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Koon Yew Yin's Blog

Author: Koon Yew Yin   |   Latest post: Wed, 22 Jan 2020, 10:15 AM

 

Dayang: Only fools will sell - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Wed, 22 Jan 2020, 10:15 AM


After I have seen these foolish investors as shown below who were boasting about their sale of Dayang on i3investors forum, I have to write this useful lesson.

 

 

 

The price chart shows that Dayang has gone up from 50 sen to close Rm 2.85 yesterday, an increase of 570% within 1 year. As I often said, no stock can continue to go up or come down for whatever reason. After some time, it will change its price trend line.

Even expert chartists do not believe it

Unlike many other stocks, Dayang’s price corrections are always very small. During these 12 months, many foolish investors in anticipation of buying it back at cheaper prices. Now they are in a dilemma because the price continues to go up higher and higher. They are regretting for their mistake.

Willing to eat a humble pie

Unless they are prepared to eat a humble pie, they will miss the golden opportunity to make a lot of money because Dayang will continue to go up higher and higher for many more years to come.     

A few days ago, I saw 1 rich investor queuing to buy 2.6 million Dayang shares at Rm 2.50 and someone queuing to sell 31,100 shares at Rm 2.51 at the close of today’s trading.

 

The big buyer was from UBS Securities which has its HQ in Zurich. This can only mean that the price will continue to go up high and higher and all those investors who sold earlier cannot expect to buy back at cheaper prices.

Petronas will not stop pumping oil

Even if the petroleum price dropped by drastically, Petronas will still continue pumping oil because the cost for just pumping is very small. Petronas has already paid billions of Ringgit for the construction of oil rigs or oil platforms. It is still very profitable to just pay for pumping and selling the oil.  

If you google you can see that the average cost for an off shore oil rig is US$ 650 million which is like a city and they all need maintenance and repair.

Dayang is the largest maintenance contractor in this region where Petronas has discovered a total of 163 oil fields and 216 gas fields.  That is why Petronas continues to award more maintenance contracts to Dayang. 

On 22nd Nov the company announced its 3th quarter result. Both its profit and revenue have improved.

1st quarter eps -0.43 sen, revenue Rm 156 million

2nd quarter eps 5.71 sen, revenue Rm 247 million

3rd quarter eps 11.10 sen, revenue Rm 357 million

Since it has resolved its financial constrain by its recent right issues, its 4th quarter result should be better than its 3rd quarter. Based on  its profit growth rate of the last 3 quarters, from – 0.43 to 5,71 to 11.1 sen, its 4th quarter should be more 15 sen. The total for the year will be more than 30 sen per share. Since it has such a rapid profit growth rate, it deserves to sell at above P/E 12. My immediate target price is Rm 3.60.

Dayang’s prospect in 2020

It is safe to assume that Dayang will perform better this year than last year after it has resolved its financial constrain and also it has gained more experience. My target price for this year is above Rm 4.00 per share.      

Dayang has very good profit growth prospect which is the most power catalyst to move share price higher and higher.

In the last few months I have been searching for another stock with similar qualities as Dayang in vain.

As a co- founder of Ipoh Garden Bhd. (IGB), in the early 1960s when we offered to sell 100 houses, we always had a few hundred buyers. We had to ask the Perak Mentri Bersar to draw lots to select the lucky buyers. It was like IGB had the monopoly to sell houses.

Dayang is now in a monopolistic position

 

Labels: DAYANG

15 Simple Ways to Improve Brain Performance - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Sat, 18 Jan 2020, 6:42 PM


You may like to read this useful article from Baba Mail.

The human brain is a 3 kg computer - it is the command and control centre that runs our lives and is involved in everything we do, so there is no shadow of a doubt that it is very important to protect and upkeep. Our brain determines the way we think, feel, act, and how well we get along with other people, our brain also determines what kind of person we are - are we considerate or polite, or otherwise rude? Optimizing your brain function is necessary for maximizing your abilities, whether at work, leisure or in relationships with the people closest to you. Therefore, we recommend that you familiarize yourself with the following tips to improve your brain's.

1. Exercise for your brain cells

Many studies have shown that when people engage in physical activity, the level of brain function improves. Scientists at the Salk Institute for Biological Studies in La Jolla, Calif., Found adult mice on the wheel had twice as many new hippocampal cells as mice who did not want to use the wheel. Researchers are unsure why the rodent's brain responded to physical activity in this way, but they hypothesized that exercise reduced stress and caused the rest of the body's functions, including those in the brain, to work more efficiently.

