Highlights

Trading With A View

Author: tradeview   |   Latest post: Sat, 6 Apr 2019, 11:48 AM

 

(Tradeview 2019) Forward 6 Value Picks for 2019 (TM, PPHB, DKSH, Elsoft, BJ Food & Perstima)

Author:   |    Publish date:   |  >> Read article in Blog website


 
Image result for buy when others are fearful

 

Dear fellow readers, 
 
Once again, these writings are just my humble highlights (not recommendation), feel free to have some intellectual discourse on this. You can reach me at :
 

Website / Blog : http://www.tradeview.my/

or Email me to sign up as private exclusive subscriber : tradeview101@gmail.com
_____________________________________________________________________________

Many are looking back at 2018 wondering what went wrong and how could things be so bad? For Tradeview, we recommended significantly lesser stocks in 2018 and was very prudent in our investment due to the uncertainties. Apart from QL, Poh Kong and a handful of public calls, we didnt do much public calls. This was because we did not have a clear direction. 

Image result for hold cash

We also suffered losses like many fund managers and investors. We also held certain stocks like MYEG, Eforce, Layhong which plummeted tremendously. However, thankfully these are only a small proportion of our holdings. In fact, our cash holding was the largest and we will publicly admit we actually made significant numbers of calls to our private group members in the month of November and December. We called close to 8 stocks in the month of November and December. These 2 months collectively has more stock picks than others. We finally saw the opportunity especially to collect some of the stocks which was in our watchlist for a long time. Our cash holdings was aggressively poured into these stocks.

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We would like to share with all that our picks are mid term to long term and definitely we will hold it into 2019. It also a collection of stocks which can weather the storm and turbulence. Amongst those, we would like to share are the following and at the price of entry as below :

Image result for TM
1. TM

We called TM earlier during the selldown at around RM3+ and when it was sold down, we waited until RM2.40 and below to call a further entry to average down. YB Gobind definitely rock the telco industry after becoming minister. Of course this is in the best interest of the people and users, which we have no objection. However, this severely impacted the related sector and companies of which EPF, KWAP, PRS funds are among the key investors in these companies. Indirectly, we may benefit from lower monthly telco fees but the losses from the holdings in these blue chips is far greater.  Having said that, we know the actual valuation for TM is much higher than RM3 and this was a good collection opportunity. We therefore called and collected.
 
 
 
 
Image result for pphb bhd
 
 
 
 
 
2. PPHB
 
Similarly for PPHB, our initial valuation for the stock will be RM0.70 at least. The company continued to outperform and severely undervalued when FBMKLCI mid cap index fell close to 25% for the year. This was a good opportunity to collect at around 55 sens and below. The downside to this stock is because there is no dividend policy and may appear as a value trap. Nonetheless, the whacked down share price far below its actual value provide a good opportunity to enter a mid term value investment 
 
 
 
 
 
 
 
 
Image result for dksh malaysia
 
3. DKSH

When we first called DKSH at RM3+, our estimated would be around RM4.60. When the share price fell to RM2.50, we further averaged down. Many have asked us why are we so bullish with DKSH and the purpose behind. Well, for one DKSH fell along with other blue chips and even out of the Syariah list. However, this company has very strong management and the international clientele which is the foundation of their distribution network gave us the confidence to hold. Whilst the margin is this, the valuation is cheap compared the mother company and regional players. It's book value is RM3.79 and the PER is trading at 6.9x hence it is a stock that will definitely rebound in the long term and one that we are willing to hold through the storm. 

Image result for bjfood
 
 
 
 
 
 
 
 
4. BJ Food

To be honest apart from the Starbucks franchise, we actually dont really like the other brands under BJ Food. The money churner is still Starbucks and it is Msia's market proxy to the US's global brand. We are also no particularly impressed with the management of Berjaya group management as a whole. A strong management would be able to do way better than the current valuation. However, we note that the company has disposed of their loss making Kenny Rogers business in Indonesia and starting to return to black. Additionally, substantial shareholder is buying to support the share price. We think this year will be turnaround year for BJ Food coupled with the consistent quarterly dividend of 3% full year, can look to collect at below RM1.35.
 
