Hi, Mr. KCChong, can we apply Graham net net valuation to plantation companies too? I noticed most plantation companies are traded at high P/E, but low P/B ratio. Can you share your thoughts on this? (P/S: I m prepared to be lectured by you again, still remember you sound me on the "excitement" phrase used in the PMCorp thread).

Sound judgement and yes, the assets are good mostly cash and investments which you like.

Btw, Calvin, do you know what's that "unquoted overseas investments" reported at RM73 mil in PMCorp's accounts last year? Not much disclosures except it's redeembable preference shares, etc ... Like you said, no one will know PMCorp held shares in BEA until you went to the AGM!

There are generally lack of disclosures about the "investments" held by non-financial / non-insurance companies in Bursa. The other example was Insas, hell lot of investments, but no clue at all, then, suddenly made loss in last quarter.

I guess PMCorp not KCChong's cup of tea ... The biz prospect is not very exciting as of now, clearly this counter falls into the "penny stock" play now (happy for those who already made money). But of course, Calvin's effort in promoting this stock (in other threads) have certainly helped create awareness among the members here (ha ha, not you jump I jump lah). So KC, chill a bit lah :-)

Mr. KCChong, did you invest in PMCorp? I remembered reading yesterday under KFIMA's thread that you agreed with Calvin that PMCorpo is a good investment...

Both Gamuda and IJM are good companies (No?), I agree that they may have limited upside compare with other small cap counters (in near term), hence, warrant is traded at a discount.

I saw these two warrants as I thought there are cheaper alternatives than buying the mother share, when the timing is right (say a market correction). So, I noted down for reference.

Everyone in stock market has a view, that's why there is buy and sell, which made the market interesting. I appreciate KCChong's contribution a lot (that's why I try to contribute a bit), and of course, Mr. OTB offers valuable inputs too, thanks very much.

Two cheaper (but not so cheap) options to owning blue chip stocks:
1) Gamuda-WD
Price: RM2.01
Mother share: RM4.70
Conversion price: RM2.66
Conversion ratio: 1:1
Maturity: 25-5-2015
Gearing: 2.33x
Discount: -0.64%

2) IJM-WC
Price: RM1.73
Mother share: RM5.78
Conversion price: RM4.00
Conversion ratio: 1:1
Maturity: 24-10-2014
Gearing: 3.34x
Discount: -0.87%

Because Inari already flying sky high, naturally Insas should move. However, I wonder why this Company made losses last quarter (from investment) ... There is lack of disclosure in the annual report / announcement as to what kind of investments were made and the related costs vs. market value. I once looked into this company, but after that decided to let go, not my cup of tea.

Thanks, KC! My impression is that there is no obligation for the acquiror to "compensate" the warrant holders in event of privatisation or take over. Am I right to say so?

Unless the warrant is "in-the-money" (e.g attractive takeover price), then, warrant holders will still make money like what you said. But this is provided that the warrants have to be or intended to be converted into mother shares before the completion date, right?

KCChong, what is the implication to warrant holders in the event that the Company is being taken private or bought over by another company?

Congrats TKW on HAPSENG-WA, a star performer. I am just curious if the target price of 1.89 as per OTB stock pick challenge is achievable or not and by when? Cos he said if 0.54 resistance broken convincingly, the sky is limit :-)

Basically, the Fed is dumb, they have totally no clue about how to "cure" US economy. They have only one brilliant old trick - to print money and more money until they run out of ink and paper... Americans are not very smart people, when an Indian becomes Miss America, they said she is an Arabian, ha ha ha ...

Yktay1, we all know there will be a crisis/stock market crash every 5 or 10 years... It's a cycle which keeps repeating itself, but we don't know exactly when. The market is much more volatile now compared to last time. And this QE and the property bubble, I believe are real time bomb. Well, since we play the game, we just watch and see what happen, or else quit the game.

This Bernanke is real *******, when everyone doens't expect anything, he suddenly announced that there would be QE tapering. When everyone expects him to taper, he said maintain QE. I now tend to believe the conspiracy that he actually collaborates with the Wall Street guys. He knows the QE is definitely not sustainable (it's a giant bubble), but he couldn't care less (as he is retiring).

I guess the main reason why they maintain QE is because the mortgage application rates dropped in August due to rising rates. QE didn't solve the root cause, it didn't create sufficient wealth or increase income of the general Americans, it all pocketed the Wall Street guys.

14.5% x 0.10 (par value per share) = 0.0145 dividend per share :-)

Thanks, Kcchong's explanation make sense to me, which also means the pricing of warrants (now and then) is not favorable to investors. Why would SKPRES issue a warrant with step-up exercise price? Again, were they over confident or intentionally make it out-of-the-money? I didn't buy this warrant as the % of premium is too high for me, I am only comfortable with those 20% or less and reasonable time to maturity.

