http://www.theedgemarkets.com/article/penang-residential-overhang-more-doubles-2017

Yes, but not in the short term. MHB's pay-off will come at the tail end. This is well reflected in the price of the stock which trades at less than half of book value.

I bought more today.

Not sure if anyone read this: http://www.bursamalaysia.com/market/listed-companies/company-announcements/5743525

Could be to bid for Aramco projects in Saudi

Q1 18 not necessarily good. It is the much improved macro conditions that will drive MMHE's recovery going forward. Losing out on Pegaga is a big loss...but MMHE will now be in a pole position to grab the next major EPCIC contract to be issued in Malaysia.

Very healthy cash levels. I think Tambun's selling point now will be the dividend yield cause the cash can finance dividends handsomely for the next 2-3 years...by which point you'd expect the property market to have recovered. Even if the dividend drops to 6 sen a year, if you buy in at current levels you will be getting a yield of nearly 7%. Very hard to beat actually. I foresee a correction in the price soon once it is clear that dividends won't simply fall off a cliff.

Company performance cannot improve overnight leh. You think this is magic ah? Takes months to get things improved. Especially since rights issue was only done in October 2017....give them time lah to channel that additional working capital and lesser debt load into improvement in the bottomline. Now we just got the period ended December 2017 results...I will hold judgement until at least we get to the results for the end of June 2018.

@Lincorn, hard to say man. I mean its a healthy company, low risk of buying in at these prices. But as to when it can "break out"...I think there will need to be a strong earnings breakout. Maybe if Q3 earnings can be above RM1mil (previously Q3 always weakest) then it might be supportive of this.

Also, I realize in recent months the insiders and a lot of very long term investors (me included!) have been mopping up CWG shares on the market. The selling volume may simply evaporate, and sometimes the lack of selling will lead to a jump in prices due to scarcity etc.

Or we may be subject to a pump and dump as well given the relative illiquidity of the counter and may jump 10-20 sen over a short period of time.

It's really hard to tell. For me, this is an "lock and keep away" stock. I will monitor company news on a weekly basis or so going forward. Lest there be a fire breakout I think the capital should be secured at the very least for those buying at RM0.50 levels and dividend should be decent as well going forward (I expect 3 sen dividend minimum for FY 2018).

But on the bright side the balance sheet is extremely healthy and beautiful looking now after the completion of the rights issue. No matter what I’m keeping my shares in CWG and will continue topping up should the price fall lower in the coming weeks and months!

Hmm...quarter result a bit below my expectations. Cost increased greatly but revenue haven't risen in tandem. However, we shall only see the full impact of the rights issue from Q3 FY 18 onwards (i.e. period of Jan - Mar 2018). The additional working capital should pay off somewhat in this quarter, coupled with great interest expense savings.

Q3 will be a worse quarter (seasonally Q3 has lower revenue according to the qtr report). But I'll still expect net profit of >RM1.0mil despite that.

Anyway escalating costs + stronger Ringgit means we will need to wait a while more before we can enjoy super profits.

Hard to tell what will happen to the share price but I will not be surprised we go down to RM0.45 after this.

Well, let's just say I'm "cautiously optimistic". A bad QR will simply be a buying opportunity, and this might especially be good with a pending bonus payment :)

Hmmm, 5 days in a row there is zero trading. No sellers at all. Sell queue is also thin. All we can do now is wait for the Q report that should be out within the next week. If we can get a net profit of ~RM3mil to RM4mil, this should fly towards RM0.60. If it is above RM5mil, can expect RM0.65.

All the best folks!

Directors may have a longer term orientation. Also, it's possible for directors to be wrong about the "value" of the company. Still, might be a good idea to start looking/buying Magni if you're a long-term person and believe in the fundamentals of Magni Tech Industries.

Pegaga should be out within the next 30 days. Just between Sapure and MMHE. Ayuh!

Btw RM0.03 dividend is quite nice. If MMHE fails to get Pegaga and the share price retreats, I will likely want to top up sometime next month.

Told you, the upgrades are coming thick and fast. The party is just about getting started guys. Hang in there!

@Dolly, everything requires context. Director buying 20 or 30k shares at RM0.60 a day is nothing...unless this trend persists for a very long time. Also, this guy is an independent director, unlikely to know much about the day to day running of the company and the company's true prospects. It's better to wait for buying in higher volumes, OR buying by multiple insiders, OR persistent buying over 2-3 months.

LOL sell on news? This is just the start of the recovery.

From now on IBs will definitely re-rate MMHE, mainly due to earnings visibility from Bokor CPP.

Also, have some scant hope of landing either the Pegaga CPP or some part of that project.

