Eric, oh a civil engineer, me too.

First of all in this cyber world, I really don't know if an identity is what it says it is. I kena many times before. Someone, or may be a couple of them came with fake, new identities and asked questions like you do. I provided with some arm-chair investor's view, yes, that is what I am, and ended up with all kind of nonsense.

Do you notice that someone is calling me a liar now just because some people asked my opinion on some companies and I busy body spending time looking at the financial statements and provided my opinion? For what?

This is your first post, I really don't know who you are. So I refrain from any comment to avoid all kind of accusations.

But if you are really interested to hear from an arm-chair retail investor on Cresbld and Amedia, I have done that before in i3. Go Google them.

Hi fortune teller, lets start this game. Lets begin with Eric's question on Amedia. Let us engage in the discussion on if Amedia if it is a good investment.

Ok I will let the "university-lecturer-but-ended-up-not-to-be" who favours this stock start first. I am the opposing one. I guess this will be a fruitful discussion.

Over to you.

Posted by bsngpg > Oct 13, 2013 09:38 AM | Report Abuse
Perplexed, why good article cannot not attract any comment ? What does this implies ?

Is this the only good article posted by Tan KW? He has posted scores of them, none or little of them have attracted any interest.

But Tan KW, there are some reading those articles, me included.

Hey university-lecturer-but-ended-up-not-to-be, we are still waiting for your analysis and commentary on why Amedia

"Revenue ok, profit ok...quite ok! So Wong Seng Kai doing a good job! Maybe someone can highlight why Amedia stock so low price! With Bright on hand should be better!"

Posted by bsngpg > Oct 13, 2013 09:36 AM | Report Abuse

投资市场就好像赌场的缩影，是个违反人类逻辑的地方。几乎每个走进的人都抱持著我要赢钱的心态，都想着自己可以从投资市场获利，然后某天可以达到财富自由。

I have posted this a few times.

"In their 2009 paper on “option trading and individual investor performance” , Rob Bauer, Mathijs Casemans and Piet Eichholtz examine the performance and persistence of individual investors trading at a Dutch online broker. Using a database consisting of more than 68,000 accounts and eight million trades in stocks during January 2000 to March 2006, they find that: During 2000-2006, the average investor has negative alphas, meaning the return is below the market return. Not even the top tenth of performance manages to beat the market consistently. Those in the bottom tenth of performance lose more than 90% of value. "


(别发梦啦, 财富自由不是通过投资市场而已可达到的. 正业为主, 投资为辅呀)

You are absolutely right. Concentrate in earning money from your occupation as the main source. but don't forget to save and invest also as what this gentlemen said:

“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” - Robert G. Allen

投资要瞻前也要顾后.

True too. But be reminded that when you drive, there is a limit of how far you get see ahead, especially in a foggy place. Be sure to look at the rear mirror so that you won't get knocked down by cars from behind too.

Hey fortune teller, can you show the posts which you are referring to?

Ha, now getting serious now, using the term "liar".

Ok let see who is the liar. Ok I am on with you.

Show the posts I made recommendations as you claimed and that I don't acknowledge. (Acknowledge what?). Like the one you copied and pasted on cuspaci. Oh by the way, you have not described what is wrong with that post yet.

Don't tell me somebody with the following claim couldn't find anything wrong with that post?

Posted by Fortunebull > Oct 11, 2013 04:57 PM | Report Abuse
I got tons of certificated in TA! Attended so many courses! Enough to wipe butt for lifetime! Also can lecture FA in universities!

inwest88,

Life is more FUN when you don’t take it so seriously.

Hey don't you think you are the most qualified person to explain why Amedia stock price is so low?

Posted by Fortunebull > Oct 11, 2013 04:57 PM | Report Abuse
I got tons of certificated in TA! Attended so many courses! Enough to wipe butt for lifetime! Also can lecture FA in universities!

Fortune teller,

You mumble mumble and mumble. Don't know what you are talking about things like

"his pass assesment in liihen given false confidence to followers that turn into epic failure! Yes! Liihen is his epic murder hole! "

"The arm chairman given flying colours to PMCorp! Despite PNB dumping to the ground and KKP having worst divorce of his time! And how 13 rinngit stock now damn cheap 21 cents! But true followers put hope that soon day they will reap rm5! Despite many years KKP gave no damn to minority shareholders!"

