Highlights

Investing theory 5 - Cigar Butt Companies

Author: Philip ( buy what you understand)   |   Latest post: Wed, 14 Oct 2020, 4:41 PM

 

How to value Bonus issue, Rights issue, warrants

Author: Philip ( buy what you understand)   |  Publish date: Wed, 14 Oct 2020, 4:41 PM


Hi all,

I am Philip here, with some thoughts on the recent multiple share splits, bonus issues, rights issues and whatnot and how it should change your investing philosophy.

Many are confused with the different results, some think that it is free money, while others think that the price dropping is a scam by management to cheap investors.

In any case, let me clear up some mental models.

First, BONUS ISSUES.

 

Lets take a look at this:

 


Do you notice anything different about the PIE? It is exactly the same size, meaning everyone still gets to eat only one part of the pie. Looking at the division, the obvious thing occurs, there will be more people who will be able to afford to buy a small piece of the pie at a cheaper price, however, the size and value of the pie remains exactly the same.

In malaysia, one must buy shares in lots of 100 shares, meaning not everyone can afford to buy one lot of say... nestle (which costs RM14,000 a lot). In view of that, we should be asking, why doesn't nestle do bonus shares and give more liquidity and buying power to more investors who would like to invest in nestle?

The simple answer to that question is... stability and quality. Imagine if you will if you bought a cheap walk up apartment in a poor area for RM80K. You can only rent it out for RM500 -750 a month. You would think that being able to rent such a place would be a good deal... right? Cheap rents, a lot of demand, sure make money!

You would be wrong. The opposite usually happens. The low rent usually attracts students and low paying individuals who are not looking to take care of the place for their family. Being so cheap,they usually end up not paying rent on time, damage the furniture and cause a lot of repairwork, whenever they move out. On the other hand, if you own a beach home that is worth say RM800K, you would notice that whoever is renting is likely to take better care of the place, less wear and tear, and is usually willing to pay much more than normal due to the exclusivity.

In stocks, especially in bursa it seems to happen this way as well. You will notice the penny stocks trading cheap to keep giving out warrants and bonus issues to entice individuals to buy, with the net effect of actually having huge volatility, buying and sell at all sorts of news and generally making for a stressful investment. Same as when you rent out your place, you are looking for young families and stable homes that give you long term visibility. In stocks, long term investors and stable environments will be attractive to institutional investors and large funds that want to low volatility and steady long term growth.

So , is bonus issues good or bad? The answer is.... IT DOESN'T MATTER IN THE LONG TERM.

If I am investing in companies that do bonus issues, I would like to invest in companies that seek to fix liquidity by splitting shares, but where the earnings per share is still very solid and growing. The net effect in the end is very small, but the important part is whether the company can grow its earnings on a reliable basis. If it does, then that would be the main factor of investment.

RIGHTS ISSUES & WARRANTS

On the other hand, when studying rights issues, the default setting is always: RED FLAG. In my opinion, a company has a few avenues of raising cash for growing its business:

1. Internally generated cash flow.

2. Bond raises, borrowings from banks and institutions.

3. Warrants, and Rights Issues.

Each one has huge effect on company reputation, quality of debt and long term finance repayments. Obviously internally generated cash flow is the best source for raising funds for growth. However, just like using cash only to trade stocks, if you get a good opportunity you will not be able to maximize your investment returns, which slows down the long term growth of the company. 

The second method is the usual way of raising cash, via debt raising. This method has a much lower cost of capital due to the company, and is less dilutive on a net effect basis. It is also very easy to see, and clear for investors to value.

The third method is in my opinion the most difficult way, worse method to raise cash. By doing rights issues and warrants, it basically selling of today finances for future returns at a huge dilution to existing shareholders (who have to pay money for the same amount of shares). There are multiple problems here, first is that banks and institutions do not trust the company enough to give enough debt to complete the project (thus the alternative financing method), second the rights issue exercise which has listing costs that will have to be paid by the finance raised (making it inneficient), and finally one must have a very clear idea of the project in hand and the possibility of completion or further financing down the road. On principle , I usually avoid companies that do heavy rights issue activities unless they have a very specific purpose or is a growth company with good cash flow.

In terms of warrants, I find it funny usually that individuals consider it cash and they can sell the warrants immediately as if it is a good thing. The issue here is very simple, both warrants and esos are given to individuals allowing them to buy company shares at a reduced cost over a set time in the future. however, these are expenses and costs that need to be weighted to the company valuation which is done in a very non linear way.

If you get warrants for 20 cents or get to defer your company staff by giving them share options in lieau of cash payments, there is always a price to be paid going forward.

So remember, there is a tradeoff to everything:

 

1. BONUS ISSUES DONT DILUTE COMPANY PROSPECTS OR VALUE STAYS EXACTLY THE SAME. YOU DO GET TO SELL PART OF A SHARE LOT, BUT WHAT YOU GET IN RETURN IS HIGHE VOLATILITY OF SHARES, THE PROBABLITY THAT LESS INSTITUTIONS WOULD WANT TO BE SHAREHOLDERS, AND THE STABILITY THAT BRINGS.

2. RIGHTS ISSUES FORCE YOU TO FORK OUT MORE MONEY TO HOLD ON TO THE SHARES YOU HAVE, WHICH IS BAD. BUT IT INCREASES COMPANY FINANCES, WHICH MAY OR MAY NOT GIVE EARNINGS IN THE FUTURE.

3. WARRANTS GIVE YOU THE RIGHT TO BUY COMPANY SHARES IN THE FUTURE FOR A PRICE TODAY, BUT AT THE COST OF PRESSING DOWN ON COMPANY SHAREHOLDING PROSPECTS MOVING FORWARD, WITH NO BENEFIT TO COMPANY GROWTH.

I hope you learned something new today, wishing you all the best in your long term investments.

  2 people like this.
 

My third Pump and Dump Article with a Conscience

Author: Philip ( buy what you understand)   |  Publish date: Fri, 5 Jun 2020, 8:45 AM


Hi all,

This is Phillip here.

First let me set the stage.

 

https://www.klsescreener.com/v2/news/view/684377/quick-take-ta-global-rises-after-sc-rejected-ta-enterprise-s-takeover-withdrawal

https://www.theedgemarkets.com/article/setting-right-precedent-takeover-withdrawals

https://www.klsescreener.com/v2/news/view/684287/ta-enterprise-should-have-considered-risks-before-announcing-takeover-offer-sc

Now,

What happens if someone shows you the money, and tells you that they are going to buy your business from you? You will write an agreement, submit documents, get stamping and do the deed. However, once the documents are signed, at no point in time are you allowed to suddenly cancel the agreement on a whim.

This is what TA tried to do on its privatisation deal in May, which I believed had put a damper on its VGO activities.

 

The deal is such:

In a move to take TA Global private, TAE had proposed to buy the remaining 39.83% stake it does not own in the property firm via two options, including a cash offer of 28 sen per share held.

The second option was a share swap based on an exchange ratio of 0.4211 new share in TAE to be issued at 66.5 sen each for every TA Global share surrendered.

 

Now, this is admittedly a very bad deal for the original IPO holders who had bought shares at RM0.50 each. They are now being forced to take a haircut in receiving a cash offer of 28 sen or to swap shares in TAE at 66.5 sen, even though the current price of TA enterprise is now valued at RM0.52.

Unfortunately this is neither here nor there.

Let me put it out right now, I do not trust the management capability of TAE nor their business model.

However,

I do believe in Arbitrage, and barring any sort of Renong put option problems where Halim can just say I'm sorry, I do believe that this VGO is solid.   

At the current price right now of 23 cents, I do believe there is a HIGH (but not guaranteed) possibility that our dear TAE is going to be forced to purchase the balance of shares at 28 cents, due to the ill effects of Covid-19 and the lack of good prospects for the future of TAGB in this environment. More importantly, if someone is trying to finagle their way out of paying money, they are sure to believe that TAGB is worth less than 28 cents

With TAE's VTO withdrawal application rejected, the group's non-interested shareholders will get to decide whether to vote for or against TAE’s proposal at an extraordinary general meeting.

However, this still remains to be voted for or against TAE proposal at the next EGM. 

I do believe that this is an extraordinary sequence of events, and that the rest of the 24.49% of minority shareholders will take whatever bad deal they can get out of the market conditions and go for resolution. as this amounts to around 304m of float, taking a 50% haircut is better than looking at a bad prospect in the future. I do feel sorry for the shareholders who trusted in ta global to lead them out of this, but the secondary option to strengthen the company by merging with TAE could also provide some form of survivability out of Covid19, as the market economics 

As usual,

I hope you learn something new today. FYI, as you can see from my portfolio listed, I have a small ownership in TAGB bought recently.

