Saturday, March 30, 2013

Multico, Time To Move Forward

THE TECHNOLOGY BEHIND THE WINNING POWER Multi-Code is synonymous with the highest standards of quality through utilizing state-of-the-art technology and extremely stringent quality control to ensure product excellence for its customers. The high quality of Multi-Code’s products meet the exacting standards demanded by the local and international markets.

Multi-Code’s relentless passion for quality has won acknowledgement and recognition when the company was awarded the ISO 9001-2000 and ISO/TS 16949:2002 accreditation for its Quality Management System from TUV Rheinland. Read more.

Multico reported 2Q13 earnings of 7.54 sen per share and revenue of 27.146 million. This compares well with the preceding year's corresponding period of EPS of 4.90 sen and revenue of 25.282 million. From this, we can easily note that its profit margin has improved. This is a good sign.

Another good sign is that its MD, Lim Ming Kee has on Feb 5, 2013 bought 64,500 shares for RM89,010.

In its latest filing with Bursa, the company said that it had won a contract of 74.1 million from PROTON for the supply of functional switches and anti-theft systems. This will enhance its future earnings.

The stock was last traded at 1.60 which is the previous high level. I believe this level will be crossed soon.

The company has declared a single-tier interim dividend of 3 sen which is the same as that for last year. Its NTA now stands at RM1.6267.

In respect of its lawsuit to recover some RM43 million from some of its former directors, the matter is still waiting for news from the court.

All in all, at RM1.60 per share, this stock is a good buy.

As usual, you buy at your own risk.

Monday, March 25, 2013

Control Your Emotion or Other People Will Control You

Many people are controlled by fear. Fear of losing an opportunity causes you to act in haste. Fear of losing your paper profit causes you to sell out too early. And fear of losing everything causes you to sell right at the bottom. Although selling right at the bottom is caused more by frustration than anything else, fear also plays a part. How do we overcome these kind of fears? Knowledge is the best weapon. When you know, people cannot scare, frighten or intimidate you. They can't con you in anyway. Knowledge is your first key to success.

Hope causes you to hold on to a falling stock. Sometimes your hope is rewarded; your stock turns around and you make a profit. Unfortunately, hope often becomes hopeless. Experience tells me that it is much better to keep an uptrend stock and let go a falling one. This strategy is vital, simply because a trend in motion is likely to continue. Hope also causes people to buy into excessively high PE stocks. I prefer what is good today and better tomorrow.

You often hear people say: "Don't be greedy." Actually greed is necessary if you want to make big money. How else can you get a ten-bagger if you are not greedy. But unsatisfied greed is bad. Bulls make money, bears make money but never a pig, so goes the saying. (A pig is someone who will not sell, not matter how high the price goes up.)

Everything has a fair price. When a stock is overpriced, your concern is to sell it at a good price. The best way I know, is to use a trailing stop-loss. If you have no idea what a trailing stop-loss is, you can check it up at

This device is to prevent you from selling out too early.

Thursday, March 21, 2013

The Sure Way To Stock Market Success

Knowledge, wisdom, discipline and patience are what you must have to succeed in the stock market. Without knowledge, you can't compete. Without wisdom, you can't strategize. Without discipline, you can't implement, and without patience, you can't control your emotion. Never allow greed, hope and fear to control you.

To have a good knowledge means knowing what is happening around you locally and internationally.

What is happening in some countries, especially the big ones, like America, China, India, Brazil and the European countries can have a profound effect on small countries like Malaysia, Singapore, Indonesia, HongKong, Japan, and Taiwan, to name a few.

Of utmost importance is that you must know how to analyze an annual report of a company. Once you know this, you will be able to distinguish a good stock and that of a rotten one. A rotten stock is like a bad egg which will not hatch no matter how long you sit on it.

Wisdom is the excellent use of knowledge. Without wisdom, knowledge cannot be put to good use. For example, if you know that smoking, gambling and alcoholism are bad for you, but you continue to smoke, gamble and drink. This means you are not putting your knowledge to good use, and thus your knowledge is useless to you.

Having knowledge and knowing what to do are not good enough. You must have discipline to implement those actions needed to bring about success.

If you know that buying in a downtrend is stupid, but continue to catch the falling dagger, you have no discipline.

Impatience is the cause of many a loss. The market is designed to transfer money from the impatient to the patient. So you have to be patient. If you overpay, even for a great stock, it will be a long time before you see a good profit.

