Bonescythe Stock Watch

Quiz: Is there cement inside the road? Read to know the answer

noreply@blogger.com (Bonescythe Admin) — Mon, 19 Feb 2018 16:03:00 +0000

In my earlier post, I had highlighted on the possible beneficiary of the Sabah portion of Pan Borneo Highway from land acquisition of palm oil land. While Kretam continue to be the top possible beneficiary from government force land acquisition of it's palm oil land, I would like to touch base on the parties that will benefit from the construction of Pan Borneo Highway.

So, how much do we understand about road and highway ? If you have a driving license, you will know how to hit on the road with you motor vehicle. But, honestly, how many people know how is the road being built ? Is it just mixing the bituminous road and paving it with a hot roller ?

Actually, I had to tell you that what you are seeing is just the surface. Road construction is more than just paving the bituminous road with a hot roller - at least by a few layers.

In order to construct a proper highway, there are several important steps to do, which is laying the foundation properly.

As you can see, what we can see is just the surface, but underneath is few other layer which are specially treated in order to spread the weight properly to prevent sinking. Those layer are treated with cement, which is called cement treated base.

Cement treated base is a treated base which consist of cement and bituminous emulsion. The combination of cement and bituminous emulsion will provide a stabilized base that can help spread the loads evenly in a larger area.

About picture will show you a graphic illustration of the differences between a stabilized base and unstabilized granular base when taking load. For construction of highway such as Pan Borneo highway, a stabilized base will be used as it is the standard for road construction.

Now, I am telling you that "cement" will also be a substantial beneficiaries from the Pan Borneo Highway.

You might be telling me, why spot now ?

The answer is very simple. This is because before the road is build, and before the material is used, the share price will definitely be at the lowest point. And that is probably the best entry for any investment if you believe that such event will help to boost the profit of the related company when the event happen.

Since Pan Borneo is East Malaysia project, the cement will be technically source from East Malaysia for cost saving purpose. So this company, which is B.I.G Industries Berhad (BIG - 7005) does cement supply in Sabah. Accordingly, the company also have a record of history in supplying high grade ready mixed concrete to projects such as Babagon Dam and Likas Bridge, and is a recognised as high grade quality supplier of RMC by JKR Sabah.

So, if all is good, the Sabah portion of Pan Borneo highway will also be supplied by BIG cement division since it is recognised as high grade quality supplier.

This is the ISO certificate taken from the company website.

So, now I had briefed you on how cement is used to construct road. You must know that the Sabah Portion of Pan Borneo Highway is 706km long. Although not all are newly built, the project involves widening the existing road in a 2 lane dual carriageway, and some are new bypass and coastal road.

Now, BIG is being thinly traded, and had been trading at the range of RM 0.38 to RM 0.56 for the past 1 year. It can be considered as a very low point. If you are willing to hold this company for 2 years, I believe that this company can be very potential when the cement division earnings start to kick in. Better start finding a quantity surveyor to estimate how much cement will be used for this :D

But, this is for you to decide again whether to invest, or not.

Cheers

This is what happen when plantation land become highway

noreply@blogger.com (Bonescythe Admin) — Wed, 14 Feb 2018 03:58:00 +0000

Despite the global market equity shock last week, there are a few company which had stood strong, and became even stronger. If you still did not know which is the one stock that had been so strong despite the volatile sentiment, then I have to tell you that this stock is called Kretam Holdings Berhad.

While the CPO market had not went back to it's peak booming season, what is the real reason for Kretam share price to be shooting upwards, especially when there are no strong leads from the CPO market.

I had to tell you that Kretam rise is nothing to do with plantation booming, or CPO boom. But it has everything thing to do with the land that they are sitting at the region of Sandakan and Lahad Datu (Eastern Sabah)

To recap, the major development that is spanning across Sarawak and Sabah will be the Pan Borneo highway that had been in talks several years ago. As packages start to dish out in phases, packages at Sabah had yet to see any progress, but not until 2018, which is this year.

Many people thought that Pan Borneo is until Kota Kinabalu. That is very wrong, because it actually extend to the Eastern side of Sabah to connect the East and West properly.

According to the picture taken from Sabah Pan Borneo site, it is noted that the road highlighted in green will be an expansion, which will see 2 carriage way with 2 lanes. However, the Pink Color will be a newly built road.

As circled in red, this Pink Color portion of the proposed newly built road in Sadakan / Lahad Datu area will have to pass through a plantation land. And that plantation land will be owned by Kretam, as all of Kretam plantation land is at Sandakan and Lahad Datu area.

As you can see Kretam share price is on the rise now. While there is no official news in the media yet, you can assume this as a piece of rumor for now, because I am no official media.

Kretam share price has risen significantly for now. Where will be the true value of Kretam for the land disposal? When will the news come out? For this I had no idea, but if you plan to trade on Kretam, do trade wisely.

Cheers and have a happy holiday in advance. For those celebrating Chinese New Year, wishing you Gong Xi Fa Cai.

It Is No Jellyfish Business

noreply@blogger.com (Bonescythe Admin) — Mon, 22 Jan 2018 16:02:00 +0000

Stock market goes up and up, so does a company share. Share prices of a certain company goes up could be due to different positive factor such as anticipated better earnings, industry sentiment picking up, overall bullish sentiment in stock market, corporate exercise and etc. Whatever it is, all these are categorized as the positive catalyst for the company. Of course, there will always be good catalyst and bad catalyst, which is why we need to use our due diligence in selecting a stock for investing.

As you would know, I had been focusing a lot on the shipping industry coming into 2018. One of the reason is because I think that the industry had gone through it's worst weather in the past 2 years, and the coming recovery would be a good opportunity for investor.

The 5 years Harpex Index is showing an overall recovery in the charter rates of container shipping. As you can see, the Index is consolidating higher. There are many contributing factor that leads to a higher chartering rates, but here is one potential factor that I would want to highlight to you.

Do you recall the news last year when our local media reported that the Penang sea if infested with a new breed of dangerous box jellyfish ?

According to the Star, there are 2 species of deadly box jellyfish that is previously not thought to exist here are breeding in the sea around Penang.

If you are looking to understand this situation in a funnier and friendly manner, our local content marketing site - Cilisos, had put this issue into a very fun reading manner. Cilisos - News reports of new, deadly jellyfishes on Penang beaches?! Here’s what REALLY happened.

So, as you can see, all this is no play play issue. Jellyfish is only one of the visible issue to our naked eyes, other issue such as bacteria and virus is not visible to our eyes, but already occur. I know you might like to eat those goreng-goreng jellyfish, but I bet you wouldn't want to have your hand and legs bitten by jellyfish of such species when you visit the beach right?

In order to manage this issue, the International Maritime Organization had put a rules towards international shipping lines.

From 8 September 2017 onward, ship must manage their ballast water so that aquatic organisms and pathogens are removed or rendered harmless before the ballast water is release into a new location.

Because of this, many old ships will prefer to be scrapped than to be modified because there will not be extra space to fit this system into their old design.

For the perspective of Syscorp, I would think that

1.) Syscorp will benefit from Ballast Water Management System installation as they are also involved in ship building, repair and maintenance.

2.) Higher scrapping of old container ship will help cushion a better chartering rate.

3.) Syscorp had high number of older ship which is fully depreciated. Scrapping the ship will result in a gain on disposal for the profit and loss statement. At least 40% of the ship are more than 20 years old, which account for around 110 ships.

4.) Strategic alliance in North Port to reflect operation cost saving in 2018.

As for the risk, Syscorp financial had been wobbly for the past few years, which is reflecting on it's current share price. However, with all the positive sentiment around, it is now on the management hand to make Syscorp great again.

Our Times is Now When It Is Still Low

noreply@blogger.com (Bonescythe Admin) — Sun, 21 Jan 2018 16:02:00 +0000

Do you remember the times when you are still at your old school days ? If you can't imagine that, probably I can give you some reminisce on how it possibly look at.

If you want to have more of those feeling, then probably you can watch this movie - Our Times, starring Darren Wang and Vivian Sung.

When we are at school, we are always being graded by marks we obtain from our exam and school work. Talking about position in school, does it matter to you? For some...Yea, very much concerned, because it will be either receiving cheers or jeers from their peers. But for me? Haa... I don't really know if I had once seriously concerned about it at all. But. if you are reading this, you are now reading an article from a student that is many times bottom 3 in class position. Worst even, bottom 1 in Mandarin for 6 years (Goodness, I didn't know how I got through all this hell).

However, that doesn't deter me to be who I am today. I successfully graduated from my high school. Then I went into University, and graduated with a Dean List in my belt as well.

That is my story - From a rag to a piece of polished linen. Bad apple doesn't always stay bad, because it's seed can grow into a whole new tree to bear good apples again.

Now, I want to relate my story to a company which many would think is a goner. Bad company now, but will it continue to be bad in the future ? That is a question mark for me and you.

So, this interesting company is called - Shin Yang Shipping Corp Berhad (Syscorp - 5173).

Basically, according to the price chart, Syscorp is almost a forgotten stock in any investor radar. This is probably due to the past performance of the company which is hampered with poor rates in the dry bulk and container shipping which is plagued by oversupply.

However, investor should note that the worst could had gone, and the industry is currently seeing a recovery again.

As you can see in this charter rate by Harper Peterson & Co, the container shipping rates for ship below 3000 TEU is recovering towards a 2 year high now. The rising demand in container shipping is one of the signs that the global economy is strengthening, which is reflecting the Dow Jones Index which had hit above 26,000.

For the case of Malaysia, there used to be 3 listed company involved in container shipping. While Hubline had quit this business back in 2015, the remaining listed company will be Harbour and Syscorp.

