

Monday, July 5, 2010

Karex Industries Sdn. Bhd.

I saw this from the web...

Karex Industries Sdn. Bhd.
Established in 1988.
Manufacture high quality natural rubber latex condoms and other latex dipped products.

PRODUCTS:
1) About 17 condom designs under Carex Condoms

2)Lubricants: Long lasting and silky smooth lubrication.
Greaseless, non-toxic and water soluble, it is certainly suitable for gynecological use or when additional vaginal lubrication is needed.

3)Probe Covers: They are specially designed for maximum flexibility and safety during intracavity examinations with ultrasound. Form-fitted for a snug fit over the transducer face, to ensure that no air bubbles can cause imaging artifacts. Seamless, Form fitting,Flexible and Safe,Leakage resistance tested,Various sizes to fit most ultrasound probes,Made to customers' designs and specifications


POLITE MARKET COMMENTS:
I think the brand name is important. Because for condom, the first thing is safety. Once poeple trusted the brand, then can market more range of products. My opinion.

Callable Bull/Bear Contract Certificates Purpose, Objective, and Basic

Bursa Malaysia is launching new Callable Bull Bear Contract (CBBC).
There will be Callable Bull Bear Contract (CBBC) counters listing in
Bursa Malaysia.

Callable Bull/Bear Certificates (CBBC) or Callable Bull/Bear Contract
CBBC), the Purpose, Objective and some basic

Increase the depth and breadth of Structured Warrant listed on Bursa
Securities.
Meeting the demand of Structured Warrant issuers
Provide greater options to investors

Callable Bull Bear Contract Certificates can track the performance of a
local or foreign share, exchange-traded fund or index.

Callable Bull Bear Contract must have fixed expiry date, not earlier
than three months and not later than five years. Only allow European
style, that is the right is only exercise upon expiry date of the
Callable Bull Bear Contract, and any amount payable to the holder must
be settled in cash only.
But Callable Bull Bear Contract (CBBC) will be expired immediate when
mandatory call event (MCE) occurs.

When mandatory call event (MCE) occurs, the trading of Callable Bull
Bear Contract will be suspended immediately. Bursa Malaysia may cancel
the Callable Bull Bear Contract trades that are executed after a
Mandatory Call Event, just in case in situation the suspension does not
take place on time.

The Callable Bull Bear Contract (CBBC) counters will be delisted on the
4th market day after mandatory call event (MCE) occurs.

Please read my other posts on Callable Bull Bear Contract (CBBC)

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