When it's not the time to buy, don't buy, otherwise you will soon say to your money, "bye, bye."

Investing in the stock market is a serious affair. Don't take it lightly. Success is sure to be yours if you have knowledge, wisdom, discipline and patience. Unless you are well prepared and well planned, success may just remain a dream.

Good luck and may God bless your every trade.

Saturday, March 09, 2013

MNRB Spectacular Earnings Surprise

MNRB Holdings - Spectacular Earnings Surprise
Author: kiasutrader   |   Publish date: Fri, 1 Mar 10:10   |  >> Read article in Blog website

MNRB's  9MFY13  net  profit  at  RM97.1m  was  above  our expectations,  accounting  for 124% of our full FY13 earnings estimate. The 91.6% surge in profit was mainly due to lower  net  claims  ratio,  24.4%  higher  investment  income,  and  an  improvement  in
underwriting margins. We take the opportunity to upgrade our earnings estimates by as  much  as  50%  for  FY13/14  and  thus  upgrade  the  stock  to  a  BUY,  pegged  to  0.6x FY14  BV.  The  stock  is  a  laggard  amongst  reinsurers  in  the  region  which  trade  at closer to 1x BV with a 29% upside to our fair value.
Exceeded  expectations.  MNRB's  9MFY13  net  profit  at  RM97.1m  was  above  our expectations,  accounting  for 124%  of  our  full  year  earnings estimates.  During  3QFY2013, the  group  registered  a  net  profit  of  RM59.0m,  333%  higher  than  the previous year's corresponding period and higher q-o-q from 2Q's RM12.3m loss. The 9MFY13 profit surge of  91.6%  was  mainly  due  to:  i)  significantly  lower  net  claims  ratios  across  a  few  key business  segments,  ii)  24.4%  higher investment  income,  iii)  improvements  in  underwriting margins  as  well  as  increase  in  net  profit  margins  from  3.2%  to  5.6%.  This  was  however
offset  by:  i)  overall  moderate growth  of  8.4%  in  premiums/contributions,  and  ii)  higher  fee and commission expenses growth.
Source: OSK
Labels: MNRB

For fiscal year ended 31.3.12, a final dividend of 17% less tax was paid on 26.10.12. This is about 39% of its full-year earnings.

For fiscal year ended 31.3.13, dividend is expected to be not less than 25% less tax, assuming that the 4th quarter earning is the same or not less than 19.60 sen per share.

As at 31.12.12, the NTA of the stock was RM5.50 per share. The stock was last traded at RM2.89.

My concern about this stock is that there is no consistency in its earnings. This is perhaps the reason why the stock is being traded at such a big discount to its net tangible assets. Nonetheless, at RM2.89, the stock should eventually turn out to be an excellent buy.
As usual, you buy at your own risk.

Saturday, March 02, 2013

Multico To Move Higher

Multico closed up 12sen from Thursday's close at 1.53 last Friday with 1537 lots traded which is above normal volume transacted daily. This is a bullish display. I believe the stock is on track to move higher. As shown in the chart, the resistance is at 1.60. This means that there will be a lot of sellers at 1.60. Whether this resistance will be breached or not remains to be seen. If the resistance is surpassed, then the stock is likely to move up further. Another 20 to 30 sen rise is most likely.

Multico is in the course of claiming back some RM41.77 million from some of its former directors. It is likely to be successful as the high court has ruled in favor of the company. This amount is a big sum to the company as its paid-up capital is only RM44.4047 million.

Multico was traded to as low as 10.5 sen in 2008. I became interested in the stock in 2011 when on Dec 28 of that year I bought 19000 shares at 76 sen per share. Since then I have been accumulating the stock every now and then. In fact I added another 13,000 shares at RM1.39 per share on 27 Feb 2013.

In the annual report for the year ended 31 July, 2012, I noted that Fong Siling (Cold Eye) has 1.2 million shares in the company. This give me added confidence as Mr Fong is well known as a savvy investor.

I believe Multico has a bright future, and I shall hold on to my stock.If you wish to join me on this profitable ride, you are welcome.

I am at Facebook. Anyone who wishes to befriend me there, please do so. Thanks.

Whether you buy, sell or hold as as result of this article, you do so at your own risk absolutely.

Friday, March 01, 2013

Multico More Upside On The Card

Multico moved up 4 sen in the morning session with 647 lots traded. The chart displays encouraging signals with the MACD and Stochastic hooking up. I expect the stock to have more upside from here.
Always buy at your own risk.