Putrajaya Perdana Berhad

Construction arm of EnO posted another impressive quarterly result. By making a fast quarterly between quarter ended Mar'07 and Mar'06, revenue is increased from RM152mil to RM180mil. Net profit has increased ~RM4mil, from RM9.3mil to RM13.3mil.

Below are the notes found in the announcement to Bursa Malaysia:

Performace Review

The Group achieved a revenue of RM537.3mil for the financial year ended 31 Mar 07, representing an increase of 23% compared to the preceding financial year.
At the back of higher revenue recorded, the Group achieved a higher pre-tax profit of RM52.7mil representing an increase of RM7.3mil or 16% oer the pre-tax profit of RM45.5mil achieved in the preceding financial year.

Comment On The Results of Current Quarter Compared To Immediate Preceding Quarter

For the current quarter ended 31 Mar 07, the Group recorded a revenue of RM108.8mil and a profit before tax of RM18mil which represented an increase of 25% and 32% respectively as compared to the revenue of RM144.7mil and profit before taxation of RM13.6mil in the immediate preceding quarter.

Lastly, a final dividend in respect of the financial year ended 31 Mar 07, of 6.0 sen per share less 27 percent income tax will be proposed for shareholders' approval at the forthcoming AGM. This translates into a dividend of 11.0 sen for this financial year (interim dividend of 5.0 were paid).

The dividend payment looks interesting. However, the trading volume for this company remains very low with no major fluctuation to the share price, where it is traded within the range of RM1.90 to RM2.00 for the past few weeks.

Better result from P Perdana will surely contribute positively to EnO where it holds ~50% of P Perdana. Quarterly result of EnO will be due for release in this month as well. As EnO Prop will be recording higher revenue certainly, it should be a very good year for EnO.

GPacket: High receivable manageable

There is an article in this week The Edge where Green Packet CEO Puan Chan Cheong explained and confident that all its receivable will be collected. He pointed out, "That is the norm in the telecommunications business we are in."
Hopefully nX trade receivables is in the same situation where all of them will be collected eventually. Should nX, the winner of Mobile Content Developer of the Year, CEO Tey Por Yee (the below picture) comes out to do the same thing? I would think it is very unlikely where nX is a low profile company where you hardly find any research or article on them. However, it's financial performance talks about all their success stories. Unless we see or discover any negetive news about them, I have high level of confident with them and hope their overseas operations will start contributing to the bottom line positively in the near future.

RCE Capital Berhad

RCE received a strong buy call from Standard & Poor. PM has finally unveiled a much-anticipated and much-deservered pay rise for the civil service.
This move is positive for RCE, which provides financing to the civil service. Its loan book has grown by leaps and bounds, increasing from just RM69mil as at end-June 2005 to RM366mil as at end-Dec 2006. S&P expects this rapid pace to continue, aided in part by the increase in disposable income for the civil service.
The target price is RM1.05. S&P also project strong earnings growth over the next few years.

It is Nextnation again ...

Recently, there are a few of Nextnat (nX) shareholders are complaining about the weak performance of it's stock price. It closed at RM0.305 last friday (note: the price is adjusted after bonus issue [1:2]). This translates to the closing price of about RM0.46 prior to the bonus issue.
I tend not to write anything about the technique, skill, plan or any know how. This is because I believe everyone has their own way and belief. This only important point is to gain and win money from the stock market.
However, I would like to take this oppurtunity to write something about what I had read in a book about the greatest investor - Warren Buffett. According to the book, investors should not sell or dispose even though the price has dropped 50% from the purchase price. Investors should see the situation as the chance to accumulate more units at cheap/lower price. Of course, this is provided that you have picked up a good counter.
This makes sense to me if you have the holding power. For example, if you bought Genting @ RM20+ before the financial crisis and sold it @ RM10+. Then, you have lost almost 50% of your money. If you hold it and sell it today, I am sure you have made a very good profit as it touched RM40 this year. Furthermore, you will be able to gain more if you bought more @ RM10+.
In the other hand, if you bought a speculation counter or a counter without financial performance support, such as PSCI, Fountain and Karensoft, you should take necessary to cut loss as soon as you can.
In nX case, I do not see any bad or negetive development in the company at the moment. So, I think it is not necessary to dispose nX now. Of course, if you know something else out there which can give you better return, you may go ahead to dispose nX.
Personally, I would see this is a good oppurtunity for me to buy more. Cretainly, I hope there is nothing wrong with their high balances of Trade Receivables and Trade Paybles.

