Highlights

EagleEyed - Win Big Trend

Author: EagleEyed   |   Latest post: Wed, 20 Oct 2021, 7:29 PM

 

Shipping & Logistic Industry - SonicShares' global shipping ETF has returned 13% to investors

Author: EagleEyed   |  Publish date: Wed, 20 Oct 2021, 7:29 PM


Ref: https://www.businessinsider.com/supply-chain-crisis-investing-strategy-etf-shipping-outlook-paul-somma-2021-10

 

Below is the arcticle from our Premium Business Insider Account. 

 

  • In its first 2 months, SonicShares' global shipping ETF has returned 13% to investors, well above the broader stock market.

 

  • The founder believes the supply chain crisis will last until 2023, but the opportunities for investor will last well beyond then.

 

  • He breaks down the 4 key drivers of the crisis and 2 ways investors can capitalize on the chaos.

 

Within two months of launching,  SonicShares pure-play global shipping exchange-traded fund BOAT  accumulated $11 million assets under management and returned 13% to investors. 

 

The benchmark indices have gotten a boost this month from robust quarterly earnings, but are a little way off this year's record highs, down to concern over the potential default of  Chinese property company Evergrande, the impasse over the US government borrowing limit, the global supply chain crisis and surging inflation.

 

With the worst of the Covid-19 pandemic behind it, global economic activity has roared back. And it's been especially noticeable in the shipping market, where pent-up demand for raw materials - and the containers that move them - has sent the cost of everything from copper, to crude oil, to freight rates through the roof and created huge bottlenecks at ports and warehouses everywhere. 

 

Enter SonicShares' BOAT exchange-traded fund, thanks to its exposure to container shipping companies, dry bulk carriers and tankers, it's easily beaten the broader market.

 

"To some extent, we feared that we had missed the opportunity not appreciating how the cascading sequence of events would culminate in the shipping crisis that we're in now," said Paul Somma, the founder of SonicShares, describing how they feared they had missed out by not launching the ETF prior to the Suez Canal crisis in March.

 

But many supply chain experts say the extensive bottlenecks in shipping and other areas of logistics won't ease until as late as 2024.

 

"It's our view that the shipping companies and shipping company investors will benefit long after the shipping crisis is resolved," Somma said.

 

What's causing the crisis?

 

To understand what's happening, investors must picture the supply chain as a web of connections of container ships, trucks, warehouses, and roads and railroads to get goods to consumers, rather than a linear chain, Somma said. 

"The whole system has to work together, and it's almost like the relay race, where the baton is passed from one runner to the other," Somma said. " It was all working kind of fine until COVID-19."

 

 

In some cases, companies are even choosing to charter their own planes and boats to get products to customers.

 

There are four major problems behind the crisis and none of them can be solved overnight, Somma said. 

 

1) Skyrocketing container prices and overloaded ports

The containers that shipping companies use to move goods are the first pinch-point. In recent months, a shortage of containers has seen rates surge, as companies compete to get products on the water.

 

When lockdowns took effect last year in large parts of the world, thousands of empty containers built up at inland depots as well as cargo ports. These would normally have been shipped back to the big exporters in Asia.

 

Container rates are finally starting to decline, but are still above pre-pandemic levels, according to the Financial Times. The challenge is now for the ports, which are facing a massive backlog of ships waiting to be unloaded.

 

2) Truckers and freight train operators shortage

 

The problem doesn't stop once a container makes it to port and is unloaded off the ship. There's also a drastic shortage of truckers and freight operators, Somma said, meaning another bottleneck in transporting goods to warehouses, whether that's by road or by rail.

 

3) Chassis shortage

 

Even if a trucker is available to transport the goods, they will likely come up against a shortage of chassis, which are used to transport ocean containers by road.

 

"Even if you have the port going 24/7 and even if you were able to hire and train the 60,000 truckers that are missing from the current labor force, you still need those chassis and you need them in the right place at the right time," Somma said.

 

4) Warehouses at capacity

 

In the best-case scenario, where a shipper has a container that is successfully unloaded at the port, with a chassis and a truck driver that can transport it, there's still the problem of warehouses being at capacity, which circles back to the shortage of truckers to collect the empty containers.