 

  Be the first to like this.
 
80gram Interesting to see what Tony has up his sleeves now with the deal backfired.... Original offer price is at substantial premium to both TAG and TAE current prices, no-brainer to take the cash straight given the pandemic shit....Then again, wait and see for the old fox
05/06/2020 9:35 AM
stockraider Yes u can buy TAGB at 23.5 to 24 sen and accept the GO at 28 and u make about 20% gain....ask yourself worth it or not ??

Worth it u make 20% gain loh...!!

Not worth it.

1. Tony can derail the deal by getting his macai (Tony & related party cannot vote vote loh} to vote against mah...!!

2. If that happen...u will be stucked with a lost making...almost empty hotels assets due to worldwide covid19 mah...!!

Conclusion

I think better option is to buy TA the mother loh....if the deal get derail u still can have solace u r holding on to a well known broking firm that experience record breaking volume transaction in malaysian history loh....!!

If TAGB is successful ...u can accept the GO on TA too...and make 30% gain loh....!!

Philip proposal could be good but risky loh...usually engineer do not know how to financial arbitrage N chose the least & best option...cannot blame him loh......!!
05/06/2020 10:39 AM
Seek Tony has to finance the takeover of tagb by subscribing shares in Tae at 66.5 cts a share. This will cost tony hundreds of million. After takeover of tagb, tony got to look for a few hundred millions to GO for Tae at 66.5cts. Correct?
05/06/2020 10:58 AM
stockraider YA but SC already rule Tony cannot pullout from the GO mah...no cock & bull excuse loh....!!


Posted by Seek > Jun 5, 2020 10:58 AM | Report Abuse

Tony has to finance the takeover of tagb by subscribing shares in Tae at 66.5 cts a share. This will cost tony hundreds of million. After takeover of tagb, tony got to look for a few hundred millions to GO for Tae at 66.5cts. Correct?
05/06/2020 11:01 AM
stockfucker Your analysis very sohai loh...!!

If everybody dies like u say who will survive leh ??

Lu pakai otak lah...! Bodoh...!! Again talk like cock...how can half infected leh ??

Posted by stockraider > Jun 5, 2020 10:39 AM | Report Abuse

Yes u can buy TAGB at 23.5 to 24 sen and accept the GO at 28 and u make about 20% gain....ask yourself worth it or not ??

Worth it u make 20% gain loh...!!
05/06/2020 11:04 AM
stockraider What so sohai leh ??

People like u is a sohai mah...!!

No balls n No dare to act mah....!!

U must take advantage loh....!!

Posted by stockfucker > Jun 5, 2020 11:04 AM | Report Abuse

Your analysis very sohai loh...!!

If everybody dies like u say who will survive leh ??

Lu pakai otak lah...! Bodoh...!! Again talk like cock...how can half infected leh ??

Posted by stockraider > Jun 5, 2020 10:39 AM | Report Abuse

Yes u can buy TAGB at 23.5 to 24 sen and accept the GO at 28 and u make about 20% gain....ask yourself worth it or not ??

Worth it u make 20% gain loh...!!
05/06/2020 11:10 AM
Plantermen NO risk no gain. Ultimately there are many aunties { just park thier $$$} in their bank. Happy getting 2% per year without realising inflation is double the rate. Everyone has his or her own risk
gauge. Nobody get rich by sitting on his $$$° this is the reason why entrepreneur take the risk to start a business
05/06/2020 11:15 AM
Philip ( buy what you understand) yes, I am content to wait 1 year for the results of this to happen, which I think will happen sooner or later.

With covid19 in the middle of things, you can either take money or join up with TAE. better something than nothing.

For me, it is simply arbitrage.
05/06/2020 11:18 AM
gohku I totally agree.

I prefer raider strategy compare with philip which both mean the same thing.

This is because raider strategy offer higher return and safer on the down side, in addition if you hold TA shares, you can have a say and vote for the deal and help the GO to go thru.

Posted by stockraider > Jun 5, 2020 10:39 AM | Report Abuse

Yes u can buy TAGB at 23.5 to 24 sen and accept the GO at 28 and u make about 20% gain....ask yourself worth it or not ??

Worth it u make 20% gain loh...!!

Not worth it.

1. Tony can derail the deal by getting his macai (Tony & related party cannot vote vote loh} to vote against mah...!!

2. If that happen...u will be stucked with a lost making...almost empty hotels assets due to worldwide covid19 mah...!!

Conclusion

I think better option is to buy TA the mother loh....if the deal get derail u still can have solace u r holding on to a well known broking firm that experience record breaking volume transaction in malaysian history loh....!!

If TAGB is successful ...u can accept the GO on TA too...and make 30% gain loh....!!

Philip proposal could be good but risky loh...usually engineer do not know how to financial arbitrage N chose the least & best option...cannot blame him loh......!!
05/06/2020 11:24 AM
Jonathan Keung Never like TA or TAG { my own view } remember TAG was a spin-off from TA enterprise. Only Tony make $$$.other shareholder & retailers was left holding his still born. TAE has withdrawn it's voluntary takeover offer TAG ( SC has rejected it's application . But Tony has other means to derail the scheme
05/06/2020 11:28 AM
stockraider Correctloh...this is the time we punished Tony for his bad karma mah...!!

Vote for the GO loh....!!


Posted by Jonathan Keung > Jun 5, 2020 11:28 AM | Report Abuse

Never like TA or TAG { my own view } remember TAG was a spin-off from TA enterprise. Only Tony make $$$.other shareholder & retailers was left holding his still born. TAE has withdrawn it's voluntary takeover offer TAG ( SC has rejected it's application . But Tony has other means to derail the scheme
05/06/2020 11:31 AM
calvintaneng Looks like Philip getting senile

He attacked Calvin when calvin posted in PPHB and claimed PPhb belonged to him. Calvin told his friends to Dump Pphb and buy Nylex which has better potential

This morning Philip came to disturb my Great Stock called Scomies

See
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-06-04-story-h1508011667-SCOMIES_7045_MOST_UNDERVALUE_WITH_HIGHEST_POTENTIAL_FOR_PRICE_REBOUND_C.jsp

Now i must warn all not to follow Philip buy TAGB

Both TA & TAGB were once recommended by me. So I think I know TA people quite well. If Tony wants to get out he will still get out

Tony already know Hotels all over the World including USA are in very bad shape just like many Hotels closing in Malaysia

TAGB will now be a water logged jammed up stock which won't move but a waste of tme

Philip should have kept his TopGlove

But loud mouted Philip deserve to lose and Calvin finally bought TopGlove C74 at 82.5 sen (so happy now)

Calvin already sold both TA & TAGB and gone into Gloves, Face Mask & Sabitizer (Nylex)

NOW ALSO TIS GREAT SCOMIES WHICH WILL GIVE 200% TO 300% UPSIDE

READ AGAIN

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-06-04-story-h1508011667-SCOMIES_7045_MOST_UNDERVALUE_WITH_HIGHEST_POTENTIAL_FOR_PRICE_REBOUND_C.jsp
05/06/2020 11:40 AM
stockraider I think calvin is wrong to have sold so early mah!.

Just be prepare to harvest the bounty loh...!!

What can Tony do ??

Get his macai to buy TA and vote against the deal loh...!!

But Tony cannot give too much help bcos SC is watching him like a hawk loh....!!

Remember Tony is an ex convict Security law...he need to be very careful mah....!!

Posted by calvintaneng > Jun 5, 2020 11:40 AM | Report Abuse

Looks like Philip getting senile

He attacked Calvin when calvin posted in PPHB and claimed PPhb belonged to him. Calvin told his friends to Dump Pphb and buy Nylex which has better potential

This morning Philip came to disturb my Great Stock called Scomies

See
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-06-04...

Now i must warn all not to follow Philip buy TAGB

Both TA & TAGB were once recommended by me. So I think I know TA people quite well. If Tony wants to get out he will still get out

Tony already know Hotels all over the World including USA are in very bad shape just like many Hotels closing in Malaysia

TAGB will now be a water logged jammed up stock which won't move but a waste of tme

Philip should have kept his TopGlove

But loud mouted Philip deserve to lose and Calvin finally bought TopGlove C74 at 82.5 sen (so happy now)

Calvin already sold both TA & TAGB and gone into Gloves, Face Mask & Sabitizer (Nylex)

NOW ALSO TIS GREAT SCOMIES WHICH WILL GIVE 200% TO 300% UPSIDE

READ AGAIN

https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/2020-06-04...
05/06/2020 11:56 AM
Philip ( buy what you understand) Wow my wife bought supermax shares at 90 cents 100 million ringgit, how come she don't show off like you do? She more happy then u woh.