KEURO

According to my friend, it is worthwhile to key an eye on KEURO due to the following news:

Kumpulan Europlus Bhd. (KEUR MK): The Malaysian construction company said its unit signed a concession agreement with the government to build a 3.02 billion ringgit ($891 million) highway on the country's west coast. The concession period is 33 years. The shares added 3 sen, or 3.7 percent, to 85 sen.

Perhaps it is a good trading buy? Good luck ...

mTouche Technology Bhd

As I do not have any positive news about Nexnat, it would be a better way to write about their main competitor - mTouche Technology Bhd.

The important points from comment by TA Securities:

- mTouche 1Q07 result is below analyst expectation, accounting only for 11% TA Securities full year estimates;

- QoQ, revenue declined 21% while net profit was also lowered by 46%; and

- TA Securities is lowering their expectation of contributions from associate companies to zero for FY07.

I also notice that HSBC also dispose their stake in mTouche consistenly recently.

Is it the industry is in the downtrend as consumers have lost their confident over mobile contents services? I would say yes since so many issues with short code owners recently. Of course, Nextnation has been involved too. I think they have to do something to fix this problem.

However, I believe there will be no significant impact to them. They are platforms provider and they are acting like a hypermarket where they provide the services to many other smaller players/customers. Looking at current entertainment programs available in Malaysia, everything is about voting by SMS. I am not sure which program is using their platform but there must be a few. Nextnation is among the dominant players in the market for mobile application services.

If Nextnation Q4 result continues to surge higher, everything would be clear - Nextnation is the mobile application services industry leader in Malaysia.

RCE Capital Berhad

As expected, RCE posted another good quarterly result. Revenue is increased from 19mil to 31mil while net profit went up to 16mil from 7mil (comparing Mar'07 vs Mar'06). A final dividend of 1 sen is proposed as well, pending the approval of shareholders in the coming AGM.
For the financial year ended Mar 07, total revenue is 98mil as compared to 57mil, recorded in last financial year. Net profit is increased from 20mil to 63mil as well. However, there is a gain on disposal of investment [~20mil] in this financial year. By ignoring this gain, the net profit is actually increased about 100%.
As company closely linked to Am Group, I believe RCE is set for another higher level in medium term. The company profile is further brought up by the emergences of high profile substantial shareholders, both HSBC and Goldman.
I believe RCE has a very good prospect in the coming year.

.... Nextnation ....

Please visit nexttrade for some information about Nextnation.
The blogger pointed out the main concern that we have - very high trade receivables.
Any bad debt to be written off will hit the financial badly.
Meanwhile, most of the main competitors are not performing that well. For example, mtouche and MNC Wireless which posted not really good quarterly results recently. Does this indicate the downtrend of this industry? Or Nextnation will stand out from them and continue to post impressive result?
Let us wait for Q4 result which is due in June ...

N2N Connect Berhad

N2N Connect Berhad has announced it quarterly result today. The company is doing really well - they leap high!
Revenue is increased from 2.7mil from 9.9mil. (By comparing last year Q vs this year Q). Net profit is increased from 1.3mil to 7.2mil. It is very hard to find a mesdaq company with this set of impressive result. Well, I have to say they are doing better than my favourite, Nextnation.
According to the release, better result are mainly due to:

- increase in matched trade fees generated from eBrokerConnectTM as more transactions were being matched in the online stock trading as evidenced by increased market volume and market value of equities traded on Bursa Malaysia Securities Berhad;

- the continuous increase in MobileConnectTM and PDAConnectTM subscribers;

- increase in number of broking houses implementing the Company's financial solution systems, i.e. eBrokerConnect™, MobileConnect™, SMSConnect™ and GlobalConnect, from seven to nine;

- additional income from developing and licensing the Online Trading Game on Singapore Exchange Securities Trading Limited's website; and
- additional income from software development of financial solutions in e-commerce and m-commerce sector in Saudi Arabia.