"Oh! Almost forgot! I should have listen to chairman about Brahims! Since his last comment, it when up 10 cents, another folly of mine!"

What false confidence to "followers" did I give? What is the "epic failure" of Lii Hen? What murder hole about Lii Hen? Be specific lah. What is that I said when asked by others about Lii Hen annoyed you so much? What lies did I tell about Lii Hen?

What "flying colours to PMCorp" you are talking about what I said is/are deceiving?

What about Brahims? What I have said about Brahims is so disturbing to you.

Hey, you simply mumble mumble mumble but never give specific reasons like that. How to teach university students? I doubt you are even qualified to become a high school student taking a accounting or any business class.

Posted by Fortunebull > Oct 12, 2013 12:47 PM | Report Abuse
Each day rig expenses is 1 million! 2 rigs so 2 millions! 50 days mean 100 millions wasted on drilling fake dream! One arm chair investor say thismis murder holes! I say let them insult! Come December how to stop oil gushing! Then SKPetro has to buy Hibiscus to cover losses! Ha!

Okokok, I am the armchair investor referred to. But please lah, I am not insulting. I am just relying on statistics. The US market started this SPAC thingy long ago. Almost without fail, everyone investor lost his pants. Yes almost all. So I am just saying, be careful, they could be murder holes. My argument is also very logical, I think. Please read my post re-posted by our friend here just two days ago.

Wah I didn't know the cost of this drilling exploration is so high, 100m in 50 days! Wow, what if never see any gushing of oil? What if it is just a peeing?

I know I know, you can't stop the peeing too when you really need to.

Posted by almufathal > Oct 11, 2013 07:08 PM | Report Abuse
go to hell with fundamental....thats for the blue chip only.

Really ah? Then how do you decide buy or sell on those green, red, yellow, white or whatever chips?

Posted by Fortunebull > Oct 12, 2013 06:26 PM | Report Abuse
Fibon dividend nothing to shout about! Very little! But looking at its growth potential certainly on upward trend in long term! Best for trading! Can see its touch new support and heading to test resistance level of 45 cents! Fibon is traders portfolio like you Jimmy!

1.25 sen worked out to be 3% dividend yield at a price of 41.5 sen share price. OK lah can compete with bank interest rate, and hope for growth. But when you compared with say a stock like Hibicus, not only no dividend, also got to "pay dividend" to the company with the right issues and warrant issues. Which is better?

Some more private placement at only RM1.00. Cheating those existing shareholders ah?

Aiyah, university lecturer don't talk about supporting level and resistant level one lah. They also never teach you how to trade stocks one. Why you keep on talking about these stuff?

sense maker, your view always make sense. I guess you must be an accountant by profession. I ain't an accountant, but let me give a try here.

Many value investors look at gross margin as a very important metric. If the gross margin is high, the business has pricing power and probably has moat. The other costs like administration and marketing, if controlled well, would provide good operating margin.

I agree with you the food and confectionery business of PMCorp is small, very small indeed. But not sure why the admin and distribution cost so high at 30% of revenue. Are there other non-operating costs intermingling with the operating costs of this chocolate business?

These costs, especially the admin cost are fixed costs. Hence in my opinion if PMCorp can increase its turnover, sell more chocolate, then its operating and net margin will increase accordingly.

Any how even at its present turnover, the food and confectionery business still make money, albeit small. As long as it is not burning cash, PMCorp is a value stock because of its quality assets, that is what I am looking at rather than the chocolate business.

But it seems their chocolate is not bad as opined by many forumers here. Why can't they sell more, and raise the price?

Those losses have already realized as shown, haven't they? That is why its equity have reduced through the years and hence NTA is only 44 sen per share.

In essence, that is history. For example, last time your share portfolio was worth 2m, and you are only willing to part with it at 1.8m say. Now your portfolio is only 50,000, but you are willing to sell to me at 30,000. Why don't I take?

605m? so much? I thought I saw 43m in the equity section of the latest balance sheet. Are you sure?