>>>>>>>>>

But loud mouted Philip deserve to lose and Calvin finally bought TopGlove C74 at 82.5 sen (so happy now)
05/06/2020 1:02 PM
stockfucker I REMEMBER TELLING RAIDER NOT TO BE A SOHAI, SELLING HIS WINNER SWITCHING TO LOSERS LOH...!!
05/06/2020 1:39 PM
Philip ( buy what you understand) Why disturb? I give credit where credit is due. Your SCOMIES already go up by 50% from 11 sen during your first article to 16 sen during your latest article. What are you saying? It's a Chun Chun call, how did congratulating you become disturbing? Very bad Christian la you.

>>>>>>>>

calvintaneng Looks like Philip getting senile

He attacked Calvin when calvin posted in PPHB and claimed PPhb belonged to him. Calvin told his friends to Dump Pphb and buy Nylex which has better potential

This morning Philip came to disturb my Great Stock called Scomies
05/06/2020 1:41 PM
stockraider I rememer U told Philip mah...!!


Posted by stockfucker > Jun 5, 2020 1:39 PM | Report Abuse

I REMEMBER TELLING RAIDER NOT TO BE A SOHAI, SELLING HIS WINNER SWITCHING TO LOSERS LOH...!!
05/06/2020 1:55 PM

My Second Pump & Dump Article - How to pump with a Conscience!

Author: Philip ( buy what you understand)   |  Publish date: Sat, 11 Apr 2020, 10:55 PM


HI ALL, I AM PHILIP HERE. THIS IS MY SECOND PUMP AND DUMP ARTICLE. 

OK Jokes and puns aside, lets set the stage:

 

So as usual, lets practise some qualitative analysis. First, why is The Star so unpopular?

1. It's is owned 42% by MCA. Who will not sell under ANY circumstances.  OK, no problem here.

2. It's print media has dropped in the last few years ever since Malaysia changed government, from a 1 billion in revenue, to 600 million, to 300 million in revenue, and dissapearing earnings (due to no more support from previous government).

3. Warren buffett has sold his newspaper business to Lee Enterprises, declaring it very difficult to handle. Multiple newspapers have been unable to compete in the digital age, going bankrupt left right and center.

SO, IS IT REALLY OVER?

I believe not. There are a few very key strategies that has to happen that will allow this stock to flourish back to its heydays, if done properly. I believe that they have ample breathing room, a publishing license, a broken but reworkable reputation, and they have all the tools and connections in place to become a media juggernaut again, provided they EMBRACE THE FUTURE.

1. CASH: Lots of it. They have 385 million ringgit  IN CASH, with zero borrowings and debt. They also have 278 million in property and 148 million in investment properties

2. Publishing License.   I believe this is valuable intellectual asset, which can be very valuable to the right group.

3. Connections.  Since old Brother Wong is still working in there with his 34 years of experience, I believe given the right environment, the most important thing to a newspaper is still going to be around that the group can salvage.

WHAT IS THE STAR'S MOST VALUABLE ASSET AND HOW CAN IT GROW FROM THE ASHES?

 The simple answer is: CONTENT.

I believe journalism is the most important thing to society. A clean, reputable piece of writing that changes and informs the public. Bringing in the spark of knowledge and awareness that drives a group of individuals into a state, a country.

But.... it doesn't pay the bills. Never has. What pays bills?

ADVERTISING.

Problem is, everyone hates advertising. Even journalists.

So now, the problem is not the content. It is in monetizing the content... How to do it? Maintain a credible journalistic avenue ( you obviously could not maintain credibility when BN was paying your salary, can you?) and at the same time generate a profit?

Hard? Yes. 

Impossible? No.

NOW, HOW WOULD YOU GO ABOUT INVESTING IN A DOWNTRODDEN STOCK WORTH 192 MILLION RINGGIT, AND BRING IT BACK TO ITS BILLION DOLLAR VALUATION?

IF I WERE PHILIP, CORPORATE RAIDER TURNED CEO WHO BOUGHT AND PRIVATISED THE STAR MEDIA GROUP, WHAT WOULD I DO?

Lets ponder on this question a little bit, shall we? Here is where I would start looking at the problem.

1. Firstly, I would look to increase the number of subscribers. Reduce the number of advertisements. Hire the top journalists, give them a budget and free reign to write about topics that matter. Topics and pullitzer prize winning  articles that readers care about. No one wants to read about the boring stuff or the advertising materials, they want to read about gripping information, personalized writing, award winning investigative journalism. This will bring back readers, if not the revenue.

2. Secondly, fix the revenue problem. In the end, the most important thing to a paper is content. CONTENT! That is what a paper is about. That is how you fix the revenue problem. Monetize the content. But how? Obviously, you follow the smell of money in advertising. And where are the big bucks? Where it has been for the last few decades, and where the big bucks still reside: SOUND AND VIDEO. It is no longer in the written word, but that doesnt mean that it is not news. It is just not only in PAPER  ANYMORE.

Why do people newspaper just has to be paper anymore, ITS THE 21st CENTURY!

Instead of producing loss making paper trails, The Star could easily use the same team, same group to create content that Youtube, Facebook, Netflix, and even Astro will buy. Products that are investigative, fun, interesting, and build a lot of buzz.

Just by spending a part of that cash hoard (around 100 million), The Star media could get into producing good journalism content(or buying production) similar to:

Jason's food trails, Jason can't cook, Jason Food memories (Malaysian based - Food documentaries, food journalism,) Ugly Delicious, salt fat acid heat (food learning)

Dark Tourism, Our planet, restaurants on the edge, The kindness diaries (tourism shows, travelogues)

 Rotten, Dirty money, explained, Icarus, Don't FxxK with cats, the staircase  (investigative journalism on sensitive topics )

The pixar story, Jiro dreams of sushi, Dogs, Last Chance U (Uplifiting documentaries, autobiographies)

What you will quickly notice out of this is the cost.  Similar to making porn, it is a very low budget (compared to movies), and high impact (and revenue generation), which combines all the parts that newspapers are good at, and what the general public are willing to pay for and where the revenue dollars are coming from.

Think about it, how much is the cost of producing 1 episode of Jason cooking show? One host, an honest review from the chef, a good production and research team, a good cameraman. 50K-100K per episode including post production? 500K per series? Imagine the advertising, subscription on youtube, facebook, netflix, astro if it goes viral and is shown throught Asia? How much ROE would that series bring in?

What is different is the reach, if done properly, the STAR media group could generate revenue OUTSIDE of Malaysia, thus paying for its journalism department, and providing quality content.

Imagine providing content(or buyout) like this

Low cost, high level of investigative journalism, concentrating on the neighbourhood feel, a beautiful view of how to truly make content that individuals would want to follow.

BUT SADLY, I AM NOT THE NEW CEO APPOINTED FOR THE STAR MEDIA GROUP. 

SO ALL I CAN POINT OUT TO YOU IS: THE POTENTIAL OF THE STAR MEDIA GROUP, BASED ON PURE CASH BASIS, THE POSSIBILITY OF CHANGE WITH A NEW CEO.

MY 2ND PUMP AND DUMP ARTICLE.

Remember.

1. You will be buying a company with 800 million in assets, 390 million in cash, no debt or borrowings. All for 192 million.

2. You will be buying a MCA majority company, which could be a good/bad thing, depending on the politics of the day.

3. You will be buying a company with a publishing license, the ownership of 988 radio, Suria, a team of event managers, and still looking for that CEO to change the world.

I hope you learned something new today:

 

Philip

rylakk2016@gmail.com

  2 people like this.
 
i3lurker if wan to buy a good share, low price
and rapidly expanding market share

=>Gdex now only 20 sen

1) just expanding to Vietnam on 20 Dec 2019. Vietnam GDP booming

2) Yamato Transport, Japan Director just appointed on 2 March 2020
Yamato is the oldest and largest market share (41%) of parcel delivery services company in Japan. btw Yamato is also expanding to Vietnam

wink wink

never ever buy a downhill company like Star, no hope, hopeless

buy a growing company like Gdex. Future is bright. courier company
13/04/2020 9:39 AM
Philip ( buy what you understand) If this happens the pump and dump plan will be excellent.

The star is already being valued at below liquidation prices.

With net cash and zero borrowings of 380 million it is already selling at a steep discount.

While waiting for the 50 million bank guarantee from JAKS ( have they paid that yet?) Which was approved by the appeal courts to be paid for LAD delivery since 2018, they are very behind time.

On top of that 140 million sale of land at seksyen 13, they still are owed the tower A of offices for the Star new building.

Yes their position is tenuous, with falling readership and dissapearing earnings.