It is worth to keep an eye on this company. If they manage to go abroad succesfully, by doing the same thing in Malaysia, it has huge potential.

Free Messenger from Ozura

This is nothing related to stock market.
I discovered a useful mobile phone application, published by Ozura. Basically, it is a tool where you can connect to 3 different types of messenger at the same time, at low cost as well. They are ICQ, MSN, and Yahoo!.
Please go to this website for further info - http://www.mobeep.com

Quarterly result

Quaterly result for companies with quarter end at 31 Mar will be due soon - by end of May 2007.
'Branded' companies continue to deliver impressive result. As a result, I expect EnO, EnO Prop and Mah Sing Group to announce higher result - both q-to-q and y-to-y.
Sri Tanjung Pinang of EnO continues to be one of the hottest project in Penang Island. I had a look at the other projects in Penang Island and found that the designs of STP units are the most unique and attractive (my personal oppinion). Yet, they are priced at a very competition price. The main advantage of STP is it is located at the prime area - just about 5 minutes drive from Penang Gurney Drive (I guess everyone knows this place). Considering EnO Porp is highly geared, I do not expect any dividend payment from them. However, looking at the track record, I believe EnO will declare at least dividend of 2 sen for the financial year ended 2006. Both companies stock price are holding well at RM3 and RM3.50 respectively. I am still waiting for another 'Easy Money Oppurtunity' where there is a big gap between EnO Prop and EnO. At this moment, the gap is not big enough for me to buy more easily - not comfortable for the margin of safety.
Meanwhile, Mah Sing stock price has been sliding in recently weeks - from the highest of RM5.70 to RM5.30. One of the driver that I could think of is the conversion of warrants where it resulted more shares in the market and we are going through the dilution effect. With it's special management and operation style, I will say that Mah Sing is a must buy counter in property sector. Right Issue, shares split and bonus issue are expected to be completed by July 2007.
Lastly, Sunrise has been trading steadily within the range of RM3.70 to RM4.00 recently. It has announced its impressive quarterly result. Projects at Mont Kiara continue to contribute positively to the company with high sales recorded.

whereiszeemola - Nextnation

The blogger did a very good research on Nextnat after receiving my request.
Thank you so much!
Please visit the site in order to get more useful information about Nextnation.

Candidates for going private

Read this from The Edge:

1. AmInvestment
2. Batu Kawan Bhd
3. Berjaya Land Bhd
4. Dijaya Corp Bhd
5. Goldis Bhd

Personally, I think Goldis is very attractive as it is still trading below the worth of its stake in IGB. Is this another 'Easy money oppurtunity' like E&O?

Happy Investing ....

The Greatest Investor - Warren Buffett

Received this forwarded mail from my friend:

> There was a one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:

> 1. He bought his first share at age 11 and he now regrets that he started too late!
> 2. He bought a small farm at age 14 with savings from delivering newspapers.
> 3. He still lives in the same small 3-bedroom house in mid-town Omaha,
> that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

> 4. He drives his own car everywhere and does not have a driver or security people around him.
> 5. He never travels by private jet, although he owns the world's largest private jet company.
> 6. His company, Berkshire Hathaway, owns 63 companies. He writes only
> one letter each year to the CEOs of these companies, giving them goals
> for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules. Rule number 1: do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1.

> 7. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.

> 8. Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

> 9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.
>
> His advice to young people:
> "Stay away from credit cards and invest in yourself and
>
> Remember:
> A. Money doesn't create man but it is the man who created money.
> B. Live your life as simple as you are.
> C. Don't do what others say, just listen them, but do what you feel good.
> D. Don't go on brand name; just wear those things in which u feel comfortable.
> E. Don't waste your money on unnecessary things; just spend on them who really in need rather.
> F. After all it's your life then why give chance to others to rule our life.

Titan - Q107 result

Obviously, Titan posted a disappointed Q1 result. Even though the revenue is higher compares to last quater [Q4'06], the net profit dropped from 200mil++ to 156mil in this quarter.
Looking at current developement in the market, I believe it is not worth to continue parking money in this company. Property counters remain my top priority at this moment.

