Crescendo Value for Premier Quality

Crescendo has a land bank of 2,975 acres, out of which 1665 acres are prime lands in the Iskandar Region. The company is in property development, manufacturing and trading in concrete products, and to a small extent in education. It is moving from medium to high-end products. This means better margins going forward.

As at Jan 31, 2013, its key statistics are as follows:

Paid-up capital: RM195.49 million

Par Value: RM1

NTA: RM 3.07 per share

EPS: 29 sen

Interim Dividend: 4 sen less tax

Final Dividend: 8 sen single tier (x-date 6.8.13; payment 30.8.13)

Current Ratio: 3.15

Quick Ratio: 2.09

Debt/Equity: 0.1558

Debt/Total Capital: 0.1312

Institutional shareholders: Public Mutual Bhd holds 7.44 million shares

Controlling shareholder: Kim Loong Bhd holds 55.73%

Chairman and CEO: Gooi Seong Lim 

From the above statistics, we can easily discern that the company has little debts and a strong balance sheet with good assets in lands.

For the financial year ending  Jan 31, 2014, the company has four on-going projects in the Iskandar region. These four projects are very well-positioned with a full spectrum of products for sale. These products are: medium industrial factories, commercial buildings, shop houses and residential houses. Demand for these products are good. Not only Singaporeans and other foreigners are keen to buy them, locals are keen to buy them as well. Thus, sale is not a problem.

In the past year, some sales were purposely held back for the purpose of better profits. This is reflected in better earnings of 9.23 sen per share for the first quarter ended April 30, 2013. In the corresponding quarter of the past year the EPS was only 6.59 sen.

Land values have always been on the rise. Some of the lands of the company were purchased way back in 2005. If a revaluation of these lands is carried out, the NTA value of the stock is sure to go up. In property counters, NTA (net tangible assets) is an important figure to consider.

Manufacturing and trading of concrete products contributed 34% of revenue. An improvement is expected with more sales to Singapore.

In Education, the campus for the Crescendo International College has been operational since May, 2013. Initial intake was reported as encouraging.

The group's future outlook is good. The 1665 acres of prime land, mentioned earlier, has a gross development value of RM7 billion according to the CEO. 

Recently the stock was traded to a high of RM3.80. It was last traded at RM3.12.

I am long on the stock. I expect it to surpass RM3.80 per share before 2014.

Your listen to me at your own risk, and buy at your own risk as well.

PRESBHD CREEPING UP

This daily chart of PRESBHD shows that the stock is moving up to challenge its immediate resistance at 2.12. Should the resistance level be decisively breached, the stock is likely to move up to a much higher level. EPF has been accumulating the stock. Buy at your own risk.

A Time to Remember

TimeCome started at RM3.49 when the market opened in the morning on Friday, 28.6.2013. It had a gradual uptrend,  and by 4.45 pm the stock was traded at  RM3.65.

 At 4.49 pm, the stock suddenly turned very active. On the sale side were selling of more than 30,000 lots,  and on the buy side were buying of about the same volume. The bid and offer price was at RM3.84. The sudden jump in the price from RM3.65 to RM3.84 was a great surprise to me. I quickly joined in the queue to sell. I keyed in at 4.49 pm to sell 100 lots,  4.50pm to sell 200 lots, and 4.51pm to sell 100 lots at RM3.84. 

When the market eventually closed, I managed to sell only 200 lots. I immediately called my remiser to enquire why the 200 lots I keyed in to sell at 4.50 pm were not sold. 

After some checking, I was told that because at 4.50 pm the computer was in the process of matching the orders, and so some entries to trade at that time were rejected. 

This taught me a valuable lesson. You should not key in at 4.50 pm to either buy or sell if you do want your orders to be rejected.

I was puzzled as to why the price jumped so much at 4.49 pm. Who was the buyer, and who were the sellers? The sellers were probably the small timers while the buyer was probably an institution that wanted to take a substantial take in the stock. 

Nowadays,  one must be extra vigilant at 4.45pm until the market closes on any trading day to make good use of any opportunity to make a fast buck.

Gold Is Unsafe at Any Price: Dicker /By Jeff Macke | Breakout

Another day another beating for gold. The yellow metal fell another 3.5% overnight bringing it to prices unseen for almost three years. The SPDR Gold Trust ETF (GLD) is now down over 25% year-to-date as retail investors find themselves on the wrong side of what is suddenly looking like one of the great boom-bust cycles in precious metal history.

As for what's driving the plummet, MercBloc president Dan Dicker says it's all about Main Street coming to the sudden realization that there is no safety whatsoever in gold. "When the retail customer gets frightened, they get frightened in a hurry and they get frightened for big numbers," Dicker says in the attached clip.