As you can see, I had highlighted on Harbour when it is still sitting on it's lowly 70 cents region. Now As Harbour already appreciated more than 10% from it's bottom, it is now consolidating. But for the case of Syscorp, you must note that Syscorp is now still sitting at the bottom most of the chart, and in fact, the lowest point for the past 5 years. Despite the improving chartering rates in container shipping, Syscorp had not moved much yet.

For a starter, Syscorp is not involved in container shipping alone, it is also involved in dry bulk shipment (commodity shipment). According to Investing.com, Baltic Dry Index had also recovered from the recent low in 2016 that had went below 500.

Yes, I would agree with you that the better pick in this industry would definitely be Harbour. But given that the industry is currently moving on to a recovery, I would want to bring Syscorp to your attention as Syscorp is currently still sitting at it's lowest point despite the overall recovery in the industry rates. Fundamentally, Syscorp still have a fleet of 277 ships now, and NTA of RM 0.96. The current price of RM 0.25 is 73% discount on the NTA.

For this case of Syscorp, could it be just like my case? Will a bad student always be a bad student ? Or a bad student will one day turn good in the future? Now, at the lowest point of the chart and overall improving rates, is Syscorp worth your bet that this company will put up a better performance in 2018 ?

Now that is for you to decide. Cheers.

Boss... Kira properly please..

noreply@blogger.com (Bonescythe Admin) — Sun, 14 Jan 2018 16:12:00 +0000

One of the reason for me to look upon E.A Technique (M) Berhad (Eatech - 5259) is due to it's big chunk of claim that is potentially more than RM 200 million which will have significant effect on the financial of the company.

To give insight on why Eatech has such a claim, then I will have to tell you on what had happened then.

Basically, Eatech been awarded with the EPCIC Contract for the FSO facility for Hess Exploration And Production Malaysia B.V on 22nd December 2014. The contract by Hess Exploration and Production Malaysia B.V. , is for the provision of engineering, procurement, construction, installation and commissioning (EPCIC) of a floating storage and offloading facility (FSO) for a Full Field Development Project in the North Malay Basin. The contract value is about USD 191 million and the facility to be delivered at site in 20 months after the letter of award.

However, in the course of the construction, the owner of the FSO wanted to make some modification towards the FSO, which in turn, result in additional cost. If you are a project manager, you will be very familiar to see project getting changes in the middle of the course, which will result in VO (Variation Order).

So what is Variation Order ? Variation Order need to pay or not ?

Let me explain to you what is Variation Order in this simple comic.

So now, do you understand already ? Hahaha... No need to explain further already, right ?

Now, this is exactly what is happening in Eatech. The modification work had incurred a cost of RM157 million, and Eatech is filling up a claim on Variation Order in order to make up for the work done.

As you can see, the proposed settlement on the EPCIC variation is at USD 65 million, which works out to RM 260 million. Not 2.6 million, or 26 million. It is RM 260,000,000.00

If Eatech is able to reach such settlement, that would resemble a potential EPS of 51 cents based on outstanding share of 506 million.

Alright, let's not be too optimistic in such claim since it is a claim. To be more pessimistic, we give a 40% discount on the claim, which is RM 156 million. This figure is the actual cost itself for the modification works done. That alone will contribute 31 cents EPS in the coming quarters.

With crude oil price turning better, the chances of Eatech receiving a better settlement is of course - logical.

Whatever, it is, I had informed you on the potential payment that is going to received by Eatech in the coming future quarter. And this could also be one of the major reason why the director and major shareholder of Eatech had been loading up on Eatech with them holding more than 75% stake.

With Eatech almost sitting at the bottom of the chart now, it is time for you to give a thinker on this company now before it is too late. But you have to remember that this is just a referencing material for you. Whatever investment decision you make is solely your own decision.

This company is gearing up with better oil prices

noreply@blogger.com (Bonescythe Admin) — Thu, 11 Jan 2018 16:29:00 +0000

2018 will be a very interesting year. Now we are already in the 2nd week of 2018, there is no better time than now to execute our goals for 2018 with the rest of the remaining 50 weeks. Start planning some simple goals if you had not done any yet.

As for the equity market, 2018 is a confusing year for the investor and trader. We heard people screaming about market crashing for the past 2 years, but it never came. Now we are coming to the 10th year since the last major financial crisis in 2008, could there be reset again? Back then in 2008, the crude oil crash to a lowly USD 32 a barrel from a peak of USD 147. But for 2018, global leading index had been hitting new high and breaking record almost every few weeks. The Dow30 index is sitting above 25000 level as raging bull hit forward with corporate tax reform from President Donald Trump.

10 years ago, we are speaking of crude oil crashing down. But now, we are seeing Crude oil seeping upwards gradually after hitting the bottom in February 2016, where WTI Crude traded below USD 27 a barrel. Today, it is pricing at USD 63.53 per barrel as of writing.

If you asked me why crude oil is regaining composure, I would credit this to the OPEC effort in continue to cut production in order to stabilize the commodity price, which is also crucial for the planned listing of Aramco IPO, which is slated to be done in 2018.

Hence, it is quite a good bet to put some investment into Oil and Gas sector to capture the potential rebound of this sector after a slump for 2 years.

Locally speaking, national oil company Petroliam Nasional Bhd (Petronas), has projected that there would be about 20 greenfield and 30 brownfield projects between 2018 to 2020 that has the potential for future oil projects. Out of this, 30 per cent of the greenfield projects will have 100 per cent new facilities development while 75 per cent of the brownfield projects has about 10 per cent for new facilities development.

These are very good news to the oil and gas segment, considering that most of the surviving oil and gas company are accustomed to working on the crude oil price of USD 50 per barrel.

Now, I would want to introduce to you this one company involve in oil and gas that should be able to do better in 2018.

This company, E.A Technique (M) Berhad (Eatech - 5259) had caught my attention and interest among the pack of other oil and stock company that is listed in KLSE. One of the reason is despite the strong rebound in a lot of oil companies, Eatech is technically still attractive at this level as it had not surged much compared to it's other peers

According to the long term technical outlook of Eatech, it can be seen that Eatech had yet to breakout from it's long term resistant line. However, it had just started to broke away from the middle term resistant line as per charted above.

Secondly, the major shareholder and director of the company is holding more than 75% of the company shares .

As of my knowledge, I do not really been able to find another oil and gas related company where is shareholding is held by more than 75% by the major shareholder, except for Eatech. If you would give it a thinker, why would a shareholder want to acquire much of the company share despite the volatile sentiment in the crude oil price. It takes a lot of courage to be buying back and holding on to the company shares, and logically thinking, the director should know that what they are doing are worthy.

For a layman retail investor, of course you and me will not be able to understand much because the Eatech had been displaying a series of losses due to extra incurred cost in the EPCIC (Engineering, procurement, construction, installation and commissioning).

But, what I am going to show you in the next few days should be able to open up your eyes on why Eatech is potential undervalue company. Not only undervalue, but could be packing a whole lot of powerful punches in the coming quarter. This catalyst will be strong to boost Eatech into breaking the long term resistant line, and also reinforce the idea of why major shareholder had been loading up on Eatech.

Harbouring to a Better 2018

noreply@blogger.com (Bonescythe Admin) — Thu, 04 Jan 2018 16:03:00 +0000

By now, you would have know that I had been sticking to Harbour Link Group Berhad (Harbour - 2062) when it is still 70 cents. Oh yea, that is when nobody is looking at this stock at all while I had been alerting you guys about this cool stock to be a part of your 2018 investment portfolio.

At the current price, some of your question will be could include :
1.) Is Harbour still an attractive investment at the current price ?
2.) Is Harbour able to perform better in 2018 ?

So, I am going to explain a little bit on why I am still being positive on Harbour despite the stock appreciated for more than 10% already.

Firstly, if you had been following me closely, I had noted to you that the prices for container shipping on smaller ship (Those below 3000 TEUs) had been improving, especially those servicing regional area. For the case of Harbour, it is servicing the Malaysia region, with China, India and Hong Kong routes as well. That being said, if you are missing out on this part, you can refer on this previous article that I had wrote in order to see a clearer picture again, especially where container rates are more than 30% up.

As you can see, container shipping rates are recovering slowly. At the current rate, smaller container shipping rates are not looking to back down. In fact, it could be rising further due to several factor.

1.) Globally, the world 7th largest shipping company - Hanjin Shipping, in 2017, is declared bankrupt. This event had remove a huge chunk of the over supply from the container shipping as ship stand stall in the sea pending receivership and liquidation as well.

2.) Locally, the competition is minimized with Hubline exiting the container shipping business in 2015. This will provide lesser competition in pricing as the major provider will be Harbour and Syscorp.

While those are positive news for the sector, this latest news is what you should look carefully.

According to the budget 2018, importation of big items such as aircraft, shipping or oil rigs parts will be exempted from 6% GST is imported by Malaysian registered aviation and shipping company.

For this, Harbour is one of the first party to benefit from this tax exemption in 2018, and will be preparing to handle more big item import into Malaysia as oil and gas sector recover. If you are a business owner looking to import, it will totally make sense to charter Harbour services for the importation of big items good and supply because the logistic fee will save you 6% of GST. Then you will also save on port handling charges as well for those goods.

So now, I need you to think carefully. Do you think Harbour will do better in 2018 ?
I don't know about your answer, I am quite positive on this that Harbour is looking for a better 2018 for sure.

That's your take now.

The Pearl of the Harbour

noreply@blogger.com (Bonescythe Admin) — Wed, 27 Dec 2017 16:01:00 +0000

As the new year is coming, our investment portfolio should also reflect a new change and new direction which move according to the trend of 2018. For this, I had to tell you that Harbour Link Group Berhad (Harbour - 2062) can be one of the shining star to be looked upon coming in to the year 2018.