Anyway, these losses have all been accounted for, not hidden ones. That is why its NTA is only 44 sen per share now. Btw, that is also why PMCorp is traded at only 22 sen now, not RM13 years ago.

Posted by sense maker > Oct 12, 2013 01:42 PM | Report Abuse

However, if PMCorp's PL one day indeed starts to reflect MPCrop's chocolate biz profitability as Calvin preached, I would be the first one to call it a strong buy.

I just glanced through PMCorp's business for the last few years. Hey, the food and confectionery business have been making profit for the last 10 quarters. In 2011, PBT for that division is 3.5m, 2012, 8.9m, and the last two quarters, 1m, lower due to higher marketing costs. Before that in 2010, the business made losses due to much higher administration and distribution costs then.

So calvin did mentioned that the reduction in advertisement actually was good for the company as expenses were greatly reduced and hence more profitable.

So it make sense to me from calvin that this may be a good company to invest in as I have said before, there is little downside because of its quality assets, but plenty of upside when the business grow and property assets sold, and the anticipated corporate exercise.

Posted by Jimmy Young > Oct 12, 2013 08:04 AM | Report Abuse
Dear KCChongNZ,
Want to ask your opion/thoughts/views on the following stock

1. Instacom - reason: LTE
2. Cuscapi - reason: there's some news says he expanded outside Malaysia also somewhat a leader in POS system according to news etc ..
3. Pantech - all one stop steel solutions etc for all industry
4. PMCorp - potential of being the next nestle according to some etc on i3 ..
5. ULICORP - somewhat a cabling system leader in his field ..

Jimmy, my quick response to your queries.

(1) Instacom
I don't know anything about this company yet. I notice in the recent i3 challenge, many of them "bought" Instacom. May be they can provide some answers. If I am not wrong, Tan Kian Wei is one of them.

I read something from a finance blogger which made me ruled out investing in this company. to me, this thing is serious. Check the link below here.

http://www.intellecpoint.com/

(2) Cuscapi

Ha, someone just pointed a finger at me about this stock that I "failed" in my assessment about this stock when a forumer asked me about it some time ago. Please read the thread appended below. You would understand my philosophies in investing. It so happened that I gave a very thorough explanation on my assessment.

http://klse.i3investor.com/servlets/forum/800001960.jsp

The re-posting was done by this gentleman fortunebull yesterday at 5.34pm.

(3)Pantech
Posted by kcchongnz > Jul 25, 2013 12:20 PM | Report Abuse X

Nobody seems to agree with me that Pantech is already fully valued.

[Posted by kcchongnz > May 13, 2013 01:26 PM | Report Abuse X
Pantech share price has an excellent run. It ran up from about 70 sen at the beginning of the year to about RM1 now, for a gain of more than 40%, in just 4 months. I hold Pantech for a long time already and happy with the return from it. I am still holding some. But is Pantech fully valued now?
I opine so. Even if I take an assumption that it will grow at 15% for the next 5 years and 3% subsequently, which in my opinion is a fantastic feat, and a required return of 12%, Pantech at 1.00 is almost fully valued already.]

In discount cash flow analysis to find the intrinsic value of a company is very subjective, in particular, one has to input a growth assumption. A slight difference in this assumption yields a very different intrinsic value. But if you use the DCFA in a reverse way, ie, try various growth rate assumption as input and see what assumption yields an intrinsic value exactly equal to the market value, then you can see what the market is expecting its growth rate. Then you can gauge whether this expectation is realistic or not.

(4) PMCorp
I have posted a number of posts in the PMCorp. I even gave a Graham net-net analysis on it in that thread.

In summary, my opinion is investing in PMCorp is a very safe thing to do. It has all the upside potential as its quality assets less all liabilities is worth more than its present share price. It business in chocolate is small but profitable. Potential to be the next Nestle? I think this statement is too far fetched.

Balance sheet healthy and no sign of burning of cash. there is little or no downside unless the major shareholders squander away the money it has.

(5) Ulicorp
Don't know anything about it. But since you mention there must be something there, isn't there? If so I will take a look.

Posted by kakijudi > Oct 11, 2013 04:24 PM | Report Abuse
wrong, this stock is a RM2 share. only stupid people are selling. haha, directors are happily collecting at a dirt cheap price.