2. Train your mind

Just like exercising, activating different parts of the brain also trains them. Professor Lawrence Katz, a neurobiologist at Duke University, argues that finding simple ways to activate different parts of the brain that are not normally used is beneficial in keeping neurons and dendrites, which are short extensions protruding from nerve cells that are their input devices. Just as a new weight-building exercise builds muscles we rarely use, so a new worldview or recreational activity can improve the function of parts that are less used in the brain. Try new flavors and smells, do things with your weaker hand, take a different route to work, or travel to new places. In short, try to do new things that will take you out of your comfort zone, and your brain will enjoy and grow stronger.

3. Ask 'Why?'

Our minds are very curious, but as we grow older, many of us ignore or deny our natural curiosity. Let yourself be curious and wonder why things happen the way they do and ask someone who knows. The best way to exercise our curiosity is to ask "Why?" At least 10 times a day. Your brain will be more active and you will be amazed at the number of opportunities and solutions that will appear in your life and at work.

4. Laugh

Scientists say laughter is good for health because it releases endorphins and other positive chemicals to our systems. While we don’t really need scientists to tell us that laughter makes us feel good ... laughter is just like the quick claim of energy to our brain.

5. Eat fish

Omega-3 fatty acids, found in walnuts, flax seeds, and fatty fish, have long been known to be beneficial to heart activity. A recent study found that omega-3 fatty acids are also very healthy for the brain, not only because they improve the functioning of the circulatory system that supplies oxygen to the brain. It turns out that these beneficial compounds can also improve the functioning of the membranes that surround brain cells and thus improve overall functioning.

6. Remember

Take an old photo album or even your high school yearbook and give it a few minutes of in-depth examination. Our brain is a memory machine, so give it a chance to work a bit and spend some time with your memories. Browse the photos and try to remember the names of the people, the experiences you shared with them, and the feelings you felt toward them. After a while, you’ll discover that the process of recalling memories happens much faster even when you look at an old album or at all when you try to recall something you were sure you had already forgotten.

7. Reduce your intake of bad fat

Can "bad" fats adversely affect our brain function? When researchers at the University of Toronto provided rats with a 40% fat diet, their mental functioning decreased, including memory, spatial orientation, and learning ability. The problems worsened with a diet rich in saturated fat, found mainly in dairy products and meat. It is hypothesized that fat may reduce blood flow to the brain, which damages the supply of oxygen and glucose to the nerves. This does not mean that you should stop consuming fats, you just need to know what type of fats to consume, and how much. Monounsaturated fat, which is mainly plant-based, is very healthy for the body and linked to health and longevity, you can get it from fish, olive oil, nuts, avocados, and seeds.

8. Work the brain

Some of us like puzzles, some the daily crossword, and some of us prefer riddles - the kind does not matter. The main thing is to solve difficult and challenging things. Solving problems in your free

9. Listen to music

A decade ago, Frances Rauscher, a psychologist at the University of Wisconsin in the United States, and her colleagues published an amazing discovery and found that listening to Mozart improved mathematical and spatial thinking of the listeners, and even rats ran better and more accurately through a maze after hearing Mozart. It seems that listening to Mozart stimulates activity in three genes involved in transmitting signals in the brain. And it isn’t just Mozart, music, in general, is good for our health. Listen to the music you love when you can, it's much more important than you thought until now!

10. Improve your skills in the things you already know how to do

Repeating routine actions that your mind is used to doing doesn’t strain your mind. At the same time, there is no reason why you shouldn’t upgrade or change how you do things to create new connections between nerves in your brain and improve your abilities. 

11. Reduce your alcohol intake

Some say that alcohol kills brain cells, but the reality is a bit more complicated. A study of 3,500 Japanese men found that men who drank moderately (in this case, one drink per day) had better cognitive function than those who did not drink at all. Predictably, the worst performance was observed among those who drank more. The results of another study that examined the association between alcohol and brain function revealed that rats receiving a large amount of alcohol had fewer new cells in the hippocampus immediately after drinking and even a month later. This indicated that the alcohol not only damaged the rat's brain but also prevented it from correcting itself at a later stage. Therefore, it is definitely worth reducing your alcohol consumption and consuming it in moderate amounts.

