Sunday, January 26, 2014

Which Way The Market Now

Last Friday, the KLCI closed at 1,802.5 with a small doji. The low of the day was 1,798.57. If the opening price is lower than 1,798.57 which is likely, come Monday morning, the signal is one of extreme bearishness. 

The MACD is looming to go lower as displayed in the chart.  Sentiment in America, notably the Dow index, is extremely  bearish with the latest drop of 318 points placing it at below the psychology level of 16,000. 

For the KLCI index, some support is likely to come in at the 1,792 and at 1780. I believe that they will be breached within the next 30 days. This is just a forecast based on the bearish display of the chart. 

You listen to me at your own risk. 

Tuesday, January 21, 2014

TDM to set up 60-tonne palm oil mill

TDM Expects Indon Ops To Contribute 40-50 Per Cent To Group's Earnings

KUALA LUMPUR, Jan 21 (Bernama) -- TDM Plantation Sdn Bhd expects its Indonesian operations to contribute between 40 and 45 per cent to the group's earnings over the next five years.

Chief Executive Officer, Badrul Hisham Mahari, said the company has invested between RM250 million and RM300 million over seven years on its 40,000 ha plantation in Indonesia.

He said 12,000 ha had been planted with oil palm trees while 500 ha had matured.

Badrul said TDM, capitalising on the maturation of these oil palm trees, the group would set up a 60-tonne palm oil mill costing RM80 million to correspond with the first harvest which was expected by 2015.

"The group is the first plantation company in the East Coast to achieve 100 percent RSPO-certified for its mills and estates," he said after the Roundtable on Sustainable Palm Oil (RSPO) certificate presentation.

The group's plantation arm received the RSPO certification in November 2013.

TDM also has two oil palm mills in Sungai Tong and Kemaman, Terengganu.

Badrul said the plantation division has been the major contributor to the group's revenue of about 90 per cent compared with its healthcare unit.


Monday, January 20, 2014

Is it a good thing if the proposal to take PRK private is blocked?

PKNP, the investment arm of the Perak Government and 3 others have proposed to  privatize PRK under section 64 of the security act by selective capital reduction and repayment to the minority shareholders. 

The price they offered is RM3.90 per share. This price is way below the NTA value of RM5.05 per share of PRK as at 30.9.2014. 

The intrinsic value of PRK is much higher, considering that PRK has cash and bank balances in excess of RM187 million and a piece of land next to the Proton City which has improved very much in value. 

PRK's township, known as Bandar Meru Raya (BMR)  is doing well. A JV theme park with the Sanderson group in ongoing in BMR. Its investment in Integrax has also improved in value. 

Since PKNP already had the intention to privatize the company, it will not easily give up. I believe that if the present proposal is successfully blocked, it will try again by offering a higher price. For those who have the holding power to hold on, the reward should turn out to be much better when it comes.

Look at MBF, the first offer was only at 60 sen per share, but eventually it was done at RM1.80 per share.

Whatever action you take as a result of this post, you do so at your own risk. I am long on PRK and intend to join the minority shareholders who object to the proposed repayment of RM3.90 per share. 

Sunday, January 05, 2014

CBIP To Trend Higher

This daily chart of CBIP looks positive. The candlesticks and stochastic are in accord. Once the overhead resistance level at RM3.28 is crossed, the stock should be on track to trend higher. Keep a close watch. Believe what I say at your own risk.

Thursday, January 02, 2014


As at 31 Jan 2013, Crescendo Corp Berhad has 2,975 acres of land in Johore out of which 2,181acres are in the Iskandar region. The company is in property development, construction, trading and manufacturing of building materials, education and the cultivation of oil palm.

For the quarter ended 31.10.13 and as at that date, the key statistics are as follows:
Revenue = RM78,010,000;  EPS = 21.43 sen. 

Total assets = RM622,868,000;  total liabilities = RM242,052,000.

Current assets = RM334,321,000;  Current liabilities = RM112,876,000.

Cash and bank balances = RM144,793,000;  Loans and borrowings = RM 144,406,000.

From the above figures, it can be easily seen that the company has a solid balance sheet and little borrowings when compared to its total assets. Cash position is strong as well.

What is most commendable is the earnings for the quarter just ended. When you compared them to the corresponding quarter of the previous year's earnings of 5.20 sen, you find that earnings have grown by 312%!  As for revenues, the improvement is only 47.47% because for the corresponding period of the previous year, revenue was at RM52,898,000. 

The Iskandar region is presently a hive of activity and growing fast. Foreigners, especially Singaporeans are converging into the area. As a result, land value is expected to appreciate by leaps and bounds. Crescendo stands to benefit much from this scenario because of its fairly big land bank in Iskandar. The stock is bound to do well going forward. I am long on the stock; I intend to keep them for the long term.