Yeah lah, those fellows who sold MP Corp at RM2.00 12-13 years ago on February 7 2000 are really stupid!

Why did they sell at dirt cheap then? Stupid fellows.

Yeah lah, I also don't trust research from investment banks.

So why do you think those analysts "ARE SIMPLY SLEEPING --- JUST WONDER HOW THEY GET THEMSELF UPDATED, hOW THEY DO RESEARCH AND THE RESEAARCH BOSS MUST BE SLEEPING OVER HIS JOB-- SHOULD GET KICK. MALU TO WRITE REPORT AND OVER WITH-OUT UPDATING FACT AND FIGURE."

Why do you think "THIS ARE A GOOD COUNTER AFTER CASH CALL AND CONSOLIDATION. THEIR P & L AND EPS SHOULD BE ADJUSTED ACCORDINGLY ...LOOK AT THEIR QUARTERLY REPORT." and,

"AT,THIS COUNTER, VALUE FOR MONEY TO ACCUMULATE -- EASILY ABOVE 80CENT IF THE FUND REALLY STUDY AND PARTICIPATED."

I mean what does your own analysis show? Care to elaborate?

Furtunebull, no lah, I am not trying to make you a fool. Believe me. Sorry if you feel so. Personally I have nothing against you and I don't feel you have anything against me, I mean personally.

I am just trying to provide an alternative view here. I thought it is good for others to have opposing views and evaluate themselves whether want to listen to anybody buying any stock or not. It is a jungle out there you know?

Don't you think it is good?

Hey university lecturers don't teach students on share prices. They teach fundamentals; stuff like reading financial statements, time value of money, capital structure, valuation, etc.

From what I know, they also don't teach you looking at chart too.

Are you really qualified to teach FA in university ah? Why you always talk about stock prices one? Talk something about fundamentals, that is what lecturers do. Why want to "spare you from intellectual discussions"?

No, I didn't say you are a stupid fool as you claimed yourself to be. You may become one if you just blindly listen listen listen to others to buy or sell stocks without analysing yourself first.

So what is the fundamentals of Hibiscus which makes you think that you won't be surprised that even it limits up 5 times?

Ah that is right, exactly what I have said. Thank you very much for copy and paste here. So what is my failure?

I will definitely learn a lot of things form somebody who could teach FA in universities on the FA I talked about Cuspati.

Hey no need to apologise one. We are just discussing about investment. It is good for both party having opposing view. We can learn from each other. Sometimes my word may be a bit sarcastic, but again I mean no harm.

Now what did I fail in cuspati? Did I ask people to buy or sell? I didn't know anything about Cuspati and had no interest on its price movement in the first place. I could have talked about cuspati when someone asked me something about it. I looked at its financials and provided my view based on them. So can you tell me what exactly my failure is based on my assessments of its financial statements? I wish to learn from someone who could teach FA in universities.

Posted by Fortunebull > Oct 11, 2013 04:57 PM | Report Abuse
I got tons of certificated in TA! Attended so many courses! Enough to wipe butt for lifetime! Also can lecture FA in universities! So what! I am born stupid fool! Stay hungry stay foolish! Once you experience limit up counters, you get numb! Understand the business and potential better! If you want to experience limit up, you know what to do!

Sure or not can lecture FA in universities? I haven't read anything of yours which showed you even know FA?

Posted by Fortunebull > Oct 11, 2013 12:53 PM | Report Abuse
If you dont understand counter like Hibiscus, dont try to make remark of ignorance! This counter has super potential unlike euphoria focal! This one 5 times limit up also wont surprise me at all!

Wah really ah?

Posted by iafx > Oct 11, 2013 11:30 AM | Report Abuse

shares bought back and cancel is a waste, no different from burning cash.


What kind of investment theory is this? Some kind of contemporary economic hypothesis?

I see this calvin a genuine investor, very committed to his investment in PMCorp. His stories and facts look genuine to me too; except a little overzealous in comparing NFI with Nestle and Dutch Lady.

