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recently I read about STARHILL REIT and Sunreit. Actually the dividend yield for REIT in Malaysia is comparable to EPF return. So it would be advisable to put our extra savings into REIT in order to keep up with the inflation. Do you agree with this?
Have you thought about investing in REIT? I see that you do not have any REIT in your portfolio.
Dear Felicity, I noticed HELP has been a laggard stock for maybe a year or two now. HELP seems like expanding aggressively especially the upcoming international school but also trading at a rich valuation of about P/E 20.
I like HELP, but I guess like you said the valuation for HELP is rich now. The problem for the business is that there is not enough differentiation factor for any of the education companies to be dominant. Recently, it has been affected due to the reduced revenue from overseas students which probably bypassed Malaysia now. Like most education stocks, they are now into private schooling and international school which is getting more and more popular. Don't know how that will play out though although I am pretty sure there's more demand for these kind of services.
Hi Felicity Happy new year to you...what do you think of Bjfood and Myeg...I've hold those stocks for sometime now which have appreciated fair bit...do you think both stocks still have potential to grow further? Thanks.
thanks for sharing your thought on REIT. I went through your articles about AEON Credit and RCE Capital again to compare with Malaysia Buildung Society (MBSB). MBSB is a competitor to RCE Capital that seems to be a good growth stock too. What do you think about MBSB?
I like MYEG, Its business is a good growth company. As for Berjaya Foods I like its Starbucks but not the Kenny Rogers. I think Kenny Rogers will pull down the company while Starbucks will do well. Unfortunately both of them are together.
I think RCE Capital wanted to acquire MBSB. MBSB has an advantage over RCE as it is a deposit taking unit. RCE is not.
The thing about MBSB is that it lends money for properties. If properties is slowing down, it may be affected. MBSB despite that is lending to the lower end properties. It is ok as an investment but I am not overly crazy over this.
Nah. Heard a lot and know the risk but the main problem is that I do not live in US and am unable to see brands or businesses run as I am able to in Malaysia. Also, there are just too many stocks in US that I have no idea where to start.
By the way, how about setting up a similar fund as you did for Malaysia investing in US stocks? I would be extremely interested.
Anyway, thank you very much for your help thus far. Appreciate it.
I have different strategy compared to Malaysia. In Malaysia, if you look at my portfolio, most are mid-sized companies as I still have exposure to these companies as you said.
US, companies that I have exposure are mainly large caps - APPLE, Bank of America, Wells fargo, VISA, Starbucks, even Berkshire Hathaway-B (not A). Well, these companies had a sort of run last 6 mths. The one which I am losing money are Corning (GLW) and Tesco. I am very bullish on large cap banks. Heavily exposed there.
Felicity : I share the same view with you about US Big Cap Bank. WFC is a no brainer stock. I like Lucadia ( LUK ), Berk.B and SYA. The housing industry is showing some signs or turn around which will be a boon for WFC for most of it's loan is mortgage based. In term of volatility, HK is much "roller coaster" than US. That is why I am out of the HK market. Furthermore there is too many financial shenanigan among the China based company in HK market. As for Malaysia market I can't find any worth buying at this level except Hartalega and Allianz. I hold Hartalega, Ber.B, APPL and going to bet heavily on WFC. Waiting for the right entry point. In comparison to Top Glove, no offence, I still think Hartalega is a better choice. People will keep on switching from rubber glove to nitrile glove. If you look at this industry in a longer period, the momentum of switching has started years ago even at that moment the nitrile glove was much more expensive than rubber glove. The pace of switching is quickening these 2 years and I think will be so in near future as long as the pricing mechanism is still in favor to nitrile glove. Happy Trading.
Its great to hear at least some people have comments on big bank stocks. Ya, I think it is still good time to hold these stocks despite the volatility. The reason is simple - after the crisis is over and banks back to full business, the big 3 - JP Morgan, BAC and wells fargo will be the main beneficiary. The deposits alone from the big 3 consists of 50% of total deposits. Hence, money is cheap for them.
On Hartalega, actually I agree but why I look at Top Glove - it is much larger capacity wise.
I am also thinking about Allianz - since the takeover from CIMB Assurance, its business sort of picked up very well.