Updates: Nextnation

Nextnation has incorporated its subsidiary in India - Nextnation Mobitech India Pte Lrd, via its other susididiary Code Wireless. This is in line the group's overseas market expansion strategies to diversify and grow the revenue base.
No doubt, Nextnation has been doing very well in growing overseas revenue with higher revenue recorded from Q to Q. However, the net profit margin of overseas operation remains a big disappointment, with only ~4%. It is totally no match to the net profit margin from Malaysia operation, which is ~30%.
I am not sure the reason and factor behind to low overseas net profit margin. I hope the management will do something to improve it. I hope they will look at the revenue from Malaysia as well, which is decreasing from Q to Q. More attention should be put in Malaysia since it has high net profit margin. Revenue is important, however it is more important to convert the revenue into net profit.

Meanwhile, funlogix has landed China successfully. Ozura has team up with ChinaByte to launch its first and exclusive tournament based mobile gaming community portal. You can see a few Ozura's games in the portal (http://fun.mostar.on).

Nextnation is growing but the share price is not the case. I expect a better performance in term of share price in second half. Private placement should be completed by June and bonus issues should be allocated to the shareholders by this year as well.

Cumulative net profit in this year is RM15.9mil while the full year net profit for last year is RM16.7. With my personal expectation of at least RM6mil net profit for the last quarter, it would translate the full year net profit ~RM22mil. This represents an increase of ~30% in net profit.

It should be a great year for Nextnation ...

Goldman Sachs - RCE Capital

Goldman Sachs made another move in acquiring public company shares in Malaysia.
This time their target is RCE Capital. Filing to Bursa malaysia shows that they acquired 50mil shares or 7.73% stake in the open market on April 18. RCE closed at 81 sen on that day.
Looking at Goldman's track record, I believe RCE share price will easily break RM1 in another 1 or 2 months.

Goldman Sachs is the substantial shareholder for E&O, AsiaEp and StemLife. Look at their share price now ....

It is a golden oppurtunity to buy RCE since it closed at 84 sen which is not far from the price Goldman paid for it.

DiGi

DiGi is scheduled to release its first quarter results on this Thursday. Trading buy oppurtunity as another round of good result is expected from the only telco without 3G. I admire the management team who has done really well even though the government always 'bully' them without giving 3G or Wimax licenses to them. I believe we, the public and the customers are the lossers as we do not have the oppurtunity to enjoy the great services from DiGi.
As Maxis may be taken private, investors will have less options in telcos industry - only Telekom and DiGi. DiGi share price is on the way to a higher level.
Meanwhile, will DiGi to be taken private as well since the single largest shareholder holds the stake tightly and fail to dispose off their stake in order to meet the requirement from the authority?
Fu-yoh .......

Expect Nothing Ordinary

Finally, E&O Bhd share price has moved up RM2.73 on last Friday. Meanwhile, it's 51% owned subsidiary Putra Perdana closed RM2.02 and its 68% owned E&O Prop Dev closed at RM3.60.
With reference to E&O's stake in E&O Prop Dev, it should value at around or close to E&O Prop Dev share price. This means that E&O Bhd stock price remains undervalued. Not to forget, E&O also owns Putra Perdana and 2 hotels in Penang island. It is really attractive to invest in this company as you almost got the 2 hotels free, at no cost.
I believe I do not need to say anything further about E&O Prop Dev as it has enough publicity. I would like to press on Putra Perdana which is doing quite well. It has declared dividend for it's last quarter result as well.
So, it is a good oppurtunity to buy in now before it continues to rise ...
In conclusion, it is 'Easy Money Opportunity'

Nextnation inked agreement to venture into Middle East

Nextnat has signed agreement with Tawasul Telekom (Saudi Arabia) via its wholly owned subsidiary, Usape Nelson Wireless Sdn Bhd. I believe this agreement will put more weight in content provider area.
Content provision is considered as low end products in mobile value added services as it is nothing special. Many companies can provide this as it does not incur high start-up capital. Just look thru the newspapers and magazines available in Malaysia, there are so many content providers!
However, I believe Nextnat will be able to take advantage of this partnership to introduce its technologies and other products into Middle East region. In other words, Nexnat continues its expansion plan with the venture into new market in the region. As I mentioned in my earlier blog, investors are not able to know the contribution from each business segments as the financial reports of Nextnat are at consolidated level where no further information and detail is available.
Meanwhile, Nexnat also partners with Buena Bista Columbia Tristar Films Sdn Bhd to offer free movie trailers for mobile phone via the Mobileklub WAP Portal. This may be the starting point for new content provision where movies will be hot items instead of ringtones and wallpapers only. This may lead big corporates such as banks and telcos to purchase video ring back tones from Nextnat. The growth oppurtunities are always there for Nextnat ...
Looking back at Q3 result, there is no suprise as everything was as expected. For the last Q that will due in June 07, I expect Nextnat to achieve net profit of RM6mil. The expectation may be a bit high but I think its achievable.