GKH's move is a bit hard to comprehend, first, he sells all warrants, then, he buys more mother shares. What do you think he is trying to achieve?

Not sure if anyone here read from the newspaper, basically, the colomnists think that GKH has no confidence that the mother share will cross above 45sen, that's why he sold almost all of his warrants.

憑單行使價逐步提升 反映對星光資源股價沒信心 15 September 2013
http://www.chinapress.com.my/node/457899

凭单专栏：星光资源-WA 大股东近沽清不可长持 2 September 2013
http://www.nanyang.com/node/560864

http://klse.i3investor.com/blogs/rhb/36807.jsp
Kenanga said 0.69 ... Not sure whether achievable or not. Again, this stock to me is keep and hold, I will top up regularly whenever there is a correction.

I think no problem in breaking RM10 ... Foreign funds love blue chip and Genting's P/E is quite attractive compared to other banking stocks.

HJey, Crocodile and Lacoste are totally different company. Crocodile was from Hong Kong and Lacoste is a French clothing company. Also, Lacoste has a more upscale image compared to Crocodile.

Crocodile had a long standing dispute over the logo and clothing lines with Lacoste. Crocodile uses a crocodile logo that faces left while Lacoste uses one that faces right. The two fought for the logo rights in China, but eventually reached a compromise with Crocodile agreeing to change its logo to have a more vertical tail and more scales for its logo.

Sunway REIT, it's not an "actual" acquistion by shareholders:
"Issuance of units by Sunway Real Estate Investment Trust to its Manager, Sunway REIT Management Sdn Bhd as part payment of management fees in units for the fourth quarter ended 30 June 2013."

The P/E is below 15x and if you compare with other established counters within the Consumer industry, they are mostly traded at >20x. I think NTPM deserves the premium because it has certain competitive advantage, especially in the tissues and toiler paper segments. Its major competitor is Kimberly Clark, who produced Kleenex and Scotts brands. Obviously, Kleenex is more expensive and majority of the Malaysian households opt for Scotts or NTPM's brands, e.g. Premier / Cutie / Royal Gold. If you frequent the supermarket, you'll see that NTPM is pretty good in "bundling", e.g. adding some "freebies" to make it a better deal compared to Kimberly's.

Also, NTPM's earnings will be further strengthened if it could improve the brand image of Diapex baby diapers. The baby diapers segment is more competitive but I believe the margin is better than other paper products. In fact, Diapex is also a good product and value for money, but it needs time to penetrate the market.

Unfortunately, the general Bursa "investors" doesn't like Hap Seng that much despite good fundamentals ...They prefer goreng counters, counters with news and penny stocks, but not slow and steady counters :-)

Nvm, shares already jump 40c

Affin Holdings Bhd said today it has entered into an "exclusivity agreement" with Hwang-DBS (Malaysia) Bhd to purchase its key business units.

The businesses included 100% interest in HwangDBS Investment Bank Bhd and HDM Futures Sdn Bhd, 70% in Hwang Investment Management Bhd and 49% in Asian Islamic Investment Management Sdn Bhd, according to a stock exchange filing. - Reuters, September 4, 2013.

Okay, people are skeptical because this kind of deal hardly comes from Genting ... But, was it not "right" to give special dividend in view of huge tax credit? Was it not "right" to raise funds via equity in view of rising interest rates? Was it not "right" to prepare cash for "bargain assets" or M&A opportunity? Yes, I may not like Genting's management style (e.g. exorbitant CEO's salary, running like family business, low dividend, etc. etc.), but I don't doubt their ability in making sensible investments and business expansion.

Yes, agree that special dividend is attractive, but may not be (or highly unlikely) recurring. Genting has not been generous in distributing dividend in the past.

In terms of the warrant, as it is subject to shareholders' approva via EGM, there are chances that the exercise price maybe revised downward due to unfavourable market condition. This also stated in the proposal : "Depending on the prevailing market conditions prior to the announcement of the Entitlement Date, the Board may, in its absolute discretion deem fit and in the best interests of GENT, adjust the Exercise Pricedownwards based on a similar pricing mechanism. As such, the Exercise Price will not in any event exceed RM7.96 per Share. In addition, the Exercise Price may be subject to adjustments in accordance with the provisions of the deed poll to be executed by GENT (“Deed Poll”)."

Yes, they can use some of their cash to buy back own shares too and push up the share price ...

While waiting for the "appropriate" land to appear, just put in FD only? Quite a no brainer cash management ...