 

"You could run a port 24/7 and still not have anywhere to put those containers," Somma said. " … That's where the chain comes in. It's almost like the accordion pattern of traffic on the highway. You have one one small issue and it reverberates throughout the system "

 

Capitalizing on chaos

 

Somma expects that shipping companies balance sheets and cash flows will look very strong in coming years, because of their ability to secure long-term leases with customers and potentially lock in today's high prices for the next three to five years.

 

"Everyone is in agreement that the supply chain crisis will last into 2023," Somma said. "But the benefits to the shipping companies will last beyond that."

 

 

What shipping/logistics companies you may invest in Malaysia? 



1. FREIGHT

 

Blog post wrote last week. Today rises up 4.8 % from TA Support Line. 

https://klse.i3investor.com/blogs/EagleEyed/2021-10-15-story-h1592712258-FREIGHT_How_far_would_it_goes.jsp

 

2. HARBOUR

 

https://klse.i3investor.com/servlets/stk/2062.jsp

 

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Apart from Glove Investors are losing lot of money, there are a lot of investors lose money in KPOWER, SCIB & SERBADK

 

 

Hopefully our stock insights will allow you to earn back your losses from Glove Counters and above counters.

 

Simple and Easy Quote for Investors:

"Never go against the Market and Never Buy Downtrend Stocks."

 

 

To be reminded,

1st Post: PMBTECH  rose about 36% after we share our insight here.

https://klse.i3investor.com/blogs/EagleEyed/2021-10-02-story-h1591871253-PMBTECH_Will_it_become_the_next_Genetec.jsp

 

 

 2nd  Post: CEKD rose about 56% after we share our insight here.

https://klse.i3investor.com/blogs/EagleEyed/2021-10-07-story-h1591938623-CEKD_How_much_would_you_pay_for_this_new_IPO.jsp

 

Disclaimer: You should only refer your Dealer/Remisier for any Buy/Sell suggestions. It is neither a trading advice nor an invitation to trade. Any action that you take as a result of information, analysis or commentary on the contents is ultimately your responsibility.

 

**********************************************************************

 

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FREIGHT - How far would it goes?

Author: EagleEyed   |  Publish date: Fri, 15 Oct 2021, 11:34 PM


After sharing our insights on PMBTECH & CEKD, today we want to share you another GEM in Logistics Industry.

 

FREIGHT MANAGEMENT HOLDINGS BERHAD (7210)

 

So what FREIGHT does in it's business? 

https://www.fmgloballogistics.com/about-us/

As one of the top freight services provider in the region, FM Global Logistics is a leader in enabling manufacturers and brands to significantly enhance their logistics operations. 

They are providing the logistic solutions in the quickest and most cost-efficient manner possible.

FM GLOBAL LOGISTICS is one of the leading logistic solution providers in the Asia Pacific region. They are able to offer innovative supply chain solutions that include sea, land, air, tug & barge, and warehousing services.

 

From the above clarification, we can know FREIGHT  is a LEADER in this freight services provider industry. 

 

From the Latest QR, in Review of Performance, The increased revenue is mainly due to HIGHER FREIGHT RATES and business activities.

The Profit Before Tax (PBT) increased from RM 3.3 million to RM 13.5 million or 313% higher due to Improvement in both Malaysia and Overseas Operations.

Here is the super bullish trend of FREIGHT RATES:

https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry

 

 

 

You also can check the SCHEDULES here on a MONTHLY BASIS. You can know how busy they are.

https://www.fmgloballogistics.com/schedules/

 

 

By end of OCTOBER, they will complete the Expansion into US MARKET.

Freight Management Holdings Bhd is buying three US-based freight forwarding services companies for a combined US$2.2 million (approximately RM9.2 million), as part of the group's expansion initiatives into selective international markets.

The acquisition is expected to be completed within 30 days from 4 OCTOBER 2021.