Sunrise Berhad

Analysts called for a 'buy' with a target price of RM4.60 for Sunrise. It is now trading at RM3.28, representing a potential 40% upside - quoted by The Edge.
Property sector is set to perform after the exemption of RPGT and recent positive measures annoounced by the goverment.
Sunrise is the major developer for Mont Kiara where they bought cheap landbank at Segambut due to they are the advantage of first-mover at the area. Its land cost is estimated at RM41.30 per sq ft. vs market price of RM300 per sq ft.
Besides that, they have built a very strong brand name for themselves. This is proven where 40% of its buyers are repeat buyers - those who have purchased Sunrise homes before. This is a very good indication as the repeat sales indicates that buyers are confident with the projects developed by Sunrise. Quality is certainly there to attract repeat buyers.
Take-up rate for projects is very high as well, with at least 70% for its latest project - 10@ Mont Kiara, has already exceeded 80% sales.
Personally, I still prefer those property stocks that have been delivering good results instead of IDR theme counters. My top three preferences are Sunrise, E&O and Mah Sing.

Still worth buying - From The Edge

Below are the 10 stocks that consider as still worth buying by The Edge:

1. Tenaga
2. Time dotCom
3. Opus International
4. Tong Herr
5. Tanjong PLC
6, Affic Holdings
7. Magnum Corp
8. MRCB
9. Masteel
10. Bumiputra-Commerce.

My personal perferences are Tong Herr, Masteel and Bumiputra-Commerce.

Property Stock

PM will announce another important announcement regarding property sector in this week - 13 April. It is believe that it will be another good news to boost Malaysia property market. Will it be a cut in Stamp Duty? I have no idea as well. Let us wait and see ..
Quality companies (worth to invest):

1. E&O Prop
2. E&O
3. Sunrise
4. Mah Sing
5. SP Setia
6. YNH Prop
7. SDRED

Happy investing ...

Titan Chemicals

Titan remains 'low profile' after the release of their Q4 result. Base on previous trending, Titan will perform well when they remain the 'low profile' situation.
Q1 has ended and it is a great chance to purchase Titan in dip. Final dividend of 4.5 is yet to ex.
I believe they will be able to release a good result for Q1, with at least of RM200mil net profit and bigger share market in Indonesia with PT Titan.

Property stock

Finally, Sunrise has managed to break RM2.50 resistance level. E&O also breaks thru RM2.30 resistance level. They are very safe bets in property stocks. Sunrise will remain its good results with Mont Kiara development while E&O will remain the major player for the property development with Sri Tanjung Pinang in Penang island. Both E&O related companies - E&O Prop and Putra Perdana are doing very well as well. UBS and Goldman continued to purchase E&O share recently. At least RM3 is my personal target for E&O.

Mah Sing is yet to move. Sit down patiently and I believe it will sail to RM6.50 in medium term. The advantage of Mah Sing is they have projects in Johor where the property value will increase due to IDR theme. Mah Sing has the ability to launch new projects in shorter period as well. E&O does not do well in this area.

Meanwhile, are IDR counters worth with the current prices? Their prices continue to raise like nobody business. Just let us think carefully, what happened to Ekran which only rely on the money from Government? Nothing wrong to ride with the current trend, but better not to sit there comfortably without jumping out ...

-Value Investing-

Nextnation - Private Placement Update

According to the announcement in Bursa Malaysia, Nextnat's application for a further extension of time of 3 months for private placement, from 24 March 2007 to 23 June 2007 has been approved by SC.

The SC had also in its said letter informed that this would be the final extension of time accorded and the Proposed Private Placement is to be completed within the stipulated timeframe.