I had shown you that Harbour technical chart had actually hit rock bottom, and started to rebound from it's bottom consolidation with a solid break out towards RM 0.75. So what is the underlying recipe for Harbour to start moving upwards despite a mixed opinion on the global shipping industry which is biased towards a negative outlook?

If you are not well verse on the shipping industry, then I could probably brief you a little with my easy to understand knowledge for you to absorb. Shipping industry can be categorized into many different category, such as dry bulk (which carries commodity) and container shipping. For the case of Harbour, we are referring to container shipping.

In container shipping, there is a need to understanding different size of ship. For an easy understanding, here is an attachment from Wikipedia for you to know the difference in container shipping. As for the case of Harbou, it is definitely talking about Feeder category which carries around 1000 TEU. ( Container ship capacity is measured in twenty-foot equivalent units (TEU). Typical loads are a mix of 20-foot and 40-foot (2-TEU) ISO-standard containers, with the latter predominant.)

Now, why I think Harbour can be a next superstar for 2018 like GCB did in 2017.

Well, it is very simple.

First, the container shipping rates for smaller ship (Below 3000 TEU) had recovered. According to the global container shipping rates for a 1700 TEU vessel, it had recovered from a lowly 6150 to the current 8300, which is a 35% increase.

I had to tell you that a 35% increase in shipping rates is very strong and will be greatly impact the revenue and profit for the shipping company which fall in this category. For this case, Harbour will not be left out because their ship is in this category.

I do not know if you believe or not Harbour share price can be heading to RM 1.00, but I had to tell you that the 1Q of 2018 will be seeing China and Hong Kong citizen throwing big celebration for Chinese New Year, which will see the 2 country having official public holidays for 1 week. For this reason, there is all the reason for me to believe that the country will have to do all the restocking and imports before the celebration, which will be a major push demand towards the container prices.

Incidentally, Harbour will also be servicing both China and Hong Kong routes, which will make things look even better for Harbour now. If that squeeze happen, the container freight rates could possibly move towards 10000. Who knows, right ?

I had pointed out an opportunity for you now. Whether you want to act on it or not, that again, is your own decision to make. Of course be remembered that all investment decision, is by your own accord. This is just a piece of referencing material for your knowledge on the happening of the industry.

Whatever it is, if you do read my article and try to understand it, I would hope that you would now learn something, or if better, you might think that you are feeling like a shipping expert already. Next time when you are talking to your colleague, friends or relative about shipping industry, then you can spill out some shipping terms like TEU, Panamax, Feeder and etc which you will leave them in a bizarre.

Santa is coming to you on this Ship

noreply@blogger.com (Bonescythe Admin) — Thu, 21 Dec 2017 16:19:00 +0000

Hohoho... Hohoho... That's it. 2017 is coming to an end, and what is left on bygone remain on bygone, and we shall welcome a whole new 2018.

But before that, Santa Claus might want to send you some present with his new found sleigh - a ship.

The market in 2017 had been tough and unforgiving for some. But despite that, everything bad will come to an end, and eventually good thing will come again as we endure over the challenging period.

Today I want to introduce you a good company that you can look into for your investment portfolio next year.

This stock had a strong fundamental, and had started to break out from a bottom consolidation.
This shipping stock is Harbour Link Group Berhad (Harbour - 2062)

According to the technical chart, we can clearly see that Harbour had broken away from a long term down trend line. At the current price, Harbour is deemed attractive as it has a solid fundamental compared to the other peers in the same industry.

As of the latest financial quarter, Harbour managed to perform better than the previous quarter, where most of the revenue are contributed from shipping. The company had also paid out a 1.5 cents dividend per share this year.

If Harbour is able to maintain a consistent earning for the next 3 quarters, we can see a projected earning per share of 10 cents for FYE 2017. That will easily put Harbour valuation to RM 1.00 based on PER x 10.

But the question here is - What are the contributing positive factor that can ensure that Harbour will be able to sustain such an earning, or improved earning in the coming 9 months. While there are a lot of different factor that can affect the revenue, the most direct factor will come from sea freight rates.

For now, I will be sharing with you on Harbour being a share that had bottom out, and just started on it's break out position from a low price. Further to that, Harbour is a fundamentally strong company which performed better than it's peers, and with consistent revenue and good dividend policy in place in order to rewards it's shareholder.

In the coming post, I will be sharing with you on the some shipping industry outlook, and how will that translate to possible improvement towards Harbour revenue in the future.

Stay tune, and stay happy with Harbour.

This Aluminium stock that you can consider to keep

noreply@blogger.com (Bonescythe Admin) — Thu, 23 Nov 2017 04:58:00 +0000

Approaching the end of the year, the Malaysian market had yet to see any excitement despite the global market reaching new high. For example, Tencent had become a company with a market capitalization of more than USD 500 billion, and the US DJIA Index had started to challenge 26,000. Despite this bullish event, Malaysian equity could be lofty now for several reason such as -

1. November is a month where most of the company will furnish their 3rd Quarter financial result.
2. As 2017 approach to the end, much of the fund will undergo a portfolio evaluation, and will start to trim equity position on company that are not really performing up to expectation.

The situation had almost been the same last year. As experience tell, it will be good now to invest into some fundamentally performing stock which are still within the valuation, and have the room to appreciate.

One of the stock that I would like to point out will be this almost forgotten "Aluminium" stock which could one day, become a next PMetal hopefully. As for me, even becoming 30% of PMetal is good enough.

This stock is no stranger for you and me i suppose, is none other than A-Rank Berhad (Arank - 7214)

As you can see, technically speaking, Arank had been trading in the range of RM 1.05 to RM 1.15 for almost the whole year of 2017. Technically speaking, anything near RM 1.05 would be a good point to accumulate on the stock. Short term wise, Arank can easily rebound towards RM 1.20 should the coming quarterly result is performing well.

One of the most important thing in order for the stock to perform is to have it's result talking directly to the investor. Attached below is the FYE 2017 result for Arank where EPS is 13.5 cents, and giving out 3.25 cents as dividend to investor.

As you can see, there isn't much good stock left in KLSE which are giving good dividend and trading at single digit PER. For the case of Arank, it is only trading at a PER x8 which is still had the room to appreciate. As this stock is suitable for long term investment, and not for flipping purposes, it is understandable on why it's PE is slightly lower.

However, I believe Arank will be trading higher soon as investor start to realize the steady performance of Arank, and also rewarding investor with dividend.

Do you think Arank is a good for investment now ? Now that is your call again.

Cheers

Monetizing this vast land bank is good for the shareholder of this company

noreply@blogger.com (Bonescythe Admin) — Mon, 06 Nov 2017 17:22:00 +0000

Despite the slowing property sentiment surrounding Malaysia, corporate exercises involving company diversifying into property development and construction in fact happen even more frequently this year.

However, most of these corporate exercise falls into company that are struggling to perform in their existing industry, and a diversification could give the company a new light of hope in order to turn the company back into the black.

While there are a few example, some notably successful example on listed companies diversifying into construction had to be Mercury Industries Berhad and Voir Holdings Berhad.

As you can see, for the case of Mercury where Dato Tiong inject his own construction firm into it, the share price appreciated much and shareholder are confident on the diversification that will bring in more benefit. That had been the same case for Voir, and shareholder view the diversification as a good.

While such are the successful case, it had me wondered if this company can also repeat such wonderful feat created like the above 2 example.

So, this company is the little known Bsl Corporation Berhad (Bslcorp - 7221).

This company had been laying on the lower side for the past few years. However, the recent month saw the company share price appreciated as the company start to turn into profit with new manufacturing contracts.

What is interesting is the latest development where Bslcorp had formed a JV with Mr Wong Sze Chien to explore on the property development and construction opportunities.

Prior to that, Mr Wong Sze Chien had also some dealing with Bslcorp through Bsl Eco on the purchase of net metering system.

Albeit the current share price which could be trading at a considerably higher PE, the share price of Bslcorp had been sustainable at the range of RM 0.60, implying that the company had greater plans ahead.

The joint venture will be able to see Bslcorp diversify their income stream and tap into the property development.

According to the latest annual report filling, Bslcorp had a vast land piece at the area of Kundang, which is near Rawang. The land spanning 1214 hectares, which is almost 3000 acre, can be suitable for township development.

It will be very wise for Bslcorp to finally tap into this resourceful land and monetize the land to reward the shareholder.

Currently, Bslcorp is having a NTA of RM 0.80 per share.

Will Bslcorp break above RM 0.65 and trade higher in the coming days after consolidating at the range of RM 0.60 for more than 6 months ? That depends on how you will see it.

When your chance come, Just seize it without doubt!

noreply@blogger.com (Bonescythe Admin) — Wed, 01 Nov 2017 16:58:00 +0000

Life is tough, but the tough gets going. Market is always tough and not for sissy investor. As the year 2017 is coming to an end, it is a good time to reevaluate how far you had gone this year. Be it in your studies, your career, or your investment. It is always good to review on everything you had done, so that you will pick up on the mistake, rectify it, and tell yourself that you will never repeat it again.

In investment, sometimes, our mistake comes when we do not believe in our instinct when the stock price is still low and not moving with any momentum. But the problem is, when it is moving with momentum, it is either without you, or you are chasing it at a very high point which will in turn put your position in a high risk situation.

While some instinct leads to miserable outcome, it should not shy us away into trying to believe our instinct again. Some say, once bitten twice shy, twice bitten and dun wanna try.

But, I am sharing with you one instinct that is proven before with result, and I want to challenge you one more time to believe this will happen - Are you with me now ?

As you had know, 1 of the landmark case involving the take over of company in the KLSE had to be Denko Industrial Corporation. Denko got a take over offer from a Singaporean company at a price of RM 0.55.

Today, Denko is trading at a range of RM 1.40 as more corporate exercise took place including asset injection and private placement at a higher price as well.

