Monday, February 28, 2011

Scalp Trades Dated 28/2/2011

1. Today's scalp trades as follows :-

RCECAP - Sold first at 0.52c, Buy back 0.515c

2. Received PBBANK dividend today. :) Still pending more dividend to come. :) Maxis has just announced its 8c dividend and a Q4 result. Financial year end net profit of 2.3b and increased by 45%. very good result indeed, this will create more upside tomorrow hopefully and i will be able to get ready to liquidate my Maxis-cd by then. :)

3. I was surfing net yesterday using my laptop and out of sudden i get this message "Windows has encountered a critical problem and will restart automatically in one minute. Please save your work now." My laptop goes restart after one minute lapsed but i wasn't able to bring up the computer after that, even if i manage to do so, the message keep appearing and restarted after one minute. :( For a moment i was thinking to reinstall the entire OS. :( Finally, this is what i did, i dismantle the laptop battery and reinsert back and i manage to boot up the system normally but the above message still keep coming persistently. I decide to google search the message and this is where i found the link here to resolve my problem..... luckily. :)

Sunday, February 27, 2011

Received CMMT's First Maiden Dividend

1. Just gotten a cheque of CMMT dividend. Wonder why not in eDividend ? Probably is still in the process of converting to eDividend ? I expect more to be coming in next week. :)

2. Just received my GENM-CL cash settlement. :) Coming on the right time for a higher margin of trade for me.

3. One of the stock, which i now rate it as gamble, but this gamble could turn out to be a very fruitful stock. It can be considered as one of the lowest PE, highest margins and highest ROA to its total assets under the finance sector. Yes, it is none other than this stock RCECAP, from the same chairman of AMMB Tan Sri Dato' Azman Hashim. The "temporary" or it could be turned out to be permanent set back of this company is 90% of it turnover is now currently withheld as KOWAJA has stopped the loan disbursement since early this year. I could forsee it next quarter could be ugly. :( Nevertheless, i believe the current disruption could be just a temporary hiccup. It will be soon resolved when the negotiation is finalised. Current price at 0.515 is trading a PE of around 3.65sen which is extremely low. :) Comparing to its previous private placement price at 0.55 a piece is about 6% discount. I would think it is reasonable to scoop this stock if it ever dip below 0.50sen. :) because if this tussle is overed, this guy could easily go back at > 60sen level and i do agreed with hng comments below :-

hng said...

So far there is no any new development on kowaja loan disbursement, but RCE director keep accumulating share in open market may send signal that issue will be eventually settle sooner or later.

I'm still opine that RCE is undervalue financial stock or at least by Q4 result, there won't be any significant financial impact and by then RCE is also due to declare final dividend. Nonetheless, for now until its Q4 result, I'll still opt for trading buy on RCE while waiting for kewaja issue iron out and awaiting final dividend.

Tuesday, February 22, 2011

Scalp Trades Dated 22/2/2011

1. No trading for today. Still holding below stock. :(

MAXIS-CD - in 0.06 (T+1)

2. Not again !! Middle east seem to be giving a lots of pressure to our local bourse and regional market. :( Big up and a big down the next day. This kind of sentiment make punter happy or worrying ??

3. Today drop 12+ points & a black hammer is formed this time. Erasing yesterday gain completely. :( I would probably stay out tomorrow and cut loss on Maxis-cd. :(

4. Still pending most of my dividend payouts. Can't wait to get them into my account. :( This is my only consolation for now. hehehe. Till then happy trading and may the best price be yours. :)

5. GENSP result should be out today. Hope is a good one.

Monday, February 21, 2011

Scalp Trades Dated 21/2/2011

1. Today's scalp trades as follows :-

MPHB-JA - out 0.305 (this one sold last week)
MPHB-JA - in 0.29, out 0.295
KNM-CE - in 0.22, out 0.225
MAXIS-CD - in 0.06 (have not sold yet)

2. Today market gain 8+ points. :) See the white hammer candlestick as depicted in the above picture. This is a good sign that market will go hammer up hopefully. DJ is closed today, so there is no yardstick for KLCI tomorrow. :(

Saturday, February 19, 2011

REITs yielded solid returns in 2010

Real estate investment trusts (REITs) are good investing alternatives for the more risk averse investors, particularly during periods of increased market volatility, with their higher than market average yields and defensive profiles. The listings of Sunway REIT and CapitaMalls Malaysia Trust (CMMT), two of the largest REITS in the country, last year have further turned the spotlight on the sector and boosted investor interest.

Total 15% gains from CMMT since listing

Investors in CMMT have fared quite well, making some 11% in capital gains based on the prevailing price of RM1.09 and the closing price of 98 sen per unit on its first day of listing. The trust recently went ex-entitlement for its maiden income distribution of 3.4 sen per unit. Including this latest income distribution, investor returns would total a pretty smart 15% — for a seven-month holding period.

CMMT is currently the second largest REIT listed on the local bourse, by total assets and market capitalisation. It is also among the more liquid of the locally listed REITs with a fairly large free float of about 58% of total units issued.