Hopefully they will not place to any fund which tends to sell down their holdings fastly. This has been a big issue for Nextnat share price where it is so hard for it to move upward.

Meanwhile, it is a good news for the existing shareholders as they can expect bonus issue soon?

I hope the share price can move up to at least RM1 prior to bonus issue. Otherwise, it will remain as a penny stock which is out of investors' radar. It is frustuating to have a good and solid company like Nextnat to tag with 'penny stock'.

Ozura continues its aggresive effort to partner with overseas channels to distribute its developed games. The latest parter - Zingy Inc.

Once again, why overseas profit margin is low? (Please refer to my previous blog)

Hope to seek better clarifications from the management in this year AGM.

Great Blog

You may visit nexttrade.blogspot.com for further analysis of Nextnat. This blog combines both fundamental and trend analysis. It is one of my favourite site for financial result analysis. The articles have been written professionally.

Nextnation - Q3 result

Finally, Nextnat announced their Q3 result.
Nothing to 'wow' about. Below is the brief summary of the result:

Revenue: 28.2 mil
Profit : 5.6 mil
EPS : 2.5 sen

Everything is within expectation with not impressive overseas result. Please refer to the breakdown:

Revenue : Malaysia - 17.2 mil; Other countries: 14.1 mil
Net profit : Malaysia - 5.1 mil; Other countries: 0.6 mil

I wondering what are happening to the overseas operation for the low net profit. Something must be done before it is too late.

Private placement is not completed with another application to SC to extend it for another 3 months (still pending the approval from SC). Bonus issue will be done after the completion of private placement.

Once again, please do not enter Nextnat if you intend to trade short-term. You have almost 99.9% chances of losing your money.

Target Prices

Read the following target prices from Oriental Business:

Genting RM52.60
Waseong RM 3.30
Coastal RM 2.17
Ramunia RM 1.45
SOP RM 4.20
MRCB RM 2.50
Zelan RM11.00
THPlant RM 3.70
ALAM RM 4.20
Maxis RM13.40
WCT RM 6.00
Maybank RM14.20
Kulim RM 7.05

MEMS (0052)

Finally, Legg Mason has emerged as the substantial shareholder for MEMS. They bought 33,000,00 units which represent 5.04% of interest in MEMS. This has ended the rumour and speculation created last week when MEMS stock price keeps moving up.
The date of acquired is 14 March 2007. Let's make an assumption that the purchase price is the lowest on the day, which is RM0.55. MEMS closed at RM0.71 today.
Legg Mason has bought in GPacket quite sometimes ago @ RM2.5+ and GPacket share price has moved up to RM5++ after that.
So, how much return do you think Legg Mason is aiming for the investment in MEMS?

Oh .. Nextnation ... oh ....

Once again, Nextnation stock price is lack of support again - with closing price of RM0.565. Perhaps this is the reason the fund manager whose people describe him as 'Asia Warren Buffett' - Mr Tan from Pheim Asset Management decided to sell it not long ago.
Nextnation was in press highlight when it's subsidiaries were among the content firms that been suspended due to the failure to terminate processes. There are 2 subsidiaries that I managed to find from the list - Dubaitech and Nextnation Network. No matter what is the reason, it gives bad impression to the customers and investors.
Nexnat also stated that this did not result in material financial or operational impact to them.
I am waiting the Q3 result from them before I take any action. To dispose or to accumulate and wait patiently again?
If I got a chance, I would like to attend their AGM this year with the below Q:

- What are the factors that drive the bonus issues cant get completed after almost 1 year?
- Why private placements cant get completed after such a long time as well?
- Can they provide more details financial report? their major revenue contributor is from content providing? service support such as mobile application softwares? or Ozura mobile games?
- Why revenue from Malaysia is decreasing?
- Why some of the overseas subsidiaries are in loss making position? which country?
- Why their websites remain unpopular? is due to lack of RnD in internet research?
- Why the profit margin is squeezed? they had about 50% profit magin before they are listed.