If you had acted upon the time where this take over offer is announced, then you would had see your investment double up easily.

Now, Denko is a past tense. Nothing can be done if you had missed that opportunity. Denko is trading at RM 1.4x now, and no use to harp over things that had become something.

But, today I am giving you another chance of your lifetime - Once again.

This counter got a take over offer from it's major shareholder at a price of RM 0.785. This company is Yi-Lai Berhad (Yilai - 5048).

Talking about Yilai, I am telling you that this company is no mistress material at all, because they are tile manufacturer.

But, 3 years ago, this exciting company actually was bought in from it's major shareholder at a stunning price of RM 1.30. According to filing, Hampton Capital Ltd bought in 31.12% stake from the previous owner at RM 1.30 some where in May 2014. The director behind Hampton Capital are Aaron Tan Jian Hong and Wendy Kang.

Firstly, the person acting in concert had breached 33% and triggered mandatory general offer, where the offer is at RM 0.785. As you can see, this is an offer, and is not subject to any acceptance if any shareholder do not agree with the price. Yilai will be continue to be listed in the KLSE as long as the acceptance of offer is less than 75% (which is very likely to happen).

Secondly, the NTA of the company is actually sitting at RM 1.40, notwithstanding some plot of land that are not revalued.

Thirdly, Yilai is actually a company without any borrowings. That means, it's balance sheet can be stretched with new projects or new business.

Now Yilai is actually trading around the range of 80 cents, which is not far away from it's take over offer price of RM 0.785.

As you can see in many previous example of take over offer, I can tell you that there is high possibility that Yilai will be surging upwards very soon due to
1. Major shareholder bought in at RM 1.30
2. NTA is RM 1.40

Yilai will be properly valued at the price range of RM 1.50. Moreover with the x 2 take over factor, Yilai can be looking at RM 1.57 in the future.

Are you going to seize this chance with conviction ? I had done it, the ball is at your feet now.

See you above RM 1.00 in no time.

The rubber on ground can be a gold to your wallet

noreply@blogger.com (Bonescythe Admin) — Tue, 24 Oct 2017 17:15:00 +0000

Today I will talk about what are the reason to encourage the usage of rubberised road in Malaysia.

I believe some may be wondering how does rubberised road come about to a hot weather like Malaysia - Will be rubber get melted on the ground ?

Well, I had to tell you that in fact, if rubber is added into the production of the asphalt road, it could actually strengthen the asphalt road in terms of preventing cracks compared to the conventional bituminous asphalt road that will melt due to hot season. In fact, in 2016, tar road in India melted due to extremely hot weather that disfigured the surface of the road as well.

Although there had not been such scene in Malaysia yet, but it is a global problem that the global weather had been rising every year due to pollution and diminishing forest from deforestation activities. I believe it will reach a time where Malaysia road will some how encounter such scenario like what happen in India, where the tar road literally melt. This will in turn become a hazardous event, as the melted portion will exposure a vehicle with risk of unable to brake in time, or skid off the track due to differences traction gain on the wheels.

For the case of Malaysia road, during the midday, it can achieve a temperature of 60 degree Celsius, which can soften then surface material and render the surface to be uneven when heavy vehicle ply through the roads.

Rubberised road is not a new thing actually. Back then in 1960, the US already have rubberised road, but by recycling the used tires.

For Malaysia, the rubberised road will be formed by using CMA technology. CMA (Cuplump Modified Asphalt ) is made by mixing freshly coagulated rubber with bitumen and asphalt. The coagulation of the rubber takes place in the cup at the tree with no manufacturing process being involved.

This kind of road pavement technology, although come with a higher cost, but is last longer than the conventional road, and also reduce the noise from wheel plying through as well. According to a research, rubberised road can reduce up to 7 decibels of noise, which is actually what the city folks in Kuala Lumpur need because a lot of building are constructed very near to the highways and main roads.

So how does all this thing translate to a better days for Greenyield ?

As you can see, Greenyield does not only cultivate rubber plantation, but also provides solution for this industry in order to enhance production through better harvesting material and stimulant. Solution such as latex stimulant, plant healing compound, and latex coagulant will be able to help smallholders to enhance their crop harvest.

The usage of rubber into road pavement will be looking to take up 10% of the total annual production, which will lift the price of rubber sharply.

In fact, Thailand had already started to build rubber road since 2013 in order to cushion the rubber price.

As Malaysia take part into this, I believe that the global price of rubber will stabilize and this industry will be able to see better prospect ahead again.

Why I am putting everything in here is what you need to know !!

noreply@blogger.com (Bonescythe Admin) — Mon, 23 Oct 2017 16:07:00 +0000

Alright, it is me speaking again after not posting anything for 2 weeks. I know some of you guys are bumping in to my blog faithfully everyday just to wait for some red hot news again to help in your investment decision or ideas. Before your sand timer run dry, let me spark it up for you once again.

As you would know, this week is the budget week. Why I have to say this week is a budget week ? Firstly, our prime minister is going to announce the Malaysia 2018 Budget coming this Friday, 27th October 2017. Another thing we have to know that it is the end of the month, so as your salary dried up, it is time for you to go the "budget" style. Hahaha

Today, I have something really amazing to share with you, but it is not really going to be related to the budget, because I had highlighted on how Media can benefit from the budget last month when it is just trading at a mere 74 cents.

I had to tell you that we are actually at the end of October 2017 now, and you have to be aware that we are left with just 2 months+ to go in 2017, before we have to wrap up and go into 2018 to start the new year again. If you are still with me, I am sure you will know, I am bringing you some important stuff for your consideration in your 2018 investment now. Yea, that's right, it is 2 months ahead for you to think think and think. But remember to act on it when you are convinced, it is useless just to think without action.

The year 2016 and 2017 had been a great year for steel related company. But, if you do not know what is the main factor for the steel company in Malaysia to blossom, then you really have to buck up in your investment reading and research. You must know that MITI (Ministry of International Trade and Industry) had imposed an anti dumping tax on all the steel imports from China in order to restore the ailing steel industry in Malaysia that had been suffering for decades of low prices. This in turn had gave fortunes to company like Masteel, Lionind, SSteel which had fall as beneficiaries of such move.

Now the steel wave already past, it is useless to harp over it now. But if you missed the steel wave 2 years ago, then I had to tell you that the coming rubber wave, you better not missed it, because it is going to be very strong in 2018.

While there are not much pure rubber planting company listing in the KLSE with good liquidity, this particular company which is at it's all time low, is actually a listed company involved in cultivation and development of rubber plantation. Not only that, they are also involve in R&D on rubber plantation enhancer and harvesting tools and materials.

This seemingly quiet rubber plantation company is Greenyield Berhad (Greenyb - 0136).

Alright, back to my topic - Why am I saying that 2018 could be the year for rubber planter?

Actually, the idea of making rubberised road had been in talks since 2014. Even the popular car site - Paultan.Org mentioned about this since October 2014 that the government is planning to build rubberised road in 2015.

Throughout 2015 to 2017, there are some parts of the roads in Malaysia being used as R&D in order to make sure that this method is viably in the long run. In terms of initial cost, it will be higher, but for a longer tenure, it could be a good cost saving for the government.

And according to the latest result from the research and development effort by the Malaysian, it is acclaimed that the Malaysian new rubberised road technique is the world first ever!!!

Wow, doesn't that sound amazing, Malaysian ?

Alright alright. For now, that is what I want to share with you and you can digest it as soon as possible. I am not going to feed you with too much information now, but in my next posting, I will be telling you : -
1. Why rubberised road should be adopted in country like Malaysia.
2. Which new highway will be possibly paved with the rubberised road.
3. How much rubber will be needed for all this fuss.

But, one important thing I need to tell you. Since this piece of news is not a bullshet from me, I want you to ask yourself - How much do you want to make out from this opportunity? RM 10? RM 100? RM 1,000? RM 10,000? RM 100,000? Is all for you to decide now.

Now, I am telling you at a point where Greenyb is at a all time low. Look at this chart, all time low and just break out from the 3 years long term downtrend line.

Once this is implemented in a wide range, and highway road paving adopt to this, I can tell you, this rubber will be your biggest happiness, or your biggest regret.

Act now? Act later? Don't act? You decide.

Malaysia Budget 2018 potential beneficial is here!!!

noreply@blogger.com (Bonescythe Admin) — Sun, 08 Oct 2017 16:08:00 +0000

Knowledge is the key to success - That is a very general saying for motivating students in excelling at their studies. So, what about turning this question into the ever challenging equity market?

What are the keys to success in the equity market ?

Honestly, there is no one single solution for this. As for me, I had to tell you that information and knowledge is one of the vital ingredient, but that is not enough to ensure you success in the equity market. Getting a piece of information is one thing, understanding the piece of information is another thing, but able to foresee how this piece of information can be applied into the market before the majority of the market does is what you need to strive to achieve in order to be successful in the equity market.

Which one do you want to understand more ?
The Red Ferrari or Pink Dressed Model ?

To make this happen, one of the most important things to do is to do a lot of reading. As for me, I read a lot of materials. For a start, I consume the local newspaper and financial dailies for the latest news and event happening both in our own social, political and financial arena. Then, I will also take it extra supplement such as medical journal and magazine, building and architectural design and concepts, IT software and hardware, automobile magazine. You might wonder, what heck use is there to read up automobile magazine have to do with stock market ? Of course, if you are just looking at hot models standing beside the car, or just glancing through the design and looking at how fast this car can go from 0 to 100kmh, that is quite useless. To make that reading more informative, you have to drill down to details such as what are the material used for the body frame, what kind of specification and what kind of sensor used, what kind of light bulb. In fact, the booming electric automobile development is the one behind pumping in the demand for aluminium because of it's lightweight function. And the multiple sensor around the car are fueling stock such as KESM and Gtronic. And the usage of LED is behind the reason for LED maker to gather steam.