13. Sleep on it

The recommended sleep time for an adult is 7-8 hours. Sleep is vital to our health and even to the proper functioning of the brain. During sleep, neurotransmitters in the brain reduce their activity, and their threshold is reset to normal and regular levels. In addition, during sleep, free radicals that accumulate in the brain during the day are cleaned by special enzymes, and nerve cells regroup.

14. Focus

Concentration can improve brainpower. Learn to focus when distracted, and try to get rid of the disturbance. For example, if you need to make an important phone call, thinking about it can take your mind off the task at hand and make you not think clearly. Try to make the phone call as soon as possible so that you can concentrate again. Stop the flow of life from time to time to ask yourself "what's on my mind?" and identify the factors that interfere with your concentration and deal with them.

15. Learn a new word every day

There is a strong connection between vocabulary and intelligence. When we add new words to our vocabulary, our brain can think in new ways with more nuances between different ideas. This is a particularly powerful way to stimulate and improve our brain activity.

 

 

 

 

Dayang's 2 new contract awards - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Wed, 15 Jan 2020, 9:36 AM


On 13 Jan 2020 Dayang announced that it has received 2 new contracts. The following is from Maybank IB Retail Research quote:  

Dayang was awarded two 4-year contracts by Petronas Carigali S/B to provide integrated hook-up and commissioning services. No value was given as it is likely on a “call-out” basis whereby work orders will be awarded at clients’ discretion.

 

This news will be well received by the investment community. Having delivered its best 3Q19 results in its history with 9M19 PATMI surpassing FY18’s core net profit, Dayang is set to end FY19 stronger. Note that vessel utilisation was at 91% in 3Q19.

 

With an estimated order book at circa MYR2.5b, albeit on call-out contracts, Dayang’s has built a strong jobs pipeline. The order book is equivalent to about 2.7x its FY18 revenue. And this underpins the street’s 6.9% 2-year EPS CAGR for FY18-20.

 

There are basically 3 types of contracts

 

Many people including my old friend, a retired senior banker wanted to know why the value of contract is not stated.

One of the subjects in my civil engineering course was quantity surveying which is different from land surveying. Let me explain it for all my readers. There are basically 3 different types of contracts.

 

1. Bill of quantities contract.

This type of contract is used for large scale projects, like a multi storey building or a long highway including many various types of infrastructures, like bridges, culverts, etc where the exact quantities of work have to be measured for payment after project completion. The payment will be based on the rates agreed in the contract.

 

2. Lump sum contract

This type of contract is often used for small construction, like building a new garage, a new toilet etc. Payment will be based on the agreed sum of the completed work as shown in the design drawings of the Architect or Engineer.

 

3. Schedule of rates contract

In Dayang’s case, the total quantity of work is not certain for each type, which oil rig and location of the oil rig. Payment will be made based of the agreed schedule of agreed rates which includes the followings:

a. mobilization cost for each contract. This includes preparation, getting additional worker and materials.

b. Transport of workers and material to each oil rig.

c.  scale and paint per square meter

d. remove and install rates for various diameter of steel cable etc.

 

Why Dayang is given more maintenance contracts?

Even if the oil price dropped drastically, Petronas will continue to pump oil because it has already paid for the oil rigs and Dayang will be given more maintenance contracts. If you google you can find out that the average cost of an off shore oil rig is US$ 650 million. It is like a floating city.

Dayang is in a monopolistic position because its closest competitors Carimin and Uzma are too small and inefficient. That is why Dayang’s share price is rising continuously and the prices of Carimin and Uzma remained depressed.    

 

Labels: DAYANG

Dayang: A great buying opportunity - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Sat, 11 Jan 2020, 6:50 PM


At the close yesterday, UBS Investment Bank, with HQ in Zurich was queuing to buy 2.6 million shares at Rm 2.50 and there were only 31,100 shares selling at Rm 2.51. The closing price was Rm 2.51.

With UBS Investment Bank’s strong support, Dayang share price can only go up higher and higher. Every investor should not hesitate to take advantage of this great opportunity to make more money.

As I said many a time before, I posted the most buy recommendations for Dayang than any other stock in my life. Many readers did not believe me. This has proven all my critics wrong.  

With UBS Investment Bank’s aggressive buying, the price will continue to go up higher and higher for many more years to come. Even if the price of petroleum dropped drastically, Petronas will continue to pump oil because the company has already paid for all the oil rigs and Dayang will be given more and more maintenance contracts.

