I got more champagne now! Hey Tony where is my capati?

"Indexes were lifted by shares of the biggest American airlines, which surged on signs that domestic air travel was starting to come back. American Airlines and United Airlines stock was up more than 8 percent, while Delta Air Lines shares were over 6 percent."

"Travel-related companies, badly bruised by the coronavirus pandemic, were also catching a bid on reopening hopes. Delta Air Lines (DAL) stock was up 4% and United Airlines Holdings (UAL) surged 6.8%. Cruise lines also popped, with Carnival (CCL) gaining 10% and Norwegian Cruise Line Holdings (NCLH) rallying 8.9%."

High gearing and negative cash flow are off course can be a concern generally for some businesses. However what is more worrying and pertinent is the issue related to corporate governance. Recently the company suddenly offered 48.6 m share under ESOS at a price of only 59.5 sen during the depressed price period on 26 March 2020. Previously the exercise price under ESOS was RM1.42 and supposed to expire on Oct 2020. Not surprising the directors were selling their shares even at depressed prices as they can buy back the share at lower price of 59.5 sen only. Another worrying phenomenon is the company did carry out buy backs while the directors are disposing the shares.

"American Airlines (AAL) said Thursday it was scheduled to fly more than 55% of its July 2019 domestic capacity for July this year, up from just 20% in May, citing “improving demand for air travel.” The announcement sparked a 41% surge in American Airlines’ stock Thursday, and shares of peer airlines rose in sympathy."

I having more champagne now, but what happen to my capati?

Q1 result shows a big jump in both revenue and profit.

Buffett had bought the stocks of the airline prior to the pandemic and therefore his entry cost likely to be much higher than prices during the pandemic. In Air Asia case for example those who bought prior to the pandemic crisis had paid much higher prices of, say around RM 2, very much higher than current prices. It is very rational therefore for Buffett or anyone who happened to buy any airline stocks prior to Covid 19 crisis to sell those stocks as they are very unlikely can recover their investment costs and therefore it is better then to use the sale proceeds to invest in other stocks that have gone down in prices.

The whole world markets up now currently. Even US Futures!

No need to wait for QR, it is already history. Invest for the preset and the future reality.

Now better order my capati, already got champagne !

Now you can have champagne and capati, lovely!!

When the price and volume shoot up.....

Now every body can have champagne too!

Why worry about beer when you can have champagne !!!

No point keep on being pessimistic. Buy the ticket lah!

Only if you have bought the ticket!

Preparing now for take off, sorry for those left behind

"Wall Street’s focus was on economic recovery Tuesday, and stocks rallied along with crude oil prices.
The S&P 500 rose nearly 2 percent in early trading, with shares of companies most likely to benefit from the lifting of restrictions on travel and commerce faring well. Shares of Delta Air Lines, United Airlines and other big carriers rose"

Warrant is a cheaper and better option to get exposure to Gunung,

And Gunung is already turning around to being profitable in this First Quarter !

Gunung will have a bright future. Gunung already investing in healthcare via LYC Healthcare and in planning stage to venture into banking and waste disposal businesses in Cambodia. Investments in small hydro plants will very soon provide substantial steady profitable income for 21 years from contracts to supply renewable energy to TNB in addition to the current supply of land transportation services to arm forces. Not to forget the possible write back of impairment amounting to RM 6.2 m being receivable due from Government.

All the best luck again to those who chose to listen to analysts but not their own common sense and clear rational thinking.

Now the turn of the stocks in the depressed sectors such as airlines and oil and gas. One of the top performers now in S&P500 are airline stocks. As said earlier there will still be airlines in the future but the only uncertainties are when the industry will recover and which airlines will survive. Those airline that manage to survive will thrive even better as the weaker competitors are phased out.

Likely to be pretty good though until next PRU

This seems to be the only O&G player that is very quite today. The rest attract a lot of attention.

Many fund managers were forced to sell their holdings in shares as their investors wanted to withdraw or redeem their investment.

43 sen as a terget price? Well I wish all the luck to those who do trade and invest according to analysts' reports!

Eden should go up higher now!

Tabung Haji continuous disposals had depressed the price but recently a buy by one of the top senior executive of Media indicates that something positive going forward.