Same piece of information, different reading technique, different interpretation.

However, one sad reality - Not many people can do this, because all these kind of reading require a lot of time and effort.

But fret not, because I will be doing all this work for you and sharing to you all for free. And if that is not enough, you can get latest update by liking my facebook page here and get the latest update. Of course, you can also ask me question while I will try my best to answer them - Great deal altogether?

And as for today, I want to bring your attention to the upcoming Budget 2018 and it's potential beneficiaries.

According to online news portal FreeMalaysiaToday, one of the potential beneficial hit list will be focused at the digital economy, automation, robotic development, big data industry and cloud services.

This is one of the reason why IT related companies at boosting upwards in share prices recently.

Let's look at one of the example - Kronologi Asia Berhad, a service provider for online data storage and protection solution.

This share had been rocketing upwards from a lowly 30 cents in the beginning of this year. If you asked me, I would say I had no freaking idea on what sort of hype is happening to this company. If you can see the below result, you can assume that Krono is currently trading at almost PER x 20 based on annualize earning of 5 cents for FYE 2017.

But, if I were to tell you that Kronologi could be one of the recipient to benefit from the Budget 2018 in terms of tax incentives for being involved in Cloud Service, that would make a good sense of why this company had been flying up since this year.

As for me, I am not telling you to get into Krono now, because Krono is already quite hyped up already.

What I am pointing to you is this one overlook stock that had just restructured itself and involve in the big data industry. And this stock is no stranger to you - Media Prima Berhad (Media - 4502).

As you can see, I had previously informed you why Media is a powerful stock ever since it had acquire RevAsia online content marketing unit which comprises of several popular online content marketing sites.

If this doesn't convince you enough to invest into Media, you have to know that the upcoming Budget 2018 is possibly going to give Media a definite game changer as they start their involvement into Digital Economy, Digital Media and Advertising and Big Data Industry.

So what is BIG DATA ?

According to a popular site, the definition of Big Data Analysis is the process of examining large and varied data sets -- i.e., big data -- to uncover hidden patterns, unknown correlations, market trends, customer preferences and other useful information that can help organizations make more-informed business decisions.

20 years ago, nobody will know what kind of news you like to read, nobody will know what time you like to read newspaper, nobody will know whether you read the front page big news or end page sport news first, nobody will know you will show interest in which advertisement, nobody will know how you react towards a particular of news.

Thanks to the evolving digital technology, today, everything can be tracked and all these data can be processed into a meaningful set of data that is valuable to business owner to make accurate decision based on consumer patterns.

So how does this work?

Let me give you an example. So now Astro want to know what is the Malaysia public taste for Hollywood movie, in order to get a response, they engage popular online content marketing site, Says.com for a poll to get reader responses.

As you can see, this 1 single post can garner 62k of reads and 2.3k of shares. Most importantly, it got 15.5k of votes from the public. Of course, for Says.com to write this post, Astro might probably have to pay them like RM 20k to RM 30k, or even more, I don't know. But I can tell you that it is not cheap.

But compared to the conventional style, it could even cost more, and much slower. If you had ever worked as interviewer in research company such as Acorn, then you will know how "mafan" it is to gather 1 response, not to mention 15.5k response from all over the places in Malaysia. For 15.5k response, it would had probably cost Astro a whopping RM 1.55 million if 1 response is charged at RM 100.

So do the math, pay RM 1.55 million or RM 30k ?

Of course, what I am showing you now is just the very surface. There are deeper analysis with the use of Google Analytic that can show you reader came from which region, what keyword they type, how long they spend in the post and etc.

I know all these are very confusing and complicated to you right now.

In order not to complicate you further, I want to place a conclusion that Media is having big time to benefit from the coming Budget 2018. As you know, I had been advocating for Media when it is just 72 cents, and I had to tell you that this company is full of potential from A to Z, and that is one critical reason why Morgan Stanley had been buying in in bulk, non stop, everyday action!!!

In no time, Media will be at RM 1.00 with or without you. But since you are reading this post until the end, I have to tell you that if you had missed the previous one, it is not too late now. RM 1.00 is a no brainer target. With new revenue from online division, lesser losses from physical print division, tax incentive from government - How to prevent Media from blowing up ???

Don't think too long, better act fast now !!! And like my Facebook page here as well.

Good Models will enrich your eyes, Good Business Models will enrich your wealth

noreply@blogger.com (Bonescythe Admin) — Tue, 03 Oct 2017 16:02:00 +0000

Everyone know what is a model, but not everyone know what is a business model.

Today I am not going to tell you about models, but I would want to share with you some new knowledge about understanding a business, and how a business function. In short, it is the BUSINESS MODEL that is the core mechanism of the company.

In order for you to understand what is BUSINESS MODEL all about, I can refer you to this Youtube video that can give you a very brief knowledge on BUSINESS MODEL.

The most important part of the business model is the Value Proposition. This is where your company's product deliver the value in order to fill up the demand gap in the market. If your company is offering something that none other market competitor are able to offer, that is where the value stand out.

Every business looking for profit must have a viable business model, and not only that, the business model must keep on changing and adding in value in order to keep up with the evolving market. As you see, Kodak used to dominate the retailer segment in camera when everything is still using film, however, when digital camera become more advance and cheaper, Canon and Samsung had overtaken Kodak into this segment as retailer shift to digital camera for more shots without wasting films. Moreover, the ability of a digital image to be transferred from device to another device is easier, especially when the generation nowadays likes to share their photo in social media.

Whether you agree or not, a lot of things in our life are going digital. Unless you are planning to spend the rest of your lives in cave, you have to either embrace digital or face extinction - Brutal Reality.

Now that is Brutal Reality

So for the case of Sasbadi, what is the brutal reality ???

According to the Malaysian Education Blue Print 2013 - 2025, one of the segment that the government will enhance is to leverage ICT to scale up quality learning across Malaysia.

As you can see from this excerpt taken out from the executive summary, this phase involve in providing internet access and virtual learning environment via 1BestariNet for all 10,000 schools.

Aside from that, this phase will also augment online content to share best practices starting with a video library of the best teachers delivering lessons in Science, Mathematics, Bahasa Malaysia and English language.

It also focuses in the use of ICT for distance and self paced learning to expand access to high quality teaching regardless of location or student skill level.

And to sum it all to you, I have to tell you that all these 3 important points in the Malaysia Education Blue Print will find a suitable solution from Sasbadi.

Why ?

Because Sasbadi is currently the only pioneering company that is involved in providing online e-learning platform through it's i-LearnAce online web education.

The i-LearnAce platform will not only cater for revision exercise, there are also video lesson for student to do referenced as well. What is more, Sasbadi is one of the contracted publisher for the printing of text book for schools throughout Malaysia.

And to answer you that, this could be one of the very core reason why EPF is buying and loading up Sasbadi for the future!!! Imagine how much for proprietary rights and provision of service that the government need to pay to Sasbadi when this is implemented at a massive scale ? It might not happen now, but what about the next 5 years, 10 years ?

Albeit having spent RM 6 billion, it is not enough. Of course, if Malaysia Government start to spend RM 2 to 3 billion for Sasbadi to develop, implement and execute, why not ?

Now coming back to the Business Model, I would like to share with you my simple thoughts of the Business Model of Sasbadi i-Learn Ace. Okay, hear me, I am refering to i-Learn Ace product only.

So what is so special in this i-Learn Ace business model ?

This capability of i-Learn Ace is that this platform is able to transfer the equivalent amount of knowledge that can be learned from the physical books - through the thin air!!! Amazing right ?

Alright, the thin air I am referring to is through the digital media. As digitalized content do not have physical appearance, hence this will eliminate all the printing cost, logistic cost, warehouse holding cost, inventory defects and damage cost, inventory theft or lost cost and etc. And I had to tell you that all this cost when added up together is a hell lots of money involved.

All the user need to access such content is
1. Internet
2. A smart device (Computer, Laptop, pads, smart phones)
3. And of course, ticket fees to access the content

Let me give you an example by comparing iLearnAce potential profit and traditional book print profit.

Let's say we are talking about a pool of 100,000 students every year.
For traditional method, the publisher need to print 100,000 books to cater for 100,000 students every year. So let's assume the total all in cost is RM 5 per book, and profit margin of RM 3, total RM 8 per book in average. So for this, the company earn RM 300,000 each year. This is perfect scenario, assume petrol no hike, electric no hike, books not printed wrongly and etc.

Now, let's put it to iLearnAce business model for 100,000 students every year.
For iLearnAce, the cost will be a 1 time development cost for the whole system. Let's assume the 1 time development cost is RM 300,000. And since there are no physical form of delivery, hence a lot of cost are saved. Now, let's assume 1 student need to pay RM 5 for the access to the content of the system, so 100,000 student will be paying RM 500,000 each year.

For the 1st year comparison, traditional method might be seeing a higher profit or RM 300,000 while the iLearnAce will derive RM 200,000 only. But for the next subsequent year, iLearnAce will be deriving RM 500,000 as there will not be a need to develop the content again. But, the traditional print method might be exposed to higher cost due to raw material and logistic cost which can impair the profit margin.

According to my knowledge, iLearnAce will only need approximate RM 350 for a 1 year access to 6 subject, which is like RM 1 a day. It is only a matter of time that once iLearnAce gain enough publicity, then the system will be able to benefit from the massive of scale usage.

For now, I had shown you the massive potential of Sasbadi, and also the reason why EPF is buying into Sasbadi without in huge chunks.

