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 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.
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-
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.
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.
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.
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
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?
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 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).
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!
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.
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.
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 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 ....
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!
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)