But I believe they do understand that digitalisation is the way to go, and as long as they are not losing huge amounts of money ( already passed the MSS layover phase), they are a very tight ship now which I do believe should work out in the short to medium term.

Their circulation is still the biggest.
13/04/2020 9:46 AM
i3lurker throughout the world, courier companies are doing very well.
Gdex already showed good growth potential by expanding to Vietnam.

Gdex also delivers for Lazada. MCO period still doing well.

When good times comes back, share price will normalise to 40 sen.

double your money without fear or sleepness nights whether company can find a CEO or not. What a joke! buy a company while still looking for CEO?

Star? They are still looking for CEO to stop the ventilator machine before the ventilator machine breaks down?

Gdex is growing and expanding everyday.
13/04/2020 9:49 AM
qqq33333333 Star not bad..........

but Gdex is all hype ..........u know how many shares they have issued or not?
13/04/2020 9:50 AM
qqq33333333 Lazada doing their own deliveries also..........
13/04/2020 9:50 AM
i3lurker Philip keeps on pressing me for stock recommendations.........

well here you are!!

BUY Gdex at 20 sen

rationale => growing business, buy the growth while its still cheap.
13/04/2020 9:52 AM
i3lurker Lazada uses

own
poslaju
Gdex
Skynet
13/04/2020 9:53 AM
i3lurker I know coz I bought about RM100,000 worth of goods from Lazada

I complained once to Lazada about poslaju.

Lazada said, its beyond their control coz the merchants will select the courier company.
13/04/2020 9:55 AM
i3lurker well qqq3

for Gdex

look at the EPS and also got dividend woooh

dun look at the issued share and be a coward.
At the issued share cap they can still give out a dividend.
Its not free money like China counters
13/04/2020 9:58 AM
i3lurker speculative=> if or once change name to Yamato Malaysia, share price will rocket up.
13/04/2020 9:59 AM
Philip ( buy what you understand) Finally we see the quality of your investing.

>>>>>>>>

Posted by i3lurker > Apr 13, 2020 9:52 AM | Report Abuse

Philip keeps on pressing me for stock recommendations.........

well here you are!!

BUY Gdex at 20 sen

rationale => growing business, buy the growth while its still cheap.
13/04/2020 10:01 AM
i3lurker I selected this purely to be pari passu with your selection of Star

just comparing Gdex and Star only

Growth company vs Negative Growth company

Posted by Philip (Honesty is expensive. Dont expect frm cheap ppl ) > Apr 13, 2020 10:01 AM | Report Abuse
Finally we see the quality of your investing.
13/04/2020 10:05 AM
qqq33333333 lock down, everybody want to buy delivery companies..............but there are at least 50 delivery companies and Malaysia very small place............every year for past 3 years, all delivery companies margin is smaller and smaller due to competition................

want to buy delivery companies, go buy Pos lah................they got delivery points every where in malaysia............but I also not interested............
13/04/2020 10:16 AM
i3lurker in the meantime, Yamato Transport, Japan will be chanelling all their parcel business 100% to Gdex for delivery inside Malaysia.

Japanese Director from Yamato appointed on 2 March 2020.
13/04/2020 10:17 AM
Sslee Haha i3lurker,
You should select INSAS to compare with Star. Both are cash rich but Insas continues deliver profit of 80 to 100+ million but Star negative profit growth.
13/04/2020 10:17 AM
i3lurker same thing applies to everything

millions of prostitutes around
you can get RM2.00 per shot prostitute in Bukit Bintang also
or you can pay RM10,000.00 per shot.

want to buy prostitute?
"""every where in malaysia............but I also not interested............"""

Posted by qqq33333333 > Apr 13, 2020 10:16 AM | Report Abuse
lock down, everybody want to buy delivery companies..............but there are at least 50 delivery companies and Malaysia very small place............every year for past 3 years, all delivery companies margin is smaller and smaller due to competition................

want to buy delivery companies, go buy Pos lah................they got delivery points every where in malaysia............but I also not interested............
13/04/2020 10:20 AM
i3lurker thats just because Philip selected a "very extremely low level" company.

My point and message is that,
I simply throw a stone and hit one.

I just simply select any other company in the "twenties price range" like Gdex will be 1,000 times better than Star

Posted by Sslee > Apr 13, 2020 10:17 AM | Report Abuse
Haha i3lurker,
You should select INSAS to compare with Star. Both are cash rich but Insas continues deliver profit of 80 to 100+ million but Star negative profit growth.
13/04/2020 10:24 AM
qqq33333333 all things considered.............bursa doing very well already this morning.........Dow down 200,,,,,,,,,,,,oil agreement normally means profit taking because it is an anticipated event and any way , makes little difference compared to normal daily consumption of 100 million barrels / day., and the devastating effect of lock down.

so.............what do u do?

I tell you what u should do............u should be proactive, don't be reactive to daily happenings...............

there are a lot of retailers reacting to the oil agreement...........
13/04/2020 10:44 AM
qqq33333333 1 billion barrels of oil..........that is consumption destroyed in 1 month due to the virus.............
13/04/2020 12:24 PM
Philip ( buy what you understand) Oh really?

Gdex share price today 13 April 0.2.
Star share price today 13 April 0.26.

If that is the basis of your analysis, no wonder you don't buy any stocks.

>>>>>>>>>


i3lurker thats just because Philip selected a "very extremely low level" company.

My point and message is that,
I simply throw a stone and hit one.

I just simply select any other company in the "twenties price range" like Gdex will be 1,000 times better than Star
13/04/2020 12:57 PM
qqq33333333 anyway, lurk...........


what can stop the grab and panda armies from delivering parcels as well as food?
13/04/2020 2:11 PM
qqq33333333 in the creative destruction age, every thing also can be destroyed including those born to deliver stuffs...........
13/04/2020 2:14 PM
stockraider This is not a pump & dump counter mah...!!

It is value investment loh...!!
13/04/2020 2:19 PM
Sslee Haha,
Stockraider “Star” is cigar-butt investing more valuable dead than alive unless the CEO can use it cash to venture into new business that generate profit.
“cigar-butt” style of investing in which one picks up discarded business cigar butts laying on the side of the road, selling them at deep discounts to book value with one good puff left in them.

INSAS is value investing because beside cash rich it core business M&A securities and Insas credit& leashing continues to be profitable and it 19+% associate companies Inari projected earnings by: Alliance DBS Research, April 8 2020
Net profit: 2020(F): 2021(F): 2022(F)
RM million: 125: 207: 238
13/04/2020 2:51 PM
Philip ( buy what you understand) One day you will learn, it is really hard to go bankrupt if you don't have any borrowings, and no annual losses.
13/04/2020 2:51 PM
stockraider SSlee use your brain think lah....Star is value investment and insas is value investment mah....!!

Star got core business mah....it is the contents....in fact the news business still make monies....but don make so much compare with last time loh...!!

But the share price also adjusted much lower than last time loh...!!

Posted by Sslee > Apr 13, 2020 2:51 PM | Report Abuse

Haha,
Stockraider “Star” is cigar-butt investing more valuable dead than alive unless the CEO can use it cash to venture into new business that generate profit.
“cigar-butt” style of investing in which one picks up discarded business cigar butts laying on the side of the road, selling them at deep discounts to book value with one good puff left in them.

INSAS is value investing because beside cash rich it core business M&A securities and Insas credit& leashing continues to be profitable and it 19+% associate companies Inari projected earnings by: Alliance DBS Research, April 8 2020
Net profit: 2020(F): 2021(F): 2022(F)
RM million: 125: 207: 238
13/04/2020 3:08 PM
i3lurker Looks like Philip is dumping Star

ha ha ha
13/04/2020 3:09 PM
stockraider Philip pump with conscience not dump lah....!!

Posted by i3lurker > Apr 13, 2020 3:09 PM | Report Abuse

Looks like Philip is dumping Star

ha ha ha
13/04/2020 3:11 PM
i3lurker reminds me of a real case in Malaysia

Guy started a virgin business in Malaysia.
He grew it from nothing with no borrowings to RM100 million turnover in just few years.
Cannot go bankrupt.
No borrowings at all.
He started boasting to everybody he meets.

One day his shareholders sacked him.
Why?
His competitor who started few years after him, grew from nothing to few Billion RM turnover.

ha ha ha

but of course, Philip does not know business at all.

not growing is dying.

not growing => DEAD

Posted by Philip (Honesty is expensive. Dont expect frm cheap ppl ) > Apr 13, 2020 2:51 PM | Report Abuse
One day you will learn, it is really hard to go bankrupt if you don't have any borrowings, and no annual losses.
13/04/2020 3:14 PM
Sslee Haha
I3lurker by your standard many more listed companies in Bursa will go bankrupt.
Stockraider already bought Star this morning at 27 cents? I am still q buy at 15 cents suggested by Philip.
13/04/2020 3:21 PM
Philip ( buy what you understand) I stop at criticizing INSAS and NETX because both sslee and stockraider have the same response as bitcoin speculators when people criticize their investments.

