CMSB PROFIT SURGES

CMSB's Q2 2012 EPS come in at 14.29 sen. For Q2 2011, the EPS was 8.44 sen. (The figures are after tax) This is an improvement of 69.31%. The MD is very pleased with the result. An interim dividend of 5 sen less tax has been declared. In the previous years, there was no such dividend. This is a sign of confidence. The stock is likely to trend higher. It closed at 3.28 today.

This stock was highlighted on 26.7.2012 under the heading: Should we follow smart money? Please refer back. 

Is TDM going the way of EPIC?

For the half year period of fiscal year of 2012, TDM made 11.35 sen per share. This compares dismally with the EPS of 26.58 sen made in the corresponding period of 2011. Indeed TDM will be hard pressed to maintain its 2011's single-tier dividend payment of 21.5 sen per share for fiscal year 2012. I doubt it will pay more than 15 sen dividend for fiscal year 2012.

Many plantation counters have reported poor result for the first 6 months of 2012. TDM is among the worst. I wonder why this is so. I mean why should it be among the worst. Is TDM trying to depress its share price? Whether it did that or not, the stock is down 21.98% from its high of 5.05 set on May 03, 2012. The stock closed at 3.94 last Friday (Aug 10, 2012)

Last year EPIC was privatized by the Terengganu government (TG). Presently, TG owns 63.17% of TDM. Will TG privatize TDM as well? Most likely it will. If it decides to do so, probably it will offer RM4.75 for each share of TDM. This being the amount it values for each share issued to acquire a piece of land for RM16.9m. 

I don't think privatization for TDM will happen in the near future. Perhaps it will happen next year. Really, it is anybody's guess.

If you are about to dispose of your TDM shares, don't forget to consider the above factors before you decide on a price you wish to sell.

As usual, you listen to me at your own risk.

TDM Disappoints

For the quarter ended June 30, 2012, TDM's worse-than-expected result is a cause for concern. EPS for the quarter was 3.88 sen. This compares dismally with the result of corresponding period of the previous year. EPS then was 13.86 sen.

In spite of the bad result, TDM is optimistic for the whole year. Its commentary on prospects reads as follows:

"Based on the prevailing CPO and PK prices, the outlook for the financial year ending 31.12.12 remains favorable. Baring unforeseen circumstances, the Group is expected to continue to record satisfactory performance in the current financial year."

I wonder whether TDM is speaking what's on its mind. Maybe it was trying to soothe the frustration of the shareholders. Or maybe it was trying to prevent a free fall of the stock. Anyway the stock slumped 33 sen and closed at 3.96 at the close of trading this morning. 

So, is it a good time to buy the stock now? I believe more downside is on the card. My prediction is that it will hit below 3.70. 

Please have your own prediction. And please remember that you always buy, sell or hold at your own risk absolutely.

Multico gets RM44.19 million.

The High Court has ruled in favor of Multico against 11 defendants, including its former directors.

The defendants are Gordon Toh Chun Toh (first defendant), Datuk Abul Hasan Mohamed Rashid (second defendant), Kalwant Singh (third defendant), Elliott Gordon Singapore Pte Ltd (fourth defendant), Elliott Gordon & Co International Ltd (fifth defendant) and Ace Prelude Holdings Sdn Bhd (sixth defendant).

The other defendants were Lily Chong Kui Foh (seventh defendant), Teng Sin Pyng (eighth defendant), Westcape Investments Ltd (ninth defendant), Wong Jit Kiang (10th defendant) and Liew Then Boh (11th defendant).

Multico has a small paid-up capital of only RM44.4047. The par value of its stock is RM1 per share. This means that for the fiscal year ending July 31, 2013, the NTA per share as well as the EPS of the company will be boosted by 99.5 sen. This is in deed a windfall for Multico!

The stock was up 38 sen yesterday. It closed at RM1.60. Another good rise is expected today.

My congratulations to Multico and all its shareholders.