"With the acquisition, the group would be able to immediately leverage the existing customer base and resources of IOS Companies, which have an established freight forwarding business and valid customs brokerage licence in the US. The IOS Companies will also serve as a gateway to the vast US market via its base in Los Angeles. As the group develops its presence in the US, the group will also explore other logistics-related opportunities such as e-commerce fulfilment services," Freight Management added.

 

Ref: https://www.theedgemarkets.com/article/freight-management-expands-us-market-acquisitions-three-usbased-firms?type=malaysia

 

TARGET PRICE RM 1.27 by CGS-CIMB Research

 

KUALA LUMPUR (Aug 20): CGS-CIMB Research has maintained its “Add” rating Freight Management Holdings Bhd (FMH) at 73.5 sen with a higher target price (TP) of RM1.27 (from RM1.20) and said FMH’s FY6/21 core net profit of RM32 million (+90.6% y-o-y) beat expectations,thanks to higher-than-expected freight volumes in 4QFY6/21.

In a note Aug 19, the research house said that going forward, FMH should post stronger earnings, driven by a recovery in global trade, expansion of service offerings and better cost efficiencies.

“We lift FY22-23F EPS to reflect higher demand for freight services and higher economies of scale, and introduce FY24F EPS.

“Reiterate Add, with a higher TP of RM1.27 (20x CY22F P/E),” it said.

Ref:https://www.theedgemarkets.com/article/cgscimb-raises-target-price-freight-management-rm127

 

The above Target Price is NOT YET including with the Revenue & Profit that will be accounted in the Q2 FY2022 due to the acquisition of US 3 companies (Inter-Orient Services, Inter-Orient Corp and Noble Shipping Corp (IOS Companies))

Ref: https://klse.i3investor.com/blogs/sinchew_company_story/2021-10-11-story-h1591997273.jsp

 

 Here is our Technical Chart Overview:

On 8 OCTOBER 2021, the share price break RM 0.88 with the most HIGHEST VOLUME in the history. The share price under retracement with small volume now.

We can see the latest Resistance Level at RM 1.15 and Support Level at RM 0.925 ~ RM 0.965.

 

The Technical Chart showing a retracement shall done soon in the near term.

 (Near 40% gain based on the support zone in order to reach the Target Price)

 

Apart from Glove Investors are losing lot of money, there are a lot of investors lose money in KPOWER, SCIB & SERBADK

 

Hopefully our stock insights will allow you to earn back your losses from Glove Counters and above counters.

 

Simple and Easy Quote for Investors:

"Never go against the Market and Never Buy Downtrend Stocks."

 

 

To be reminded,

1st Post: PMBTECH  rose about 36% after we share our insight here.

https://klse.i3investor.com/blogs/EagleEyed/2021-10-02-story-h1591871253-PMBTECH_Will_it_become_the_next_Genetec.jsp

 

 

 2nd  Post: CEKD rose about 56% after we share our insight here.

https://klse.i3investor.com/blogs/EagleEyed/2021-10-07-story-h1591938623-CEKD_How_much_would_you_pay_for_this_new_IPO.jsp

 

Disclaimer: You should only refer your Dealer/Remisier for any Buy/Sell suggestions. It is neither a trading advice nor an invitation to trade. Any action that you take as a result of information, analysis or commentary on the contents is ultimately your responsibility.

 

 

 

Labels: FM
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CEKD - How much would you pay for this new IPO?

Author: EagleEyed   |  Publish date: Thu, 7 Oct 2021, 5:41 PM


Today we going to share you what CEKD Bhd is doing.

 

The above pictures are showing you the strengthness of this CEKD. The technical chart closed at RM 0.620 with a volume kicked in from 4pm today.

 

If you're a pure TA traders, we knew you will join as long as the Technical Chart show the strength and of cause the stock which is going to be All Time High will continue rally,

eg. OPCOM, HONGSENG, HARBOUR, PMBTECH, GENETEC, & SAM etc.

 

So what CEKD does in it's business? 

http://www.cekd.com.my/about-us

 

 

 

CEKD Berhad is a die-cutting solutions provider and have been involved in the manufacturing of die-cutting moulds and trading of related consumables, tools and accessories since 1989. They have more than 30 Years of Experience in the Industry.

