Thursday, September 30, 2010

Supermx - Catching the falling knife ?

Take a look of above, SUPERMX, just like a waterfall. Did you catch this falling dagger recently ? Right from RM6.60 to now RM3.79. What a drop !! Almost RM2 just disappear in about 2 months time. Take years to climb but take months to drop. How scary is stock market!! The higher it go the harder it fall.

SUPERMX is very much in oversold position but how much more can it drop? nobody knows. I believe many punter waiting for an opportunity to capture the rebound but by how much it will bounce back. I don't know either. Seem like the selling is still persistent. Fundamentally still intact but better stay aside till the dust settle before touching it.

SUPERMX may suffer some set back due to strong ringgit as this diminishing its profit and the lower demand may dampen the coming revenue as H1N1 is almost become a norm to majority.

Wednesday, September 29, 2010

Buying an iPhone 4?

Mobile operators, Maxis and DiGi launched Apple’s latest version of the hugely popular smartphone, the iPhone 4, with some fanfare last week.

The smartphone, first unveiled during the 2010 Apple World Wide Developers conference in early June, has enjoyed brisk worldwide sales since then — despite the highly publicised antenna attenuation issue.

Indeed, it would appear that most Malaysians are unfazed and have been eagerly awaiting the arrival of the iPhone 4 based on last week’s reports of long queues. DiGi indicated that some 30,000 people registered their interest in the product prior to the launch.

Interestingly, the two telcos have decided on somewhat different pricing strategies to attract subscribers. Maxis is offering much higher handset subsidies on the back of more costly data plans. DiGi, on the other hand, has opted to keep handset subsidies to a minimum and is offsetting the higher phone prices with cheaper data plans.

Maxis or DiGi?

For those deciding between the two operators, we have summarised the packages offered and the monthly costs, including the price of the phone over a 24-month period.

DiGi offers subscribers a cheaper entry point. Its lowest package is priced at RM153.20 per month, assuming a 24-month contract and instalment for the phone over the same duration. For those who sign up for auto-billing, there is an additional RM5 rebate off the monthly bill. In this case, the price of our cheapest package example would be roughly RM148 per month — compared to Maxis’ cheapest package costing RM163 per month.

Subscribers should also note that Maxis charges for additional data download exceeding the package quota, up to a maximum of RM250 per month, and its free SMS and MMS are only applicable for Maxis to Maxis lines.

As a rough guide, studies undertaken in the US indicate the current monthly data consumption for iPhone users average around 300MB to 400MB per month. The actual data consumption, of course, depends on the individual user.

On the other hand, Maxis boasts of a wider 3G network, its coverage extending to about 60% of the nation’s population. DiGi’s coverage stands at roughly 35% but is targeted to rise to 50% by end-2010.

Both companies are expected to continue expanding the width and depth of their networks to cater to the rapid growth in data consumption. In particular, growing popularity of streaming applications is expected to raise data consumption levels exponentially over the next few years.

Monday, September 27, 2010

Buying More C Tonight

Have placed a buy order @ $3.85 for C. Capitalised on the low USD (About RM3.08/RM3.09 per dollar). Add more stake on C. :)

Saturday, September 25, 2010

Eating in or out

"Ying Yong Prawn Roll" that i had yesterday together with friend after a sweat out....

IS it really cheaper to cook at home than to eat out? Well, that really depends on many variables such as what’s served on the plate and where you eat.

The consensus though appears to be leaning towards the fact that one tends to spend more money eating out.

But if it’s for just a single person, then you could be saving more by eating out. For example, if one wanted to prepare a simple meal at home – a meat and vegetable dish with rice and necessary condiments – those groceries could cost more than opting for a quick fix like a burger, fries and a drink from a drive through which would come up to less than RM10. For that matter, a plate of rice with vegetables and meat outside could also come up to RM5.