In conclusion, the Brutal Reality will strike you with regret in the next 2 years if you did not invest in Sasbadi now. Yea, no joke, just like how I had mentioned about GCB at RM 1 when cocoa price hit rock bottom!! I had teach you how a lower material price will bring benefit to GCB here and now GCB is RM 1.70. Now I am telling you how this iLearnAce business model will be bringing in big chunk of $$ to Sasbadi now!! Is up to you and in your hands now.

EPF is not letting this company away from it's portfolio, which is why you shouldn't either!

noreply@blogger.com (Bonescythe Admin) — Mon, 02 Oct 2017 16:16:00 +0000

Equity market had been riding tough and rough for the past few weeks. The weaker than expected financial result in most of the companies financial reporting announced in the 3rd quarter this year had took investor to reassess their investment portfolio. When this happen, institutional fund will start to do the buy and sell, and of course, this will also represent a good time period to do some good accumulation.

If you had been following me for the past weeks, you would notice that 1 of my notable finding on Media which highlight the potential possibilities of why Morgan Stanley had been buying into Media continuously without fail lately.

As for today, I would like to show you this 1 stock that had been accumulation by our very own EPF. For a stock to be qualified into EPF list of purchase, the stock must had a track record, making profits, paying dividends and potentially is a company that provide services that are crucial for the country.

You might had probably used the products of this company during your school days - Text Books and Exercise Books. For this case, I would want to introduce Sabadi Holdings Berhad (Sasbadi - 5252) into your radar.

So what is so interesting that is happening in Sasbadi that resulted in EPF buying into the company shares ?

EPF had been buying and selling Sasbadi shares previously. However, according to official records, EPF had started to become the net purchaser of Sasbadi shares in the open market starting this year. As you can see, EPF stake in Sasbadi during January is almost 6%.

However, rolling on 9 months later, EPF had increased it's stake to a total of 9.77% of Sasbadi shares now, with the latest acquisition being done on 25th September 2017 with 300,000 units at the price range of RM 0.88.

If you are a thorough investor, it would had strike your mind that - Why is EPF accumulating on the shares of Sasbadi despite some suppressed earning as of lately? This is a very valid question for every investor, and knowing the most accurate answer is important because it is the very key towards the success of the investment.

For commoner, Sasbadi is known for printing text books, exercise books and some other general titles for adult that had left the "academic" process. Other than printing books and selling books, most do not know what else is Sasbadi is involved in - Am I right to say so ?

One of the major move that the company had made in 2016 is that Sasbadi is actually diversifying into network marketing in order to derive more revenue from a new business sector. As reported in The Edge, Sasbadi sees a good prospect in the network marketing business and had obtained a network marketing license in April 2016 in order to conduct that business. I had to tell you that Sasbadi is not going to sell you health food like what other network marketing companies do, but they are going to compliment it's existing business in education by providing an online learning platform that is able to cater to students from as young as 10 years (Standard 4) old to middle school student (Form 5)

As I know some people might be triggered by the word MLM, I had to tell you that not all MLM are scams. Some MLM are really legit, conduct proper business dealing and are even listed companies in the KLSE. And I had to point out to you that MLM companies in Malaysia are not too bad either, because some are really doing good, and some really had their very good season when the time comes.

If you do not know, Hai-O Enterprise Berhad is actually a traditional herb company that also have it's network marketing arm beside it's retail outlet. As you can see, Hai-O share price had been increasing steadily for the past 2 years, where revenue from the network marketing contributes a lot to the bottom line of the company growth.

Another MLM company - Zhulian. Based in Penang, this company involves in health food, beauty, home improvement products and jewellery.

Coming back to Sasbadi. The question here to ask is - What is so special about the network marketing product and services that Sasbadi is offering ? Will Sasbadi network marketing product be able to replicate the success like Hai-O, where share price rocket without fail for 2 years ?

If you are keen to know, then you will have to read below and click to the links and study further.

The product is called i Learn Ace. Basically, this product is an online learning platform that have a lot of exercises and revision material that can cater to students through online access using computer, laptop or smart phone devices.

The platform comprises of most of the important syllabus of the main stream subjects.

There are a lot of function in this iLearnAce, such as mind mapping, video lesson, dictionary and even competition board. Of course, if you want to give it a try, then you can contact Mindtech Education for more information.

As for me, I want you to know that Sasbadi will be a great emerging company to be invested into because education never dies, despite of economic uncertainties or downturn, education will have to continue and resemble an important process for every single children to go through.

Today, I had highlighted to you Sasbadi and it's latest product offering. Following on, I will share to you my insight on One of the reason why EPF is buying into Sasbadi and will decrypt the latest business model of Sasbadi for you to understand how explosive can this new product iLearnAce contribute into the bottom line of the company in the future.

If you are looking for a long term investment with future growth and dividend, look no further and Sasbadi will be your correct choice. I am confidently pointing to you to invest into this stock, because in my next article, all beans will be spilled out, and I am afraid that you might need to pay a premium for that.

Like this page and I will bring your investment to the next level

noreply@blogger.com (Bonescythe Admin) — Fri, 29 Sep 2017 04:34:00 +0000

To all avid fellow readers,

In order to bring in some freshness and more engagement with the readers, there will be some new changes and some overhaul in activities - of course, for free again.

For a start, there will be a new Facebook Page set up - Bonescythe Stock Watch.

For a start, I will have some free stuff for you to grab again when the page reaches 1000 likes.

So what are the free stuff you can be looking at ?

I am referring to stuff like :
- 80% discount in stock training seminar and coaching
- Free stock updates
- VIP Chat Group and Discussion
- Merchandise and a lot more possibilities that is permissible under the sun and law.

No matter you are an old ginger or new ginger, we will present to you another new dimension in spicing up your next investment journey.

My teaching will let you how to do critical thinking on mind mapping on factor that influence the movement of a stock price, and of course, before other people find out.
Such as are the example like Liihen, where I had informed you on the potential of recovery from the destruction of the hurricane in the US.

Aside from that, also can help you interpret what institution buying means to this stock, like how Media had appeared to be by Morgan Stanley continuous buying from the open market.

If you ask me, I have to tell you that these are rare skills. And for that, I had to tell you that you do not acquire rare skill easily from the outside world. For me, I had not inherited this rare skill, but I had went through the exact journey to acquire this rare skill which I can share with you if you are the lucky one.

So, wait no more, and proceed to like this page - Bonescythe Stock Watch for more updates to come, exclusively for you.

Cheers

This Company can be in the Multi-Billion Ringgit Deal

noreply@blogger.com (Bonescythe Admin) — Mon, 25 Sep 2017 16:26:00 +0000

Hi all enthusiastic reader!! Today, I am sure you would be expecting me to tell you what the freak is happening to Media. As you can see, my previous post on Media had highlighted on the continuous buying of Media share in the open market by Morgan Stanley. I had to tell you that until now, Morgan Stanley had not been stopping this feat, and it is still being reported that the investment banker had been buying in huge amount of Media share last week as well. The latest filing show that Morgan Stanley is holding more than 8% of Media shares now!!

So, what is the underlying reason for Morgan Stanley to be doing so? As you know, curiosity kills the cat, so before any cutie cat get killed, I will need to reveal my assumption for the cats to study first. Kikiki.....

As you know, one of the biggest acquisition done by Media Prima this year had to be the deal that involves RM 105 million with Rev Asia Holdings Sdn Bhd. Basically, this deal encompasses the purchase of digital asset from Rev Asia, namely - OHBULAN!, Says.com, Viral Cham, Rojaklah, JUICE, 8Share, MyResipi, KongsiResipi.com and SirapLimau.

The acquisition which had finally completed at the 3rd quarter of this year is looking to transform the business revenue of Media Prima by increasing it's revenue from online segment.

So, what has these 9 websites got to do that can hook up a huge sum of RM 105 million ? I had to tell you that RM 105 million is a lot of money, and the website are purely intangible assets. And a lot of you probably do not have any idea what the fack are those website at all.

Because of this, I am here to explain to you, in a very layman term on the degree of interaction of such websites in the industry of advertisement.

Let's start out with something simple and understandable. In graphics, we know what is 1D, 2D and 3D, right ? 1 dimension is a flat, 2 dimension offer you flat view of an object with height and width, and 3 dimension offer you a 3D view of an object.

To put this into the media industry, let me explain it this way :
- Newspaper akin to 1D level, where reader can only read and see what is being written.
- Television Media is akin to 2D level, where reader can read, see and listen to the content.
- Online Content Marketing is like 3D level, because it offers the reader to read, see, listen and giving feedback and comment.

The ability to provide a media platform for a reader to interact with the marketed content is the current "in-thing", and that is what Online Content Marketing platform such as Says.com, ViralCham is being so hotly sought after.

The question now leads to - How big is this growing industry of Online Content Marketing nowadays ?

If you had been following this segment, you will be aware that the popular site in US namely "The Huffington Post" is sold to AOL for a stunning USD 315 million. That being said, this deal is done in year 2011. Under the Huffington Post umbrella are other media enterprises such as TechCrunch and MapQuest.

If you think USD 315 million is a big amount paid by AOL to acquire Huffington Post, YOU ARE DEAD WRONG HERE.

This is because 4 years later, AOL is sold to Verizon for a landmark deal of USD 4.4 billion !!! And the reason ? That is because Verizon is finding something to penetrate deeper into it's consumer base, and AOL is the bridge linking to that solution, where it is particularly strong in video advertising.

Whatever it is, AOL investment of USD 315 million had came back louder with USD 4.4 billion within 4 years. While I am not trying to prove to you anything, I had to tell you that the trend in advertising had to do with Online Content Marketing which offer a much more interactive platform to connect the consumer and the marketer.

That being said, I had to highlight to you that Media Prima Berhad is actually on it's way in replicating the successful model that AOL had went through. That is because Media Prima had everything that AOL had, from TV Channel, Radio Broadcasting, and now completing it with the acquisition of Online Content Marketing site.

