Wednesday, February 29, 2012

Disapointed

I must admit that Allianz could be a bad call. I still like it and the latest result is still  fundamentally sound except for  the 15 mil lost  ( Court Case ) and the car insurance pool lost of 10 mil. If we includes these 2 items the over all earning is satisfactory. Illiquidness  is the issue here. Have been holding this counter for 18 months. Neck very long liao and I am losing my patience. Think punya think, holding it for another 12 months is  a opportunity cost for me. It is a very reluctant call but I opt to reduce the opportunity cost by cutting my holding by 75%. Padini would be a good bet. Oldtown is not too bad but valuation at the current price of RM1.29 ( EPS  40.2 - 8.4 /330 = 9.6 sen ) = > PE = 129/9.6 = 13.44 which is for me is not so attractive. I still prefer Padini for its track record and the coming aggressive expansion plan in the pipe line. What do you think ? Adios. Happy Trading.

P/S : I would definitely revisit Allianz from time to time for I think it is still a good call for the ones with a very long long long long investment horizon. Always like Billy Crystal as the host for Academy Award

Wednesday, February 22, 2012

The Bonus Issue and Free Warrant ....

Hartalega Just released its financial result for period ended 31/12/2011. ( This & Here )  As  expected, it makes about 50 mil this time. The 2 additional lines in Plant 5 have commenced it's production in Feb 2012 according to the statement and Plant 6 is target to be completed in Sept 2012. If everything is just as expected it's profit would start to shine again at the end of 2012 ( or Q1 2013 ). The result is something could be proud of under such kind of challenging operating environment. But what surprise me is the free warrant issue. I can't find anything in Bursa Malaysia website at this point of time. But I found the news as below. Could someone verify that ? ....

"
Hartalega Holdings Bhd registered a strong net profit of RM152 million for the nine-month period ended Dec 31, 2011, compared with RM138 million for the same period of 2010.

Revenue grew by 27.4 per cent to RM691 million from RM542 million.

"The significant increase in our results is due to the Group’s continuous operational efficiencies and excellent cost management," said its managing director, Kuan Kam Hon, in a statement today.

He said the increase in natural rubber prices followed by the drop in raw material costs for the production of nitrile gloves, coupled with ongoing technological advances to the company's manufacturing facilities, has had a positive impact on the bottom line for the quarter under review. 

"We are also experiencing an evident shift from natural rubber to nitrile gloves. "This bodes well for our range of products, given the reputation that we have built over the years, as a trustworthy manufacturer of high quality nitrile gloves," he added. 

Meanwhile, in an effort to improve liquidity of the stock and to reward shareholders, the Group is proposing a bonus issue of 371,654,940 bonus shares of 50 sen each. 


The issue is on the basis of one bonus share for every one existing share held by shareholders on the register as per the entitlement date. 


In addition, the Group is also proposing an issuance of 74,330,988 free warrants on the basis of one free warrant for every five existing shares held by the shareholders. 

The world’s largest synthetic glove manufacturer also announced that it has received approval from the relevant authorities to proceed with the construction of Plant Six. 

"This will have no material impact on the current financial year ending March 31, 2012. 

"However, as we look ahead towards the coming financial years, we are optimistic that capacity from this plant, will help in strengthening our position as the world’s largest producer of nitrile gloves," Kuan said. -- BERNAMA 



Read more: Hartalega net profit, revenue swells http://www.btimes.com.my/Current_News/BTIMES/articles/20120222180314/Article/index_html#ixzz1n6hfdbNA

Tuesday, February 21, 2012

You Don't Have To Eat If You Don't Want To


I have been talking about Hartalega for ages .... I mean probably a hundred years or maybe since the beginning of time. Ok . Maybe not to that extend. But, seriously I have been blogging about it for quite some time. I ate my own cooking and I bet big on it. For the one who hold Hartalega as me, I certainly would like to share any article about with you guys. But to accuse me of using this platform to " jack up" the price... hahaha come on lah .. who am I ? I ain't the celebrity blogger like Dali or Moola, who would listen leh ... I am not to that par lah ... I wish I am :)....
However, if you don't like me blogging about it, what could I do ? Do I have to stop talking about it ? Maybe I should ..... Here you go .... Click Here 
:)...  Just let me shiok sendiri pun tak boleh meh ..... Adios .... Have a great days ahead....
P/S: You dont have to read if you don't like it. Just as the title said you are not obliged to eat my cooking.

Saturday, February 4, 2012

Research Report !!!!

Here you go ...Just read this and wwll like to share it ..
.
" Buy this stock. Although its share price has risen by an impressive 30% YTD, we see more upside. Hartalega’s 2013 PER of 10x is still a 45% discount to Top Glove’s 19x, despite industry-beating profitability over the last two years. Most importantly, we see a major re-rating catalyst from a potential bonus issue. Fundamentally, Hartalega’s operating environment remains impeccable owing to favourable input costs. The stock remains our top sector pick, with TP upgraded 25% to RM8.50 on a conservative 12x 2013 PER (DCF previously), still a 30% discount to Top Glove’s 5-year average PER." For full report click the link below. Happy Holidays

http://research.maybank-ib.com/download.php?did=1321&mid=