If it’s for just a single person, then you could be saving more b y eating out. On the other hand, regular grocery shopping is definitely more cost effective than eating out.

On the other hand, regular grocery shopping is definitely more cost effective than eating out. Not all agree though.

Some feel there’s a price attached to time (there can never be enough hours in a day) and think cooking, which requires a lot more time and resources, is still more expensive.

Typically, the price of restaurant food in a shopping mall is higher than the actual food cost as restaurants do not just charge for food, but the ambience and so forth.

Jasmine Tan, a 28-year old executive, prefers take-aways. “It is easier to buy fast food on the way home from work. Who wants to go home after working all day and spend another hour or so fixing dinner? I sure know I don’t.”

She says she cooks occasionally over the weekends but realises it is far more expensive than calling for delivery or going out to the neighbourhood stalls.

“Groceries are expensive these days. I once bought broccoli, lettuce, carrots, tomatoes, pasta, chicken meat, some canned soup, instant noodles and the bill came up to about RM50. And my shopping basket was not even full.”

No wonder Tan opines that eating out is fairly economical, especially for a single person. Of course, eating out has its perks too – no need to set and clean the table, wash the dishes and clear the mess in the kitchen.

“If you live alone, there’s less of an incentive to cook. I think it is less economical to cook for one than to cook for a few people,” she says.

But not everyone shares that option. Emily Lee, a mother of two, says: “Eating out every day would be bliss so I don’t have to cook. But for me, it’s a luxury. We used to eat out everyday but we have been cutting down on that.”

Eating out, she contends, is far more expensive. “The restaurant charges at least RM5 for a glass of orange juice. It cost less than that if you buy from the grocery store. I could take advantage of the promotions as sometimes some stores offer twin packs for fruit juices,” says Lee.

She adds that the money saved from dining out can seem dismissable now, but over the course of a year, would end up being quite substantial.

However, she is not stingy when it comes to grocery. “Admittedly, I spend a fair bit on groceries. Sometimes, I insists on buying organic or speciality products and of course these products cost more.

“We do eat out as well but not extravagantly. Saturday night is usually our eating out night and we usually dine where the kids want to,” she says, adding that she spends around RM140 a week on groceries.

“Sometimes we spend more, especially when we get lots of fruit and vegetables. We are usually out of fresh food by Saturday. But RM140, by and large, covers most of all our basic meals and my kids lunch boxes,” Lee says.

Another young executive, who prefers to eat at home, says you obviously save money because eating out costs more for the same things – for example, buying and cooking fish fillet is generally cheaper than buying fish and chips at a restaurant.

So, is eating at home cheaper than eating out? Ultimately, it’s important to find a balance that works well for you and your budget. Even so, don’t forget to give yourself a gourmet treat every now and then.

Thursday, September 23, 2010

Stronger Ringgit means what ?

KUALA LUMPUR: The appreciation of the ringgit to a fresh multi-year high has not gone unnoticed in recent days as investors snapped up emerging market, including Malaysian, assets across Asia.

This is in anticipation that regional economies would exhibit stronger economic growth compared to advanced economies in the US and Europe.

Against the current landscape, one may ask which sector or companies are deemed beneficiaries or losers amid a firmer ringgit ?

According to analysts, beneficiaries of a stronger ringgit include the plantation, automotive, consumer and airline industries.

Meanwhile, losers include glove makers although these companies can, to some extent, pass down their costs, besides oil and gas entities which have contracts denominated in US dollars, and semiconductor players.

Local companies worth noting include power sector players Tenaga Nasional Bhd and YTL Power International Bhd.

It is not unusual for Tenaga to be among the top in the list of winners due to its sizeable foreign debt. YTL Power is deemed to be less affected because although it has dollar loans, it also has revenue denominated in sterling.

A stronger ringgit essentially means companies’ US dollar debt will be less in local currency terms. But export-based firms whose transactions are mainly done in US dollars will also see their income shrink when converted into ringgit.

