Scalp Trades Dated 9/9/2011

1. Scalp traded on 9/9/2011 :-

MALTON - in 0.57, out 0.575

2. Look at the picture above, Malton has an impressive earnings the last 2 quarters despite the recent dilution of shares by another 20%. If this kind of earning continue to be maintained in the future, Malton could be very impulsive in time to come. Worth keeping this counter into radar list. Having current closing price of 0.56, it only represent a 38% of 1.46 NTA. Consider attractive but keep closer look on its next Q result. This does not represent a buy call from me nevertheless, buy at your own risk.

3. Recently bought a 4 Dome DVR network recorder. Installing this gadget with the help of my brother. Took us whole day to get it fixed, of course the workmanship is inferior and not professionally done but it serve the purpose. :) LOL !!

4. I am waiting for an IPHONE5 !! I think i shall indulge myself a bit with the earnings from my share trading. This year surpass my previous year record where i am only aiming for 7% to 15% yearly income through dividend and long term investment. This year is a superb year for me ever since i adopted trading approach early this year. The figure is much much higher from my intial targeted income. :) 

5. Dow Jones recorded another -300 points down last Friday. We may have a turbulance on KLSE come this Monday, so be extra careful cyber friend and comrades. Till then Good Luck to all. 

Scalp Trades Dated 13/6/2011

1. Scalp traded today :-

SUNREIT - bought RM1.08
????????? - got in another CW today, will be revealing tomorrow.

2. Long posting from hng on Malton :) Pretty make sense indeed.

hng // June 13, 2011 7:35:00 PM GMT+08:00

The main reason to buy Malton is impressive financial result, trading at undemanding valuation PE<5x.

Its corporate development to issue RCSLS and free warrant should work well to mother share as it avoid immediate dilution in equity. RCSLS is to issue at par value of RM1, coupon rate at 6% for 7yr, fund raising is to pare down borrowing cost which bear 8% interest and provide additional working capital. Free warrant is convertible at RM1 over 5 yr period.

At current level, Malton-LR at 19sen, Malton at 52.5sen, Lets calculate its value if investor buy Malton-LR instead of malton:

Cost

5 lot Malton-LR at 19sen = 95sen

2 lot RCSLS at RM1 = RM 2

Assume Market value

2 lot of RCSLS = RM 1.80

2 lot free Malton-WA = 40sen

1 lot free bonus Malton = 52.5sen

Remarks:

RCSLS will be trade at discount to increase its yield attractiveness >6.5% (Malton-LA: 90sen) , while warrant at maximum premiums of 200% (Malton-WA: 20sen).

Total cost = RM 2.95

Total market value = RM 1.80 + 40sen + 52.5sen = EM 2.725

Therefore, if investor wanan to gain from malton exercise should opt for Malton mother share instead of malton-LR. after fund raising Malton prospect should more promising as there is not only no dilution impact from RCSLS and warrant, and yet Malton balance sheet strengthen after this fund raising.

3. Market drop > 10 points, if DJ tonight green, tomorrow KLCI will follow, hopefully. :) Good luck all.