Hi Felicity : Thank you for your comments. I vet through DKSH number and found that the in term of profit margin wise it is actually very very thin. I must say I am not familiar with their business model, the thing I am aoncerning is the profit margin which stretch too thin ( less than 1 % ). Maybe you have some insight which I hope you don't mind to share. At this moment of time, I hold quite substantial of cash ( > 50% cash ) which I don't like. I need to deploy the cash. Broder market wise, I just don't feel it is the right time to jump into the bandwagon. Malaysia market is funny, it is not like US or HK which are very efficient. Election is just around the corner, I hope it is a clear cut win or loose for either party. If is is hanging and uncertain, it is going to hurt the market. Maybe then is the best time to load. Need to do some homework and prepare for it. Don't you think so ?
For DKSH, I hope I am not wrong but I have figured it out this way. It is a distribution company with a full host of services. Imagine for a company which would like to distribute their products in Malaysia or Thailand. If the company already has products ready, for it to build a distribution channel, it would be very costly.
What it needs is DKSH or Harrisons. Beyond these two there are very few who have the capacity, size and reach. However, these two only have two strengths - distribution, collection. Beyond that, it did not do anything. Marketing are all done by the products companies themselves.
As a result of that, the revenue, volume would be extremely high for DKSH but it probably could not demand high margin. It nevertheless would still have the one link that most companies do not have and offer it to them.
It is the largest private distributor and no other companies would even dare to create and come close to it. moving further, it will still have that strength - because of the margins are thin, there could be surprises in terms of income but the revenue will continue to grow. To me, the strength and its competitiveness is good enough for me.
On Malaysian market, Ya I personally am not fully into Malaysia. Overseas markets consist of a bigger exposure.
Hi Fecility : I have been holding Cypark for a while before I sold it all at RM1.58 before it anounce it financial reselt couple of days ago. The result hosws the increased profit but again the increase of its receiable is alarming. but the market doesn't think so. It share price soar to RM 1.80 at the time of writing. Did I miss something ? You could have a look of what I wrote here http://sgbuaya.blogspot.com Appreciate your insight. I am intrested in Benalec as well. but the business model of claim the land, get the land and later sell it for a profit won't show consistence cashflow whiich is a flaw to me. But the Directors are keep on loading it up. I know I shall not consider this as an buying indication. But it is just merely extra information to be considered. What do you think if you ever vet through these 2 counters number. Thanks. Happy Trading.
Benalec is an expert in what they do. Just that the business model seems a little bit riskier.
As for Cypark, I am very worried over the receivables. Maybe you can check the team of people - are they experts in what they do or is it a political company. Check out the Chairman. Google it. ex-UN man.
Do search the two names in my blog as I have written about them before.
Any thoughts on Scientex? They are acquiring GW Plastic, which would make enlarge their production capacity for packaging business and diversify its exposure to F&B industry. Another growth factor would be their property business in Iskandar, though the property development cost may be a drag to the cashflow if it doesnt pick up as expected. What is your take?
Hi Felicity : Thanks for your comment on Benalec and Cypark. As you have said, I am very worried about Cypark receiveable too. hence I am taking the sell call. Yeah I did read about the UN man in Cypark. But that should be a consideration to make a buy call. As for Benalec, I have to admit that it's quality of earning is not good for I can't see the consistency in the coming quarters. Furthermore, it is hard for me to make a long term buy in a company which didn't show consistency of cash flow. It's piggy bank is not really growing as well. I once read that " One has to take care of the downside, the upside would take care of itself ". I will have to say a pass on these 2 companies. Thanks.
Hi Felicity, as the share prices of Padini significantly dropped over the last couple of month, would it be a good idea to have a position now? I have been learning a lot by reading your posts, and I am a beginner. Your feedback will be greatly appreciated.
Yes receivables is very high, but government as a paymaster for >70% of the revenue, it is expected that the receivables will be long.
The earning is dependent on new concessions received. Currently 8 mw Pajam solar power park is delivering consistent (albeit still small) profit.
Profits from RE will jump soon, as the 2mw bio gas energy and additional 5 mw solar panel is already near completion and would contribute to the bottom line once online.
There is hardly any maintenance or additional cost for RE once installed.
The land filling business revenue is a bit lumpy, but RE revenue is more consistent that's to the guaranteed 21 year feed in tariff rate. Current revenue rate is ~1.4 mil/mw/year.
However the biggest risk is election risk if BN losses, the concessions might take a hit.