Retail investors are scared for good reasons. Gold is an investment that should have worked when the inflation which was supposed to run rampant due to currency devaluation kicked into high gear. As the inflation thesis gets debunked gold is getting mercilessly hammered. There just isn't a compelling fundamental reason to own gold and the chart is broken. The only thing left to do is hope and panic; usually in that order.

Dicker makes the point that the GLD, as a massive ETF, is forced to buy and sell physical gold holdings as the size of the fund fluctuates. When sellers start dumping the GLD it forces banks to go into the market and sell physical gold into a weak market. The result is what Dicker calls a "cyclical death spiral" that makes calling a bottom an exercise in futility.

Those looking to buy the dip in gold are fighting the trend, a tide of so called "weak-hand" sellers and a broken fundamental investment thesis. The market doesn't give out badges for bravery; hundreds of years of gold trading history suggests there are better places to put your money right now.

Is TDM on fire?

Some weird market activities happened in Bursa in the closing minutes of yesterday's trading. 

BKAWAN, TDM, CBIP, HSPLANT & COSTAL were all traded limits down in heavy volume immediately the clock hit 4.50 pm. On the plus side, we have JCY, up 24 sen, and Star, up 85 sen to

90 sen and RM3.71 respectively. 

TDM was the stock I was focusing on the whole day. It opened at RM4.09 and was traded up to a high of 4.18. In view of the weakness in Wall Street, I had sold some of my TDM shares at the average price of RM4.15 in the morning session.

At 4.45 pm, I saw big volume being quoted on the buy side and sale side at RM2.90. 

Initially, I thought someone was playing the fool with the bids and offer. Then at 4.50 pm, my computer screen blinked, and wow! more than 3 million shares were being done at RM2.90 per share. I couldn't believe what I saw. So I immediately called a remiser to find out what actually happened. I was told that the stock was indeed done at RM2.90 at the close of trading. He also told me that several stocks were also having the same unusual action.

I have no idea what had actually transpired. I think the following scenarios are more impossible than possible:

1. Someone hacked someone's account

2. Stock manipulation by traders

3. A malfunction of the computer

4. Key-in error by traders

5. Liquidation by foreign fund managers

6. Some planation lands in Indonesia are on fire

Bursa should do a through investigation into these unusual market activities and make its findings public.

What can we learn from what had happened? We learned that anything is possible in the stock market. This reminds me of the quote that if you want to achieve the impossible, you have to do the ridiculous. 

FBM KLCI to turn bearish

The DOW closed down 353.87 early this morning. This, coupled with the news that China is experiencing a slowdown will drive the FBM KLCI index down when the market opens. Support at 1742 is not likely to hold. It may come all the way down to 1720.

Three Strategies To Riches

You need a car license to drive. Why? Because your mistakes can be fatal to someone else. Therefore, before you are allowed to drive, you must prove that you are competent in driving, and know the traffic rules as well.

In the stock market, you don't need a license to trade or invest in shares. As long as you are of age, 18 and above, you can open an account with a broker firm and start  trading. You do not need any special education for this purpose. In fact, the more foolish and loaded (rich) you are, the more you are welcome, simply because, your mistakes are only fatal to yourself, and to no others. 

The market is a zero-sum game. For someone to win, some others must lose. That's why you are  most welcome if you are the most foolish and have plenty of money to lose. 

There are many ways to build up wealth. In the stock market, I know of three. They are:

1. Buy low, sell high, 2. Buy high, sell higher, & 3. Buy high and sell low.

The first two strategies are logical, but the 3rd one looks ridiculous. How can one buy high and sell low and still makes a profit? Here's the explanation:

At the end of a bear market, prices will be at very low level with little volume transacted daily. Prices are likely to be moving sideway in a tight range. This sideway movement can continue for months or even up to a year or two. It is during this period of lackadaisical trading that  savvy investors are accumulating shares. 

For those who wish to buy high and sell low, they stay awake and alert. They are waiting for an upside breakout. So as soon as one appears, they buy. This is: buy high. Assuming that after they have bought, the stock moves up, they will buy more to make more as soon as the uptrend starts. As the stock moves up higher, their concern is to take profit. For those who know technical analysis, the best time to take profit is to wait for a downside breakout to sell. This is what I mean to sell low.

I hope the above explanation is clear about the strategy, " Buy high and sell low."

Different times call for the use of different strategies. Your temperament and financial standings will decide which one of the three strategies suits you best. 

For me, I use all of them.

Smartag A Big Disappointment

Smartag is a big disappointment. Quarter after quarter, the company reported negative earnings. Investors of this stock are now cursing and wondering what is happening to the company. Last year, the company said that it had successfully tested its technology at Customs, and yet until today, the company is still running at a loss. 

The chart shows that the stock was traded to a low of 8.5 sen on April 30, May 2 & 3 this year before it was traded to a high of 20 sen on May 22. The stock then drifted down. It was well supported at 15.5 sen. 

