Bursa Malaysia Stock Watch
Reflexivity..."Bottom-Up"
kltrader
Publish date: Thu, 25 Mar 2010, 11:23 PM
kltrader
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This blog provides consolidated Bursa Malaysia stock market research, analysis, news and blogs from various sources. You can search and find all the past analysis and coverage on stocks and news by searching within this site. While this blog re-publishes contents from other sites, it does not own the rights nor responsible for the accuracy of the contents. If you disagree to your content from being published here, please add a comment, and your article will be removed from this site.
In the face of a tough market, Alpha decided to change approach by adopting 'bottom-up' strategy. This means I will be stock-selective instead of transacting based on the movement of the benchmark index. With this, I have increased equity exposure (77%) further.
My purchases for today:-
1. Ogawa
- An "old-flame" that still hovers around my previous trading range. Still like its high net cash per share and improving earnings. Technically, it has completed its base-building and looks set for a surge.
2. Yilai
- A technical play with good chance for an imminent upside. Fundamentally, its earnings are decent and its balance sheet looks impressive with a cash pile of RM51mil versus a paid-up capital of RM80mil with 0 gearing.
3. MPCorp
- Attracted at its proposal with 2 rights and 2 warrants at RM1 (two-call where 1st call from shareholders at 0.45 while 2nd call at 0.55 payble from retained earning) for every 3 shares held. Exercise price for warrant is at RM1.00. This will go ex on 29th March 2010.
- Fundamentally, MPCorp is not faring well with 4 consecutive quarters of losses but the math on the proposal looks profitable.
- At 0.62, 3,000 shares of MPCorp amount to RM1,860; and with 2,000 rights at 1.00, the total value for 5,000 shares ex-right is RM3,860. The theorectical ex-price is 0.77. But due to the two-call feature, total investment amount is RM2,760 (1,860 + 450 x 2) with an average price of 0.55. This will translate to a gain of 40% plus 2,000 shares of free warrants. Though the warrants will be out of money, it will surely worth something upon listing and this will be additional bonus for investors.
My purchases for today:-
- An "old-flame" that still hovers around my previous trading range. Still like its high net cash per share and improving earnings. Technically, it has completed its base-building and looks set for a surge.
2. Yilai
- A technical play with good chance for an imminent upside. Fundamentally, its earnings are decent and its balance sheet looks impressive with a cash pile of RM51mil versus a paid-up capital of RM80mil with 0 gearing.
3. MPCorp
- Attracted at its proposal with 2 rights and 2 warrants at RM1 (two-call where 1st call from shareholders at 0.45 while 2nd call at 0.55 payble from retained earning) for every 3 shares held. Exercise price for warrant is at RM1.00. This will go ex on 29th March 2010.
- Fundamentally, MPCorp is not faring well with 4 consecutive quarters of losses but the math on the proposal looks profitable.
- At 0.62, 3,000 shares of MPCorp amount to RM1,860; and with 2,000 rights at 1.00, the total value for 5,000 shares ex-right is RM3,860. The theorectical ex-price is 0.77. But due to the two-call feature, total investment amount is RM2,760 (1,860 + 450 x 2) with an average price of 0.55. This will translate to a gain of 40% plus 2,000 shares of free warrants. Though the warrants will be out of money, it will surely worth something upon listing and this will be additional bonus for investors.
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