Gark : I do agree with you that the government is the pay master for >70% of the revenue. But if the receivable is due for more than a year that doesn't sound good to me. The increase of the receivable is outpacing the increase of it's revenue. It sound like a business which are unable to collect it's cash but at the same time giving more credit facilities to it's customer. If the trend continues it will even sound fishy. it just doesn't make any sense to me. But Mr. Chua Mah You is one of the major share holder if I am not mistaken. It is bewildering.
Well it is stated in the CIMB report that the average sales billing to convert to cash from the Home Ministry which is 330 days. It is indeed that long... that is why Cypark is slowly exiting the landfill business (and also no more new projects. In 2013, the revenue from landfill is expected to be reduced by 1/2.
Current RE billing receivables turnover is 21 days from TNB, which will increase the future cash flow to a more predictable figure.
SENDAI has just hit 52 week low, the stock seems fundamentally strong however its share price has been moving downward since its IPO listing. May I have your thoughts or advice?
WingTM has two portions of its business - properties and the more stable fashion (apparel) industries. It is a decent developer but it does not have much landbank for its future development as I can see it. As for the apparel, I quite like it especially for the Uniqlo venture despite it owning the smaller 49%. Noticed that its price have recently gone higher which to me is quite fair.
Eversendai is fundamentally strong, except for its high exposure to the Middle East properties segment.
Engineering wise, it is a strong company but really I do not know where it stands in terms of valuation Based on its results and market cap, it is not richly valued. In fact, looks quite attractive.
I do not see you holding any of the oil and gas in your funds. Is it because there is no good stock in this sector to you or others reason ? But i see 2013 oil and gas sector may be one of the out standing sector. Hope you can share some good buy for this sector
Gark : Yes. Until there is some light shinning on the receivable issue, I think it is a huge risk to take up Cypark. I have been watching Cypark, bought it, then sold it. I have been following it for the past 4 quarters and there was no sign of declining receivable. Until then I would not touch it anymore.
While P&O seems to be attractive, however it is a standalone insurer. Standalone means it does not have bank support or is it associated to any large insurer globally. Over the last few years, Bank negara has been allowing many insurers to sell or tie up with foreign insurers to allow these insurance companies to strengthen.
As a result of that, you see Allianz, Zurich bought MAA and several banks selling their insurance arms - CIMB, Ambank, Hong Leong to MSIG etc.
P&O being a standalone will be facing much competition as these insurers are giant in relative to P&O. As P&O is now trading above its NAV, it is not that cheap anymore although the PE seems to be so.
What is more important is where does P&O stands in a small market like Malaysia in future.
Well,I agree it is going to face a lot of competition from big players, but I think it another way. MAybe when the market required to further consolidate in future, it is a good target to hold until that day. Like what happen to banks, local bank consolidated into less than 10 now.
I see its value in Insurance, if you read Chinese, you can see this link, http://www.investalks.com/forum/viewthread.php?tid=623&extra=page%3D1&page=29
I think it deserve a revalue once it sold its portion
Just happened to stumble on this here site today, and I have to say I'm duly impressed! Keep up the good work.
Just wondering, are there any sites out there that aggregate financial data for Malaysian companies? So far I've had to rely on the outdated (and at times, incorrect) data from WSJ/FT/Bloomberg/Reuters. Pretty new to all this, so I'm still looking around alot - time consuming when the only source is from the PDFs on the company websites.
Also adding to Art's query on US stocks; I hope you can share some of your experiences with brokers. Uncertain whether I should open a cross border trading account with a local firm or consider one of those popular online brokers. Focusing more on the longer term, so I'd be a little miffed if they upped and left.
(Sorry about the deletion. Darn typo demon got to me again. Didn't realise it'd show up as a 'deleted post'.)
there are probably no other sources of data except for the ones from Bloomberg, Reuters for now.
As for the market between 21 - 23 Jan, well I guess I am a bit too late to reply but as one can see, it is some knee jerk reaction and it has stabilised for quite a bit towards the end of the week.
I am actually expecting market to be sluggish between now till the GE results kicks in. Not selling anything though on my side.
got a question about Malaysia Airport Berhad. The important person behind the recent sterling performances of the company Tan Sri Bashir is retiring in June. Do you think the company will still be worth investing then?
Since you recently posted about a China-based stock (China Stationery Ltd),would like to know your opinion on HB Global (formerly SOZO).
As it had not been performing since its IPO, do you think it was due to negative sentiments towards Chinese stocks in general? While the last few quarterly results had not been wonderful, my gut feeling is that the business is at least genuine and I do foresee some prospects in the future.