Meanwhile, plantation entities are expected to gain from a reduction in fertiliser costs, which are denominated in the US dollar. However, as palm oil is transacted in US dollars, a strengthening ringgit does not bode well for plantation companies as their US dollar-denominated income will be less in ringgit terms.

It is worth noting that investors are hedging the risks of a weak US dollar by investing in commodities. Since 2005, the movement of the US dollar has had an inverse 90% correlation to palm oil prices.

Among automotive firms, UMW Holdings Bhd and Tan Chong Motor Holdings Bhd are deemed winners as their costs are primarily in US dollar terms as opposed to Proton Holdings Bhd and MBM Resources Bhd which pay in yen.

Airlines in general will benefit from a stronger ringgit because jet fuel expenses which are priced in US dollars will be cheaper in ringgit terms.

Fuel constitutes a substantial portion of airlines’ cost structure, making up 31% and 45% of Malaysian Airline System Bhd’s and AirAsia Bhd’s operational expenditure, respectively.

Wednesday, September 22, 2010

Spontaneous Act On Gamuda-CM

Today making a quick deal by buying Gamuda-CM at 0.235 and disposing them all at 0.24, earning a mere 0.005sen. :)
This trading is done out of spontaneous reaction, have no pre-plan intention before hand. Lucky to slip through with some lunch money, enough to cover for whole of next month. :) ha ha ha ha

Don't try that dude, this act is extremely dangerous, it defy my investment strategy !!

Tuesday, September 21, 2010

Telcos are good for yields

My next target would probably be Telcos..........?

Despite the cellular market’s relative saturation — with penetration rate estimated at roughly 116% — key players continued to chalk up positive subscriber growth in 2Q10. Maxis, Celcom and DiGi collectively added some 652,000 subscribers in the last quarter, bringing the net increase for 1H10 to 1,515,000.

The new additions were underpinned by growth in the pre-paid cellular and mobile broadband segments while the number of post-paid subscribers shrank slightly.

Unsurprisingly, blended average revenue per user (ARPU) remained in a declining trend given the lower revenue from pre-paid subscribers. Some of the telcos, including Maxis and Celcom, have launched cheaper packages for their mobile broadband services — from as low as RM48 per month — to attract greater numbers.

Maxis: New subscribers yet to translate into stronger earnings In terms of absolute numbers, Maxis garnered the biggest share of new subscribers in 1H10, followed by Celcom and DiGi. However, the company also registered the slowest pace of revenue growth of only 2.3% year-on-year (y-o-y) while net profit actually dipped 5% from the previous corresponding period.

By comparison, Celcom’s revenue and net profit grew a robust 13% and 27%, respectively, during the same period. Maxis attributed its weaker results, in part, to its more aggressive marketing and promotion activities including sponsorship for the 2010 FIFA World Cup.

On a more positive note, we expect margins to improve in 2H10 from that in 2Q10 as it reaps benefits from the higher subscriber numbers.

Nevertheless, net profit is likely to be lower for the year, we estimate at RM2.18 billion or 29.1 sen per share. That implies its shares are already fairly valued at 18.4 times our estimated earnings at the current share price of RM5.37.

As such, we are unlikely to see fresh impetus for the stock, at least not without material improvement to its prevailing outlook. Investors are, however, hoping for a special dividend, on top of the company’s quarterly payout of eight sen per share. Assuming a special dividend of three sen per share, dividends will total 35 sen per share this year. That will earn shareholders a better-than-average net yield of 6.5%.

Mobile broadband (through the use of USB device) remains the fastest growing market segment, albeit from a small base. Maxis, Celcom and DiGi added some 459,000 new subscribers in the first six months of 2010 — or equivalent to an increase of more than 56% from end-2009.

With the increasing affordability of laptops and netbooks as well as the need for anytime-anywhere connectivity, there is certainly room for further growth. Indeed, new mobile broadband subscribers outpaced fixed broadband by about eight-to-three in 1H10.

