HwangDBS Vickers Research in a report in December said Pos Malaysia has tax credits amounting to some RM317mil which is expiring by Dec 31, 2013, and is likely to declare a special dividend of 59 sen per share in the near future.
It said Pos Malaysia is a cash cow, supported by RM1.24 per share net cash or RM665mil by end-financial year 2014. Read more.
马 到 功 成. Success is when the horses come. Success goes only to those who dare and act, it seldom goes to the timid. The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
Thursday, April 18, 2013
Sunday, April 14, 2013
Quality of Earnings Matters
Earnings are important, but it's the quality of the earnings that counts.
When it comes to fundamental analysis, the most important item is earnings. Indeed earnings are the lifeblood of a company. Without earnings, a company cannot survive. When a company reports earnings that are above expectation, the price of the stock rises. And when it reports earnings that are below expectation, the stock price drops.
When we look at earnings, we should look at earnings per share (EPS) and not only at the amount. A company earning RM10 million with an issued capital of RM10 million comprising of 10 million shares issued at RM1 each is better than a company earning RM100 million but with a capital of RM500 million comprising 500 million shares of RM1 each. While the former's EPS is RM1, the latter's EPS is only 20 sen. Many people look only at the amount earned when they should be looking at the EPS.
Another feature often overlooked is the quality of the earnings. Earnings from sales and received in cash is the highest quality of earnings. Earnings placed under Accounts Receivable may not be fully realized, and therefore has a lower quality. Earnings from sale of assets, not repeatable, are the lowest form of earnings. So when you look at earnings, you must take into consideration the quality of the earnings.
Ideally, earnings should go up in tandem with sales of the company's products or services, year after year. Sometimes earnings improvement is the result of cost cutting. If the cost cutting comes from decreasing the labor force thus demanding more work from each worker, this is not so good even though competency is enhanced.
The best scenario is that the quality of its products is upgraded resulting in more sales and better margins.
Next time you look at EPS, don't forget to look at the quality of the earnings.
Please click f if you find this article useful. Thanks.
When it comes to fundamental analysis, the most important item is earnings. Indeed earnings are the lifeblood of a company. Without earnings, a company cannot survive. When a company reports earnings that are above expectation, the price of the stock rises. And when it reports earnings that are below expectation, the stock price drops.
When we look at earnings, we should look at earnings per share (EPS) and not only at the amount. A company earning RM10 million with an issued capital of RM10 million comprising of 10 million shares issued at RM1 each is better than a company earning RM100 million but with a capital of RM500 million comprising 500 million shares of RM1 each. While the former's EPS is RM1, the latter's EPS is only 20 sen. Many people look only at the amount earned when they should be looking at the EPS.
Another feature often overlooked is the quality of the earnings. Earnings from sales and received in cash is the highest quality of earnings. Earnings placed under Accounts Receivable may not be fully realized, and therefore has a lower quality. Earnings from sale of assets, not repeatable, are the lowest form of earnings. So when you look at earnings, you must take into consideration the quality of the earnings.
Ideally, earnings should go up in tandem with sales of the company's products or services, year after year. Sometimes earnings improvement is the result of cost cutting. If the cost cutting comes from decreasing the labor force thus demanding more work from each worker, this is not so good even though competency is enhanced.
The best scenario is that the quality of its products is upgraded resulting in more sales and better margins.
Next time you look at EPS, don't forget to look at the quality of the earnings.
Please click f if you find this article useful. Thanks.
Thursday, April 11, 2013
ECS ICT EARNINGS TO IMPROVE
Malaysia’s leading ICT distributor ECS ICT Berhad and Samsung Malaysia Electronics (SME) have signed a business-to-business (B2B) distribution agreement that will see ECS distributing the global leading consumer electronics provider’s entire range of IT and mobility products to the enterprise market.
ECS and IBM Partner to Deliver SmartCloud Solutions
ECS inks deal with CA Technologies
Read about them here.
