With the Contraction in China, the Overvaluation of Export Stocks & The Overstretched Consumers of Malaysia Impacted by 6% GST & High Imported inflation due to weak ringgit there are really few stocks left for the picking in Bursa.
There remains a Class of Underperforming Stocks that might go against the trend – “THE CONSTRUCTION MATERIAL STOCKS LIKE KPSCB, KIMLUN, CEPCO & PRESTAR”. As KPSCB, KIMLUN & CEPCO Have Already Run Up 20% to 30% In Prices Our Focus Now Turn To PRESTAR.
PRESTAR Or PRE-STAR
“PRE” As in “PREVIOUS” Or “Before”
Or In Other Words “Before IT TURNS INTO A STAR”
SO NOW IS THE TIME TO BUY PRESTAR “BEFORE IT TURNS INTO A STAR PERFORMING STOCK”
PRESTAR – THE RISING STAR AMONG CONSTRUCTION MATERIAL STOCKS!
ITS SALIENT FACTORS:
1) At 50 cents with NTA at Rm1.23 PRESTAR IS SELLING AT A HUGE 60% DISCOUNT TO NTA. It Has A Big Margin of Safety.
2) Foreward P/E is a low 3.66. Beating many Export Furniture and E & E Stocks hands down.
3) Its Debt is Well Cushioned By Its High Tangible Assets Still Not Revalued Yet. Its Properties were purchased long ago in strategic locations. If Company wanted to It Can Revalue All Its Properties Like HapSeng, Seacera & Eg and book them as immense profits.
4) Unlike All Other Steel Companies Impacted by China Steel Dumping PRESTAR Like KPSCB, KIMLUN & CEPCO Are Into Niche Manufacturing of Specialty Construction Materials like High Way Guard Rails and Wheel Barrows. So It has avoided the carnage caused by Cheap China Steel.
5) 10 Highways Including Pasir Gudang Highway, West Coastal Highway, Bandar Penawar – Sungai Ringgit Highway, Pengerang Highway & the 1,600 km Pan Borneo Highway will spur Great Demand for Prestar’s Highway Guardrails.
6) Prestar also stand to reap higher profit due to the collapse of nickel and iron ore prices by 60% to 70% as its Guard Rails use a lot of nickel. This will boost Prestar’s profits further.
7) Prestar also has a factory in Vietnam like Pohuat. With TPP now signed Prestar will do very well as both Vietnam & Malaysia are expected to be top beneficiaries.
8) PRESTAR Also Invest In The Shares of POSCO, In Which the World’s Greatest Investor, Warren Buffet of Berkshire Hathaway, has a Share also. Partnership in prosperity!
9) SEEING ITS BRIGHT FUTURE INSIDERS AND DIRECTORS HAVE BOUGHT MILLIONS OF PRESTAR SHARES ON THE QUIET. A Check with these Directors and Insiders Show That They Have Bought PRESTAR Shares As High As Rm1.00 And Now Still Buying Even More at Depressed Prices.
10) A 2 Cents Dividend has been proposed. That means that Prestar is giving a 4% yield. Will there be another double digit dividend like those years when INSIDERS Bought As High As Rm1.00? It remains to be seen.
PRESTAR IS A STOCK WITH LIMITED DOWNSIDE WHILE ITS UPSIDE IS BRIGHT WITH THE UNFOLDING OF 10MP & 11 MASTER PLAN PROJECTS STILL BEING AWARDED.
Calvin has a target price of Rm1.00 (The Price Reached When PM Badawi implemented 9MP).
From 50 cents we expect a modest 100% Upside.
CHEERS!
Regards,
Calvin
{This article posted while holidaying in Australia.)
Note: On May 9th, 2007 PRESTAR Declared a 22% Special Dividend which equals to 11 cents. Prestar price crossed Rm1.00 then. Instead of selling Directors & Insiders were buying . As of now PRESTAR is selling at half price & Directors/Insiders are still buying. So will there be ANOTHER SPECIAL DIVIDEND?
WAHAHA!
LATEST UPDATE ON 7TH SEPTEMBER 2016.
PRESTAR TOUCHED 73.5 CTS TODAY! UP 63%
HIP HIP HURRAY!!
NOW FOR MASTEEL'S TURN!
Why A Stock Market Crash Can Be A Wonderful Thing For Singaporeans
Unless you have been living in a cave, you should know that stock prices have been falling drastically since the start of the year and is expected to continue even further.
Many people are frantically trying to sell off whatever shares they have left amid the global recession and prices are slashed more than your annual year-end sale.
Despite this, there are a growing group of knowledgeable investors who are waiting patiently for the perfect opportunity to invest. Want to know the reason why?
Here are 3 reasons why more Singaporeans will start investing in 2016…
1.) Inflation is real; and scary
If you think that the word inflation is a term used by economist just to scare you, think again. Unless your salary has been increasing by 5% per year, your purchasing power is dropping. To illustrate the effects of inflation, assuming you have $1000 in the bank (assuming negligible interest rates) after 10 years you would have approximately $675 left taking into account a 4% inflation.
That’s nearly half your wealth vanishing without you even knowing!
On the other hand, investors can rejoice because as companies raise the prices of their goods and service means higher revenues for them. Therefore, the stock market index will almost always go up in the long run.
2.) The 2016 recession a double edged sword
Imagine walking into a Prada outlet and the manager of the shop announces that they are having a 50% sale for 1 day only. Items would be selling out like hot cakes!
That was exactly what happened during the great financial crisis in 2007-2009
When stock prices were down by 50%, many people were selling off stocks to cut losses. But value investors were secretly buying up the shares and made a hefty profit when the market returned to its peak.
3.) World’s greatest investor Warren Buffet Made His Billions by investing… even during the economic crisis
In 2008, Warren Buffett declared that he was buying up stocks during the global credit crisis. As a result, he has made billions from it.
I quote: “be fearful when others are greedy, and be greedy when others are fearful.”
Here’s a screenshot of Warren Buffett’s net worth ever since he started value investing at the age of 14.
Is Value Investing for You?
There are 2 types of people in this world.
People who are able to spot such golden opportunities but do not take action at all. They watch other people grab at the opportunity and regret at the end of the day and they miss opportunity after opportunity.
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Icon8888
Nowadays I started paying attention to Calvin
Recently he got two stocks correct - jayatiasa and PM Corp
Proof of pudding is in the eating. Track record is best proof
But "pay attention" only, not buying yet
Need more time to observe
2016-03-07 08:36