To me after looking thoroughly at PMCorp balance sheet and peeping through its income statement and cash flow, my opinion is it is a very safe investment, with very little downside, but plenty of upside.

That is what a conservative investor should look for.

Pantech share price has an excellent run. It ran up from about 70 sen at the beginning of the year to about RM1 now, for a gain of more than 40%. I hold Pantech for a long time already and happy with the return from it. I am still holding some. But is Pantech fully valued now?

I opine so. Even if I take an assumption that it will grow at 15% for the next 5 years and 3% subsequently, which in my opinion is a fantastic feat, and a required return of 12%, Pantech at 98.5 sen is almost fully valued already.]

If the company is not paying dividend, or little dividend, it is good for warrant or ICUL holders because dividend is good for underlying share holders, it destroys value of derivatives holders.

cytew, I have explained in the same post about the performance of GCB; go study the performance of GCB for the past years in detail and tell me if you don't agree with me.

Posted by SANG-JERO > Oct 10, 2013 06:26 PM | Report Abuse
mmmm....Game Over??Lot's of blood spill at PMCorp tomorrow???A Drama that is very well scripted with good actors and co actors in PMCorp???...Hmmmm....I am wondering....Let's see what happen tomorrow...

PM Corp share price rose from 14 sen three weeks ago to 22 sen yesterday. Today it dropped 1 sen. And you think that there is lots of blood spilling all over? OMG!

Good actor? Do you actually take some trouble to read all the facts and figures provided? Why don't you try to read and understand and provide some constructive feed back, rather than simply make baseless statement?

House, thanks for the info. Another question is say Digi wants to buy the spectrum from GP, say GP says they want 200m, but Digi says I only pay you 100m, take it or leave it. So what would GP do? Walk away from the deal? Then how to solve its hemorrhaging problem then?

Ok, Digi says give you the 200m you want. What would GP do with the 200m? Enough to pay all the debt or not? Ok after that, what is GP's plan to stop the bleeding?

Or may be Digi is negotiating with the major shareholder to buy over a controlling stake in GP. Why would Digi pays them high price when Digi knows they have no bargaining power? Ok if Digi agrees to pay them that price, is Digi going to give a GO? Why should they?

Too many questions about punting in this stock.

Posted by Alex Chan > Sep 24, 2013 06:45 PM | Report Abuse
this stock is crap with huge liabilities....check the edge weekly

Posted by kakijudi > Sep 24, 2013 07:02 PM | Report Abuse
Alex chan, I'll make you eat your words by the end of this week :)

Kfima ESOS up to 26.3m (10%) shares was proposed in August 2011 for the purpose of aligning the interest of the employees of Kfima and the shareholders; ie giving the staff the option to buy the company stock at RM1.48. At that time, that exercise price was probably about 10% below the market price. Since then Kfima's price has risen to 1.92 now, plus about 20 sen of dividend payment.

The costs of this ESOS has been properly expended in the income statement each quarter. This cost is not really that much for the shareholders, and in view of the shareholder value created, it is really a non issue. Why harp on it?

At least the management has been doing great job growing the revenue and income for the company, and hence benefited the shareholders.

As compared to a company like NovaMSC or MKLand, nothing has been created by the management. Instead, management squandered money from the company by paying themselves high salaries, or bought the properties from the company at low price and resold into the market at much higher prices for their personal gain. The minority shareholders suffered the most with nothing happening to the company and their share prices keeps on going down as years gone by.

So which do you prefer, to give incentives to the staff to work hard with ESOS and hence the interest of the shareholders and the staff and they produce good results for the shareholders, or pay high salaries to management but shareholder values are destroyed in a big way?

Don't know much about the deal but just looking at the fundamentals, I would be very fearful. But I am fearful not others are fearful. So I won't follow Buffet's saying of "be greedy when others are fearful". It is I am hell of fearful.

How long has it been talking about Ebitda positive? Have they achieved Ebitda positive now? I know they are still huge loss at operating level, 45m in just last 6 months.

So what if there is talk of Digi buying over? What is Green Packet's bargaining power in the negotiation. Does it have any?

