FOCUS LUMBER

1.  Many sifus wrote about this stock, I have nothing much to add.

2.  The Edge Weekly, Mr Tong, bought in his portfolio lately at RM1.76 per share

3. At today's closing, RM1.50, the market cap is about RM155 million, which equates to the NTA.

4. Its cash balance @ 30 June 2016 is RM82m, or RM0.93 per share.

5. 1H profit is about RM8m.  Annualised is about RM16m vs 2015 RM32m.

6.  Prospects, as mentioned by management, not very good due to margin squeeze (higher labor and raw mat) and tough external environment.

7. At RM16m (2016 Estimated Earnings), ROIC = 16/(155-82) = 22%.

8. At past dividend of 8 sen (exclude 2015 bumper year of 15 sen), DY is 5.3%.

9. Capex very low.

SHAREHOLDERS

1.  KYY sold down lately from 6% to 3% (Share price drop from RM3.00 to RM1.50). Negative.

2.  ED bought some shares lately at RM1.50 per share. Positive

FLB WILL BE IN A SLUMBER FOR A WHILE

1.  Prospect not great, as mentioned by the management.

2.  Fundamentally is just reasonable, with ROIC of 22%.

3.  Earnings may recover, as price of raw mat is cyclical.

4. Positive since director is buying.  However, pressure from further sell down by KYY.

5. For long term, should be ok, near term, very boring. (Ideal price to buy should be RM1.30, DY at 6%).  

6.  Hard to find such a small cap stocks of RM155m or Enterprise value of RM73m (Cash at RM82m without debt).

7.  EV/EBITDA would be less than 5x can be considered.