Dayang is in a monopolistic position where there are practically no competitors. Carimin and Uzma are too small to compete with Dayang. That is why the prices of these 2 stocks remained so depressed.   

This aggressive buying by UBS also means that those who have sold earlier cannot expect to buy back at cheaper prices. What are they going to do with the sale proceeds? They cannot find another stock with the same profit growth prospect. They should be humble and admit their mistake so that can take advantage of this golden opportunity to make money.  

When UBS is wanting to buy Dayang so aggressively, you cannot lose money if you buy as soon as possible. I will use all my available margin finance to continue buying.

As I said before, readers must remember your buying or selling will not affect the share price because UBS is buying aggressively.    

 

 

Labels: DAYANG

Dayang: Foreign Funds queuing to buy 2.6 million shares at Rm 2.50 - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Sat, 11 Jan 2020, 1:02 AM


"A picture is worth a thousand words" is an English language adage meaning that complex and sometimes multiple ideas can be conveyed by a single still image, which conveys its meaning or essence more effectively than a mere verbal description.

The picture below shows Dayang has gone up from 50 sen to close at Rm 2.51, a gain of more than 500% within 1 year. 

 

The picture below shows that 1 rich investor queuing to buy 2.6 million Dayang shares at Rm 2.50 and someone queuing to sell 31,100 shares at Rm 2.51 at the close of today’s trading.

 

The big buyer was from UBS Securities which has its HQ in Zurich. This can only mean that the price will continue to go high and higher and all those investors who sold earlier cannot expect to buy back at cheaper prices. They must not forget the reason why they bought Dayang earlier.  

My advice to all my critics is to open their eyes to see the above 2 pictures, each is worth 1,000 words.   

 

Labels: DAYANG

Dayang: To sell or not to sell - Koon Yew Yin

Author: Koon Yew Yin   |  Publish date: Thu, 9 Jan 2020, 9:46 AM


The title of this article sounds like the opening phrase of a soliloquy uttered by Prince Hamlet of Shakespeare’s play Hamlet quote “To be or not to be, that is the question”.  

Ever since Dayang has been shooting up so rapidly from 50 sen to close above Rm 2.50, an increase of more than 500% within 1 year, every shareholder has been asking himself this question “To sell or not to sell”. Based on the daily traded volume of several million shares there must be less shareholders decided to sell than buyers on most days. As a result, Dayang has gone up higher and higher.

Those who sold earlier at Rm 1.00 or Rm 1.50 or Rm 2.00, must be very disappointed because they could not buy back at cheaper prices. If they do not buy back at higher prices, they will miss the opportunity to buy Dayang which has a very good profit growth prospect for many more years to come.

Due to the current US-Iran war, there are more sellers than buyers.  As a result, the price has been dropping in the last couple of days. The sellers must remember that they will soon regret when the price continues to go higher and higher.

 

My intention for writing this article is sincere and honours. As I said, whether you buy or sell will not affect the share price. As long as there is oil, Petronas will continue to pump because Petronas has already paid for the cost of the oil rigs and awarded more maintenance contracts to Dayang.

I have more than 50 years’ experience in doing business and searching for good shares to buy. Very seldom I can find one with long term profit growth prospect as good as Dayang.

If you google you can see that Malaysia started oil exploration activities in shallow waters in the 1970s and started active extraction and production in the 1980s till today. There are currently over 900 offshore platforms of which almost 600 of them are over 20 years old.

Based on these facts, you can be sure that Dayang will continue to secure more and more oil rig maintenance contracts for many more years to come.

I cannot find another stock that complies with my share selection golden rule of 2 consecutive quarters of increasing profit. Dayang 1st quarter EPS – 0.47 sen, 2 quarter EPS 5.7 sen and 3rd quarter EPS 11.1 sen. I was told that its 4th quarter EPS is much better than its 3rd quarter. Assuming its 4th quarter is 15 sen, its annual EPS will be 31 sen. Assuming it deserves to sell at P/E 10 the minimum price should be Rm 3.10 per share. I believe its price will be above Rm 3.00 before end of next month when the annual result is announced.

I am very confident its profit for next year will be more than this year because the company has already resolved its financial constrain by its recent right issues.

 

 

Labels: DAYANG

 

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