On June 7, the stock opened at 14.5 sen, half a sen lower than the previous day's close. It was quickly pushed up to a high of 18.5 sen, and then heavy liquidation of the stock hammered unabated the stock down to 12.5 sen before closing off the day's low at 13 sen. To me, the stock was being manipulated and insiders are trading. What surprised me was that Bursa didn't queried the company of the unusual market activity on that day. 

The stock is now last traded at 10.5 sen with many red candles at its trail. If you wish to dabble in this stock, watch closely, the show is not over yet. Wait until you see a bullish signal before you buy.

Cypark All Set to Move Up

The gap shows eagerness to buy. Be ready for more upside.

ECS Correction Over

At ECS, the run-up is as fast as the run-down. Last traded at 1.17, the correction looks to be over. The stock was well supported at 1.16 as shown in the chart. I don't think the stock will fall below 1.12. So the downside is small. Now is a good time to buy into the stock. As usual, you buy at your own risk.

Multico All Set To Move Forward

Multico occupies a prominent position in my portfolio. The stock has been in a gradual uptrend  since June 7, 2012 when it was being traded at  1.14. 

Last Friday, June 7, 2013, the stock closed at 1.78. This means that the stock has moved up 56.14% within 1 year. This is commendable because the FBMKLCI moved up only 12.71% from 1575.3 to 1775.5. 

Going by the chart, the stock is now all set to move up higher. Watch it closely, come Monday morning; chase it at the opening bell. You will see the money within the next few days or even at the close of the day. 

Please remember that if you listen to me, you do so at your own risk absolutely.

Good luck and may God bless your every trade.

MHB Dead Cat Bounce?

The above chart of MHB (last trade at 3.41) looks dangerous. It is in the formation of a Dead Cat Bounce or a Bull Trap. The last two red candles portend further downtrend ahead. Be careful if you are playing this counter. It can go much lower. This is my prediction. Whatever you do, you do so at your own risk.

Beware of Red Flags

When you do a fundamental analysis of a company, always be on the lookout for Red Flags. Red flags are signals that signify trouble ahead. When you see a few Red Flags show in a company, that company is not good for investments. Some Red Flags to be awared of are as follows:-

01. Two consecutive quarterly reports of lower profits when compared to the corresponding periods of the previous year.

02. A rise in revenues that is not accompanied by a rise in profits.

03. Account Receivables go up but revenues remain the same or have become lower.

04. Current Ratio is less than 1.5, and Quick Ratio below 1.

05. Stock price trending down even though the main market is trending up.

06. Debt to equity ratio is greater than 0.5

07. Goodwill of more than 8% of capital

08. A cut in the dividend payment

09. Venturing overseas to go into business that the management is not familiar with

10. When the company is buying back it shares while insiders are selling.

Red Flags are important signals. If you choose to ignore them, you do so at your own peril. 

PRK Corp

Perak Corporation Berhad is engaged in property and investment holding, real property development and provision of management services. The Company operates in three segments: Infrastructure engaged in maritime services in respect of the development of an integrated privatized project and encompassing operations of multipurpose port facilities, operation and maintenance of a bulk terminal, sales and rental of port related land and other ancillary activities; Township development, which is engaged in township development of real property and ancillary services, and Management services and others that provides provision of management services and other business segments, which include property investment and distribution. The Company's township developments include government offices, shop lot, bungalow, semi detached and other type houses. In October 2011, the Company disposed of its associate, West Coast Expressway Sdn Bhd.

For the financial year ended 30.12. 2012,  the key statistics of the company are as follows:

Paid capital: RM100 million

Par Value: RM1 per share

EPS: 38.10 sen

Reference Price RM2.02

PE:5.36

NTA: RM4.68 per share

Dividend Paid: 8.5 sen less tax and 1.1 sen tax free

Current Assets: RM511,455,796 of which RM184.95 million is in cash

Current Liabilities:RM135,427,648

Major Shareholder: Perbadanan Kemajuan Negeri Perak

Most of the earnings in 2012 came in the last two quarters. (3Q = 12.58 sen and 4Q = 15.93 sen)

The above figures show that the company is fundamentally strong and solid.

As at 31 December 2012, PRKCorp has sufficient credit in the 108 balance and balance in the tax exempt income account to pay dividends amounting to approximately RM19,642,000 (31.12.2011 : RM21,892,000) out of its retained earnings. The Company may distribute the balance of the retained earnings of approximately RM50,064,000 (31.12.2011 : RM43,069,000) as dividends under the single tier system.

Technically speaking, the stock is now in an uptrend and undergoing a small correction. 

I am long on the stock and intend to buy more.

As usual, you buy, sell or hold at your own risk.

If you like this article, please click " f "  below and join me at Facebook. Thanks.

