agreed !

Certainly the big party is over but don't rule out a small party is brewing ... haha...

The party we saw 2 days ago I suspect was due to some party pushing it up to rollover to reduce losses ...

It is an open secret, there are many syndicates behind this counter but the comfort that I have is the RM70m cash and the solid business behind it, ... compared with Sumatec and PDZ. We need this syndicates, otherwise this counter is as dull as Robert Kouk's counter. We need to exercise caution and discipline when time comes

Happy trading !

At current price of 20-21sen some may see this as "fairly" priced, but the upside will come if

a. Marco revalues up his land and building
b. Marco distributes dividend
c. Marco 2nd half earnings are higher than the 1st half
d. Marco sell its Casio biz and host other interesting business..

take 20sen as fully valued instead of overpriced ... it should be the support level from now on.

Should accumulate if below 20sen ...

One should not look at NTA/share per se... as this kind of valuation is too passive and be looked upon only if the company is under liquidation where the creditors scramble to find the lowest they can go for. For a profit generating company, it is always the earnings that matters. NTA also never include potential revaluation (i.e on land and buildings) and goodwill (i.e. Marco distribution network and being sole distributor for Casio brand in Malaysia) into it. The goodwill, although is a subjective matter, but it is substantial enough to bar any newcomers to come into this business. The NTA today you are seeing is just a reference without taking into consideration the real value of it.

On the EPS, the 0.37sen/share was only for Q2/14. In the first half 2014, they clocked in 0.84sen/share. For full year, "finger crossed", they may do 1.68sen/share ... at current price of 21sen, Marco is trading at 12.5x for FY14 earnings which is not high for a dividend-yield counter. It should be fairly price at 15x PE the least ... most about 18x PE ! so price range should be 25-30sen/share.

Sorry, I cannot agree this counter is overpriced for now ...

Marco mainly import, export and distribute (wholesaler) for Casio products "exclusively" for Malaysia. Every Casio watches i.e. G-shock or under the brand of Casio are distributed by Marco. All their revenue came from this business which is "not exciting". Don't get me wrong, not exciting meaning the growth is so predictable and one should not expect the business can double overnight.

Give you an example, look at Robert Kouk's business, like production and distribution of sugar ! The business is good and generating profit and dividend. But this kind of counter never attracts shareholders because the share price will not fly. But again, RK has reached a stage where he does not need anymore "excitement" .. haha...

But for Marco, Tan Sri looks to me is trying to unlock all his undervalued assets including the land and building in Segambut currently own by Marco. Marco fits into this category well ... let's see what he will do next.

I am very optimisitic ... this counter has yet to fully realized its full value...

I posted some days ago to say this counter does not need a listed company to host its Casio distribution business. Either Tan Sri can sell this business back to Casio Japan with all its existing distribution network and consistently generating RM15m dividend a year, the Japs will buy this business easily at RM300m OR take the business prviate. Hence every shareholders should entitle 30sen/share, which is the base case.

After this, Tan Sri (TS) can use Marco (with RM300m cash but no ordinary business) to host other Oil and Gas or Energy business (to acquire or RTO). With the cash, Marco can gear up to buy revenue and profit generating assets which can command a much higher valuation. Without saying, the 30sen/share is just the beginning.

Now I suppose TS is looking into all these options. Even none of these options happen now, at a market capitalization of just over RM200m and cash reserves of RM70m, nothing can go wrong ! Be patient everyone

I personally believe distribution of casio watches does not need a listed vehicle to host... they didnt raise any fund and earnings no excitement (quite flat and consistent) and furthermore need to get through the hussle to comply with Bursa Malaysia's listing requirements. Might as well take the watch biz out / private and realize the full value of the cash and the status of the listed company.

If I can see this, where is Tan Sri's wisdom ? am sure he does ...

no doubt, distribution of Casio watches is a sunset industry ... BUT look at these ways -

a. Marco can sell the distribution business, although sunset but generating consistent profit and hence dividend. With a stable dividend payout, say RM15m every year, this biz is easily RM300m, and the most suitable buyer is Casio Japan itself whom will stay in the Malaysia perpetually. So, Marco the least is 30sen/ share.

b. Once Marco sold the watch biz, this company has RM300m cash and no debt. It can then leverage to buy other more interesting biz ... so the excitement is not just 30sen/share .. !! there are many O&G and Energy plays out there are waiting to get a listed host to raise fund ... so the excitement for this counter is still at the very early stage.

Jump now or miss out !

Johnny, long term investment is for dividend yielding stock la ... KNM has done numerous Rights Issue and Placements, you expect dividend ?? i hope they dont ask for money again from shareholders...

If no dividend, what long term you're talking about here ?

tiring to see this stock moving up, today close at 1.05 also no use ... the next day back to 95sen ...

KNM brings us the xcitement ... i want to see rocket up NOT snails climbing staircase !

KNM is like dead horse now without any news of contracts coming in ...

living the good old days, they should announce to buy another borsig or sell borsig la .... then the share price will move .... if like this, sienzzzz ... boring ...

this maybank report - no fuel la ... like kakikong kakisong, mana ada impact ?

aiyo aiyo !! boring boring !

bagi xcitement sikit la ...

yes very right !

all the RAPID RAPID projects already in the share price already ...

Only shiok is sell borsig and give us shareholders dividend ... and use some money from the sale to create M&A story la ... lagi sexy !!!

As at now, KNM is super boring !! not sexy !! haha ....

i wil hold on to KNM if they unlock the value of borsig. ... such a big company with rm2b revenue cannot even make 3% net profit margin !!!

this counter is so sick after buying borsig ... it is time to sell borsig and bagi duit to shareholders and jalan the UK renewable projects ... dividend mari mari la ...

1H 2014 results commendable ... same profit for the first 6 months 2013 and 2014 but cash grew from RM40m to RM69m ... is this round no dividend, then the strong cash pile is meant for something more interesting ... !!

BUY and KEEP !!

.. party still ON ! ...

just 1 hr into trading, sumatec had 5% issued shares traded, 6% for Marco and 8% for PDZ.... i dont believe brokers pulling back credit lines ... margin traders still trading actively ... where got pull back ? where got scared ?? ...

... assume tan sri wants to sell back the casio distribution biz to Casio Japan. if that's the case, the Japs will buy even at 5% yield (which is considered very good judging from Japanese normally earns 0% in banks) ... that will means the company at least 26sen / share la ... BUY BUY...

on average Marco is very different from PDZ and Sumatec, these 2 have no real biz. Marco is giving generous dividend ... average for the last 5 years was about 1.3sen/share or they give RM13m that gives a yield of 6.5%

if imputes a 5% yield, Marco at least 26sen !

up up !