The potential market for mobile Internet (through smartphones) is even larger. There are over 31 million mobile phones in use, or more than 10 times the estimated number of laptops and netbooks in the country. Whilst the percentage ownership of smartphones is still low, their popularity is rising rapidly.

DiGi banking on data to drive growth

Most telcos are betting on data consumption to drive earnings growth going forward. Data revenue made up some 20.5% of DiGi’s revenue in 2Q10, of which mobile Internet accounted for over a quarter of the contribution, more than doubled that in the previous corresponding quarter. DiGi estimates that over 2.72 million of its subscribers currently access the Internet at least once a month through their handsets.

The company fared quite well in 1H10, with revenue and profit growing by 8.3% and 9.2%, respectively from the previously corresponding period. Nonetheless, the stock too appears fairly valued at 17.4 times our estimated earnings of RM1.1 billion or 142.7 sen per share.

However, like Maxis, steady dividends are the primary attraction for investors. Assuming a 100% profit payout, DiGi will earn investors a net yield of 5.8% at the prevailing share price of RM24.80.

Estimated share of new broadband subscribers in 1H10

Indeed, higher than market average dividends appear to be a common thread for domestic telcos.

TM: Returns from HSBB only in the long run. Telekom Malaysia too has a generous dividend policy — minimum RM700 million payout or up to 90% of profits, whichever is higher. That works out to roughly 19.7 sen per share, which will give shareholders a net yield of 5.7% based on the current share price of RM3.44.

The higher than average yields are keeping its share price afloat, in the face of rather disappointing earnings. Net profit dropped 43% y-o-y in 1H10 to RM183.6 million (excluding forex and exceptional gains/losses).

Telekom is banking on its high-speed broadband (HSBB) project to spur growth going forward. The voice telephony business is in slow decline. The company aims to cover 1.3 million households for its fibre-to-the-home broadband services by end-2012.

Its UniFi services are now available in 22 areas with some 550,000 premises passed. Telekom indicated it had some 12,000 orders as at mid-August 2010 but meaningful boost to profit is only likely in the longer term. Thus, near-term capital gains for the stock appears limited with the stock trading at about 20.2 times our estimated earnings.

We will discuss a little bit more on the fixed broadband market in our next article. The key players in this market segment are Telekom’s Streamyx and Green Packet’s P1.

Monday, September 20, 2010

BToto 1Q net profit RM63.95m, down 36%

Borrowing = 500millions.
Dividend 8sen = 108millions

There goes the 1/5 of borrowing to dividend of 8sen. Likely Bjtoto share price will get depress further mainly due to a lower profit of 1Q result. I think there is still a dividend to be declared in next Q (2nd) from the borrowed money. They are going to resume by giving dividend on every quarter again i presume. In fact is not a bad idea though.

See below news.....

KUALA LUMPUR: BERJAYA SPORTS TOTO BHD posted net profit of RM63.95 million in the first quarter ended July 31, 2010, down 36% from RM100.45 million a year ago mainly due to the increase in pool betting duty.

It said on Monday, Sept 20 that revenue declined to RM835.4 million from RM826.16 million. Earnings per share were 4.78 sen versus 7.97 sen.

It declared dividend of 8.0 sen versus 49.5 sen a year ago.

BToto said Sports Toto, the principal subsidiary, registered an increase in revenue of 1.0% but recorded a decrease in pre-tax profit of 23.6% mainly due to the increase in pool betting duty from 6% to 8% with effect from June 1, 2010 coupled with the relatively higher prize payout in the current quarter under review.

Saturday, September 18, 2010

Intraday Gain on DRBHCOM !!

Manage to slip through by an intraday gain on DRBHCOM. :)
Believe the upside still in tact. Since i am just aiming for hit and run will not chase high. :)
At this juncture, this is the best method to adopt, we won't get caught if anything were to happen.

