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

Monday, January 21, 2013

Do We Have A Case ?

As a share holder I would like to hightlight this : .... Do we have a case ? Let's see how this thing pend out.
The market is jittering. Are you ready for the big action ? I feel not the opposition would win the election. Nor do I fear BN will win. After all either one of them will implement pro business policy in the long run. The question is the uncertainties that will follow should either party wins by a slim majority. Anyway, shall that happen it would be an opportunity. The question is are you ready ?
Happy Trading !!!  

p/S : Instead of  of psoting it at the new post. I will just share it here. I long Hartalega. So you could say that I am promoting it. :)

Tuesday, January 1, 2013

Making A Sell Case For Cypark

One of my favorite Cypark is not as loveable as it seems. Yes the profit is up. The RE ( Renewable Energy ) business looks bright ahead. Yes the analysts are giving the Target Price at RM2.82 ( RM 1.69 at the time of writing ). The receivables  is increasing at an alarming pace. It is OK to have the receivables to increase a a bit in tandem of the growth of the avenues. But to have a revenues ( ending 31 Oct 2012 ) of RM 56,119,914  with the increase of receivables of  (  Ending 31 Oct 2012)   RM327,604,507 -  RM 267,648,368 ( Ending 31 July 2012 ) = RM 59,956,139, that sounds like you are extending the credit to your client. That doesn't make business sense. I sell more but I collect less. Lets compare the whole year

                               Year 2012                  Year 2011                  Increase
Revenue :                195,825,810              161,530,920              34,294,890

Net Profit :              25,506,994                 20,081,120               5,425,874

Receivales :             327,604,507            2 32,372,779               95,231,728

How convincing is this figure ?  Have been watching the figure month after month. The receivable figure is just keep on increasing. It is scary to see that you have a increase reveus of 34 mil but with a increase of receivable of 95 mil. I make my case. Sold Cypark and will not look back unless the figure I concern about have a trend of decreasing. One doesn't need to look into it's debt level for with this kind of increase of receivable, it will just need to borrow more to sustain its operation. Drop Cypark from my watching list. Happy Trading.