The new Gunung with the new ones and management is now already in Transportation, Renewable Energy ( Small Hydros) and Health Care via LYC Health Care. It will soon venture into Waste Disposal and Banking in Cambodia. All the business sectors Gunung are and will be involved except perhaps Transportation are in the growing sectors.

On top it has suffering from negative cash flows for some years.

Cypark is quite highly in debt but still continue to do buy backs at fairly high price somehow does not sound right.

Cypark buying back shares. To support prices so that Directors can unload cheap shares like it did before??

May be best wait for possible change of government to buy to minimize risk and maximize gains?

Please note that the new executive director is from KPower.

48.6 m new shares at only 59.5 sen !

LYC already proven a very good investment as the share price of LYC has gone up tremendously since. Gunung with the two proposed investments in Cambodia is an excellent counter to invest especially at the current price levels. If Cambodia deals successful price will shoot up and if fails the downside is very limited. Good optionality kind of trade: head I will gain a lot, tail I will loose little if any.

Good investment by Gunung in LYC Healthcare, a growing biz sector. Just wait for the progress of waste disposal and banking biz proposals in Cambodia.

With cheap shares at 59.5 sen they can sell those at say currently 90 sen, they will make at least 50% profit! Easy money!

Directors sold cheaply to get funds to buy cheaper 48.6 m shares offered to themselves via ESOS at only 0.595 to make easy money!
Please refer to Bursa Announcement on 27 Mar 2020

As mentioned earlier new Gunung will add new businesses. An extract of announcement by Gunung today:

Reference is made to the Company’s announcement dated 4 May 2020. We wish to futher clarify the following excerpts from the news article published by The Edge Malaysia dated 4 May 2020 titled “Gunung Capital on the prowl for M&A”.



“Over the past few weeks, rumours have been rife that Gunung Capital plans to acquire a substantial stake in a financial institution in Cambodia. It is said that the total investment value will be more than US$25 million.”

The management of Gunung Capital Berhad (“GCB” or “the Company”) has been invited by promoters of a yet-to-be-issued, fully fledged commercial banking licence in Cambodia, to evaluate a proposal to participate. At this stage of evaluation and discussions, the Company cannot confirm the quantum of the investment value involved.





“Yap confirms that Gunung Capital is in advanced talks to acquire a more than 20% equity stake in a new full-fledged commercial bank in the country.”

The management of the Company is currently in advanced discussions, regarding the allowable equity participation in financial institutions, and other qualitative and quantitative requirements, such as governance issues, imposed by the relevant authorities in Cambodia on foreign equity participation.

Upon completion of the evaluation of the proposal, and the prospective yeild of such an equity investment is strongly beneficial to the Company, then the management of the Company will seek a meaningful equity participation, of at least a 20% equity stake to maximize on this investment opportunity.



"Potentially, we are also looking to unlock the value [of the bank] through a listing on the Cambodia Securities Exchange,"

It is premature to conclude that a listing exercise in Cambodia is the Company’s only option to unlock the value of such an equity investment. This option is obviously a long term strategy given the current infancy stage of the commercial bank proposal, the unconcluded evaluation of the proposal, and would require the necessary approvals from relevant authorities in Cambodia to list on the stock exchange. The management of the Company will look into all options to maximize the financial returns of the Company, when and if, the time comes.

New Gunung will further invest in businesses with good future growth prospect. In addition to the existing renewable energy business of developing small hydro plants, Gunung is in negotiation for the waste disposal in Sihanoukville in Cambodia with the local Cambodian partner that had already own a 10 years concession ;and buying shares in LCY Healthcare, a health care company.

New owner with new growth and new future!!! New name too coming.

What goes up then will plunge down! Time will tell.

As I mentioned earlier Benalec will have problem with paying full amount of RM 200 m bond on the 5th anniversary of the issue. However Benalec luckily got an extension of time of 3 moths to pay the balance of RM 53 m with some penalty interest. Now is not an easy time to raise funds and what will happen if Benalec failed to fulfill this obligation ???

Unlikely EPF will just dump it all in one day!

Current extremely depressed price mainly due to continuous selling by EPF and EPF has now reduced its interest in Media to below 5% threshold.

K factor!

Warrants trading at discount!!!