ECS Highlights of 2012

Expanded tablet PC range

– Appointed by ASUS to distribute the Google Nexus 7 tablet PC in Malaysia

– Now a major tablet PC distributor to the local market, with extensive product model portfolio from Apple, Samsung, Asus and Lenovo

Established new smartphone distribution channel

– Signed distribution agreement with China’s Huawei to distribute the Huawei Ascend P1 smartphone

Enhanced Enterprise Systems portfolio

– Appointed by Huawei to distribute its full range of enterprise systems products and solutions

Undertook 1-for-2 Bonus Issue

– Implemented on 31 October 2012

– Group’s share capital increased to 180 million shares of 50 sen each (from 120 million shares of 50 sen each previously)

Investment Merits (as at 30 Apr 2013)

Market leader in ICT distribution in Malaysia 

Domestic ICT market continues to be growth industry 

Cloud computing and mobility devices to be growth catalysts 

Net cash position allows for future expansion Dividend policy of 30% payout Single-digit PE valuation an affordable entry into ICT growth proxy

Source: ECS Annual Report

If you like the above post, please click f, and join me at facebook. Thanks.

TDM not in full bloom yet

TDM not in full bloom yet.

TDM eyes higher profit this year

2013/04/26 KEMAMAN: TDM Bhd (TDM) expects to record a higher profit this year, contributed by its healthcare segment and its oil palm plantation arm. Chairman Datuk Roslan Awang Chik said of its 40,000 ha landbank in Kalimantan, Indonesia, 11,000 ha of planted area is expected to mature next year, and TDM is building a RM80 million palm oil mill there. TDM expects its 30,000 ha oil palm plantation in Terengganu to also contribute to the profit. "We also expect profit to come from our four healthcare centres, which are operating here and in Kuantan and Kuala Lumpur," he told Bernama when met at the handing over of house keys to TDM staff at Kompleks TDMB in Padang Kubu here. Roslan said last year the company posted a profit for the third year in a row of RM149 million, compared to RM220.6 million in 2011 and RM197 million in 2010.-- Bernama

---

Kenanga Upbeat with ECS

Kenanga upbeat with ECS

The casino always wins

When you go to a casino to gamble, you are more likely to lose than to win. More fortunes have been lost than won by people who frequent casinos. This is evidenced by the fact that casinos rake in billions of dollars year after year. Look and Genting as an example.

Do you know why casinos always win? Actually, the answer is quite simple. Casinos always win because you have to play the games accordingly to their rules. And you can be sure that the rules are always made in favor of the house. In other words, the odds are always against you. That's why you lose.

In the stock market, things are different. You don't have to trade or invest accordingly to anybody's rules except your own. Thus, it is imperative for you to set up your rules if you want to win.

My rules are as follows:

01. Insist on value when you buy.
This means you will only buy stocks that promise safety of principal and an adequate or at least a moderate return. The company behind the stock must have strong fundamentals and growth.

02. Never catch a falling dagger.
When a stock is in a downtrend, you must avoid it until the downtrend ends before you buy.

03. Always buy in an uptrend.
When a stock that you like is moving in a tight narrow side trend, keep a close watch on it. Buy in the upside breakout. If you miss that, then buy in the pullback.

04. Write down the reason as to why you buy a particular stock. If you don't have a good one, don't buy.

05. When you are ahead, don't allow fear to control you. A premature sale is a most common mistake. You can never become rich making pennies. Most people cut profit early and regret later. Don't be one of them.

06. Never buy liabilities.
A rubbish share is a liability. A stock with high debts and no earnings or dividend payouts are rubbish shares. These must be avoided.

Every one of us is different in character and financial standing. If the above rules are good for you, follow them. If you don't like them, choose your own.

If you like the above article, please click f, and join me at Facebook.

Hell has no fury like people scorned

Upper most, In the mind of everyone, is the GE13. Never in the history of Malaysia has the opposition a better chance than now to wrestle control of power from the ruling party. Not only the young and educated are firmly behind the opposition, the older generation and those who know how to use a computer, ipad or smartphone are in the same boat.

The wind of change has commenced. The spirit of righteousness is awaken. Like wild fire, it is spreading quickly far and wide; its intensity severe and demanding.

Ubah! ubah! ubah! Reformasi! reformasi! reformasi, these are being heard loud and clear. The people's power is in action now.

Hell has no fury like people scorned. Corruption, cronyism, crime and violence have angered the people. They are now bent on change, and change of the government is what they want.

By the May 6, 2013, we shall come to the end of the tunnel. Who's going to rule Malaysia from then? At the moment, it is still anybody's guess. The opposition appears to be the underdog, but its strength should not underestimated. It has a very good chance to surprise and surprise immensely.

What's going to happen to our stock market if PR wins? I believe that foreigners will like it because corruption will not longer be present, at least for the time being.

I would not be surprised if the market jumps some 20 points to create a new high immediately after the change of guards.

God bless Malaysia.