I don't think they are value investmests at all. In fact, I believe when the next qr for mar 31 comes out, the unrealised losses from fair value of financial assets, coupled with lower dividend from inari will bring a negative share price drop in earnings for INSAS.

Undervalued? Sure thing.
>>>>>>>>

https://youtu.be/NBVDqAHQ4-M
13/04/2020 3:25 PM
i3lurker so Stockraider already lost money?

btw I shorted Star at 27.5 sen to Phillip

now making dick decision.
dick up => buy 26.5 to make profits
dick down => sell more

Posted by Sslee > Apr 13, 2020 3:21 PM | Report Abuse
Haha
I3lurker by your standard many more listed companies in Bursa will go bankrupt.
Stockraider already bought Star this morning at 27 cents? I am still q buy at 15 cents suggested by Philip.
13/04/2020 3:28 PM
Sslee Haha,
Quaterly share of profit or loss of financial assets did not affect the free cash flow. The interest cash inflow from ICL on it outstanding VVIP loans plus dividend received will still contribute positively. My intetest is when Insas will employ it cash hoard to buy new promising businese and financial assets?
13/04/2020 3:41 PM
stockraider The chances of jaks go bankrupt much higher than Star loh...!!

Posted by i3lurker > Apr 13, 2020 3:14 PM | Report Abuse

reminds me of a real case in Malaysia

Guy started a virgin business in Malaysia.
He grew it from nothing with no borrowings to RM100 million turnover in just few years.
Cannot go bankrupt.
No borrowings at all.
He started boasting to everybody he meets.

One day his shareholders sacked him.
Why?
His competitor who started few years after him, grew from nothing to few Billion RM turnover.

ha ha ha

but of course, Philip does not know business at all.

not growing is dying.

not growing => DEAD

Posted by Philip (Honesty is expensive. Dont expect frm cheap ppl ) > Apr 13, 2020 2:51 PM | Report Abuse
One day you will learn, it is really hard to go bankrupt if you don't have any borrowings, and no annual losses.
13/04/2020 3:44 PM
stockraider Do not worry mah....insas fair value Rm 2.70....if few million losses....what will be the impact leh ??

So fair value for insas Rm 2.60 but share price is Rm 0.54....u got huge margin of safety in insas mah....!!

Posted by i3lurker > Apr 13, 2020 3:28 PM | Report Abuse

so Stockraider already lost money?

btw I shorted Star at 27.5 sen to Phillip

now making dick decision.
dick up => buy 26.5 to make profits
dick down => sell more

Posted by Sslee > Apr 13, 2020 3:21 PM | Report Abuse
Haha
I3lurker by your standard many more listed companies in Bursa will go bankrupt.
Stockraider already bought Star this morning at 27 cents? I am still q buy at 15 cents suggested by Philip.

Posted by Philip (Honesty is expensive. Dont expect frm cheap ppl ) > Apr 13, 2020 3:25 PM | Report Abuse

I stop at criticizing INSAS and NETX because both sslee and stockraider have the same response as bitcoin speculators when people criticize their investments.

I don't think they are value investmests at all. In fact, I believe when the next qr for mar 31 comes out, the unrealised losses from fair value of financial assets, coupled with lower dividend from inari will bring a negative share price drop in earnings for INSAS.

Undervalued? Sure thing.
>>>>>>>>

https://youtu.be/NBVDqAHQ4-M
13/04/2020 3:48 PM
i3lurker playing with Star shares is so much fun !!!!
14/04/2020 12:30 PM
qqq33333333 I did not study Insas in detail as no interest to buy..........But my instinct tells me Philips is right......

surely, keep selling Inari means it will lose its associate company status and cannot equity account like before...and PL of Insas will drop..........

with so much assets in listed shares, surely fair value accounting to give shareholders a huge ( negative) shock soon...............
14/04/2020 12:36 PM
stockraider Your instinct is not right in this poor bearish market loh...!!

Posted by qqq33333333 > Apr 14, 2020 12:36 PM | Report Abuse

I did not study Insas in detail as no interest to buy..........But my instinct tells me Philips is right......

surely, keep selling Inari means it will lose its associate company status and cannot equity account like before...and PL of Insas will drop..........

with so much assets in listed shares, surely fair value accounting to give shareholders a huge ( negative) shock soon...............
14/04/2020 12:39 PM
qqq33333333 America got Netflix, Amazon, Google and the likes which will insulate their Index...........

Malaysia got what?


going forward, u may find wall street green and we in malaysia keep seeing red............very very tough environment.
14/04/2020 12:41 PM
stockraider Yes u got a mini high tech stock netx in msia mah...!!


osted by qqq33333333 > Apr 14, 2020 12:41 PM | Report Abuse

America got Netflix, Amazon, Google and the likes which will insulate their Index...........

Malaysia got what?


going forward, u may find wall street green and we in malaysia keep seeing red............very very tough environment.
14/04/2020 12:45 PM
i3lurker nowadays it is extremely easy to program a content management website or any apps for IOS or android.

The tech level is only American High School standards

website => 1 Day completion

IOS or Android App => 1 day completion

so = > NetX is nothing
14/04/2020 12:55 PM
Philip ( buy what you understand) I3lurker is a remarkable gdex boy who thinks buying any of 1000+ stocks is better than investing in Star media. He talks so much bullshit that you never know if he talking for the sake of talking out if he actually knows what he is doing.

How is your shorting of Star going on? Having fun yet?
23/04/2020 9:46 AM
Philip ( buy what you understand) Hope you don't really use your dick to make investment decisions.

>>>>>>>

i3lurker so Stockraider already lost money?

btw I shorted Star at 27.5 sen to Phillip

now making dick decision.
dick up => buy 26.5 to make profits
dick down => sell more
23/04/2020 9:48 AM
Philip ( buy what you understand) I made 30% returns in STAR MEDIA so far, and since I am pump and dump with conscience guy, when I dump it it will still go up. Amazing no?

PPHB is at 64 cents. ( From 49)
STAR is at 38 cents. ( From 26)

The difference between you and me is, I chose stocks very very carefully. I follow more than 1000+ stocks, but why only 1 article on penny stocks per year?

That's how hard it is to do.

But kids like you think playing stock market is easy, everyday can make money.

>>>>>>>>>>

i3lurker Looks like Philip is dumping Star

ha ha ha
13/04/2020 3:09 PM
23/04/2020 9:53 AM
stockraider People like Philip & his side kick SSlee are not real investor, they are speculators, happily dumped Star at 34 sen, knowingly that Star has 52 sen net cash per share loh....!!

Although raider pick up star based on Philip recommendations on cheap, but raider hang on star as a true value investors mah, now reaping the benefit forom the star share price rise loh....!!
23/04/2020 10:03 AM
Philip ( buy what you understand) ok. but you are more speculator than me leh. how come your recommendations all dont work out?

insas warrant
insas
sapura
hengyuan
petron

all.. garbage.
30/04/2020 11:18 AM
DickyMe All good but will "ABANG" let lapdog brother to report freely?

They must remain subservient and toe the trail of the donkey.
30/04/2020 11:27 AM
Philip ( buy what you understand) Is this even a relevant comment that relates to investing?


>>>>>>>>

DickyMe All good but will "ABANG" let lapdog brother to report freely?

They must remain subservient and toe the trail of the donkey.
30/04/2020 11:27 AM
01/05/2020 10:38 AM
DickyMe Why not?
03/05/2020 11:24 PM
Philip ( buy what you understand) what does it even mean?
07/05/2020 12:36 PM

CUN CUN CALL BY PHILIPTANGRAIDING RESEARCH GROUP UNLIMITED POWER UP TRADERS. PPHB

Author: Philip ( buy what you understand)   |  Publish date: Wed, 30 Jan 2019, 8:58 AM


 

Firstly, I think it is best to read  from Peter Lynch, one of my favourite sifus, here is his disclaimer from his book One up on Wall Street:

In that theme, Let General Philip tell you on looking at future Growth of PPHB, my pump and dump super stock. Here is some images from the project my brother in law is managing with in Pangkalan Weld, the Quay hotel. (70% completed). Its slow going, but it is a restoration work into a boutique hotel with a lot of history in Penang.