Yesterday try to place more C but failed to get any, will try again next week. Till then happy trading.

Thursday, September 16, 2010

Mamee committed to long-term growth

Mamee-Double Decker (RM3.40) is committed to the longer-term growth of its food and beverage (F&B) business. The company is sticking to its multi-pronged strategy, with the aim of doubling revenue within the next five years.

With prevailing valuations at roughly 10.6 and 9.4 times our estimated earnings for 2010-2011, respectively, we believe there are good prospects for the stock in the long run. Plus, shareholders will earn fairly attractive net yields of 4.7% and 5.3% for the two years, based on the company’s minimum 50% profit payout policy.

Focus on expanding local market share

Mamee believes that new products and a wider reach will expand its domestic market share and underpin growth over the next few years.

The company has a good track record in creating and building some of the most enduring brands over the past four decades, including Mamee instant noodles, Mamee Monster, Double Decker and Mister Potato.

The two new products launched in April 2010 — Mister Potato Rice Crisps and Mie Goreng Indonesia — were very well received, with sales exceeding the company’s original targets. That helped boost sales, which rose 17% year-on-year (y-o-y) in 2Q10. For the first six months of the year, sales were up 21% y-o-y to RM235.6 million.

With the recent commercial operation of a new production line for Mister Potato, the company now has the extra capacity to export its Rice Crisps — touted as a healthier alternative snack with no added MSG and less fat. More new products are in the pipeline, including a beverage — under the Cheers brand name — before end-2010.

At the same time, it has expanded its sales force by some 10% — in addition to stepping up incentives for its 150 distributors and wholesalers. Currently, Mamee estimates that its sales and distribution network only covers about 60% of the country. To tap the underserved suburban and rural areas, it has also turned to a more direct channel — buying a fleet of vans for its sales team.

Industry statistics estimate Mamee’s share of the snacks market at over 31%. The segment accounted for about 58% of total sales in 1H10. The second-largest revenue contributor is instant noodles, which made up some 23% of sales in the first half of the year. The company believes that it could expand its share of this market, estimated to be worth some RM1 billion annually, further.

Thus, we expect renewed focus, which could include new products, in this market segment next year. Currently, Mamee is estimated to have roughly 14% market share, behind market leader Maggi, manufactured by Nestle.

Exports to support longer-term growth

To support longer-term growth, Mamee is investing greater efforts in widening the export markets.

It has done well, to date, exporting to over 80 countries and accounting for more than 32% of total sales in 1H10. Some of its biggest export markets now include Australia, Singapore, Russia, Hong Kong and the Netherlands.

Going forward, the company plans to focus on neighbouring countries like Thailand, Indonesia, Singapore, Vietnam and the Philippines — where the collective population base offers significant growth prospects. It may form strategic alliances with local F&B companies for greater effectiveness, especially with respect to distribution. The target is for exports to contribute at least 50% of sales.

Its strong balance sheet is well able to support future expansion plans with net cash and equivalent totalling just under RM90 million at end-June 2010. Capex is estimated at around RM30 million per annum. Indeed, we expect Mamee will have no trouble maintaining its fairly generous dividend payout.

Fairly attractive valuations and yields

Mamee is on track to achieving double-digit topline growth this year. Nevertheless, earnings have fallen a little short in 1H10, affected by a confluence of factors. These include higher advertising and promotional expenses during the Fifa World Cup, marketing for its new products as well as the strengthening ringgit. The company intends to adjust selling prices for exports early next year, which should help boost margins.

Net profit dipped to RM10.6 million in 2Q10 from RM12 million in 1Q10. Nevertheless, earnings in 1H10 were still 6.3% higher than a year ago.

We forecast net profit to grow by about 7% and 12% to RM46.8 million and RM52.5 million in 2010 and 2011, respectively. That implies its shares are now trading at relatively attractive forward P/E of about 10.6 and 9.4 times.

