Hi guys,
I have bought & sold Masteel in Its Cyclical UPs & Cyclical DOWNs for more than a decade already.
Let Calvin share his experience on a Cyclical like Masteel
When Pm Badawi came into power he cancelled many grandoise projects of Tun Dr Mahathir & that led to an economic contraction. He said Malaysia had no money then. That led to the protest of Tun Dr. M saying that Malaysia still has money from Petronas
Then Pm Badawi implemented a Huge Infrar project for the 9MP (Malaysia plan) for 2006 - 2010
Seeing the Huge Amount of CASH Pouring into Infrar Jobs I sensed that there will be a Huge Demand for Cement & Steel
SO AT THAT TIME I WAS STILL A NEWBIE I BUY BOUGHT UP ALL THE CEMENT COMPANIES
I bought YTL CEMENT at Around RM2.20
Bought CIMA (Cement Industry of Malaya) at Rm2.40
Bought TASEK CEMENT At Rm2.90
Bought LAFARGE CEMENT at 66 sen (Whoa this one people were throwing and throwing by the Millions, tens of millions being sold when I was fearfully buying at 66 sen) Lafarge later merged from 10 lots into 3 with 20 sen Cash payout (After that LAFARGE ROSE TO OVER RM10.00; if only those dumb sellers know ahead of time)
Later TASEK Rose to Over Rm16.00 while Ytl Cement was taken private by YTL after price has doubled & CIMA also taken private by UEM
NOW COMING BACK TO STEEL. Steel was really trickier as there are so many many - Mycron, Melewar, AISB, Choo Bee, Lionind, CscSteel, Ann Joo (Annjoo got 2 but later merged into one), Kingsteel, Southern Steel, Prestar, Masteel & several others
Ha! Only later, much later, I found out that while All Cement Companies did very well generally the same cannot be said about steel
Only 4 Steel Stocks Shone in the end. All Long Steel Stocks for Infrar jobs while Prestar has Wheel Barrow & GUardrail for Highways
The rest of my investments in flat steel went nowhere and it was a waste of time and money
BUT I GOT AN IMPORTANT LESSON
So later when Next Infrar Boom Cycle Retarts I only go for Long Steel & Prestar
So Far It was Chun Chun
I bought Prestar again at 45 sen & Prestar gone up 200% in recent cycle
See
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THE INVESTMENT APPROACH OF CALVIN TAN Author: calvintaneng | Latest post: Fri, 8 Mar 2019, 09:25 PM | >> Go to Blog Dashboard
Hi Guys, |
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PRESTAR: PRE-STAR Or Before It Turns into A STAR PERFORMING STOCK By Calvin Tan (Perth, Australia)
Author: calvintaneng | Publish date:
Hi Guys!
I am now in Perth, Australia.
I first came to Perth about 20 years ago.
Then Perth was quite backward & rural.
Not anymore now.
I got caught in North Perth's Massive Traffic Jams.
And I SEE an Idea I want to share here.
I SEE the widening of Perth's Highway - leading to huge demand for more Highway Guard Rails.
Every time a rural road expands from 2 lanes to 4 lanes there is a NEED for 4 NEW SETS of Highway Guard Rails.
I can SEE So FAR From PERTH That With The Ever Increasing Number of Cars, SUVs, JEEPS, Buses, Lorries in Malaysia there will be the continual expansion of Roads into New Highways - Translating Into More Needs of Highway Guard Rails-
So HEY PRESTO! Or Rather HEY PRESTAR!
YES! PRESTAR CAME TO MIND.
Regards,
Calvin,
Perth, Australia
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THE INVESTMENT APPROACH OF CALVIN TAN Author: calvintaneng | Latest post: Fri, 8 Mar 2019, 09:25 PM | >> Go to Blog Dashboard
Hi Guys, |
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PRESTAR - THE UNDERVALUE LAGGARD CONSTRUCTION MATERIAL STOCK THAT WILL PERFORM
PRESTAR – THE UNDERVALUE LAGGARD CONSTRUCTION MATERIAL STOCK
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!
AND AFTER POSTING ABOUT PRESTAR I BOUGHT MASTEEL AT 66 SEN & POSTED
See Long Steel is for Structure Strengthening
HOW IT WORKS
1) LONG STEEL REBARS ARE NETTED INTO RECTANGULAR SHAPES BY ROUNDING & ROPING THE WHOLE LENGTH IN PLACE
2) NEXT PLYWOOD IS USED TO FORM BOXES ENCASING THEM
3) FINALLY CONCRETE AGGREGATE & CEMENT POURED INTO THEM AND HARDENED
THEY BECOME PILLARS FOR HIGH RISE BUILDINGS, MRT & LRT PILLARS, SUPPORT FOR ROAD & RAIL BRIDGES, WALL ENBANKMENTS TO PREVENT EROSION OR LAND SLIDES
AND MASTEEL SUPPLIES MORE PURE REBAR AS A PURE LONG STEEL PLAYER