The Group has a huge cash pile of RM272 mil, and its total liabilities only RM139 mil @ 31.3.2013. My gripe is that the management should have more effective cash flow/liquidity management, why put RM253 mil in low yielding FD @ 3.45%p.a. with banks? Though I don't encourage the management to take excessive risks, I am sure there are other relatively safe and higher yield assets compare to FD.

Come on guys ... Please stop the hostile attack against each other. We have to acknowledge that everyone here is just HUMAN, not GOD, even GOD also make mistakes. I guess all of us here are retail players, we don't really know what the big guys are thinking, what's Fed planning to do, what will BNM/GOVT do next, whether there will be war or not. So, we share our findings and observations here, and we make our own analysis and judgement. You can't force others to agree with you, and yes, arguments are good, cos it makes you look at other perspectives. But then, can we have more fruitful arguments with facts and basis, instead of personal attacks and cursing?

Btw, those who are under attack are those who shared the most or in my opinion, contribute the most in this forum. I hope the vicious cycle stops, otherwise this forum will end up like a cheap talkshow with no substance.

I guess right now better stay away and observe first ... Don't know when is the bottom point also ...

http://www.bloomberg.com/news/2013-08-22/china-manufacturing-index-increases-in-sign-economy-stabilizing.html

A Chinese manufacturing index rose in August from an 11-month low, adding to signs the world’s second-biggest economy is stabilizing.

The preliminary reading of 50.1 for a Purchasing Managers’ Index (EC11FLAS) released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 47.7 in July and the 48.2 median estimate in a Bloomberg News survey of 16 economists. A number above 50 indicates an expansion.

A strengthening U.S. economy and Europe’s nascent recovery are improving the outlook for demand for goods from China, the world’s biggest exporter, as Premier Li Keqiang grapples with containing financial risks at home. The nation will achieve the government’s 7.5 percent growth target this year even after a two-quarter slowdown, a Bloomberg News survey of economists indicates.

YTD revenue down but profit up because of RM209mil gain from disposal of its Vietnam automotive biz is non-operating income. So, this unusual gain should be non-recurring income.

http://markets.ft.com/research/Markets/Tearsheets/Financials?s=YILAI:KLS&subview=Overview
I also saw this share last weekend, did some checking and personally decided to give it a pass ... Income is flattish, but DPS > EPS for past two years, don't think this kind of payout is sustainable.

KC, maybe you can email your queries to the TA analyst who wrote the report, see what's his/her reply.

Yes, settled in cash only because these call warrants are issued by the investment banks, not by the company. You can use the cash to buy the mother, if you want :-) I personally feel that Hap Seng-WA is a better buy because of its low premium (based on current mother share's price).

FCM, please read the terms carefully. The conversion ratio is 2:1 and this is European style structured warrant, hence, no conversion of physical stocks, only cash settlement on maturity.

Theoretically speaking, ESOS is a good way to reward staff like what Chong said. Staffs are motivated to "grow" with the company. Also, nowadays, Bursa also imposed rules on directors/staff dealing in company's shares and they are not supposed to buy/dispose during "closed period".

Thumbs up! Good return despite the dismal performance of KLCI.

USD/MYR = 3.25 (lowest since 2008), which is good for Inari's bottom line. Extract from Inari's annual report 2012:
"We continue to recognise the volatility in the currency markets as a major risk factor for the Group’s operations as the bulk of the Group’s revenue is denominated in US Dollars (“USD”)."

Looks like ppl hardly convert warrants to mother shares before ... Anyone can advise on the procedures?

Bad experience with this counter, last time bought before they announced the selling of its insurance biz, make one round of handsome profit. Later became greedy as ppl said TP was going to be 2.00, so bought some more at 1.40, mana tau the actual selling price wasn't good, price dropped to 0.50-0.60, have to cut loss, very painful, this counter taught me good lesson, never forget!

What is the rationale for this counter to move up to 2.23 by end of Aug? I know is a good counter, but it seems to me that price was holding mainly because the company keeps buying back its own shares.

That's why price is holding in anticipation of the dividend.

Ai yak, reverse gear now ... Maybe next time again ...
http://klse.i3investor.com/servlets/anpth/926002.jsp

I am contemplating to go in now or not, have been watching this stock since 1.9x, then when I look again, suddenly shoot up to 2.15. I think this stock got good prospect, with our electricity bill going "float" next year, I think there maybe more contracts with TNB.

Looks like market is taking a break today to see what Bernanke has to say to the Congress ... Don't know what kind of surprises he might give ...

KCChong, thanks for sharing your view. What is your threshold for "a lot of debts"? FIAMMA's debt/equity ratio is 0.33 (total liablities/equity), is this low or high or average?

What is your interpretation of "value" stock? Meaning?

OSK and Willowglen are related.