 

Notice how it is right around the old restored corner next to the malayan railway building, the church at jalan gereja and the ferry terminal of port weld? Yes it is a restoration job, which adds uniqueness and a different feel to staying in an expensive or cheap AirBnB. Thats why Penang government allowed the restoration work to be approved:

IS THIS NOT A GROWTH TRIGGER? A RESTORED BOUTIQUE HOTEL IN A BEAUTIFUL CULTURAL AREA IN PENANG ISLAND NEXT TO THE INTERACTIVE MUSEUM, OLD RAILWAY BUILDING, FERRY TERMINAL AND CHURCH AT JALAN GEREJA?

Just imagine how much it will contribute to PPHB earnings and revenue once completed, up and running in 2019? My brother in law say it will definitely be completed (just dont know when la), maybe by christmas can opening (updated). Thats why my wife buying shares.. lor! (that and because my brother in law keep borrowing money from her la)

162 rooms, parking ( in penang you know la not enough parking right), retail shops for tourism, etc etc.

How much revenue can it contribute?

>>> http://www.hotels-invest.com/downloads/Penang%20Hospitality%20Sector_Overview.pdf

Average Room Occupancy rate in Penang yearly is between 55-70%, in pangkalan weld charging between RM200-RM600.

estimate pricing: 100 rooms fully occupied x 25 days x 400 x 12 months = 12 million yearly additional revenue (but nice hotels with special history and uniqueness in quality have 80% occupancy), restoration of old buildings usually have a better pickup rate and pricing power compared to airbnb units due to its traditional feel, location also plays a huge part.

Most importantly, gross profit average is around 50%, net will probably be around 25% for boutique hotels. As they dont need to do stupid things like get a swimming pool that pays for additional unnecesarry costs. So we are looking at additional nett earnings after completion from hotel alone (not yet accounted for parking, rental of retail shoplots etc) of at least extra 3 million every year.

Not bad what?

GENERAL PHILIP SAY BUY BUY BUY BUY! 1-5 YEAR PROFIT EARNINGS LOOKING UP! GROWTH TRIGGER PATTERN UP! SURE WIN!

Hope you learened something new,

Philip Raider

  Be the first to like this.
 
Bruce88 What is that to shout ??
30/01/2019 9:25 AM
Philip ( buy what you understand) Actually it is nothing to shout about, just having some fun with my experiment.

For a company making 15 million in profit in 2017, I thought a profit guidance of 3-5 million extra would give you a earnings increase of 25-30%. You don't think that is something interesting?

Let me throw you some figures.

Today if you buy pphb for 92 million, you get a clear view of profits of 18 million in 2018 year end.

Then you add growth trigger of 4 million per year from those 160 rooms and retail units and parking fees. You get 22 million.

Then you add the average growth rate of 2 million a year, and 1 million from their other income, you get 25 million.

If you get 25 million profit every year, and they start to do a dividend of 2-3 million to shareholders, you do the math?

Obviously this is all theoretical. The horrible management still pisses me off, but bad management can go away. Profitable business still starts

How often do you get to borrow 100 dollars and get back 25 dollars every year?
30/01/2019 9:59 AM
Sslee Dear Philip,
Repost from PPHB forum.
I refer your comment:
Posted by (S = Qr) Philip > Feb 25, 2019 07:14 PM | Report Abuse
Remember this?
https://klse.i3investor.com/blogs/philip5/191895.jsp
Am I the oracle of Kota Kinabalu now? I told you we are looking at profits of 18 million in 2018 year end. Turns out PPHB did 19 million instead.
Although I said opportunity cost of PCHEM is much better (all time high revenues and all time high dividends this quarter), PPHB also did well for itself.
All you need now is someone to step up, go to the AGM and request them to give out 1 cent dividend (of 2 million), and take less director fees (from 7 million to 5 million), then everyone will see the value of PPHB shine, from 103 million net worth to 200 million net worth.
Be a shareholder, treat yourself as a partner in the business working together with PPHB management to grow the business together. Tell them if they reward shareholders, you will be more than willing to buy into rights issue and warrants purchases to grow the business fully!
Good luck and god bless!

I am disappointed with you, after promoted PPHB and now you are asking someone to do the dirty job of attending the AGM and wrestle with family of wild boar to steal some leaf-over from the wild boar jaw: request them to give out 1 cent dividend (of 2 million), and take less director fees (from 7 million to 5 million).

I think you owe those buying into PPHB after reading your article an obligation and duty to confront the BOD during AGM and demand the rightful share of profit (Dividend) and possible a Formal Dividend policy.

Thank you
26/02/2019 9:48 PM
profl Regarding the current qr released this year, the contingent liabilities they disclossd are around 168m. In qr4 2018, the contingent liabilties are around 170m. However in their annual report, they declared that there is no such contingency and only a 5m for their subsidaries. Can I know the reason why?
13/06/2019 11:52 PM

My First Pump and Dump Article - How to pump with a CONCIENCE!

Author: Philip ( buy what you understand)   |  Publish date: Mon, 28 Jan 2019, 10:58 AM


HI ALL, I AM PHILIP HERE. THIS IS MY FIRST PUMP AND DUMP ARTICLE. HOPE YOU CAN JOIN IN AND WE CARI CARI MAKAN TOGETHER. CUN CUN CALL BY PHILIPTANGRAIDING RESEARCH GROUP UNLIMITED POWER UP TRADERS.

Firstly, lets set the stage:

 

So firstly some business sense. What does this company do? Public Packages Holdings Berhad is a simple, straightforward boring company that does 140 million in yearly sales producing carton boxes and packages for their customers. It is very simple, traditional boring business. As a simple straigfhtforward busines, it has expanded into phillipines and indonesia, with growing success. It is slowly diversifying as many local companies do into property, with a new hotel completing in 2019 and some other minor properties on the way to increase its profit margins. But on the whole business is slowly growing, with very low risk as their cash is more than their debt, and very low risk of nasty surprises (bar risk of fire in their plants and signficiant amortization of manufacturing assets).

I love basic simple businesses. Although I try to find simple businesses run by incredible management, sometimes undervalued plays and assets also can make money mah! As long as fullfill WB first rule, never lose money!

Now, what do you get when you buy this company today right now at RM0.49 28 january 2019:

1. A cyclical that historically does well in the 4th quarter ( christmas time mah! Season of giving and box opening.) guaranteed to have good earnings and revenues in DEC. This will do well for maket confidence. Timing cun cun call lor! Got technical indicator mah. Sure can goreng for 1 quarter one!

2.  A company that is now worth below 92 million in market cap, but has a net profit of 15 million in 2017 ( and looking at 18 million in net profit in 2018), a PE of 5.1 and growing!

3. A company that has a net assets per share of 1.14. NTA 1.14, selling at RM0.49. It has cash more than its debt, making sure that it can pay all its debt if needed. Meaning even if terminal growth is zero, you can sleep well at night. Knowing this stock will never drop lower. All it needs now is to pay out some dividend, then stock can fly like rocket lor!

4. Did the share price really go down? The graph looks like it did right? No, share price did not drop. What happened was a bonus shares giving out which they say was rewarding shareholders, but actually is just rephrasing a room from SQM to SQFT. If you have 100 million shares outstanding today, and 190 million shares outstanding tomorrow, sure the price will drop to reflect mah. This is because the dilution is faster than the market confidence. But ask yourself, if you can pay 92 million for a company that gives you 15 million in profit every year with free monies in the bank (RM58,414,000 cash & cash equivalent) and only (RM38,455,000) in debt, meaning you get free and clear 20 million in cash, so you can buy the whole company for 72 million and collect 15 million every year. After 5 years if the company dont grow at all (like zero growth), whole company become yours. BUT WAIT: STILL GOT ASSETS MAH. MANUFACTURING BUSINESS MANA TAU YOU WANT TO SELL EVERYTHING AND BUY INSAS LEH? CLOSE SHOP ALSO CAN MAKE MONEY. ASK WARREN BUFFETT WHY HE BUY BERKSHIRE LAST TIME? HE FOUND OUT EVERY TIME CLOSE FACTORY SURE MAKE MONEY. WHY?>>>>

5. Look at their property and land values. Does the value, revaluation date of 2007 and the leashold period make sense to you? Property leasehold can renew mah, even if sell the value also sure up right? (calvin tan best method)

LIST OF PROPERTIES OWNED BY PUBLIC PACKAGES HOLDINGS BERHAD AND ITS SUBSIDIARIES AS AT 31 DECEMBER 2017  <<< JUST SOME OFTHEIR PROPERTIES, CAN LOOK AT FULL LIST FROM 2017 ANNUAL REPORT.