Plus, shareholders are expected to earn net yields of 4.7% and 5.3% based on Mamee’s minimum dividend payout policy of 50% of annual earnings for the two years. Net tangible assets stood at RM1.57 per share at end-June 2010.

Wednesday, September 15, 2010

DRBHCOM Something Wrong Someway ??

Rolling EPS for latest 4Q = 30.12sen
PE = 3.82sen !!!!!!!
Average Industrial PE = 13sen

U see what i see ?? How much would it worth, say if it trade half the AI PE @ 6 ??
I wonder why EPF still disposing non-stop ??

Saturday, September 11, 2010

Genting HK: a turnaround story

SOMETIMES the headlines don't tell the whole story. A case in point is the recent results of Genting Hong Kong.

The company recently reported a first-half net profit of US$12 million, reversing a loss of US$34.5 million during the same period last year (though Genting HK was a different animal then). But after stripping out US$14.4 million in one-off gains, Genting HK turned in a core net loss of US$3 million for the first six months of this year, a figure which fell far short of analysts' estimates of some US$96 million.

But what the market appears to have missed is the fact that this company made a huge turnaround during its second quarter.

Genting HK, once known as Star Cruises, is a three-pronged US$1.9 billion market-cap gaming entity comprising Star Cruises in Asia, Norwegian Cruise Line (NCL) in the US, and Resorts World Manila (RWM) in the Philippines.

The interesting bits about the company emerged during a briefing provided by management a day after the Aug 28 results.

During the briefing, the company's management said gaming turnover numbers had exceeded all expectations during the second quarter, and hinted that the numbers in July and August continued to take off. Analysts and some of the more privileged investors were told that on some days, wins at its Manila casino could match any other casino in the world, based on return on capital invested.

The best daily win last month exceeded US$7 million, the equivalent of S$10 million. This should be a familiar number to anyone who recently followed the results unveiled by Genting Singapore's Resorts World Sentosa, which reported over S$900 million in revenue for the quarter, or S$300 million a month, which translates to S$10 million in takings per day.

The interesting thing is that RWM achieved this with minimal marketing effort and without the huge capital outlays of the Singapore casinos.

The casino, which is still in its early stages of development, currently operates 199 tables and 1,200 slot machines. This is expected to increase by 50 per cent when it opens its third gaming floor in the final quarter of this year. But RWM has also identified a second site, and has a gaming licence allowing it to operate some 2,000 tables and 7,000 slot machines over the two sites.

In comparison, RWS and Marina Bay Sands each have about 500 tables and 1,300 slot machines.

There is a nice parallel here with Genting Singapore which, after a somewhat undistinguished start marked by a huge writedown of its London gaming assets, took off during its second quarter to post S$396 million in earnings to end-June.

But Genting HK has several advantages over its Singapore cousin and Malaysian parent.

For one thing, the captive Philippines market is young and huge, with its population of almost 100 million. And as the only luxury casino in the country, it faces minimal competition.

Meanwhile, reports emerged yesterday about the Genting group entering into in discussions with the Philippines government on the possible purchase of the latter's state-owned gaming assets. These assets, held under state-controlled PagCor, comprise over 40 small casinos which raked in almost S$900 million in income during 2008. If this latest deal does happen, it could significantly enlarge Genting HK's gaming portfolio and revenues.

Meanwhile, through its Star Cruises, which has been plying the Hong Kong-Taiwan route since May 2009, Genting HK is laying the foundations for its involvement in Taiwan's ambitious integrated resort project. The Taipei government has reportedly already appointed consultants to look into this.

Numbers are important and do tell a story.

But sometimes, looking beyond just historical earnings data, and listening to guidance provided by management, can provide more colour and clarity about the outlook and prospects for a company. In the case of Genting HK, the picture appears a lot more colourful and exciting than its first-half earnings numbers suggested.

