Even though KLCI declines by almost 1% since the start of 2014, most small & mid caps stocks gain handsomely.
That's why personally I don't like blue chips stocks especially during bull market, unless it has great potential of growth.
INARI
YearToDate, Inari has appreciated about 65%, though it is still way behind the crazy Dsonic which has already gained 120% YTD.
The recent rally in Inari's share price might be due to its pending transfer to main board and bonus issue rumour.
Though there is still no update regarding the main board transfer which was expected in the first quarter, it does not worry me as it is just a matter of time.
Today, HLIB has come out with its analyst report giving Inari a target price of RM3.09. The report provides lots of good info regarding Inari's prospect.
As a layman I only know that smartphones and tablets will only become more and more popular. You can even see students, golden age folks and people in lower income groups playing with their smartphones now.
With growing popularity in social network stuff like facebook, twitter, whatsapp etc, smartphones & tablets seem to be a must-have for most people.
Soon those less developed countries might see a boom in smartphones sales.
Samsung has just launched Galaxy S5, and Apple is expected to launch its iPhone 6 in Sep/Oct this year. It is a new model every year.
Inari will certainly benefit from this trend with its link to Avago which is the global leader in wireless technology, a must have feature in smartphones & tablets.
Actual smartphones shipment in 2013 is more than 1 billion.
GTRONIC
Besides Inari, Globetronics is another company that should benefit from this similar trend.
That's why I'm still keeping some Gtronic shares even though I'm only expecting so-so financial results in the first half of 2014, and it is currently trading way above my own target price.
Gtronic's share price has made a big leap for the past 2 days and broke out from its resistance. I'm not sure why but it is a positive sign.
Its sensors and LED products are definitely at the top of market trend so I think it should have a bright mid term future.
I hope it can make some good acquisition in the near future besides growing organically.
TROP
Recently Tropicana is like "salted fish turns alive" where its share price recovers well from its previous 8-months-long downtrend.
Its recent surge in share price might be related to CIMB's report that gives Tropicana a fair value of RM3.07-3.58 base on 30-40% discount on its fully diluted RNAV which stands at RM5.11.
Besides, at RM1.60, it is trading at a discount from its NTA of RM2.32 and a historical PE of only around 4x. Its GDV/market cap ratio of 41x is also much higher than all other established property developers in the country.
Personally I have confidence in Tropicana's re-branding exercise and its working direction towards a successful big cap property developer. I'll just keep my current investment in Tropicana and see what happen in the next 1-2 years.
TAMBUN
Tambun Indah's share price touches RM2 today. It has gained nearly 40% for the last 2 months.
In my view, I think Tambun's earning can still continue its uptrend momentum. Its Pearl City projects are running fast and smoothly, while recent new launches also achieve encouraging sales.
Its Straits Garden condominium with an estimated GDV of RM238mil launched 1.5 years ago, should have a big portion of its unbilled sales billed from the 2nd half of year 2014.
Tambun should be able to surpass its FY13 financial performance with ease in FY14. After that, it remains to be seen.
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Jonathan Keung
1st qtr result ( end March ) will be out in May. possibilities of announcement together with the bonus split (stories circulating)before main board moves
2014-04-02 14:11