Last Friday the 4-12-2015, interest is clearly piling up for Gadang, dubbed the cheapest construction stock in KLSE. The closing was so strong, and as a result, the very first green ball is appearing in its parabolic chart. For TA community, this means a lot as it signifies the confirmation for buying signal.

On the same day, there was also a breakout accompanied with huge volume. Breakout took place as the closing price of 1.90 is higher than the recent high of 1.88 (please read the chart that has been adjusted with dividend of 5 cents paid out on the 25-11-2015.

In the AGM which was held on the 26-11-2015, shareholders were informed that Gadang's present construction book Oder is standing at solid RM875mil. This of course provides earning visibility for Gadang at least for the next 2 years. Management is upbeat that their Book Order can surpass RM1bil mark very soon. MRT2 tenders are closing this month the December 2015. You can bet Gadang can get a chunk out of these tenders because of their strong history in MRT1.

Management is also confident that they can land the 3rd Rapid Pegerang Project. Rapid Jobs of RM3bil are up for grabs in the next 6 months.

I think the interest intensified in Gadang partly because investing community has anticipated that the 2nd Quarterly Results, that is due for release next month the January 2016, will be very good.

Gadang boleh!

Profit growth from quarter to quarter is shown in "KESM Quarter Report History"

http://www.malaysiastock.biz/Corporate-Infomation.aspx?type=C&value=TECHNOLOGY&source=M&securityCode=9334

KESM is the cheapest Tech Stocks in the KLSE.

1. Cheapest tech stock (still cheapest at today's price), EV/EBIT = 5.3. For high growth stock, fair valuation is EV/EBIT = 12, which means that KESM’s intrinsic value is around RM10.00.

2. Visible earnings, semiconductor is booming, no sign of slowing down. Malaysian exports rose 16.7% to RM75.8 billion in October from a year earlier on higher sales of the crucial electrical and electronic (E&E). http://www.theedgemarkets.com/my/article/malaysias-oct-exports-167-ee-oil-palm-sales

3. KESM is a high growth stock (more importantly, the growth is sustainable). KESM's earning is set to be super impressive, easily increased by a whopping quantum of 100%. This is mainly attributed to the completion of acquisition of the remaining stake (of 34.62%) in its 65.38%-owned subsidiary KESM Test (M) S/B. This said subsidiary’s performances has been the key driver for KESM’s earnings in the past years.

4. Depreciating RM against US Dollar is favouring KESM.

5. KESM is a net cash company. Cash per share is RM2.50. The present expansion into Microcontrollers (higher margins) are being funded internally.

6. KESM’s Share Capital is RM43mil, Retained Earnings are RM207mil. Retained earnings/Share Capitals = 4.8 times, this means KESM can afford to provide at least 4 bonuses for each share held. As shareholders, we naturally want the management to seriously consider giving out bonuses, given that the company has shown the growth in both its earnings and share prices in the past year. What has still not grown is its liquidity which has been preventing the participation of Institutional Investors. KESM’s management has already been made aware of this via multiple letters, and I was told CEO Samuel Lim is set deliver a decision on the said matter in the AGM on 14-1-2016. He would probably like to gather responses from the floors in the AGM before passing a decision (either yes/no & if yes, when the bonuses will be granted). Any shareholders with the right mind would sure vote for the approval for bonuses.

7. KKY is joining the game. http://klse.i3investor.com/blogs/ss2020_vaInv/85563.jsp

KESM has retraced to its support of RM5.00. Buy? You decide.

Tot this is Ayam Tua's stock. Hope he survives this crash

Shhhh.... Insider information: Wait for a big news on this stock this weekend. Sorry can't reveal more hints. All I can say is that I buy when others are selling.

G.R.O.W.T.H.

Aiyah, need to create some funs, don't take it seriously Murali.

icon8888, please take out your pant. I'm ready.

You cannot be wrong to get into this undervalued stock, http://klse.i3investor.com/blogs/KimHin/78802.jsp

kennethcheah,
You have rightfully pointed out the would-be massive jump in Kimhin's earning due for announcement on the 25-11-2015. The present ratio of retained profits to paid-up capitals suggests that time is ripe for the issuance bonus shares.

Thhe1313,
Monday's best time to join the party. PE forward for this counter is about 7~8. More importantly, this is a growth stock.

Kesm new high, expecting good results (profit increasing at least 100%) next week.

That's very kid of you Zeff

Compelling reasons for owning Kimhin shares.

1. This is a growth stock following the acquisition of Johnson Tiles Pty Ltd. Profits is increasing at a pace of exceeding 30%.

2. Kimhin's earning in the coming quarters will be further fuelled by tumbling of Ringgit Malaysia against US Dollar. Note: RM has depreciated by some 35% since 1 year ago.

3. Kimhin is still selling at a steal even at today's price of 2.19.

4. EPS for 3QE 2015 is expected to be 7.0 sen. This is a big jump as compared to the corresponding quarter of last year of a mere 0.48 sen.

5. Kimhin has caught the attention investors pending announcement of QE Report next week the 25-11-2015.

Motorbike is clearly a better option, can go straight enter & park inside the meeting hall.

Jokes aside, attendees have a chance to receive first hand information on order books, the tenders they are now participating, Directors to shade some lights on their chances on these tenders, the updates on unbilled sales, etc.

Stay back and ask the super investor Fong Siling why he has tripled his stakes in Gadang recently.

Cheers~

Rosmah. I've very high regards for you. Very impressed by your stock selections.

QE = Quarterly Earning.

Compelling reasons for purchasing KESM.

1. Cheapest tech stock (still cheapest at today's price), EV/EBIT = 6.6

2. Visible earnings, semiconductor is booming, no sign of slowing down.

3. Increasing profits, KESM's earning is set to be super impressive, easily increased by a whopping quantum of 100%. This is mainly attributed by its acquisition of the 35% stakes in a subsidiary (this subsidiary has proven performance in the past years), and Forex Gains resulted from depreciating RM against US Dollar.

4. TA wise, this KESM is showing sign of recovering pending the announcement of QE on next Monday the 23-11-2015.

Good luck.

Important Dates that are significant for Gadang.

19/11/2015 - AGM, expect Board of Directors to consider shareholders' requests for bonuses/share split, free warrants.

26/11/2015 - Ex for Dividend of 5sen.

Valid reasons to own Gadang shares.

1. The cheapest construction company (EV/EBIT < 4).

2. The highest growth construction company in the Bursa. Last year earning was its historic best, but this record is set to be re-written/overcome for FY2016 & FY2017.

3. Government's infrastructures spending continues unabated. Gadang have shown its ability to win projects, the last time it did was on 23/10/2015, where RM375mil was added into its Order Book. Expect Gadang to add several other infra projects in the coming months.

4. Earnings are visible because of the Order Book of > RM800mil + Unbilled sales > RM200mil. Stream of incurring incomes from both Utilities and Plantation Divisions have started to tickle in.

Expect Gadang to continue to steal the shows in the coming days/weeks.

Lots of respects for apini.

Last year was Gadang's historic best (go and see its Annual Report). More importantly, Gadang is set to deliver a significantly much better set of results for this FY and next FY. The order book was increased recently by RM375mil. Contribution from Capital City is assured. Not to mention from its recurring stream of incomes from its utilities & plantation divisions.

No wonder coldeyes tripled his stakes. Cheap valuation means this stock should not be ignored by investing communities.

Tomorrow letop. Full stop.