 
 
 
Image result for perstima
 
 
 
 
 
5.  Perstima
 
Our old favourite is back in the radar as the valuation for it should be at RM6 due to the high dividend yield, stronger revenue growth and opening of new markets and manufacturing facility in Philippines. Should the company declare dividend this year to be 20 sens, the yield at current price would be about 4%. Even the PER is undervalued based on the revenue growth and improvement in profit margin. When the market is as weak as it is, we advocated to our readers to consider buying on weakness. It remain was one the steady quiet mover that has rebounded for the year from a low of RM3+. There is still upside to RM5+ in the mid term.  

Image result for elsoft research 
 
6. Elsoft Research Bhd.
 
 
We waited for Elsoft to retrace for a long time. We continued growth, strong dividend payout policies and record revenue for the year, the share price was steady for a long time. We finally had the chance on 11 December, a day after Datin Rosmah birthday to collect the stock at RM1.17. Many may think they just went ex dividend not long why bother to enter now? Well if I am a large fund that requires steady returns every QR to declare a year end payout, maybe I wouldn't but to me, the stock was trading at an immensely attractive valuation and almost at the bottom. I cant time the bottom but at that price, it works out perfectly with enough upside and sufficient margin of safety.
 
 
 
 
 
 
 
https://www.bloomberg.com/news/articles/2018-02-07/buying-the-dip-works-nicely-a-30-year-history-of-routs-shows
 
There are definitely others to the list of stocks we have watched, observed, consider, and called. Mostly with the market continuously being volatile, when the time comes, opportunity knocks, and value surfaces, what would you do? The above link demonstrates the beauty of buying on dips and weakness over chasing rallies.
 
________________________________________________________________________________

Website / Blog : http://www.tradeview.my/

Email me to sign up as private exclusive subscriber : tradeview101@gmail.com

Food for thought: 

Like many famous investors, Li often bought when others sold. When riots inspired by Mao Zedong's Cultural Revolution broke out in Hong Kong in 1967, Li invested in the city's property as prices tanked.

 
 

 

 

 

 

 

 

 

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Labels: TM, DKSH, PPHB, ELSOFT, BJFOOD

Related Stocks

Chart Stock Name Last Change Volume 
TM 2.75 0.00 (0.00%) 1,589,900 
DKSH 2.52 -0.03 (1.18%) 20,200 
PPHB 0.56 0.00 (0.00%)
ELSOFT 0.835 0.00 (0.00%) 783,100 
BJFOOD 1.78 +0.01 (0.56%) 195,500 

  4 people like this.
 
Erudite thanks!
16/12/2018 12:34 PM
ramada Among the i3 writers, stock picks from tradeview r more reasonable & acceptable.
16/12/2018 12:43 PM
trulyinvest Elsoft poor,selection. Ta oredi warned, earningspeak, next q may report weak result
16/12/2018 1:34 PM
zhangliang https://www.thestar.com.my/business/business-news/2018/12/10/pentamaster-and-elsoft-expect-record-turnover/

Elsoft chief executive officer C.E. Tan said the group was on track to achieving its best results.

“Our nine-month results had also surpassed the turnover and net profit of last year.

“Elsoft posted RM65mil in turnover on the back of a RM33.7mil net profit for the nine months ended Sept 30, which is higher than the RM61.3mil and RM27mil registered, respectively, for the whole of 2017.

“We expect to see a revenue growth of over 30%. This is an achievable goal as the average earnings per quarter in 2018 is about RM20mil,” he said.

Tan said the smart-sensor segment contributed 60% of the group’s revenue, while the automotive and general lighting segments 30% and 10%, respectively.
16/12/2018 2:58 PM
VenFx trulyinvest is a contra kaki, his words no substances at all.
The truth is he love to bluffing like he is the magic contra player ...

Liar cant change its spot rite ?
16/12/2018 3:53 PM
trulyinvest Kindly go n read latest ta report on elsoft
16/12/2018 6:55 PM
trulyinvest Post removed. Why?
16/12/2018 6:56 PM
trulyinvest Post removed. Why?
16/12/2018 7:00 PM
VenFx Liar tetap liar lah ,
Never put your word into other mouth.

You just a pity rat which love bluffing in i3 la
16/12/2018 7:31 PM
Fabien Extraordinaire None of the 6 stocks under my radar. Totally no common ground to start with..lol
16/12/2018 7:31 PM
VenFx U still want to bluff like a contra magician ?
Always chun chun call no matter how bad a market ?