In the website, the board stated they are the LEAD MANUFACTURER for the complete custom die-cutting solutions. As date of 6 August 2021, they are serving about 1309 customers from various industries such as paper printing and packaging industry, electrical and electronics industry, automotive, plastic packaging as well as textile and leather industries. with a total of 48.3% of average gross profit margin.

 

From the above clarification, we can know CEKD is a LEADER in this industry. 

 

Most of the IPO with rally 90% - 150% from the First Debut. (provided company has a good plan and future prospect)

 

RAMSSOL - IPO Price RM 0.45 - Highest Price - RM 0.955 (111% of gain)

CTOS - IPO Price RM 1.10 - Highest Price - RM 2.10 (90% of gain)

PEKAT - IPO Price RM 0.32 - Highest Price - RM 0.930 (188% of gain)

VOLCANO - IPO Price RM 0.35 - Highest Price - RM 0.705 (100% of gain)

 

CEKD - IPO Price RM 0.48, Current Price - RM 0.62 (28% of gain Only)

 

The Technical Chart showing it will reach All Time High Level soon. How much would you pay for this CEKD

 

We believed many glove investors are losing lot of money and stuck in glove counters. 

Simple and Easy Quote for glove investors:

"Never go against the Market and Never Buy Downtrend Stocks."

 

To be reminded, after we found the GEM and share the info about PMBTECH in last week, the share price rose about 30% in one week. 

https://klse.i3investor.com/blogs/EagleEyed/2021-10-02-story-h1591871253-PMBTECH_Will_it_become_the_next_Genetec.jsp

 

Disclaimer: You should only refer your Dealer/Remisier for any Buy/Sell suggestions. It is neither a trading advice nor an invitation to trade. Any action that you take as a result of information, analysis or commentary on the contents is ultimately your responsibility.

 

 

Labels: CEKD
  2 people like this.
 
mf 0.62x50% = 0.93
0.62x80% = 1.11
08/10/2021 10:21 PM
DickyMe3 This is another penny stock in the making. Expect this to fall flat into 10 sen zone in a year, after they siphon enough money.
08/10/2021 10:24 PM
SpeedNpower Goreng hit n run burn ppl
09/10/2021 12:09 AM

PMBTECH - Will it become the next Genetec?

Author: EagleEyed   |  Publish date: Sat, 2 Oct 2021, 5:32 PM


 

 

If you have noticed, the share price of PMBTECH roses from RM 6 to the highest RM 13.77 recently. 

 

Do you know why?

Stated from UMA replied:

  • There has been a recent surge in metallic silicon prices (as well as for raw materials in general), due to worldwide market forces, which augurs well for the Group; and b.
  • The Board continues to engage with Syarikat Sesco Berhad (SESCO) from time to time and at any time to explore opportunities for additional power supply from SESCO which will enable the Group to expand the production of its metallic silicon plant situated in Bintulu, Sarawak.

Ref:

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=118669&name=EA_GA_ATTACHMENTS

 

So the problem now is where is the next stops for PMBTECH? Will it become the next GENETEC?

 

My answer is based on the following facts:

(a). The Silicon Price has been surged to the highest 60,000 Yuan per ton based on the following charts.

Based on Bloomberg, it has rised for about 300%.

Silicon’s 300% Surge Throws Another Price Shock at the World

https://www.bloomberg.com/news/articles/2021-10-01/silicon-s-300-surge-throws-another-price-shock-at-the-world


Here what is the important reply from PMBTECH's AGM 29 June 2021: 

Ref: http://www.pmbtechnology.com/?cat=231

  1. How does China’s decarbonisation policy affects our business?
    What strategic moves we took in response to the said development?
    When and how much is our next expansion?

    Answer:

    In our opinion, China’s decarbonisation policy will increase the cost of the silicon metal manufacturers in China. We see this as an opportunity for us to have a bigger share of market and we are taking every effort to ensure our prices remain as competitive. We are also planning to improve our marketing strategy to take advantage of the opportunity.