Share buyback by management will benefit warrant holder more for two reasons.
1) The demand from buyback will boost share price.
(2) Buy back and cancel reduces the number of shares outstanding, and hence boost earnings per share. Higher EPS in turn boosts share price because of lowering PE ratio. The increase in the share price of underlying in turn boosts the warrant price.

So buy back shares by YTL is great for Wb.

Posted by hng33 > Oct 10, 2013 09:48 AM | Report Abuse

We must admit stock market sometime is inefficient in turn of pricing stock. however, given enough time, soon or later it will narrowing arbitrage gap. Furthermore, comparing to YTLP mum share, even though it up 23sen from early last month 1.60 to current 1.83, comparing to WB just up 13sen from 43 to 56sen, but in turn of percentage gain WB still outperform mum by double


I hope the market is inefficient rather than a trap set by manipulators.

The delta (rate of change of warrant wrt to underlying)is about 0.75. Hence the warrant will not rise as much as the underlying share, but theoretically at 0.75 times. However, because of the gearing of 3.2 times, the effective leverage is 3.2*.75 or about 2.5 times. That is why Wb's gain is more than the underlying, theoretically of 2.5 times.

hng, of course.

A rational investors won't just waste the 4.67 years of time value by converting to the underlying share.

Arbitrage of YTL Power Wb, an opportunity or a trap?

YTL POWER Warrant A is trading at 56 sen while the underlying share is at RM1.83 at the close on 9/10/13. It has an exercise price of RM1.21 and the expiry date is on 11th June 2018, or in 4.67 years time. The warrant is hence in-the-money with an intrinsic value of 62cents (1.83-1.21).

That is right. Even though there is still long time to expiry, Wb’s intrinsic value at 62.0 sen is higher than its share price of 56.0 sen. Buyers of Wa not only getting a free time value, they even got a discount. Here is a risk free arbitrage opportunity. Transaction costs are ignored.

Short sell 100,000 shares of YTL Power at RM1.83, proceeds of RM183,000
Buy 100,000 shares of Wb at 56 sen for RM56,000
Convert to YTL POWER at exercise price of RM1.21 for RM121,000
Return the 100,000 converted share to lender

Profit=183,000-56,000-121,000=RM6,000

If short sell is not allowed for YTL POWER, borrow money to buy Wb and convert to YTL POWER share. Then sell the converted share in the market. Pay interest. The payoff is the same. In this case there is an execution risk, risk that YTL POWER may trading below RM1.83 when the converted shares come back in a couple of weeks time.

Posted by cytew > Oct 4, 2013 03:30 PM | Report Abuse
Guan Chong CEO and COO both are my kampong mates, they are very bright

Posted by cytew > Oct 4, 2013 05:47 AM | Report Abuse
Please do not worry about the fluctuation of cocoa bean price and US dollar, Guan Chong has HEDGED both in derivative market,that is why when JB foods and Petra foods making losses, Guan Chong still manage to make profit.

When I invest in a company, I prefer credible managers rather than bright managers. I always ponder this “bright” CEO and COO are clever in maximizing their own wealth or the profit of all shareholders. GCB is a classic example.

I have seen nothing good about the business performance of GCB. I doubt the accounting profit. It is not in sync with its financial health as shown in the balance sheet with growing debts. The cash flows of the company greatly diverges from what is reported earnings. It never has any free cash flows for years and yet it keeps on buying this and that investments and yield return of capitals, paying not-bad dividends and even buy back its own shares (?). It is warning signs all over.

Hedging should be a good practice by a company like GCB. But I really wonder are they doing the hedging of commodity price, or gambling with derivatives. I sense that they are doing the latter.

calvin, I also have looked into its business, and most of all its assets and liabilities. For me PM Corp is a great investment. Quality assets and business not that great lah but most important not burning cash. Of course you know much more than anybody here about PMCorp. You may be right also about its great business. I kind of believe in you from your postings. No talking nonsense, not so sure of that 100 baggers, not even that 10 baggers. But I hope you are right because I invested in it too.

mlg123's concern is a genuine concern to me which I don't know how confident you are on kkp. For me, I thought kkp has never have minority shareholders' interest in mind. If that is through, no matter how good a company is, it is not a good investment no matter how cheap is it.

sang jero, you are really smart. Well done.