The trust is focused on the retail sector. Its three properties are 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) in the heart of Kuala Lumpur and The Mines in Selangor — valued at a collective RM2.14 billion with net lettable area (NLA) totalling almost 1.88 million square feet.

All three properties registered good occupancy rates last year, averaging 98.3%. Rental rates for tenancies renewed during this period, which accounted for roughly 22% of the portfolio’s total NLA, were some 4.9% higher, on average.

CMMT is in the midst of finalising the acquisition of the extension to Gurney Plaza for RM215 million, which will add some 135,000 sq ft of NLA to its area under management. The acquisition will be part financed by new units to be issued to raise RM167.1 million.

It comes as no surprise that

CMMT’s latest earnings results (for the period from July 14 to Dec 31, 2010) were pretty much in line with the forecasts made in its listing prospectus. A relatively high degree of earnings predictability is one of the key characteristics of REITs.

Revenue totalled RM94.6 million while distributable income stood at RM45.9 million. As per its stated intentions, CMMT paid out all its distributable income last year — equivalent to 3.4 sen per unit — and is expected to do the same for the current year.

Based on the income estimate of RM101.5 million, distribution should increase to about 7.46 sen per unit. This translates into a gross yield of 6.8% for unitholders at the prevailing price.

Whilst this is at the lower end of the range of yields expected from locally listed REITs, we suspect

CMMT’s implied premium is attributable to its size as well as comparatively high liquidity and free float. Its net asset value stood at RM1.03 per unit at end-2010.

Potential re-rating for laggard Starhill

In fact, other than CMMT, unit price gains for most of the locally listed REITs have been fairly good over the past year — save for Starhill REIT, which is undergoing a restructuring exercise. As a result, the latter’s unit price lagged the sector.

The trust disposed of the shopping malls, Lot 10 and Starhill Gallery, last year and is currently finalising the acquisition of nine properties, including the Ritz-Carlton Hotel, Hilton Niseko and Pangkor Laut Resort, that will see it emerge as a focused hospitality REIT.

Starhill REIT is currently trading well below its net asset value (NAV) of RM1.16 per unit and could enjoy an upward re-rating upon completion of its restructuring exercise, expected by mid-2011. Meanwhile, the trust expects to maintain last year’s distribution of 6.49 sen per unit in the current financial year ending June 2011. That will give investors a yield of roughly 7.6%.

Quill Capita trading below NAV of RM1.28

Another REIT trust that has lagged the sector and could do well in catching up is Quill Capita. Its unit price has gained just 3% since the beginning of last year and is still trading below the NAV of RM1.28.

Quill Capita is focused primarily on commercial-industrial properties. At present, the trust has 10 properties in its portfolio — with net lettable area totalling more than 1.288 million sq ft — worth about RM810 million. The assets are located in Cyberjaya, Kuala Lumpur, Selangor and Penang and the majority of its tenants are MNC/foreign related companies. It has not made any new purchases over the past two years but remains on the lookout for yield accretive acquisitions.

Nonetheless, Quill Capita has managed to steadily raise its distribution over the past few years — from 6.46 sen in 2007 to 8.03 sen last year. Based on a similar payout, income distribution in the current year could total some 8.26 sen per unit. That will earn investors a yield of 7.6% at the prevailing price of RM1.08.

Thursday, February 17, 2011

Scalp Trades Dated 17/2/2011

1. Today's scalp trades as follows:-
KNM-CE - in 0.22, out 0.225  :) throw too early else could have make 1c
MPHB-JA - in 0.30   :( did not manage to sell, would need to carry trade to tomorrow. Should have bought this at 0.295 but meeting cause me 0.005c bid higher. :( Hopefully tomorrow can sell.

2. Happy Chap Goh Meh. Today is the last day of CNY. Wishing everyone meet his or her Mr/Mrs right in this Chap Goh Meh celebration.

3. Sharing a bit of my personal experience in trading call warrant. You need to be fast in your execution and must have time to monitor, the trick is don't be greedy (try to earn half to 1c for start) and need lots of patient. Once you spotted a counter, monitor closely, if the mother share tend to go up you must pay attention to its associated call warrants. Look for those giving most liquid one. Try avoid newly listed call warrant if possible because their initial premium offered normally is very high, the only advantage is they have longer period of expiry date. Look for those low or negative premium call warrant as this could turn to your advantage when they expired you still tend to earn some money through their cash settlement exercise like what happen to my GENM-CL, of course this may not work all the time, you may pay your price if mother share go down sharply. Another point to take note is it conversion ratio, the lower the better but this is a double edge sword, it can go in-line with mother share fast and it also can go down fast as well. Study the ratio, for example, if 2:1 ratio mean mother share need to go up 2 sen for 1 sen up of call warrant. If you happen to see mother share up too much that not on par with call warrant (e.g mother up 4sen but call warrant merely up 0.005sen for a ratio of 3:1), then it is good to buy in call warrant for a catch up later. Of course this is in ideal situation but we have to be sensitive toward the relationship between mother and call warrant share. Not all the time will work but chances are very high. Hope i can share more next time. Till then good luck.