Albeit Malaysia is starting a little slower compared to the US peers, things are picking up. Rev Asia had actually started to acquire and consolidate all these online content marketing platform since 2016. Rev acquire ViralCham and Rojaklah on August 2016, and continue to acquire Malay popular content portal such as Siraplimau, Myresipi and Kongsiresipi on December 2016.

According to official filing, Rev Asia paid RM 5 million for both ViralCham and Rojaklah. And as for the 3 of the Malay content site, Rev Asia paid RM 2.65 million in Dec 2016. Of course, the biggest prized asset had to be from the popular content site of Says.com, which is the reason why Catcha change it's name into Rev Asia after the RM 60 million merger.

That being said, the main question that I would want you to give a thinker is - Will Media be walking the path of AOL ?

Will Media become the solution for TM in the next 2 years ?

I believe, if you had read until now, and check through all the referral links that I had provided, you would by now know that, everything is possible.

Morgan Stanley could had been involved in the deal from AOL to Verizon. For this reason, given a similar reappearance of the case, but in Asia for this context - What will you do if you are Morgan Stanley? Sit and stare? Or buy when it is at it's weakest mark of the state?

In conclusion, I had show you the potential, possible, or even maybe the real reason of why Morgan Stanley is buying into Media continuously. As for you, what is your take now ? Watch or Act - Is in your hands!

You might had missed Liihen, but don't miss out what Morgan Stanley is buying now!!!

noreply@blogger.com (Bonescythe Admin) — Sun, 24 Sep 2017 16:26:00 +0000

Good day every fellow reader. I hope my previous recommendation in Liihen will find you good, and will also help you to recover a bit of losses here and there in this challenging and cautious market. Gone are the days where you can afford to close your eyes and punt into any stock which will easily turn you in with huge chunk of profits during the earlier half of this year. Now, the market sentiment continue to be mired by North Korean nuclear and missile activities as well as some development in the crude oil market. Nonetheless, the US market (DJIA) continue to rally above 23000, historical high to say. Despite warning after warning, the strength of DJIA continue to defy the bear-logic.

For now, I am not going to talk too much crap on the broad market, but I would like to point out to you on this important aspect of "You and The Market Opportunity".

Are you really doing enough to capture what the market opportunity had to offer to you for the past 2 weeks ?

My name is ?

So for the past 3 to 4 weeks, one of the major news in the world had to be Hurricane Harvey, then Irma, and followed by Jose, Katia, Lee and so on. By the way, just an additional knowledge if you are wondering how are the hurricane being named - They are done in alphabetically order (A,B,C,D......X,Y,Z) and the names will rotate from male, then female, then male. For example, Harvey is a male name, Irma is female, and Jose is male. Now you got it?

Now the media is finally picking up on the recovery of the destruction caused by the Hurricane, but at what cost ?

Let me show you. When I had highlighted on Liihen on the 8th September 2017 in this post, Liihen is trading at the price at probably RM 3.38 with a 4 cents dividend in hand. Subsequently, if you had "Just Do It" as per my recommendation on September 11, that's probably around RM 3.35. As you can see, I had picked up on Liihen when nobody see it as a golden opportunity.

So, if you had followed on Hong Leong Investment Bank Research, then you would probably be catching Liihen at around RM 3.50. And it subsequently went to a high of RM 3.78

Lastly, if you are the retailer that will be just reading The Star Newspaper, then you will notice that on 23rd September, the newspaper highlighted on "Windfall for local furniture maker" due to restoration work from the devastation left by the hurricane in the US and Carribean. Of course, now Liihen price is at RM 3.67 as of Thursday closing.

My point is - the choice to enter at RM 3.38, or RM 3.50, or RM 3.67 - You know which is better, right ?

Alright, now I am not going to bullsheet so much on Hurricane, nor am I going to talk about Liihen today, because today, I need to reveal to you a company which you should take note seriously again. You would ask me - Why ah ?

To answer you this from top to toe, you ear hole might probably become as big as a bottle hole. So I had to avoid that from happening.

To cut it short - Morgan Stanley is buying this company for the past 6 months without stop !

This lead to your next question - Which company is this ?

Nonetheless, it is Media Prima Berhad (Media - 4502)

As you can see, Morgan Stanley had been accumulating on Media share, and break the 5% mark on April 2017. As of 6th April 2017, Morgan Stanley held 5.05% of Media share.

So what is the price Media is trading at during that time of period in April 2017.

According to this chart, Media is trading at the price of RM 1.20. Which means, any open market buy in by Morgan Stanley had to be seen at the cost of RM 1.20.

Now, Media had started to break out from a medium term down trend. As a matter of fact, the reason for Media share dropping into this point is much contributed from the impairment done to an invested entity by the name of MNI (Malaysia Newsprint Services), where Media held 21.4%.

Prior to this, I believe now Media is at a very clean state, and geared up for a better growth in the coming future.

For this reason, I had to tell you that ever since Morgan Stanley started it's buying spree in Media, it had not stop accumulating it's share from the open market.

According to the latest filing, Morgan Stanley held 7.89% of Media share as of 21st September 2017, which is an increase of 2.84% from April. And I had to tell you that Morgan Stanley is not seen to be slowing down on it's purchase on Media share from the open public.

But, Morgan Stanley is definitely not alone in this heist of Media share from the public. A public filing show that even our own EPF is buying into Media, and is currently holding 13.6% of equity interest in Media.

So, what had Media got to do with you ???

Since all the big fund taikors are buying into Media, I believe it wouldn't harm you much if you follow them to buy in into Media at the current price, right ?

Why now is the best time ? Because the above price chart shown you clearly that Media is currently at it's all time low for the past 3 years !!! All time low, and all the big fund taikors are buying in blindly or with intention, we don't have to know much - What matters much is are you going to buy in into Media or not ?

For now, I will not talk too much. I had to tell you that buying into Media now is the best ever timing!! Now, now, now!!! No other better time, and don't take too much time to think.

In my next post, I will share with you on my further analysis on
1) Why Morgan Stanley is buying
2) What is going to happen to Media
3) What can Media Prima do in the upcoming General Election.

But for now, the choice is yours. Media at RM 0.75 - Take it or miss it. Don't repeat a case of Liihen again.

When Disaster struck Japan, Yen rose stronger. Now Disaster struck US, can the US Dollar be stronger ?

noreply@blogger.com (Bonescythe Admin) — Tue, 12 Sep 2017 16:18:00 +0000

If we are to discuss about the effect of natural disaster towards the currency of an affected country, one fine example that should not be left out will be the year where Japan was stricken by an earthquake, followed by a huge tsunami that had punch a deep hole into the Japanese economy. Should your memory still serve you well, that disastrous event took place at 11th March 2011. A earthquake with strength being measured at 9.1 magnitude shook the waters, and sending huge amount of water flowing to Japan. Albeit the tsunami had send wrecking waves to the nuclear reactor in Fukushima, another notable event is that it had too send the local currency (Japanese Yen) towards the strongest moment in the 50 years history, trading at ¥76.25 against the dollar at one stage.

While many are wondering what is the cause for the Yen to rise, here is a quick take from a financial site. CNBC had outlined the process towards recovery will generate some level of stimulus. As a nation, that is the one right thing to do - towards the path of recovery. As you can see, a recovery effort will come from government stimulus, insurance savings and private companies from private savings.

Another reason is that the process to repatriate the money to change into Yen will also encourage a stronger Yen.

Since US is facing the recovery from both Hurricane Harvey and Irma, what is there for us to expect, especially on it's recovery process.

Currently, the US Dollar Index can had sank to it's almost lowest region for the past 2 years. Will this hurricane disaster change the course of the US Dollar strength ?

Do you foresee that the recovery process such as payout from insurance policy and repatriation of fund to the US to help the green back again ? As building material such as timber and furniture are imported, a stronger USD will also help in lowering the cost of recovery.

If you can foresee that USD might have a chance to become stronger again, it will be a good decision to invest in company that will benefit from a stronger dollar. To hedge your investment in case that the dollar do not really go as strong as you project, you can invest into company that will benefit from the mess of the hurricane havoc. To make your investment secure, you would probably choose a company that had delivered proven result in order to enhance your confident in your selection.

For the above 3 criteria, I have to tell you that Liihen indeed can fulfill all of them.

1. Liihen benefit from a stronger dollar. With the dollar at it's current weakest state in the whole year, it will be a great opportunity to take chance of it.

2. Liihen will benefit from the recovery by manufacturing more furniture and export them to the US. To back this up, more than 70% of the sales are export to the US.

3. Liihen had proven it's result consistently for the past 2 years, and is rewarding it's shareholder with quarterly dividend.

Not good enough ? Nevermind, I will tell you one more thing which is going to happen in Liihen, but another time. Cheers

When positive factor outweight negative factor in investment - Just Do It

noreply@blogger.com (Bonescythe Admin) — Sun, 10 Sep 2017 17:59:00 +0000

One of the very important factor that will surround the export oriented stock in Malaysia would be the strength of the USD against MYR. Undeniably, this will translate to huge forex gain, or vice versa, huge forex losses.

Ever since the US Dollar Index peaking out at January 2017, it had start to pare down for 8 months straight.

One of the factor with the raging US index is due to the foreign investment putting up bets in US equity in a view that the weaker USD is a good buying chance. The poor performance of the USD is substantially contributed by the longer than expected rate hike by the Feds.

Now with major disaster plaguing the US with Hurricane Harvey and Hurricane Irma, this will put the Feds holding back into the planned rate raising, hence, in turn, will result in turn result in the beating of the USD index further. Prior to such disaster, pundits gave a 30 to 40% chance that the Feds will raise the rates at the end of 2017, putting more pressure into the US Dollar.

However, if you invested in export oriented stock, I have to tell you that all is not gone yet.