Appreciate your comments and of course do shout if you spot something fishy or smell a rat!
Hi felicity. I would like to seek for your comment on SKP resource. Historical data showed that its kind of good company with consistence earning growth, positive operating cash flow, free cash flow to sales of >5%,net cash and high Dividend yield.. However, its now still trading at low PE? how do you think about it and its business? Thanks so much..
SKP resources has very strong track record and its stocks does not look expensive. I however lack understanding of what they do except for the plastic manufacturing solutions. that's why can't say much.
Hi,Felicity, Can you comment on PRKCORP(8346)?It's EPS stands at 38sen,NTA at RM4.68 and has net cash of nearly 77sen per share.It has even proposed a gross dividend of 7.48 sen.All these at 1.46!Could the potential political upheaval in Perak in the coming elections be the reason for its underperformance? Thank you in advance for your comments.And thanks for providing this blog.It has provided much needed views and information to assist in my investments.
I am afraid I will not be able to comment much. But my guess is this - since it is state owned, the impact would not be that great. usually a performing state owned corp will want to pay high dividends as its payment will go direct to the state.
State owned is basically the same as a company controlled by the federal government - any change in govt, they would want the best for the company, I presume.
The thing is that since it is a Perak state - that may however have some complications - remember what happened to the administration in 2009 if not mistaken.
Do you think National Bank of Greece is too big to fail? If you remember Citi, it was priced below $1 during the sub-prime crisis, but it's now trading at $40++ RBS, after partial nationalisation by UK government, rebounded as well. Bank of Ireland too had doubled since last year.
So, do you think NBG is a bargain at the current price of EUR0.59?
While I agree that Hapseng Consolidated is well diversified and has solid fundamental, but its plantation unit has some challenge where the high % of oil palm are aged and may need replanting soon.
On the change of management of SP Setia, it is most probably that they are moving to the newco of TSL as have the ex-chairman, ex-gm for penang as well as one ind director. While it will not impact them in the short term, in the longer term, as with all PNB companies, they will somehow manage even in the worse of times and the best of times. The govt support will be very strong as PNB cannot afford to fail.
Magni looks good but there are enough things which I know but would not be able to mention here. On paper it looks good though. Be careful of the industry - pretty tough
73 comments:
Hi Felicity,
recently I read about STARHILL REIT and Sunreit. Actually the dividend yield for REIT in Malaysia is comparable to EPF return. So it would be advisable to put our extra savings into REIT in order to keep up with the inflation. Do you agree with this?
Have you thought about investing in REIT? I see that you do not have any REIT in your portfolio.
Retail REITs are ok if you are able to find good ones. Starhill REITs portfolio of properties to me does not look convincing.
As for SunREIT, perhaps slightly better.
Properties to me is overpriced hence REITs may have that same problem although their income are from rental etc.
Dear Felicity,
I noticed HELP has been a laggard stock for maybe a year or two now. HELP seems like expanding aggressively especially the upcoming international school but also trading at a rich valuation of about P/E 20.
What do you think of this company?
Thanks.
I like HELP, but I guess like you said the valuation for HELP is rich now. The problem for the business is that there is not enough differentiation factor for any of the education companies to be dominant.
Recently, it has been affected due to the reduced revenue from overseas students which probably bypassed Malaysia now.
Like most education stocks, they are now into private schooling and international school which is getting more and more popular. Don't know how that will play out though although I am pretty sure there's more demand for these kind of services.
Hi Felicity Happy new year to you...what do you think of Bjfood and Myeg...I've hold those stocks for sometime now which have appreciated fair bit...do you think both stocks still have potential to grow further? Thanks.
Hi Felicity,
thanks for sharing your thought on REIT. I went through your articles about AEON Credit and RCE Capital again to compare with Malaysia Buildung Society (MBSB). MBSB is a competitor to RCE Capital that seems to be a good growth stock too. What do you think about MBSB?
Hi GL
I like MYEG, Its business is a good growth company. As for Berjaya Foods I like its Starbucks but not the Kenny Rogers. I think Kenny Rogers will pull down the company while Starbucks will do well. Unfortunately both of them are together.
I think RCE Capital wanted to acquire MBSB. MBSB has an advantage over RCE as it is a deposit taking unit. RCE is not.