ICT products are part and parcel of life in our modern world. The importance of these products needs no explanation. One company that stands to benefit much from these products is ECS ICT Berhad which is a leading ICT distributor. The 3 activities mentioned above will go a long way to improve its revenue and earnings. At the last traded price of Rm1.16, there is plenty of value for your money.
Buy at your own risk.
ECS and IBM Partner to Deliver SmartCloud Solutions
ECS inks deal with CA Technologies
Read about them here.
ICT products are part and parcel of life in our modern world. The importance of these products needs no explanation. One company that stands to benefit much from these products is ECS ICT Berhad which is a leading ICT distributor. The 3 activities mentioned above will go a long way to improve its revenue and earnings. At the last traded price of Rm1.16, there is plenty of value for your money.
Buy at your own risk.
Wednesday, April 10, 2013
TDM Bonus and Share Split
TDM has announced a bonus issue of 1 for 5, and a share-split of 5 for 1. This means that for every five shares you have, you get 1 share free. And after the share-split you will then have a total of 30 shares.
TDM closed at RM4.21 yesterday. It will be interesting to see how the investors react to announcement.
TDM closed at RM4.21 yesterday. It will be interesting to see how the investors react to announcement.
Tuesday, April 09, 2013
TDM first and final dividend of 22 sen tax free
TDM said that for the financial year ended 31.12.12, it would propose a first and final dividend of 22 sen tax free under the single-tier tax system. This is good news for all shareholders.
Monday, April 08, 2013
TDM Cheapest Among Plantation Stocks
Jewels Among The Rubble
In scouring for jewels in Malaysia’s plantations universe, TDM and Chin Teck stood out among the 10 cheapest plantation stocks in terms of EV per planted ha valuation. We think these stocks’ EV valuations should still be, but are not, higher than Indonesia’s. These stocks could re- rate on account of their severe under-valuation, even if the plantation sector stays unexciting.
Source: RHB The Research Team. Read more here.
In scouring for jewels in Malaysia’s plantations universe, TDM and Chin Teck stood out among the 10 cheapest plantation stocks in terms of EV per planted ha valuation. We think these stocks’ EV valuations should still be, but are not, higher than Indonesia’s. These stocks could re- rate on account of their severe under-valuation, even if the plantation sector stays unexciting.
Source: RHB The Research Team. Read more here.
Interest Seen In Faber
Faber opened at 1.57. It quickly breached its overhead resistance at 1.58, and went up to a high of 1.63 before pulling back to 1.59 for the close. This is a good entry point. Total volume traded amounted to 1,978,400 units which is high for this stock.
Buy at your own risk. Good luck.
Thursday, April 04, 2013
ECS Heading To Cloud Nine
ECS is a leading ICT distributor. It is a small-cap stock with zero borrowings and plenty of cash in hand. The stock has all along been very quiet, but in the last few days, interest in the counter has picked up. This is clearly displayed in the above chart. Volume has also picked considerably.
The recent announcement that ECS is partnering IBM to provide cloud services, and an earlier announcement that the company has inked a deal with CA Technologies to distribute CA Technologies data management solutions are probably the reason that causes demand for the stock.
Going by the chart, the stock is likely to move up more.
Monday, April 01, 2013
Multico A Big Disappointment
Multico actually did well fundamentally as shown in my previous post. I had hope for a good performance today, but it did dismally. Although volume was high, the stock ended at 1.55 which is 5 sen below last Friday's close. The pattern of the chart has turned bearish with the formation of a Bearish Engulfing.
Is the stock price of Multico under manipulation? We have heard of "pump and dump." The exact opposite of this is "depress and collect."
Multico is a small-cap stock. Normally, only a small volume is traded in a trading day. Because of this, the stock can be easily pushed north or south as desired by the manipulators. Going by the chart, support should come in at 1.53, and if this is breached, the next support will be 1.46.
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