Location Title Existing Use Date of Last Revaluation Age of Building (years) Land area / Built-up area (sq.feet) Carrying Amount as at 31.12.17 RM

Plot 72 Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 2.10.2047 Factory building 28.11.2007 27 22,509 / 11,516 RM1,185,150

Plot 96(A) Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 22.5.2050 Factory building 28.11.2007 27 32,356 / 5,688 RM1,477,049

Plot 96(B) Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 5.7.2054 Factory building 28.11.2007 20 16,985 / 9,979 RM522,564

Plot 67 Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 14.8.2047 Factory and office building 28.11.2007 28 44,083 / 94,249 RM2,722,212

Plot 116 Lintang Kampong Jawa Bayan Lepas Industrial Estate, Penang Leasehold 18.10.2055 Factory and office building 28.11.2007 22 84,183 / 7,317    RM2,146,517

Just look at those figures, do they make sense to you?

6. Another reason to buy: the owner owns more than 44% of the business. He not stingy like insas say cannot buy this cannot buy that la wtf. He say follow general philip! IF BUSINESS DO WELL, WE ALL DO WELL. IF BUSINESS DONT DO WELL, SOLI LO I DO SHARE PLACEMENT DILUTE MY OWN SHARE HUHUBUKUBKU. So far I trust him la. Why trust leh? This is because he grow shareholder equity from 100 million in net worth to 220 million in networth from 2009 - 2019.

WHY MUST PUNISH TURTLE FOR SLOW GROWTH LEH, HE NEVER LET YOU DOWN LEH. HE GOT LOSE MONEY FOR YOU? NO LEH. HE GOT MAKE YOU NOT SLEEP AT NIGHT MEH? NO LEH. SO WHY MUST PUNISH BORING BUSINESS THAT IS GROWING (SLOWLY) BUT EVERY YEAR GOT MONIES COMING IN? GOOD MANAGEMENT IN BAD INDUSTRY ONLY MAH, BUT IS IT SUNSET? NO LA OF COURSE NOT, PACKAGIN FOREVER PEOPLE WANT TO USE MAH. WHY SCARED LEH?

In summary:

pleased buy this stockz. not because I dont want to buy la, but because I think is good deal long term la. (like raider say huat huat ah!)

Disclosure: my wife is a shareholder. Also my brother in law working here lo. Sure win one. TRUST. no nasty surprise one. wont suddenly no one buy carton box or sales drop crazy. online shoppingg also need carton box. pleased. 

Hope you learned something,

Philip

P.S. at this price, is below undervalued. its like sipadan deep diving value. If the price can drop below 60 million market cap, I will personally buy the whole company myself and sell it for parts, its worth at least 100 million in parts. How I get this figure? If I use company funds to pay all borrowing and sell all properties inventories and children and wives for 50% discount, I still get (291,202,000) assets minus (87,234,000) liabilities and give 50% discount hot sales. Free 40 million, where to find?

 

  probability likes this.
 
Philip ( buy what you understand) If PBB give out 0.32 cents again, it might actually be interesting enough to try it out,

If the quarterly results are within expectations. 190k sailang!
29/01/2019 9:07 PM
qqq3 Then, there is the Carimin pile....mysterious Oil and gas contractor suddenly reports 5 sen earnings in last quarter.....X 4 gives 20 sens earnings X PE 10 gives $ 2.00 target price.....don't believe?, let me how u magic.......some more got 5 years contract from Petronas. ...u can also add your own imagination if u wish......



PPHB? what story? any story? got 5 years contract meh? got quarter profits X 4 = super profits meh? got chongker meh?
29/01/2019 9:17 PM
qqq3 Then, there is the Carimin pile....mysterious Oil and gas contractor suddenly reports 5 sen earnings in last quarter.....X 4 gives 20 sens earnings X PE 10 gives $ 2.00 target price.....don't believe?, let me how u magic.......some more got 5 years contract from Petronas. ...u can also add your own imagination if u wish...... $ 1 billion contract according to OTB.
29/01/2019 9:19 PM
Philip ( buy what you understand) hmmmm I know what I am getting into bed with if I do invest in pphb. The earnings and growth are pretty straightforward.

With carimin, the share price is obviously manipulated with heavy buying. Kyy goes in sure win I guess in the short term.

So far with carimin the contract wins have all been for undisclosed amounts, at least those that I have read about la. Do enlightened me if I am wrong.

They also has a contract win in 2016 for 2 years for mechanical works. Also negative income.

Their contract 5 year win was in 2017 I believe and validity date started in September 20th 2017 to September 19 2022. Since it is undisclosed and it is a maintenance, construction and modification work I highly doubt it will be a full 20 cents earnings every quarter for modification works. I think I know enough about oil and gas modification works to know there was a VO work involved.

If entire 2018 for the contract when oil price was high no activity, in 2019 when the original mechanical contract ends there will probably be done rectification work done.

Looking at the information available for MCM contracts, I highly doubt that the earnings will be sustainable in the medium term.

Although if I had more information about the details of the contracts I would probably change my mind.
29/01/2019 9:37 PM
qqq3 on carimin, what I know concurs with yours......
29/01/2019 9:39 PM
Philip ( buy what you understand) For PPHB I'm not very optimistic either, but in 2019 first quarter the hotel will start operations, but it has clearer details.

The Quay in Penang Island will consist of a five storey boutique hotel and retail lots with total built up of approximately 18,050 sq m and 950 sq m respectively with approximately 160 guestrooms together with a two-storey car park of 100 car park spaces,” PPHB said.

The company expects that the profit contribution of this hotel and commercial property leasing business will start to accrue in year 2018. The board expects that the deployment of assets of 25% or more of the net assets of PPHB for the hotel and commercial property leasing business,” it said in the filing.

It's a little bit late but should be finished by 2019. And it's right at pangkalan weld, so it's with waiting for I guess.

Average room rates it Penang pangkalan weld is from 200-400. At 55-75% occupancy. So if I take 80 rooms per year is looking around 5.8 million in room rental revenue, not including the car parking charges and retail lots rental.

If I add in another 3 million in total profit to bottom line of PPHB it seems like a good deal.

Even if the management is lousy. At least they don't lose money and no share placement.
29/01/2019 9:47 PM
Philip ( buy what you understand) Qqq3 some info on brownfield projects from my past experience with shell sites in sabah. After taken over by hibiscus ( which I still don't understand why anyone would buy. If it makes money, shell will keep it. If it worth the selling is the price paid by hibiscus to shell worth it? I've been to the rig. I still don't get the price paid for the asset.)

For MCM contract 5 year contract won by carimin, it is brownfield project.
https://www.2b1stconsulting.com/brownfield/

Hope this helps. I think the only thing that can give carimin more visibility in the mid term is more contract wins from Petronas. But with the oil price dropping again this year, contracts will be hard to find, and margins will be low.

I really don't like the 1-3 year projects for oil and gas projects.
29/01/2019 10:30 PM
qqq3 Shell again just like Hengyuan..hahahaha....

It was a great show $ 2 to $ 19.....I am sure many are hopeful for Act 2 in Hibiscus....

Hibiscus has $ 1.6 billion reflected as good will in the Balance Sheet....Just an accounting thing as a result of merger accounting....I guess it represents the oil under the ground according to experts and valuers....Its games people play.

Just like land in developer account, The higher the revaluation of land in the Balance sheet, the bigger the cost of sales in future years......So Hibiscus will have impressive cashflows in future but no profits one if they do the accounting properly.....

If one is bullish about oil prices, it is better to trade oil futures......
29/01/2019 10:51 PM
qqq3 For Carimin, the chongker thinks it is worth $ 2......the rest it is everyone for himself....maybe he gets lucky , and it becomes like VS...every quarter better than previous quarter........I would not know...... luck works in mysterious ways.....

It is not fair to say KYY sets out to cheat people. His own money in the game too.
29/01/2019 10:56 PM
qqq3 there is something about quarter profits X 4 that is very attractive and irresistible......agree?
30/01/2019 12:38 AM
Philip ( buy what you understand) qqq3 dont say la I said KYY sets out to cheat people. I know his own skin in the game. But I never said that he purposely cheat people. I just dont understand the theory of buying a stock, telling everyone you bought the stock, then saying you dont need care if anyone knows. I bought QL for years quietly without needing to let people know, just so I can buy it a cheap price.

your mention that quarter profits x 4 is also, has Carimin showed a profit guarantee or earnings estimation guidance for the year 2019? I missed that. If got, then I malu never read enough. but did Carimin really say they will have a yearly earnings guidance of 20 cents already? Can share that article so I can update my knowledge?
30/01/2019 9:06 AM
qqq3 there is something about quarter profits X 4 that is very attractive and irresistible..its psychological, just like the Hengyuan days.....

its risk - reward......and the more people thinks alike , the higher it goes , the higher it goes, the more people interested, margin account expands, its a win win.....its all about margin account expanding......
30/01/2019 9:54 AM
CharlesT U finally eat curry mee ah?
30/01/2019 9:55 AM
CharlesT 0.40 dont want to buy n buy at 0.60+?