The thing about MBSB is that it lends money for properties. If properties is slowing down, it may be affected. MBSB despite that is lending to the lower end properties. It is ok as an investment but I am not overly crazy over this.
Hi Felicity,
Just out of curiosity, what U.S listed stocks do you currently hold?
Thanks.
Hi Art
I am quite heavily exposed to financial stocks like BAC, WFC which have seen some rise recently. You are in US as well?
I have been investing in Malaysia for 3 years now. Got to admit I am still new and young. Thinking of diversifying out of Malaysia recently.
I wonder which website do you look for financial reports on companies listed in US?
For US, go to www.sec.gov for its Annual Report and Quarterly Report. Annual Report is called 10-K while quarterly is called 10-Q.
However, if you are considering US, be prepared for volatility as it is much more volatile than Malaysia or any part of the region. Surprise?
Nah. Heard a lot and know the risk but the main problem is that I do not live in US and am unable to see brands or businesses run as I am able to in Malaysia. Also, there are just too many stocks in US that I have no idea where to start.
By the way, how about setting up a similar fund as you did for Malaysia investing in US stocks? I would be extremely interested.
Anyway, thank you very much for your help thus far. Appreciate it.
I have different strategy compared to Malaysia. In Malaysia, if you look at my portfolio, most are mid-sized companies as I still have exposure to these companies as you said.
US, companies that I have exposure are mainly large caps - APPLE, Bank of America, Wells fargo, VISA, Starbucks, even Berkshire Hathaway-B (not A). Well, these companies had a sort of run last 6 mths. The one which I am losing money are Corning (GLW) and Tesco. I am very bullish on large cap banks. Heavily exposed there.
Dear felicity, U r doing a great job. Very passionate about stock investment.
We could join forces to create synergy to our returns of investment....
All the best n good luck always,
PureBULL
Felicity :
I share the same view with you about US Big Cap Bank. WFC is a no brainer stock. I like Lucadia ( LUK ), Berk.B and SYA. The housing industry is showing some signs or turn around which will be a boon for WFC for most of it's loan is mortgage based. In term of volatility, HK is much "roller coaster" than US. That is why I am out of the HK market. Furthermore there is too many financial shenanigan among the China based company in HK market. As for Malaysia market I can't find any worth buying at this level except Hartalega and Allianz. I hold Hartalega, Ber.B, APPL and going to bet heavily on WFC. Waiting for the right entry point. In comparison to Top Glove, no offence, I still think Hartalega is a better choice. People will keep on switching from rubber glove to nitrile glove. If you look at this industry in a longer period, the momentum of switching has started years ago even at that moment the nitrile glove was much more expensive than rubber glove. The pace of switching is quickening these 2 years and I think will be so in near future as long as the pricing mechanism is still in favor to nitrile glove. Happy Trading.
Hi Akagi
Its great to hear at least some people have comments on big bank stocks. Ya, I think it is still good time to hold these stocks despite the volatility. The reason is simple - after the crisis is over and banks back to full business, the big 3 - JP Morgan, BAC and wells fargo will be the main beneficiary. The deposits alone from the big 3 consists of 50% of total deposits. Hence, money is cheap for them.
On Hartalega, actually I agree but why I look at Top Glove - it is much larger capacity wise.
I am also thinking about Allianz - since the takeover from CIMB Assurance, its business sort of picked up very well.
Hi Felicity :
Thank you for your comments. I vet through DKSH number and found that the in term of profit margin wise it is actually very very thin. I must say I am not familiar with their business model, the thing I am aoncerning is the profit margin which stretch too thin ( less than 1 % ). Maybe you have some insight which I hope you don't mind to share. At this moment of time, I hold quite substantial of cash ( > 50% cash ) which I don't like. I need to deploy the cash. Broder market wise, I just don't feel it is the right time to jump into the bandwagon. Malaysia market is funny, it is not like US or HK which are very efficient. Election is just around the corner, I hope it is a clear cut win or loose for either party. If is is hanging and uncertain, it is going to hurt the market. Maybe then is the best time to load. Need to do some homework and prepare for it. Don't you think so ?
For DKSH, I hope I am not wrong but I have figured it out this way.
It is a distribution company with a full host of services. Imagine for a company which would like to distribute their products in Malaysia or Thailand. If the company already has products ready, for it to build a distribution channel, it would be very costly.