Wednesday, September 8, 2010

REITs: Expanding portfolios

Locally listed real estate investment trusts (REITs) appear to be on an expansionary path with quite a few announcing new asset acquisitions, so far this year. This is positive for the sector in terms of attracting more investment funds on the back of a larger asset base and improved liquidity.

Malaysian REITs in general still offer fairly good yields, estimated to range from 6% to 8.4%, with a simple average of about 7.5%.

Enlarging asset base

Among the latest to announce new acquisitions is Amanah Raya REIT (ARREIT). The trust has proposed to buy three properties from PKNS for a total of RM270 million. The properties would then be leased back to the latter under a 12-year agreement, thus ensuring full occupancy for the duration.

The purchase will be partially financed by the issuance of some 122.7 million new trust units, priced at 88 sen per unit. Total units in circulation will increase from the existing 573.2 million to 695.9 million.

This latest proposal is the trust’s second acquisition this year. Earlier in May, ARREIT completed the purchase of two properties — Selayang Mall and Dana 13 — worth a collective RM227 million.

Upon completion of this latest proposed acquisition, total assets will rise to RM1.27 billion from the current RM995.8 million. Currently, its portfolio consists of 15 properties in the hospitality, higher education, commercial and industrial segments.

Meanwhile, Axis-REIT is also aiming to boost its asset base over the RM1 billion mark by the end of this year. The trust has already completed the acquisition of two logistic warehouses in Seberang Prai for RM26.5 million in 1Q10 and is currently in the midst of finalising the purchase of four other properties worth RM240 million.

Upon completion, targeted by October 2010, Axis-REIT’s asset base will reach RM1.2 billion. The trust is further evaluating potential acquisitions valued at some RM190 million including logistic and retail warehouses in Johor and an office building in Cyberjaya.

To part-finance the new purchases, Axis-REIT will be issuing some 68.8 million new units priced at RM1.97 each, enlarging its total units in circulation to 375.9 million.

Elsewhere, newly-listed CMMT is evaluating the viability of acquiring a nine-storey retail extension block adjoining the Gurney Plaza, valued at some RM215 million. The acquisition would add 135,000 square feet of net lettable area to CMMT’s existing portfolio.

CMMT owns three shopping malls — the Gurney Plaza in Penang, 205 strata parcels within Sungei Wang Plaza (which is about 61.9% of the mall’s retail floor area plus car park) and The Mines in Selangor — valued at a collective RM2.13 billion with net lettable area totalling almost 1.88 million square feet.

AmFIRST REIT too has proposed to acquire a retail lot in The Summit Subang USJ — with net lettable area of 37,372 square feet for RM6.8 million — and the FBSM Plaza for RM51.5 million.

The trust already owns the Summit Hotel, about 70% of the retail space in the mall and 12 out of 13 office floors — with net lettable area totalling nearly one million square feet. Its existing portfolio of six properties is valued at just over RM1 billion.

Quill: Trading below NAV

Quill Capita Trust is among the cheaper valued REITs, in terms of price to net asset value — currently trading at only 0.8 times its NAV of RM1.22 as at June 30, 2010.

Thus, the trust could offer investors potential capital gains, on top of steady yields. We estimate income distribution to total about 7.9 sen per unit for the current year, which would give investors a yield of 7.9% at the prevailing unit price.

The trust, which invests primarily in commercial properties, was listed back in January 2007. From the initial four Quill buildings in Cyberjaya, its portfolio has expanded to 10 properties worth over RM788 million.

Its properties are located in Cyberjaya, Kuala Lumpur, Selangor and Penang with net lettable area under management totalling more than 1.288 million square feet. As for future expansion, Quill is believed to be currently looking at two properties within the Klang Valley worth some RM400 million.