Monday, February 14, 2011

Scalp Trades Dated 14/2/2011

1. Today scalp trades as follows :-
AMMB-CH - in 0.33sen, out 0.335sen
ARREIT - sold some at 0.955sen
CMMT - sold at RM1.10

2. Happy Valentine's Day

3. Today not in good mood........ :( Good luck all.

Saturday, February 12, 2011

Another Day of Selling :(

1. Following is the trading today :-
PBBANK - Sold some at RM13.
GAB - Out at RM9.55, In back RM9.36, making intraday but on the reverse order. :)

2. Arreit just declared Income Distribution of 1.6741sen. :) Hope can spike up the price further come Monday. :)

3. KLCI drop close to 10points today :( May trigger more selling force on Monday, nevertheless, i think it is good time to start buying if it happen to drop further. :) Good luck all.

Thursday, February 10, 2011

Market to Retest 1500

1. No trading for today as well.

2. wow !! market drop 32+ points today :( RSI in oversold position. Retesting 1500. :( If this fail to sustain, further down side may expected. Very sharp drop today, tomorrow may open gap down but i think will ease toward the end of the day. This is normally the case after a sharp drop. :)

3. Try to sell PBBANK at RM13.30 but too bad few second late, while there is still units available at 13.30. :( May be my respond a bit slow. :( What a waste else would be making instant money after sold. :(

4. I might probably start selling off my stock slowly, trying to compile and consolidate my fund. Most of them have been keeping for umpteen years, some even kept for more than 10 years.

5. Any bad news out there that i don't know ?? beside China raise rate, Egypt chaos, what else ?? If there isn't anymore bad news this correction is healthy and temporary i believe. (Hopefully :))

Tuesday, February 8, 2011

Scalp Trades Dated 8/2/2011

1. Scalp trades today as follows :- very bad day for me. :(
KNM-CE - in 0.225, out 0.225 lose fee. :(
DRBHCOM-CD - in 0.19, out 0.185 - lost 0.005sen :(

2. Not everyday is Sunday :(, nevertheless market is always there, you win some and you lose some. Trading is as such, so will try hard again tomorrow. Hope i have a winning side tomorrow. :)

3. PBBANK will ex on 10/2/2011, 2 more days. :) Am expecting more REITs to due ex as well. :)

Monday, February 7, 2011

Scalp Trades Dated 7/2/2011

1. No tradings today. :(

2. Received BJTOTO's 4sen dividend. :)

3. GENM-CL expired today, below is the announcement from Bursa :-

Type : Announcement


Announcement Details/Table Section :

We wish to announce that the GENM-CL expired at 5.00 p.m. on 7 February 2011 (“Expiry Date”) and the Cash Settlement Amount shall be calculated as below.

Cash Settlement Amount =Number of GENM-CL x (Closing Price – Exercise Price) x (1/Exercise Ratio)
=Number of GENM-CL x (RM3.2841 – RM3.00) x (1/4)

=Number of GENM-CL x RM0.0710

The Closing Price of RM3.2841 is the arithmetic mean of daily volume weighted average market price of GENM shares for the 5 market days prior to and including the market day immediately before the Expiry Date.

The Cash Settlement Amount, less all exercise expenses shall be made by way of cheque within 7 market days from the Expiry Date. The cheques will be delivered to warrantholders by ordinary post.
This announcement is dated 7 February 2011.

My purchase price for Genm-CL is 0.055. The final value of Genm-CL is 0.071 based on closing price of RM3.2841. Which mean (0.071 - 0.055)/0.055 = 29% return. Not bad not bad. :)

Wednesday, February 2, 2011

Scalp Trades Dated 2/2/2011

1. Today's scalp trade as follows :-
Kencana-CC, in 0.52, out 0.525

2. Stareit ex-date today. Up 0.15sen to 0.865. not bad not bad. :)

3. Genm closed at 3.38, which mean with the 5 days weighted average price ending today that will give us a Genm's weightage closing price at around 3.28, that will bring the Genm-CL worth price at around 0.071sen. :) My purchase price on Genm-CL was at 0.055sen, that will represent a 0.016sen profit. :) Not bad. 0.016/0.055 = 29% return. wow !!! in such a short period of time. :) 

Tuesday, February 1, 2011

Scalp Trades Dated From 28/1/2011 to 31/1/2011

1. Was not feeling well last week. Now recover a lot. :)

2. Last Friday i bought in GENM-CL at 0.055sen in last minute trade. GENM-CL will be expired on 7/2/2011. Has been suspended on Monday 31/1/2011. Can't do much now, have to go through the cash settlement exercise. The whole exercise would likely to take about 3 weeks. :( I would need to fork out the money to pick up all the outstanding warrant holdings. The Cash Settlement would be calculated as set out below :-
Cash Settlement = # of warrants * (Closing Price - Exercise Price) * 1/ratio

Closing Price = 5 days of Weighted Average Price here

Wednesday (2/2/2011) trading will be included as the fifth days of Weighted Average Price for GENM-CL. Hopefully the price can surge higher to give me a better value of warrant price. :)

3. Would like to take this opportunity to wish all cyber friends and comrades a Very Happy CNY !!!
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