What it needs is DKSH or Harrisons. Beyond these two there are very few who have the capacity, size and reach. However, these two only have two strengths - distribution, collection. Beyond that, it did not do anything. Marketing are all done by the products companies themselves.
As a result of that, the revenue, volume would be extremely high for DKSH but it probably could not demand high margin. It nevertheless would still have the one link that most companies do not have and offer it to them.
It is the largest private distributor and no other companies would even dare to create and come close to it. moving further, it will still have that strength - because of the margins are thin, there could be surprises in terms of income but the revenue will continue to grow. To me, the strength and its competitiveness is good enough for me.
On Malaysian market, Ya I personally am not fully into Malaysia. Overseas markets consist of a bigger exposure.
Hi Fecility :
Thanks for your explanation.
Hi Fecility :
I have been holding Cypark for a while before I sold it all at RM1.58 before it anounce it financial reselt couple of days ago. The result hosws the increased profit but again the increase of its receiable is alarming. but the market doesn't think so. It share price soar to RM 1.80 at the time of writing. Did I miss something ? You could have a look of what I wrote here http://sgbuaya.blogspot.com Appreciate your insight. I am intrested in Benalec as well. but the business model of claim the land, get the land and later sell it for a profit won't show consistence cashflow whiich is a flaw to me. But the Directors are keep on loading it up. I know I shall not consider this as an buying indication. But it is just merely extra information to be considered. What do you think if you ever vet through these 2 counters number. Thanks. Happy Trading.
Benalec is an expert in what they do. Just that the business model seems a little bit riskier.
As for Cypark, I am very worried over the receivables. Maybe you can check the team of people - are they experts in what they do or is it a political company. Check out the Chairman. Google it. ex-UN man.
Do search the two names in my blog as I have written about them before.
Cheers
Any thoughts on Scientex? They are acquiring GW Plastic, which would make enlarge their production capacity for packaging business and diversify its exposure to F&B industry. Another growth factor would be their property business in Iskandar, though the property development cost may be a drag to the cashflow if it doesnt pick up as expected. What is your take?
In good mkt times, we shall all join forces to max our returns. Let's never miss out not EVEN 1 Ms U = greatest winning stocks in this cycle.
I am a little bit a specialist in the exact mkt timing for buys. Have a look at my young blog : http://purebull-bursatrader.blogspot.ca/
I target the timing for explosive up moves of stocks.
Yes, i SHALL BE CALLING SCIENTEX BUYS SOON...
Hi Felicity :
Thanks for your comment on Benalec and Cypark. As you have said, I am very worried about Cypark receiveable too. hence I am taking the sell call. Yeah I did read about the UN man in Cypark. But that should be a consideration to make a buy call. As for Benalec, I have to admit that it's quality of earning is not good for I can't see the consistency in the coming quarters. Furthermore, it is hard for me to make a long term buy in a company which didn't show consistency of cash flow. It's piggy bank is not really growing as well. I once read that " One has to take care of the downside, the upside would take care of itself ". I will have to say a pass on these 2 companies. Thanks.
Hi Felicity, as the share prices of Padini significantly dropped over the last couple of month, would it be a good idea to have a position now? I have been learning a lot by reading your posts, and I am a beginner. Your feedback will be greatly appreciated.
Padini, if the management continue to execute their strategies correctly - it should be a strong stock to own
Just some comment on cypark..
Yes receivables is very high, but government as a paymaster for >70% of the revenue, it is expected that the receivables will be long.
The earning is dependent on new concessions received. Currently 8 mw Pajam solar power park is delivering consistent (albeit still small) profit.
Profits from RE will jump soon, as the 2mw bio gas energy and additional 5 mw solar panel is already near completion and would contribute to the bottom line once online.
There is hardly any maintenance or additional cost for RE once installed.
The land filling business revenue is a bit lumpy, but RE revenue is more consistent that's to the guaranteed 21 year feed in tariff rate. Current revenue rate is ~1.4 mil/mw/year.
However the biggest risk is election risk if BN losses, the concessions might take a hit.
Gark :
I do agree with you that the government is the pay master for >70% of the revenue. But if the receivable is due for more than a year that doesn't sound good to me. The increase of the receivable is outpacing the increase of it's revenue. It sound like a business which are unable to collect it's cash but at the same time giving more credit facilities to it's customer. If the trend continues it will even sound fishy. it just doesn't make any sense to me. But Mr. Chua Mah You is one of the major share holder if I am not mistaken. It is bewildering.