One core reason is due to a golden hole created by such disaster, which in turn will turn into better demand for Furniture maker such as Liihen.

Fresh from the disaster of Hurricane Harvey which come with estimated economic damage of USD 100 billion, now US is facing yet another large potential with Hurricane Irma, which will undoubtedly causing another few billions again.

So how bad is Hurricane Irma ?

This image taken from the British Virgin Island at the Caribbean sea had display the wrath of Irma, razing out everything on it's path, with 90% of the building destroyed. While there hadn't been much updates in Florida for the time being, I think more news will start to surface as the storm passes and journalist start to witness the destruction.

To sum it up - Furniture manufacturing company will benefit from such disaster. You might be asking why ?

Firstly, we will be seeing huge insurance payment for the massive losses. That will be well spent in area for the rebuilding of house, which includes - house furnishing.

Secondly, for those who are not properly or well insured, the US president - Donald Trump, had approve a USD 15 billion budget to assist the affected victim, and passed by the Congress.

All this recovery effort will be a huge boost for building and construction company, not to forget, furniture manufacturing company.

Why Liihen is still a good bet for this case ? For an easy evaluation, we will look at the recent financial performance for a quick assessment.

For the case of Liihen, I will regard it as safe to annualize the earning due to such prospect. The demand created from recovery with existing demand will also help in putting a better gross profit margin in it's furniture sales.

Simple math putting it straight forward, projection of EPS at 40 cents, and valuing at PER x 10, that will sum up to RM 4.00 based on earning. As for dividend wise, we expect Liihen to continue to reward shareholder generously with probably 8 to 10 cents for the 2nd half performance.

If you are looking for a longer term investment horizon of 6 to 9 months, Liihen could be one of your preferred choice due to it's exposure in furniture export to the US market as highlighted previously in my post.

Hurricane Harvey blow a hole, but this company finds the gold

noreply@blogger.com (Bonescythe Admin) — Thu, 07 Sep 2017 17:53:00 +0000

One of the top global news would be the current natural catastrophe that had been plaguing the United States of America for the past week - Hurricane Harvey.

Albeit Hurricane Harvey being categorized as a Category 4 Hurricane, the onslaught of it's destruction power had been proven to be one of the costliest in terms of economical damage to the US history. Analyst had been putting up figures which are chalking above USD 100 billion in economic losses.

While it is a pitiful event for the citizen staying at the affected area - Houston and Louisiana, we continue to pray that the people will stay strong amidst this challenging times as relieve and support come into help.

In such a powerful hurricane, you would consider to be lucky if you house suffered from a ripped off roof. As for those house where sits at the traveling path of the eye of the storm, you can expect a power grazed to ground scenario.

House with water front scenario

Even Kimi Raikkonen can't do that

Is too bad, nothing can be salvage here

It is not advisable to swim in such condition

Movie uses CGI effect to make such flood. Harvey uses water to make such flood

One thing good about human being is that we will always rise up strong and move forward after a disaster. Now that Hurricane Harvey had completed it's job in drilling a economic hole into Houston and Louisiana, it is time for this company to dig out the gold inside the hole.

So what is so special about this company ?

According to my the latest quarterly report, this company derived 70% of it's sales revenue from the US. And, it is none other than Lii Hen Industries Berhad (Liihen - 7089)

As you can see, albeit the situation at the damage site is bad, but things do not stop there, and recovery and rebuilding will come in. For a developed nation such as United States of America, we are definitely going to see government support and relieve to help the victim in getting back their feet. Other than that, we will be looking to see insurance company unlocking that pile of cash from their banks account and compensate the victim, which in turn - benefit the economy.

As a matter of fact, US listed furniture company - Home Depot, had saw it's share price rambling upwards, gaining almost 4% since that event.

Since Liihen had strong export exposure to the US, I will be looking to see this event to contribute to Liihen upcoming revenue in the next 6 months. On technical outlook, Liihen continue to see a strong display of uptrend backed with strong financial result.

Of course, now the ball is at your side to see if this opportunity is a good deal for you. As for me, I had laid down some facts of event, you can justify your investment as a good bet, or bad ball.

Plastic and Packaging always go hand in hand

noreply@blogger.com (Bonescythe Admin) — Sun, 20 Aug 2017 16:14:00 +0000

Tough times are good times, provided you know how to capitalize that moment correctly. Many a time, we could be telling ourselves to buy when the market had dipped. But when the actual event happen, 80% of us fail to execute and rather go with emotions. That is the difference of planning, and really executing something. Comparing between an execution that is done based on planning and an execution done based on emotions and impulsive decision - It is a fact that the later factor (emotions) is far more influential.

At a tough times like this, if you can be given a chance to spot a good company with profit and dividend record at a reasonable price - Would you invest now ?

That right - I found out that BP Plastics Holdings Berhad (Bpplas) might be the company suitable for this category.

Basically, Bpplas is involved in industrial packaging and stretch film manufacturing. This segment had been touted as a high potential segment due to the growing packaging demand in the Asia region. If you would want to have a in depth information on the products and offering of Bpplas, then it will be good for you to visit their website directly for more information.

As for me, I am going to share with you my analysis - Why I think Bpplas 2Q 2017 performance will be better than the 1Q performance.

One of the core reason for the drop of net profit reported for the performance on 1Q 2017 is due to higher resin price, with resulted to higher raw material input, hence reducing the gross profit margin. Now that the price of resin is somehow positively correlated to the movement of crude price oil, a higher crude oil price will result in a higher resin price, while a lower crude oil price will see a lower resin price - theoretically speaking.

So if this chart which show a supposing lower average of crude price in 2Q compared to 1Q, it is valid to assume on a lower price of resin, and hence, a lower input cost for Bpplas as a whole. Of course, you have the rights to doubt me on my point of sharing. However, I had did a similar analysis earlier on the share of Guan Chong Berhad (GCB), depicting that the lower cocoa prices will boost the business margin moving forward. That was done when GCB is trading around the range of RM 1.05. And as a matter of fact, GCB latest result display a higher net profit albeit seeing a drop in revenue. But that is not the important thing, because the important thing is that GCB went on trading at a high of RM 1.65, and that I am talking about almost 60% capital gain in nature.

As for Bpplas, my outlook is that crude oil prices will continue to be suppressed at the range of USD 50 for another 2 to 3 years to go. It could maybe end up lower as supply gluts persist, and a drop in demand will put the oil market into high wave rough waters. Of course, as crude oil price drop, raw material prices drop, and Bpplas will have a better control over their margins.

Now, put that to some simple technical reading, Bpplas had obviously traded below the support line of RM 1.44. The drop below is contributed from the weaker equity market sentiment, but it will not be significant as the fall did not consist of huge dumping in volume.

Speaking of dividend, the company had deliver a consistent quarterly dividend for the past 6 quarters.
For the latest 4 quarter, the total dividend distributed is 8 cents. At the current price of RM 1.36, the potential dividend yield is at 5.88%.

Being a net cash company, I would expect that Bpplas will continue it's dividend policy.

Now Bpplas is almost at the rock bottom price. However, should the coming result announcement reflect a better EPS, you can expect Bpplas to trade back above to the support price of RM 1.44.

Superman downed in rubble, but Supermax will grow with rubber

noreply@blogger.com (Bonescythe Admin) — Wed, 09 Aug 2017 16:28:00 +0000

You can call me thick faced hard sell on Supermax. So, I had to tell you - Yes I am indeed thick face hard selling on Supermax, but with a condition - When Supermax is currently trading at the price of RM 1.90.

I recall those hard time during last year (2016) when one of the stock that I had been recommending is not moving despite displaying convincingly good results with growth. That stock was Arank. I remember recommending Arank when it is just trading at a mere 70 cents region, and the stock continue to stay stubborn, not until the sentiment starts to recover, and Arank starts to get it's momentum and now Arank is trading at the range of RM 1.10.

As you can see, investing during tough times takes a lot of patience in order to see your fruits blossom. But firstly, the fruit that you choose must be healthy and not infested with worms.

Now come back to Supermax.

Talking on business fundamental, Supermax is definitely a fundamentally strong company. Given consistent dividend and showing growth from year to year basis.

Despite that, Supermax is now trading at an all time low position, with share price going far back into the 2013 price range. Yes, you can argue that this company could be shun by investor due to some governance issue such as insider trading and also being accidentally involved in some political talks. But those are past and I think potential investor should not punish themselves by losing out this opportunity by clinging on the past issue. After all, past is past, and what we are going to do in the present world will determine the future.

Now, I have to tell you that the glove industry actually do not depend largely on medicine industry alone. In fact, manufacturing sector such as semiconductor industry are consuming high amount of gloves due to the operation in the cleanroom environment.

With the thriving business in the semiconductor industry, the demand for gloves usage is continue to be on the rise. Healthcare also continue to see consistent demand, while seasonal flu in various countries will push demand higher for a certain period.

Hartalega, being one of the leading gloves manufacturer in the world had recently reported a 71% increase in net profit.

I believe this surge of revenue is industry wide effect, while one of the leading factor will be the stronger USD.

For the period of Jan to Mar 2017, Supermax had a total revenue of RM 308 million. For the same comparative quarter, Hartalega had RM 527 million. Hartalega latest financial result Apr - June 2017 shown RM 601 million in revenue.

Should this be an industry wide benefit, what we can assume is that Supermax revenue could be able to linger at the range of RM 350 million, and probably looking to see EPS around 3.5 cents.

Based on a projection of annual EPS at 12.72 cents and trading at an industry PE of x 20, Supermax valuation can be looking at RM 2.50

At the current price below RM 1.90, Supermax is deem undervalued from an industry perspective.

Will Supermax wake up soon ? I hope before he wakes up, you are on boat for the ride.