Still can make lah
30/01/2019 9:55 AM
CharlesT Forget yr so called trading stocks n trafing gain of few cents lah
30/01/2019 9:57 AM
qqq3 u bought back or not? talk so much....
30/01/2019 9:57 AM
CharlesT I sold some at 0.60+ n keep my free stocks to see otb's tp minus 10% to 20% discount
30/01/2019 9:59 AM
qqq3 don't look down on a few sens here a few sen there...the name of the game is to avoid major disasters.......
30/01/2019 10:00 AM
CharlesT Last month asked u to buy day n night when it was 0.40 u kept on talking rubbish

Now kyy asked u to buy at 0.60 u only chased in...

Now u can see who treats u better...
30/01/2019 10:01 AM
CharlesT My one deal in currymee can cover yr hundred deals...lol
30/01/2019 10:01 AM
CharlesT Somemore hows yr winning probability? 60%? 70%??
30/01/2019 10:02 AM
Icon8888 long time no see sifu CharlesT, we all miss you
30/01/2019 10:03 AM
CharlesT Getting old oredi...less energy to screw idiots in i3...kesian
30/01/2019 10:04 AM
Icon8888 we miss your 6 sense, 7 sense

67 sense
30/01/2019 10:05 AM
CharlesT My 67 sense is as good as KB system bro icon8888

Talking 67 can make more than most of TA/FA/ ghost n grandmother stories ah
30/01/2019 10:07 AM
qqq3 icon...quarter profit X4 looks like a better bet than HT Padu and its start up.......how?
30/01/2019 10:08 AM
CharlesT My 67 sense beats most if not all the theories in stock mkt last year

Lets c how it goes this year...
30/01/2019 10:11 AM
CharlesT If u ask me yr JAKS is more 67 than my 67 sense ah
30/01/2019 10:16 AM
qqq3 the simplicity of quarter profits X 4 that is very attractive and irresistible.

it works until it does not.
30/01/2019 11:07 AM
DickyMe Correct your spelling first!
30/01/2019 11:09 AM
CharlesT So what now? Yr call to sialang with margin in currymee?
30/01/2019 11:10 AM
CharlesT Time to work ah?
30/01/2019 11:12 AM
qqq3 no more comments from me on carimin.....said every thing I want to say.....
30/01/2019 11:14 AM
wiki123 @Charles, your curry mee that time I eat some when you brought me there... the ingredients didn't put alot... maybe pple not interested... now they added si ham, fu chuk etc... now maybe pple come try and taste... or maybe they started to add ipoh taugeh for uncle?

CharlesT Last month asked u to buy day n night when it was 0.40 u kept on talking rubbish

Now kyy asked u to buy at 0.60 u only chased in...

Now u can see who treats u better...
30/01/2019 10:01
30/01/2019 11:37 AM
CharlesT Wiki123 learn n understand KB system...very powerful one
30/01/2019 11:52 AM
CharlesT Fast n furious...but dont fall in love
30/01/2019 11:53 AM
wiki123 where to learn? can point me the url? many sifu here to learn from... :)
30/01/2019 11:54 AM
qqq3 Posted by qqq3 > Jan 30, 2019 03:10 PM | Report Abuse X

anyway...shareholders of Lotte are value takers....

but meaningful success comes from s =Qr....Philip kind of stock at an early stage is good .....
30/01/2019 3:11 PM
qqq3 https://klse.i3investor.com/blogs/Vitrox/192004.jsp

better than value takers like Lotte.
30/01/2019 3:23 PM
Philip ( buy what you understand) KB system is very powerful, it works until it doesn't. But just don't turn your brain off and follow blindly...
30/01/2019 3:49 PM
Philip ( buy what you understand) Probability I just noticed this. Are you also an engineer as well?
Happy Chinese New year!
30/01/2019 5:42 PM
paperplane Why no comparison with muda, orna etc....
10/02/2019 9:08 PM
deMusangking what is CONCIENCE?
10/02/2019 9:10 PM
mbs7633 I must say that wrong theme to play. Now all eyes are focusing on oil & gas counters.
10/02/2019 9:12 PM
Philip ( buy what you understand) Be fearful when everyone is greedy. Be greedy when everyone is fearful.

It is exactly because everyone is focusing and buying oil & gas counters that the risk is rising. Just because you are making money doesn't mean you are dealing with less risk.

How risky is PPHB? The amount of money you can make by investing here is far more low risk than O&G goreng counters. Low risk medium reward is far more better than high risk high reward.

Later when the tide comes out then you can see who was swimming naked.

Disclosure: My wife and her brother each hold RM100K in shares bought at 0.46.

Slow and steady wins the race.

General Philip say the key is to never lose money!
13/02/2019 4:02 PM
qqq3 philip

serba.....biggest con job in bursa or best IPO in recent years....it can only be one or the other, cannot be both.......
13/02/2019 4:11 PM
qqq3 stock brokers hot favorites...Serba and MBM........


U can pump all u like and not be accused of PnD.......


all from public records.....
13/02/2019 5:56 PM
Eddie If it wasn't for the cut of director remuneration of RM5.5m from RM8.78m (2017) to RM3.234m (2018), the company would have made RM13m in 2018, rather than RM19m. It should be RM2m lower than the net profit (RM15.5m) in 2017. Hence the cut of directors' pay was in time to improve (paint a better picture for) the company financially.

The biggest shareholder was only drawing a salary of RM160k per annum in 2018, approx. RM13k per month, which is only some senior manager's salary rate. How long can this pay cut be sustained and to what extent that the pay cut affect the effort put in to grow the company (less pay, less motivated?) moving forward? Do note that of course salary would not be their main source of income, and obviously he has the duty to grow the company as he is the biggest shareholder afterall, nonetheless it does carry some weight as well.

As for the Prestige Hotel, based on the ARR of RM380 for 162 rooms and assumption of 70% occupancy rate and 10% profit margin, the monthly GP is estimated to be around 130k, which accounted for only 8% of the 2018's profit (annually). The hotel business would only contribute negatively (due to depreciation) to the bottom line in the first few years, and drag down financial performance of the Group on paper. ==> RM1.3m loss as of Jan-Jun 2019

The management team must really up their game like what their competitor does, by expanding their market base. The management is a little bit conservative in that sense.

I am still very unsure whether to invest in this Company. Appreciate if Phillips can shed some light into the future business performance as you know so much more about this company than us, when you have family members as shareholders and employee of the company.
05/11/2019 11:05 AM
stockraider Sign of Mental frustration ,this Philip loh...better go & consult your mental doctor.....there is personality change in Philip loh...!!
05/11/2019 11:14 AM
Philip ( buy what you understand) I believe the results speak for itself. If you ignore the blip that was the trading done by OTB group to push the price up to 1.18, and the subsequent crash. If you had bought and held, at today's price of 0.59, you would still have had a 20% unrealised profits over a 1 year holding period.

I wonder how the stocks that you did invest in turn out.

I hope you will share your stocks that you did choose instead and your results, Eddie.

>>>>>>>>>>

The management team must really up their game like what their competitor does, by expanding their market base. The management is a little bit conservative in that sense.

I am still very unsure whether to invest in this Company. Appreciate if Phillips can shed some light into the future business performance as you know so much more about this company than us, when you have family members as shareholders and employee of the company.
05/11/2019 11:05 AM
12/04/2020 10:56 AM


APPS
I3 Messenger
Individual or Group chat with anyone on I3investor
MQ Trader
Stock Screener using Technical and Fundamental criteria
MQ Affiliate
Join the MQ Affiliate Program today to earn rewards
 
 

517  278  652  1008 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 AT 0.21+0.01 
 MTRONIC 0.12+0.01 
 MTRONIC-WA 0.08+0.01 
 KANGER 0.175-0.005 
 NETX 0.15+0.005 
 TNLOGIS 0.94+0.105 
 HIAPTEK 0.280.00 
 IRIS 0.36+0.01 
 EAH 0.035+0.005 
 VIVOCOM 1.05-0.09 

FEATURED POSTS

1. The Equity Market Index Benchmark in Malaysia CMS
2. Trading Scenarios of Derivatives Bursa Derivatives Education Series
3. Derivatives 101 Bursa Derivatives Education Series
4. Why Trade FKLI? Bursa Derivatives Education Series
5. MQ Trader - Introduction to MQ Trader Affiliate Program MQ Trader Announcement!
PARTNERS & BROKERS