But what mlg123 said is not PM Corp going into PN17, is it?

You still haven't answer the question yet, have you?

How is that PMCorp can go into PN17?

mlg123, that is an excellent constructive comments. I have that fear too.

calvin, sure there is capital restructuring and return of some special dividends to shareholders or not in the light of mlg123's comments?

why must pray day and night so that it won't go PN17? What is/are so precarious about PMCorp? Care to enlighten?

Your statement does imply that it is likely to go PN17, doesn't it?

Nobody says you are stupid. After all you name implies you are a smart guy, aren't you?

You just don't know what risk free arbitrage is, and what risky arbitrage is. So if you don't know, just don't simply LOL on others. It is ok if you don't know. Btw, I think many also don't know. There is nothing wrong.

Go learn up what they are if you are interested before you laugh at others.

Later mother share moves up but not LA?

Obviously you are not that smart as your name. You don't understand the risk free arbitrage described and simply LOL on others.

Try to understand it.

Posted by FreeThink > Oct 9, 2013 01:55 PM | Report Abuse
for me, it just another speculative stock. so I will stay away

Yeah man, stay away if you think it is speculative. Stay within your own circle of competence. There are hundreds of other stocks in Bursa. Well said.

But, but I don't understand on the other hand you are so interested in MTDACPI? So PM Corp is speculative, and MTDACPI is an investment grade stock?

Care to enlighten? What criteria?

yeah man sang jero, give us your valuation (anomalies?), or your chart to show PMCorp going to PN17!

Posted by SANG-JERO > Oct 9, 2013 12:36 PM | Report Abuse
For those who have the intention to keep PM Corp for long term must pray day and night and wish it doesn't go into PN17.....or else you will become a very very long term investor....

Hey can you enlighten us how PM Corp can go into PN17 ah? From your chart? Or is it from the company's business problem? Owe people a lot of money? Business bleeding very badly? Not much cash to burn any more? Or whatever. Buy just don't simple make a statement that it sill go PN17.

Are you bullish on L&G? Why not take a look at its loan stock?

L&G and its loan stock is traded at 36.5 sen and 22.0 sen respectively. Here is an arbitrage opportunity:

Sell 100000 shares of L&G at 36.5 sen, receive RM36500
Buy 100000 shares of L&G-LA simultaneously at 22.0 sen and pay RM22000
Pay 100000*0.13 or RM13000 to convert to 100000 shares of L&G, and return the shares to lender.
Total cost = 22000+13000= RM35000
Profit = 36500-35000 or RM1500

However, short sell is not allowed in Bursa. You have to buy the 1000000 shares of L&G-LA with your own money, and then send for conversion with RM13,000. Hopefully by the time you get back the converted shares, L&G is traded the same at 36.5 sen a piece or higher. Hence this is not a risk-free arbitrage opportunity, but good punt nevertheless.

But who would want to convert if there is still 5 more years to expiry? Moreover there is a 1% interest payment for the LA.

Yes, for a loan stock which has 5 more years to expire, it is hard to find that it is trading at a discount of 4.1% and a gearing of 1.7 times. Few people see the extra bonus of free time value which is very valuable.

First you said I don't know anything and pretended to be smart.

Posted by Fortunebull > Oct 4, 2013 12:38 PM | Report Abuse
Ha! KCChongnz don't know anything! Pretending to be smart! Look at his Mahhsing valuation! Fail!

Then you said you follow my recommendations (what recommendations?).

Posted by Fortunebull > Oct 4, 2013 12:46 PM | Report Abuse
Read KCChongnz on Mahsing! He got his figures wrong! I follow his recommendations! Many stocks he put down has shot up!

Don't you think you deserve what I have said below after that?

Posted by kcchongnz > Oct 4, 2013 12:53 PM | Report Abuse X
Posted by Fortunebull > Oct 4, 2013 12:46 PM | Report Abuse
Read KCChongnz on Mahsing! He got his figures wrong! I follow his recommendations! Many stocks he put down has shot up!
You stupid fool. Why did you follow me and lost the opportunity to make killings in those stocks?
by the way, what "figures wrong" ah?

Why follow me if you think I know nothing and pretended to be smart? Some more blamed me?