    Our next expansion will depend very much on the market demand and subsequently the additional capacity to be installed.

    Subject to market conditions, the expansion can be considered when the opportunity arises.

  2. Can you share with us more about your silicon metal:

    1. i.   What is the range of its usage?

      ii.  Who are your main clients?

      iii. Is it a raw material used for solar cells and electric vehicle?

      Answer:

      i.  Silicon metal has been widely used in the aluminium industry, chemical as well as electronic industries.

      ii.  Our clients include both local and overseas including Japan, India, America and Europe.

      iii. Yes, our silicon metal can be used as raw material in solar cells and semiconductor.

  3. How big is your market share as a producer of sillicon metal globally? Who are the top 3 producers?

    Answer:

    Silicon metal production is approximately 7 million tonnes per year globally with the Group contributing 70,000 tonnes. The top producers in the market are Ferroglobe PLC, Elkem ASA and Hoshine Silicon Industry Co. Ltd.

  4. Are you part of the semiconductor's supply chain?

    Answer:

    Yes, we are processing silicone of more than 99% purity which can be further purified for use in the semiconductor industries.

(b)  From the above reply, you can know that it's bussiness supporting the current HOT SECTOR: ALUMINIUM AND SEMICONCOCTOR Business. Furthermore, SILICON actually a raw material and needed for EV's Batteries. (EV Battery made GENETEC rally so crazily, why PMBTECH can't?)

 

(c) Let's talk about the assumption earning.

 

PMBTECH can produce 70,000 ton per year. We take an average price of 50,000 YUAN per ton for example.

 

70,000 * 50,000 = 3,500,000,000 YUAN (3.5 billions YUAN = RM 2,272,907,032) 

 

Per year estimated can earn about RM 2.5 billion.

 

Now you can compare the EARNING between GENETEC and PMBTECH

 

The Technical Chart showing a retracement shall done soon. 

We believed many glove investors are losing lot of money and stuck in glove counters. 

Simple and Easy Quote for glove investors:

"Never go against the Market and Never Buy Downtrend Stocks."

 

Disclaimer: You should only refer your Dealer/Remisier for any Buy/Sell suggestions. It is neither a trading advice nor an invitation to trade. Any action that you take as a result of information, analysis or commentary on the contents is ultimately your responsibility.

Labels: PMBTECH
  3 people like this.
 
BlessedInvestor Based on the author estimate

70,000 * 50,000 = 3,500,000,000 YUAN (3.5 billions YUAN = RM 2,272,907,032)

PMB net profit margin is about 10% based on past few quarter results. RM 2.2b sales x 10% = RM 220m. Assuming PE 20 (Conserviative PE as Pmetal used to have PE of betwen 30-50 in the past) will give mkt cap of about RM 4.5 billion. Current mkt cap is about RM 2.4b.

PE 20 -30 should be very fair to PMB as it is in a special industry and barrier to entry is very high.

Future growth prospect

This year PMB completed phase 2 expansion making its output to 72k MT. The land area for the factory can cater for another 2 phases of expansion in near future. The mgt has indicated that negotations are underway with Sarawak Energy on power supply deal for phase 3-4 expansion. We shall hear some good news from them in near future.
02/10/2021 11:58 PM
greencode Hahahah buy al lot already isit want to push the share.? Wait tooo high the price take profit
03/10/2021 7:28 PM
BlessedInvestor With increase in silicon price of more than 300%, the profit margin should be higher than 10%...
04/10/2021 9:31 AM
Youngkid Don't kena bull trap lol!
04/10/2021 12:13 PM
Youngkid Buy gloves counters safer mah!
04/10/2021 12:16 PM
Youngkid Purely syndicates manipulation
04/10/2021 12:21 PM
Airline Bobby Conmen Conmen, post article after fly not before .... Cannot trust
04/10/2021 6:25 PM
Powerplay666 What a timely article! I expect this counter will exceed Genetec price eventually. Only nosh of 200 plus million shares and some more the revenue will be at least 10 times the revenue of Genetec.
Silicon is a critical material needed for EV and Solar.
04/10/2021 6:26 PM


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