Well it is stated in the CIMB report that the average sales billing to convert to cash from the Home Ministry which is 330 days. It is indeed that long... that is why Cypark is slowly exiting the landfill business (and also no more new projects. In 2013, the revenue from landfill is expected to be reduced by 1/2.
Current RE billing receivables turnover is 21 days from TNB, which will increase the future cash flow to a more predictable figure.
Hi Felicity,
What are your thoughts regarding WingTai Malaysia.
Many thanks
Hi Felicity,
SENDAI has just hit 52 week low, the stock seems fundamentally strong however its share price has been moving downward since its IPO listing. May I have your thoughts or advice?
HI Emily
WingTM has two portions of its business - properties and the more stable fashion (apparel) industries. It is a decent developer but it does not have much landbank for its future development as I can see it. As for the apparel, I quite like it especially for the Uniqlo venture despite it owning the smaller 49%. Noticed that its price have recently gone higher which to me is quite fair.
The challenge is however, future development.
Eversendai is fundamentally strong, except for its high exposure to the Middle East properties segment.
Engineering wise, it is a strong company but really I do not know where it stands in terms of valuation Based on its results and market cap, it is not richly valued. In fact, looks quite attractive.
Hi Felice,
If I want to put up an ads on your blog, how much I need to pay?
I do not know where to post this one......
Hi Feli,
I do not see you holding any of the oil and gas in your funds. Is it because there is no good stock in this sector to you or others reason ? But i see 2013 oil and gas sector may be one of the out standing sector. Hope you can share some good buy for this sector
Lim
Hi Jacky
Quite simple. I have poor understanding on oil and gas sector.
Hi Crab Grill
Can you email me at intelecpoint@gmail.com?
Gark :
Yes. Until there is some light shinning on the receivable issue, I think it is a huge risk to take up Cypark. I have been watching Cypark, bought it, then sold it. I have been following it for the past 4 quarters and there was no sign of declining receivable. Until then I would not touch it anymore.
Hi Felicity, like to read your blog a lot.
I have been monitoring a stock lately, P&O insurance.
It seems like very undervalued compared to its peers.
Hi
While P&O seems to be attractive, however it is a standalone insurer. Standalone means it does not have bank support or is it associated to any large insurer globally. Over the last few years, Bank negara has been allowing many insurers to sell or tie up with foreign insurers to allow these insurance companies to strengthen.
As a result of that, you see Allianz, Zurich bought MAA and several banks selling their insurance arms - CIMB, Ambank, Hong Leong to MSIG etc.
P&O being a standalone will be facing much competition as these insurers are giant in relative to P&O. As P&O is now trading above its NAV, it is not that cheap anymore although the PE seems to be so.
What is more important is where does P&O stands in a small market like Malaysia in future.
Well,I agree it is going to face a lot of competition from big players, but I think it another way. MAybe when the market required to further consolidate in future, it is a good target to hold until that day. Like what happen to banks, local bank consolidated into less than 10 now.
I see its value in Insurance, if you read Chinese, you can see this link,
http://www.investalks.com/forum/viewthread.php?tid=623&extra=page%3D1&page=29
I think it deserve a revalue once it sold its portion
P&O insurance itself is worth RM1.90 from the calculation of holdings to P&O holdings
Wow I totally missed out on the sale. It is now a different story.
Hi Felicity
Any thoughts about the market movement the past two days?
Just happened to stumble on this here site today, and I have to say I'm duly impressed! Keep up the good work.
Just wondering, are there any sites out there that aggregate financial data for Malaysian companies? So far I've had to rely on the outdated (and at times, incorrect) data from WSJ/FT/Bloomberg/Reuters. Pretty new to all this, so I'm still looking around alot - time consuming when the only source is from the PDFs on the company websites.
Also adding to Art's query on US stocks; I hope you can share some of your experiences with brokers. Uncertain whether I should open a cross border trading account with a local firm or consider one of those popular online brokers. Focusing more on the longer term, so I'd be a little miffed if they upped and left.
(Sorry about the deletion. Darn typo demon got to me again. Didn't realise it'd show up as a 'deleted post'.)
Hi Ladder Operante
there are probably no other sources of data except for the ones from Bloomberg, Reuters for now.
As for the market between 21 - 23 Jan, well I guess I am a bit too late to reply but as one can see, it is some knee jerk reaction and it has stabilised for quite a bit towards the end of the week.
