I started looking at CHEETAH recently when it noticed of its share price movement weeks ago.

I have recently realised my investment return in LCTH bought previously at RM0.17 when business turnaround and sold them (at 0.36) for CHEETAH recently when it catches my attention due to its price movement trend.

CHEETAH by itself is not a very liquid shares - which means it is not too much of a target of trader but more for a long term investor who finds value in the business. It is a family-owned and run business by the "Chia's family" where they have substantial control in the shareholding.

It is nice to see that Institution like Lembaga Tabung Haji has shareholding in CHEETAH. LUTH has bought shares in CHEETAH since 2007 when CHEETAH transferred into the Mainboard of Bursa Malaysia where shareholding at y/e 2007 stood at 4.99% and has now gradually increasing to present level. With support of "large shareholders" we can expect greater stability of share price.

Besides, I like the idea of CHEETAH buying back its own shares - which is a good way of rewarding its shareholders and to support its own share price. A quick glance of the share buy back done:

Financially, we can see CHEETAH has been PROFITABLE all the YEARS.. Tracing back to Financial results since 2001, CHEETAH is able to do well, also weathering through economic recession. Business management has been consistenty achieving a positive sales growth, although I notice margin has been suffering in the recent years due to heavier competition.

There is also a piece of property that CHEETAH is owning at Balakong, which is also valued at cost. This property is rather new, acquired less than 10 years ago. However, a simple NET research suggest the potential value reaching RM19,000,000 while the transacted value as recorded by JPPH suggest a possibility of RM17,000,000 - creating fairly a good unrealised gain for future years to come.

The recent quarterly results announced by CHEETAH for the recent Q3:

has suggested a NTA of RM1.05. At the closing price of RM0.695 - there is a 30% discount of the present market value,

Dividend Payment Wise - CHEETAH is consistently paying out annual dividend.

The PE Ratio of CHEETAH is currently 9.5. PADINI has a PE of 14.2. VOIR is loss-making.

(Objectively, Padini is has maintained better profit margin than CHEETAH recording a margin of about 10.8% but padini has a NTA of just RM0.59 per share as compared to its share traded value of RM2)

The recent price movement has attracted me to buy into CHEETAH.

At time of writing, I have bought CHEETAH at RM0.68 and on 24th JULY 2014 - I have bought some CHEETAH at RM0.685. Friday is the LAST trading day before our long break for Hari Raya. So, will be looking forward for some price volatilty and accumulate if there is opportunity to buy low.

Wishing everyone Selamat Hari Raya and Happy Holidays. Drive Safe when Balik Kampung.

I am looking forward for CHEETAH to break new high price soon in the future and rise further in the medium term.

Happy Investing.

Calow

Disclaimer - this is a personal view of the author, purely for sharing purpose. It is not a buy or share call. Trade at your own risk.

Calow has invested recently in FLBHD, PENSONI and CHEETAH but traded some other counters like EUROSP, GHLSYS, SMRT, BCB and SCICOM.