ASIAEP BHD (0039)

AsiaEP current price looks very attractive to either speculators or investors - with closing price of RM0.82 last Friday (16 March).
It did not catch my attention until a foreign investor - Goldman Sachs bought a stake of 5%+ into AsiaEP. I just simply ignored it even though I read the research report from Kenanga Investment Bank with a target price of RM0.99.
Now, I have bought AsiaEP in dip a few days ago due to the believe of 'Goldman effect'. The purchase price of Goldman (which was during the market price) should be around RM0.60++. This purchase price should be a very support for AsiaEP stock price. Looking at the impressive track record of Goldman in investing in Bursa Malaysia, I believe AsiaEP has the potential to cross RM1.00 in the near term, provided the market is stable with no major decrease. Goldman has invested in E&O and Stemlife. Both of them give Goldman at least RM1 unrealised gain at this moment. As a result, RM1.50 is my target price for AsiaEP in the near term.

Notes: Kenanga has issued another research report with target price of RM1.97 a few weeks ago (although it was only published in Star paper on Saturday).

Property stocks are hot

Read this information from The Edge (http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_4ab6c5b1-cb73c03a-22ce0000-cc27dfdb).

Top picks from CIMB are SP Setia and Mah Sing. Looking at today closing prices, Mah Sing is a good buy as it yet to recover back to RM5. It would be a bit risky in my opinion to buy SP Setia at this moment due to the price has increased to RM7+. Generally, the direction for Bursa Malaysia is not clear at this point of time. So, I would not bet in those stocks which their prices are close to all time high.

Meanwhile, E&O remains undervalued. E&O subsidiary - Putra Perdana has been doing very well recently with the award of 2 additional contracts. E&O Property Development stock price is closed at RM2.4+ today. E&O share price does not move much and as I mentioned before, it is one of the safest stock for medium-long term invesment purpose.

Finally, Sunrise Bhd continues it's uptrend where it hit intra day high at RM2.40 before it closed at RM2.33 today. Looking at the current trend, fund managers may bought a stake in Sunrise. Will it be either Goldman, UBS or Capital Group?

All the best!

Mah Sing Group Berhad

Share price of Mah Sing continues to be weak after a strong rebound to RM5.05 from RM3++ a few days ago. It closed at RM4.70 on yesterday (9 March 2007).
I received a circular from Mah Sing this morning. It is related to the coming EGM which is on 29 March 2007.
From the past tracks, Mah Sing will complete their proposals in a very fast manner. It is great time to accumulate Mah Sing as they will split every 1 existing ordinary share (RM1.00) into 2 ordinary shares (RM0.50). Then, bonus issue is on the basis of 1 new ordinary share of RM0.50 each for every five existing ordinary shares of RM0.50 each.
With reference to the past trends, share price of quality stocks will be moving up after splitting of ordinary share as more investors will be able to buy since the stock price is lower.
Target price of RM6.50 by Citigroup will be achieveable in the near term if market continues to be stable.

Mah Sing Group Bhd

Read this in The Edge Brokers' Digest:

Citigroup set a new target price of RM6.50 for Mah Sing Group Bhd.
Some of the highlights:
- Mah Sing has high earnings visibility with good landbanking track record and strong financial position.
- New projects will drive the growth with six new projects expected in FY2007.
- To gain from its land in Johor
- Possibility of diveestment of its non-core plastics division and resulting special dividends.

Looking at the market drop recently, it provides better oppurtunity to entry point for Mah Sing Group.

A bad week

Global stock market dropped dramatically in last week. It all began with the slump in Shanghai market. It hit other countries' market badly, which included our local market, Bursa Malaysia.
This has caused the strategy to buy-in before the quarterly announcements did not work. Maybank, CIMB and Maxis announced very impressive results. However, due to weak market sentiment, the stock prices did not move up. Instead, they dropped which were in line with the market trend.
However, I am still very confident with quality property stocks. I bought in Sunrise Bhd when I discovered a great opportunity where heavy selling has pushed the price down to RM1.80 on Friday morning. Sunrise is the main develop for Mont Kiara, Kuala Lumpur. With the possibilty of elimination of capital gain tax on properties, it may push property stocks to a higher level(as if the market recovers or at least no more sudden drop).
There is no surprise from Mahsing's quarterly announcement. No higher dividend is proposed. I believe this is driven by the on-going projects which need huge sum of capital. Personally, I am looking for The Icon from them. Anyway, I am in a loss position at the moment. However, I am still holding it as I believe the management team will bring Mahsing to a higher level. I am waiting for the oppurtunity (like what happened to Sunrise) to accumulate more. Proposal of bonus issue (1 for 4) and share split (from RM1 to RM0.50) should be completeted in 1H of 2007. If I remember correctly, Mahsing's CEO mentioned that it will by April'07.