I am actually expecting market to be sluggish between now till the GE results kicks in. Not selling anything though on my side.
hi Felicity,
got a question about Malaysia Airport Berhad. The important person behind the recent sterling performances of the company Tan Sri Bashir is retiring in June. Do you think the company will still be worth investing then?
Hi Keano
I am not too worried over change in management for MAB for the moment. Let's see how it goes...
Cheers
Hi Felicity,
what do you think about PESTECH? The company is fundamentally good and expanding quite well overseas.
Most of the stocks I monitor is increasing this few days, the last run before election？
KeckSeng is the best hold so far
Hi Felicity,
Since you recently posted about a China-based stock (China Stationery Ltd),would like to know your opinion on HB Global (formerly SOZO).
As it had not been performing since its IPO, do you think it was due to negative sentiments towards Chinese stocks in general? While the last few quarterly results had not been wonderful, my gut feeling is that the business is at least genuine and I do foresee some prospects in the future.
Appreciate your comments and of course do shout if you spot something fishy or smell a rat!
Cheers!
Hi felicity.
I would like to seek for your comment on SKP resource. Historical data showed that its kind of good company with consistence earning growth, positive operating cash flow, free cash flow to sales of >5%,net cash and high Dividend yield.. However, its now still trading at low PE? how do you think about it and its business? Thanks so much..
Hi Gnihckes
SKP resources has very strong track record and its stocks does not look expensive. I however lack understanding of what they do except for the plastic manufacturing solutions. that's why can't say much.
Hi,Felicity,
Can you comment on PRKCORP(8346)?It's EPS stands at 38sen,NTA at RM4.68 and has net cash of nearly 77sen per share.It has even proposed a gross dividend of 7.48 sen.All these at 1.46!Could the potential political upheaval in Perak in the coming elections be the reason for its underperformance?
Thank you in advance for your comments.And thanks for providing this blog.It has provided much needed views and information to assist in my investments.
Hi Newbie
I am afraid I will not be able to comment much. But my guess is this - since it is state owned, the impact would not be that great. usually a performing state owned corp will want to pay high dividends as its payment will go direct to the state.
State owned is basically the same as a company controlled by the federal government - any change in govt, they would want the best for the company, I presume.
The thing is that since it is a Perak state - that may however have some complications - remember what happened to the administration in 2009 if not mistaken.
Dear felicity,
What is your opinion regarding the retirement of Tan Sri Liew Kee Sin and resignation of Dato' Chang Kim Wah?
Hi Felicity,
Do you think National Bank of Greece is too big to fail? If you remember Citi, it was priced below $1 during the sub-prime crisis, but it's now trading at $40++
RBS, after partial nationalisation by UK government, rebounded as well. Bank of Ireland too had doubled since last year.
So, do you think NBG is a bargain at the current price of EUR0.59?
Thanks.
Wow, I am not sure, but guess Greece is a different country compared to US for example. Citigroup and Bank America would have been different.
On the change of management within SP Setia, I think it will not change the company much
Hi Felicity,
Is DKSH fully valued at current price? Hap Seng seems to have quite good fundamental and good DY. What do you think? What do you think of Tambun?
Hi Felicity,
Judging by the recent success of Hibiscus, do you think CLIQ could be prospective as well?
Thanks.
hi felicity, may I ask your opinion on hapseng?
Hap Seng is not too bad of a diversified concern.
While I agree that Hapseng Consolidated is well diversified and has solid fundamental, but its plantation unit has some challenge where the high % of oil palm are aged and may need replanting soon.
On the change of management of SP Setia, it is most probably that they are moving to the newco of TSL as have the ex-chairman, ex-gm for penang as well as one ind director. While it will not impact them in the short term, in the longer term, as with all PNB companies, they will somehow manage even in the worse of times and the best of times. The govt support will be very strong as PNB cannot afford to fail.
Hi Felicity,
DKSH stock RM5.27 Am planing to enter what do you think about the stock. Wish to see your point of view.
Thanks if i can get an advise
On DKSH, I dont know actually but I do not buy stocks on the run
on the run ? you means on the bullish
sorry for my noob question as i m very new to stock
Hi Felicity,
Can u comment on Magni. Thanks.
Magni looks good but there are enough things which I know but would not be able to mention here. On paper it looks good though. Be careful of the industry - pretty tough
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