Common la ! Silly la
16/12/2018 7:33 PM
VenFx I'm able to better far better Short Term profit after 509.
Need not me to show the real time results la...
Frens of mine they know I'm saying the truth here.

Not like trullyinvest the monkey magician... bla bla bla
16/12/2018 7:36 PM
VenFx However, i hv just stop all my speculate trade since last 2 week.
2H 2018 alone already made my profit jumped by1.5 times from 2017.

Long term stock position cap below 30% of my overall portfolio weighing .
Would exercise by trimming another 10% , if 1620 broken.

See ,i share my method.
Comparing to truelyinvest, he share only his magical contra chun chun call, which i doubt he just lie all this while lo.
16/12/2018 7:42 PM
moneykjtwin u share ur method???!!! but u scared of ahmoiing!!!!!!

haha!!!
16/12/2018 7:43 PM
VenFx Haiyo ! Go eat musangking la !
Be seriously la !
I'm lecturing that biadab truelyinvest leh.
16/12/2018 7:48 PM
VenFx In 2019,
I'll ask myself a big Q ?
What kind of potential trade breadth can trigger my coming back to speculate or adding position ?

1H2019 will it a continuing Downward?
2H2019 rebound ?
Or, worst part is , bear conquering the whole 2019 ?

Could that possibly have 2nd & 3rd scenario ?

Pls share....
16/12/2018 7:53 PM
Erudite no matter TA or FA, which way can make money is a good way. I know the call above are safe calls, with dividend and growth, actual business. not contra play. those who dont believe shouldnt call other names. i am fair, be respectful. Let results in by next few quarterly results to prove the outcome ok? Market bad, good there is still direction from some kind Gurus
16/12/2018 8:34 PM
trulyinvest Ur method? Canot pakai la. Keep shouting buy eg from rm1 to 40sen ka? Pls,lau, vanish from i3 beter. Or u x tau malu ka? Kikiki. U punya muka lagi tebal dr great wall of china
16/12/2018 8:36 PM
Choivo Capital I've never really get tradewin's picks.

Their basis is usually quite weak, with research that does not go beyond the copy paste of data from annual report. No new insight.

Every time someone ask others to pay money to join whatsapp or telegram. I can't help but feel there is some factor of pump and dump.
16/12/2018 8:37 PM
trulyinvest I din c ur method all d while. I just c u constsntly post nonsense article on eg.. big liar
16/12/2018 8:40 PM
zhangliang Choivo, good to c u again attacking Tradeview guru. U chg name, used to Jon Choivo who called the lousy Prolexus, ask ppl to buy RM1.40... What happen? I think Prolexus is 50+ sens. U still holding?

apa mau lagi? follow ur lame unit trust that is down 10% this year? con people to buy ur unit trust scheme like money game?
16/12/2018 8:45 PM
zhangliang I remember Choivo con guru attack Tradeview bro call QL at RM3.5. U insult Tradeview all the time like stalker! I think u shud insult more than every time u insult Tradeview stock fly! hahahaha. I learn from Tradeview bro for 2+ yrs, I enter QL RM3.5 sold RM7 in 1 year. Pls dont be a faker ok? bad karma, later ur unit trust all lose money.

https://klse.i3investor.com/blogs/tradeview/143376.jsp
16/12/2018 8:47 PM
VenFx Trulyinvest,umno has already got tajuddin najis and jahit.
I3 dont need your rubbish comments here la ?
Very irritating to see someone incompetent trying to play hand job all day nite ler.

U siok sendiri, others feel want to vomit u know ?
16/12/2018 8:50 PM
VenFx I rest my case here...
As i always tespect to tradeview .

Just beh tahan, to see truelyinvest the idiot simpily comments things he dont know.
16/12/2018 8:57 PM
zhangliang no worry VenFx bro, many wannabes in forum. Keyboard warriors and conman. Level too low waste of time
16/12/2018 9:01 PM
johnbrooks Tradeview, among the six which is the one u like the best? Is the order of companies based on ur preference?
16/12/2018 9:31 PM
VenFx Tq zhang bro ....
16/12/2018 9:33 PM
OldPussyKyewyin47 Old master kyy taik shit bodoh...kikiki
17/12/2018 9:38 PM
joetay7 the only stock i like is tm. if bj food is not under bjc, then will be worth looking at.
17/12/2018 11:08 PM
paperplane Perstima for div ok
10/02/2019 9:09 PM


 

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