Thursday, October 31, 2013

Kossan Treasury Share

Is this part of the exercise of the bonus issue ? If you look at the announcement here you would find that Kossan has been selling it's treasury share lately. I am not sure this has leaded to the recent sell off. But looks like it is. Up to 31 Oct 2013, Kossan has sold all it's treasury share in the open market before the exercising date of it's bonus issue. This creates an accumulation opportunity. Fundamentally I don't see any reason of the recent sell off. I am adding more Kossan into my portfolio. Will add more later. Happy Trading.

Friday, August 2, 2013

Sold Sona

Suddenly in need of cash next week. Make me no choice but to sell Sona :( for a 5% contra gain. Will surely revisit it. Good luck everyone.

Tuesday, July 30, 2013

Building A Buy Case Ob Sona

I rarely speculate any counter nowadays. But this is a case which should not be missed. Correct me if the information is misleading or not accurate or not right.
By now, we shall all familiar with SPAC after the soaring of Hisbisucs and Cliq. SPAC is like a ATM company which you put money into the management hoping and prying hard they would buy a fantastic cash cow company. More or less like listed a venture capital company. Never like it and won't consider it at my first glance. But this case is slightly different for Sona for 2 reasons.
1 ) Big chunk of the IPO was subscribed by  the cornerstone investor namely RHB Investment Management Sdn Bhd, CIMB-Principal Asset Management Bhd and Kenanga Investors Bhd . It should take out some of the risk for the retailer like me has a bunch of professional filter the qualifying asset that Sona is going to buy. It does put some confidence in me on this counter.

2 ) The IPo price is 50 sen. In the coming 3 years, shall Sona does not bag any qualifying asset, 90% of the money must be refunded to the share holders. Theoretically, as long as the price below 0.45 ( being 90% of 0.50 ), it is actually in the money on that sense. I am not sure the 90% aforesaid is base on the 0.50 or the reference share price 0.425 on its debut yesterday. Please leave a comment should you know it for the sake of sharing. 

Bought the share after a few minutes of consideration. Wish me luck.

P/S : Funny thing about Sona-Wa. I have never seen a warrant trades at a discount to it's mother share. A huge discount actually. At the exercise price of 0.35 and the current price of 0.235 it is trading at 0.585 vs mother share of 0.425 at the time of writing. It is madness. This gap won't last long in my opinion it is either mother share do catch up or it's warrant would soon slide. Betting on mother will be  wiser for it's warrant doesn't offer much gearing. 

Happy Trading. 

Tuesday, June 25, 2013


If you are one of the glove makers share holder you have to read piece. very deeply researched and well penned.


Wednesday, June 19, 2013

Buying Kossan

If one wants to buy equity in Bursa Mlaaysia, he should not ignore the glove maker companies for they are doing so well in this field. I made a bad call on selling all the equity including Hartalega right before GE13 in betting that market would come to a correction mode during campaign and after GE13. It backfired. Hartalega skyrocket up to a unbelievable PE ratio of 20++ ( at the price of RM6.80 ). Bought Supermx and Kossan right and ignore Top Glove for it valuation is too much for me to swallow. Furthermore it's profit margin in among the lowest even though it has the biggest economic scale. The latest Top Glove financial result change my mind to change ship from Supermx to Kossan. It is a beauty contest. Top Glove and Supermx profit margin are trcking down hill while Harta and Kossan are increasing it's margin Q to Q. It sounds like Harta and Kossan has the ability to increase it's efficiency even though the industry is experiencing lower Average Selling Price for it's product. It the cut throat competition, one should opt for the  most efficient player. Harta is the best but it is too expensive is PE term. Betting Kossan for it's growth and the PE expansion. Bet it big.
Betting Cypark as well for it's latest Q show some improvement on receivable. Let's see how it goes.
Happy Trading.

Wednesday, February 20, 2013

It Is Coming, Exercise Your Right

It is nothing much to say about until the Election. Know you right do the right thing.