Strange it took them so long to realised that the potential is in beverage distribution instead of outlets. Now the competition is intense with the entry of Nescafe and another which I cant remember.

Thanks again sumato88, appreciate your valued comments. I agree that Petronm has far greater potential vs Shell. Was looking at a quick trading opportunity on Shell.

Valuation gap between Petronm and Petronas Dagang is too wide to be logical. Either one is under valued or the other over valued. Conservative case scenario is mid way and it will still be very positive for Petronm. Just have to monitor that Petronm grows into its full potential over time with increasing dividend payouts. It wasnt that long ago that Petronas Dagang was trading below RM10. Good luck.

I read sumato88's comments on three major factors with interest and true enough, it translated to a great quarter for Petron so congrats to all the investors.

I wonder if we can apply the same crack spread analysis to Shell which is a strict refinery, and expect an equally explosive q4 too. And also potentially the next quarter as this spread is apparently holding and has widened since. Would appreciate if sumato88 can comment since Shell has yet to announce its results. Thanks in advance.

In my opinion, its not particularly attractive in terms of yield and more importantly, its very highly geared and this may be a concern if interest rates move up. Am also not sure if these borrowings are all in Myr and if not, there is futher consideration in Fx There are lots of other more attractive yielding stocks.

Hi Mikee, you are probably right. Big time selling of MyEg today. Wonder if the selling is only just starting. Promising for Dnex, first the Nsw, then border vehicle registration and now foreign workers. Who knows what next. Cheers and good luck.

I think margin of safety is quite high for this stock, ie nta around rm2.00, comprising largely cash. In the worst case scenario, even if they buy overvalued assets by 2X, downside in the immediate term would be limited in my opinion. On the other hand if they buy a business with reasonable return, the upside would be substantial especially exiting PN status.

Q4 results around the corner with dividends of 20sen (2016 : 20 sen) expected. Previously under Esso, final dividend was 25 sen so hopefully they can match it.

in my opinion, i agree that financials look good and price appears undervalued. one major concern is the reliance on a single customer and product.

It appears that not all Petron stations are owned by the listed co. Despite the increasing presence of this name and the addition of newly constructed outlets, I find it strange that volume sales, in barrels did not increased significantly between 2015 and 2000.

Feb 2017

I am sure CFA includes a topic on Ethics so this person must be fully aware of the consequences.

Don't forget that the ones who crossed out (sold) their shares can buy back from the market too for a second bite of the cherry. The market price has to be higher than cash value for the deal to go through in my opinion.

It did cross my mind when Dksh started moving from rm4 but it sure took a long time for Harison to react so I dismissed that. Maybe earnings recession ending and better results ahead. Div is generally decent.

Any news or development ? Sharp price appreciation.

Hi leechen88, I don't disagree with you and also share similar opinion on the possible valuation of this stock. Do note that retail petrol sales in barrels per day has not budged much within the past 10 to 15 years for Petron based on their annual reports. Nevertheless I think it is in the position to build from here to cement its position and rightfully relative capitalisation vis-a-vis PetDag. Cheers and good luck.

The reason I asked about the number of stations is to benchmark and/or compare to PetDag (with over 1100 stations, I think)to get a feel of their relatively valuations being 1,1B vs 25.5B. I know this is very simplistic as they have other business besides stations but it in the right direction nevertheless. Certainly worthwile researching into it more in view of the huge valuation gap.

Based on their latest Annual Report, 27 new stations were added in 2015 on top of their existing 550 stations (refurbished) and its clearly stated that these were owned by Petronm and sister coys being, Petron Fuel International and Petron Oil.

Wonder if anyone out there can explain or enlighten on their basis of allocation of their stations between Petronm and it's sister companies. Also, for their 600 stations, how many are under Petronm.

At current prices, GO may be a good option, since the cash is already there, left pocket to the right.

Dont know about construction stocks but steel stocks are far from their peak nor their potential. As a matter of fact they were trading as 'non-going concern' and substantially below book just prior to this turnaround. In short, out of ICU into normal ward and hopefully recovering thereafter. As Calvin pointed out, go for the right counters and also better managed ones to be on the conservative side. The caveat being the effectiveness of the safeguard measures/implementation. Happy investing.

I agree with Albukhary that investment in the HRC Plant has been written off fully in the recent quarterly report. Its a very conservative practive and probably adopted in compliance to their group policy. Any recovery will be a bonus and under normal operating environment (assuming the safeguard duty announced last Friday is effective), Ssteel would be operating profitably. Personally I think Ssteel is a better managed company similar to AnnJoo whereby they can survive under competitive environment, without dumping from China. Good luck.

Doesn't make sense as no significant business to buy into and in addition why would the current major shareholder sell at discount to nta which is predominantly cash. The best thing to hope for is continuous share buyback, cancellation until the right capitalisation for injection of a reasonable business to justify valuation.

Good reminder Calvin, two thumbs up.

look at it on a proforma basis as their impairment exercise is a known fact and anytime the market decides as such, the price will react. generally the quarterly results act as catalyst. good luck

Any news or rumour on exposure to Megasteel by Maybank, or if not, any other banks.

On paper, Vivo looks good and how good it remains and/or improves depends largely on it ability to continuously procure 'arms length' jobs with returns generally more attractive then market. Otherwise its just another low value added contractor.

Take a look at Maa, nta approx rm1.99 backed primarily by cash vs market price of 91.5 sen.

I think nta reported of rm2.33 is already after providing for 35sen dividend for period ending 30/6/2016.

Reits are reliable income generating assets as correctly pointed out by contributors above. Net cash income is very different from accounting profits and in case of reits, the properties portfolio of each reit have to be revalued at regular intervals as investments properties are not subjected to depreciation. This will be the main cause of the losses of ytlreit. Just be mindful that office reits in particular may be a bit dicey due to the sharp contraction in the oil and gas sectors and these companies do make up a substantial portion of the premium end market.

Appreciate your thoughts and effort in the above contribution. Unlike some comments which are baseless and/or not substantianted. Please do continue to update especially on Petronm and Shell.
Had a quick look at Shell myself and noticed that nta has not incorporated substantial tax assets to date. Just unsure about cash call by new shareholder, if any. Kudos.

Dear all, I would suggest for those who do not understand the mechanics of SPAC to stay away from investing. This is from the many question posted in the forum and you can pretty much get all your answers from the prospectus.

Seems to have hedged their currency way forward. At least thats what they reported in their latest 2 quarterly. Disappointing thus far being an export based business missing out on revenue and exchange gains.