E&O Berhad

E&O related companies stock price have been increased steadily these few days. Only E&O (3417) is still trading within the normal range, without any sharp surge like the rest.



Looking at this trend and situation, E&O should be the safest property stock at this moment. It should be catching up E&O Prop share price soon.

Meanwhile, impressive quarterly result (which is due by next week) from E&O is expected as well. Substantial shareholders continues to accumulate this stock.

Invest, accumulate and gain ....

Nextnation Communication Berhad

Nextnat has been a big disappointment for me during recent months of bull market. It share price does not really move. Instead, it moved slightly lower!!
I believe its share price does not reflect the financial results that have been achieved in last few quarters. I would say the share price moves accordingly to the management style where they prefer 'slow and steady' instead of expanding too aggresively. As a result, the gearing is almost zero with very little debt involved in this company.
It's wholly-owned subsidiary, Ozura has been expanding actively in recent months. Maxgames, the partnership between Maxis and Ozura, is growing with more and more games and activities introduced. Please refer to www.maxgames.com.my for more information about Maxgames.
With mobile contents become more important for telco companies, Nextnat is on the right path to continue its growth!
However, I realise that more players come in to enjoy this fast growing market. The major competitors in this market are mTouche, MNC Wireless, AKN Mess, Airocom, GMO and others. mTouche and GMO would be the strong competitors while the rest do not really doing well at this moment.
No doubt things are moving slow in Nexnat as they yet to complete private placement and bonus issue date is not finalised.
Let's wait for the Q3 result which is due next month (March 07) and we will get a clearer picture of Nextnat. I have stated my personal expextation in my previous blog.
Be patient again? Holding power is important in this situation ...

Eastern & Oriental Berhad

No doubt, E&O share price does not move much in recent bull market. Its subsidiary E&O Prop share price has moved up to RM2.52 (as at 16 Feb). After disposing 5% of E&O Prop to Capital Group, E&O still holds about 70% of E&o Prop.
Meanwhile, Putra Perdana doesnt move much as its an unpopular stock and its a smaller player in construction where it's out of the radar of most of the investors. This is within the expectation as there is no 'fantastic' developement or growth for this company.
As E&O Prop share price has increased to a higher level, I believe E&O share price will be increased consistently in the mid-term. GK Goh Holding Limited (from Singapore), UBS Group and Goldman Sachs (from US) have been continuing to purchase E&O stock in February. They hold 20%, 6% and 6% of E&O shares respectively.
Be patient and we will be rewarded accordingly ...

Quarterly earnings release season

Feb'07 is the month for many listed companies to release their quarterly earning results.

Overall, most of the big companies with solid fundamental are expected to release great results. DiGi and Titan have done so in last week. The strategy to buy the stocks 1 or 2 days before the announcements is proven to be a good one.

Maxis will be releasing its result next Friday. It's worthwhile to try to same strategy?

Meanwhile. I expect property players to release impressive results too. As a result, I have bought in Mah Sing last week. If the bull market continues in next few weeks, I believe Mah Sing will be able to continue its uptrend after the earning release. Higher dividend (at least 12 sen) is expected as well.

Gong Xi Fa Cai

Titan posted a very impressive 4Q result

Titan Chemicals Corp Bhd has just announced their Q4 result - PAT of 241mil. Q4 PAT almost doubles Q3 PAT, with an inprovement of 94%. Titan declared a final tax exempt dividend of 4.5 sen per share as well.
Watch out the share price tomoro ...
It has gained 5 sen today (closed @ RM1.55).
Happy Chinese New Year!

DiGi, Maxis and TM

The above big telecommunication players will release their quarterly result as below:

Digi - 14 Feb 07
Maxis - 23 Feb 07
TM - 27 Feb 07

Base on previous trends, DiGi has the biggest possibility to move its share price after quarterly result announcement.

Good results are expected from all of them.

It's time to accumulate DiGi and sell it after the announcement ... (for short term trading)