Tuesday, September 7, 2010

No Reasons To Hang On GENM

Gotten rid of my GenM at RM2.99, can't wait for the pathetic 3.6sen dividend. :(

The disposal will allow me to unlock more money standing by for next purchase. Really disappointed with GenM though with the shares buy back activities, price still retreated. Of the two investment between GenM and GSP, GSP give the most capital appreciation for me even though the two investments were almost bought at the same time. Today GSP closed at S$1.81, my gain is almost 160%, comparatively with GenM only garnered a mere overall 6.6% gain. :( What a big different !!!

GenM's long awaited special dividend was in vain, price appreciation is slow, shares buyback unable to leap big gain. I don't know what else to hope for ?? Money was waste big time doing RRPT and their investment would likely hard and long before an actual result would be seen probably after few years time. I see no reasons for me to keep any longer, maybe an obvious improve earnings will spike my interest again in near future. 

Monday, September 6, 2010

Switching More To REITs

Recently added myself with more REITs. ARREIT and STAREIT are now under my belt. As market drive higher i am cutting my portfolio to REITs. I am almost 40% on REITs now. Still planing to increase further when i am able to liquidate more of my shares.

Looking at current state, CI 1500 become imminent. I am quite optimistic that Malaysia will hit historical height and probably will happen by year end or sooner. When everybody think so, it is also likely the time for us to think back. Do you want to get caught again ?? I have been around the past time, certainly won't not want to get caught again. Better precautions dude.

Sunday, September 5, 2010

DRBHCOM Worth A Short Term Trade

Not my preference but i think this counter worth a short term trade. Yes, the stock that i mentioned here is DRBHICOM. DRBHICOM's business derive from the followings sector:-

Automotive 57%
Property & Construction 3%
Services 40%

See its recent insight :-

Sep-08 Completed acquisition Rangkai Positif and 70% Bank Muamalat Malaysia through new issue of 926m shares.
Nov-08 Setup an automotive cluster in Saudi Arabia.
Jan-09 Acquire 3 land areas in JB for RM722m, abt half will be financed by sale of its 5 plantation areas for RM341m.
Jun-09 Minimal impact on its JV from the bankruptcy of GM in US, as they are separate entities.
Dec-09 Announced discontinution of its JV with GM to distribute Chevrolet vehicles in Malaysia.
Jan-10 Proposed a 32% capital reduction in 79% subsidiary EON, to take it private. It is in preliminary discussion to dispose Bank Muamalat stake to Bahrain banking group, Al Baraka.

Recent dividend of 2.5sen was announced. A mere DY of 2% based on current price of RM1.14. 1Q EPS registered a 8.16sen, increase by 300% from its corresponding Q. Taking its rolling 4Q as forecast, we get an EPS of 30.12sen for full year, that would means a PE of 1.14/30.12 = 3.78sen. My simple way of FV = 4 x 30.12 = RM1.20. Another 6sen upside from RM1.14, worth for a short term trade.

The benefits are :-
a) ride on 2nd & 3rd liners wave now.
b) recovery is expected to gain momentum. (Strong growth expected for Malaysian Auto Industry)
c) CI expected to remain resilient
d) GLC player
e) At current price at RM1.14, down side is low and potential up side is great.

The set back are:-
a) EPF is disposing a lot....
b) Profit is damn volatile

Thursday, September 2, 2010

KFIMA Profit Remain Steady

Still keeping my Kfima tight, though have sold some at RM1.03 the other day. The 1Q result seem steady eventhough overall profit was drag down by foreign operations due to foregin currency exchange. Revenue increase by 19% from previous corresponding period. Gross profit also jump by 41%. EPS stood at 6.60sen. Just take its rolling 4Q as a forecast for the remaining Q, as this would be quite close to reality and conservative calculation :-

Q2 - 3.75
Q3 - 6.88
Q4 - 4.68
Q1 - 6.60

Total forecast EPS = 21.91sen

Dividend = 5sen
Raise my FV = 6 X 21.91 = RM1.31
Related Posts with Thumbnails