Friday, October 18, 2013

Rebalancing portfolio

I have realised that over the past few months, DKSH has now comprised of more than 30% of the portfolio. As I am not going to pump in more cash into the fund, I have decided to sell 2000 units of DKSH and buy an additional 7500 units of Keuro.


If the proposal from Keuro maintains, 16,000 units of the shares in total will cause me to allocate some additional RM13k for the subscription of the rights - price not fixed yet. Yes, I am going to subscribe for the Keuro's rights as I am anticipating that it will be offered quite soon.

Over the last 2 months, Keuro has changed hands and Chan Ah Chye is no longer the substantial shareholder of the company he founded. Through that, Talam Transform is under a different control as well, in case some might not know.

Keuro now, has 2 major shareholders in the name of IJM and MWE - both equally around 25%. There are also some large shareholders whom are holding through foreign entities which we do not know. Keuro is a company which will need to raise funds to support its WCE project. As mentioned in my past articles, buying Keuro is a risk as it does not have much of a revenue and profit track record over the last few years as well as in the near future, except for the Rimbayu project.

I am betting that at its market cap of around RM720 million, it should be worth much more upon the completion of West Coast Expressway (WCE). All in all, this is a stock for the long haul and will be very dependent on WCE.

12 comments:

Winnfield said...

Hello felicity, what is your take on the upcoming Caring Pharmacy IPO? It has some pretty good numbers and will list at a P/E of 13. The only thing that worries me is the 20% stake which Vincent Tan is holding though.

felicity said...

Looks like a decent business. Vincent Tan is ok. The one thing is that competition is pretty tough as in Guardian, Watson. These kind of business, there are usually 2 to 3 successful ones - not more than that. Through Caring, just hope that there are 3 rather than 2 as Guardian and Watson will occupy the top 2. One owned by the Jardine group, the other Li Ka Shing.

The fact that it is at 13x PE, I think seems ok.

The Cosway Pharmacy does not seem to be able to kickoff.

reyes430 said...

hi felicity

what do you think about asiabrand? it had sold off the non-core asset and acquired anakku, audrey and etc into its portfolio. how do you view this company? Thanks

felicity said...

I think it is a decent business, but do look at where it is going. Anakku and Audrey are not the brands that will make me excited though

keeda said...

felicity what do you think bout cerek?

reyes430 said...

Thanks so much felicity

felicity said...

Karex sounds more interesting than say Caring.

The fact that it is one of the largest condom manufacturer in the world would make it one of the more exciting companies.

I like companies that are not dependent on government, competitive by its own nature, in a growth market.

One wonders whether it will become the next Top Glove and Hartalega. Karex is a manufacturer for Ansell, Beckinser. I think condom to a certain extent quality is even more important than rubber gloves. Hence, if it is selling to those guys, I think this speaks for itself and probably for brands such as Durex to change its supplier, it would be very careful.

Fung C.F. said...

Felice, great comment on Karex. One thing i wanna add is that approximately half of the condom market is about selling to the institutions like charitable organizations, which in turn will distribute the condoms to the third world countries. The growth prospect of such market is tremendous and i bet it will contribute brilliantly to Karex.

lofan73 said...

hi felice..

i had done a great post on keuro. between ijm land n keuro...who will benefit the most from bandar rimbayu?..

ChenLee Pung said...

Hi Felicity, would like your opinion on Berjaya Auto Berhad at issue price of RM0.70.

felicity said...

I do not see anything interesting from the automotive market maybe except for UMW or on a smaller note Tan Chong. Berjaya Auto is not really a player.

Ks Kua said...

Hi felicity, what do you think of PMcorp (4081) ? Is it undervalue as mention in i3investor.com. Please comment !! tq