Going forward, in the next 24 months, Petronas should also be dishing out more contracts.

Can probably hopefully expect the share price to settle at above RM0.80 from now onwards as the worst is over and it is crazy that a company in such a specialized niche with such a beautiful balance sheet is valued at less than half of the book value.

Steady lor. A bit sad that the market got weak this week....why couldn't it have been last week!?!?

Haha, anyways this is a long-term thing...doesn't really matter but at 0.485 or 0.515 if in the longer run you expect the stock to easily go past RM1.00.

Yesterday was an amazing day to bargain hunt, but sadly I used up most of my available funds last week. Anyways, these things happen. Can't time the market, as they say!

@saltedfish, do you even know what "penny stock" actually means ah? Just cause a stock is <RM1, makes it not a penny stock. Market cap matters to give you context, otherwise even Sapura Energy will be called a penny stock despite being a multi-billion Ringgit company.

@shortinvestor, Pearl City Mall's recurring income is minuscule only lah. Nothing major. It's either RM5mil/q or RM5mil/year.

Look, Tambun is actually a great company. It has a near 20% ROE (even in these difficult conditions!) while it trades at a mere 0.7x of Book Value! The dividend, even if halved, should still be a handy RM0.05/share, which should translate to an over 5% yield at current valuations. Balance sheet is relatively clean. Plus it solely has exposure to Penang property market, which according to some people I have spoken to, is in better health compared to the market in KL/Selangor/Johor.

The problem with Tambun however is the scary fall in unbilled sales. If you monitor its movement QoQ/YoY for the past 2 years, you see that unbilled sales have fallen to ALMOST NOTHING, yet the earnings have held up strongly. This means, logically, that at some point in the near future the earnings have to fall off a so-called "cliff".

Another problem with Tambun is the lack of future visibility beyond Pearl City, which can only sustain them latest until 2022/2023. However, this is not really a problem...rather it is an opportunity! Tambun has been seeking landbanking opportunities for a very long time already. The majority shareholder/owner is also the main corporate guy in-charge of the company. He definitely has a plan!

I am quite certain that as soon as Tambun does some landbanking its price will appreciate 20-30% and bring it back to book value at least.

It just keeps getting nicer and nicer...but remember, best to buy when there is a catalyst to drive earnings growth. Otherwise, it will remain to be a "value trap".

Been buying up more CWG shares at 0.51-0.52 over the past week. I think I stop here for now as my CWG position is rather large. Only holding TCHONG and MHB aside from CWG for the moment. Time to hunt for something else.

Thanks for sharing sir. Indeed MISC could, but perhaps Petronas would like it better for MMHE to be "independent" to as to ensure cost competitiveness and encourage competition with local fabricators.

@Rowie, share the article or something. Take a photo if only physical copy. I can't find this online anywhere. Would be an interesting read.

Beautiful result, now if only it goes down to RM0.50...what a solid long-term buy that will be!

Can share the article on the privatization?

Quite bad wor.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/5671313

Definitely looking attractive from a value perspective. However insiders are NOT buying this fall (despite it falling so much in such a short time), and as such I think we should be a tad cautious.

Even in the interview with The Edge, the director says that any meaningful recovery can only occur in the year 2019.

The company try to be big heroes, bite off more than they can chew...and now must pay the price of it.

First few quarters surely badly hit, then Hevea will be able to raise ASPs and recoup the losses. For now I don't enter, but when things go to 90 sen levels I will consider it in a few months time.

https://www.thenational.ae/business/energy/mubadala-petroleum-petrochemicals-to-finalise-investments-in-malaysia-and-us-1.695060

Final investment decision for Pegaga within the next few weeks. This is it guys! There might be a premature speculative rally in the coming days/weeks possibly taking MHB above RM1 levels. It's a 50-50 between MMHE and Sapura...although do not get too excited as Upstreamonline reported a few weeks ago that Sapura has it in the bag (and Upstreamonline is pretty reputable source). Still many things can change.

I've been MHB shareholder for some time now, avg price below RM0.80. I don't hold Sapura. I obviously hope MHB can get Pegaga, but Upstreamonline is usually one of the best news sources about O&G industry and according to them Sapura has it in the bag. So, I'm not hoping for anything...but if we DO get Pegaga, then yo yo yo...rally to RM1.30-RM1.50.

I won't be surprised we head back to RM0.80 levels soon, as the share price has been rallying for no obvious reason. A meaningful long-lasting rally above RM1 can only take place if there is positive newsflow in my opinion. Until there we are at the risk of going lower not higher. But long term from these levels I expect we can easily make 2-3x profit over 3-5 year period.

I heard Sapura got Pegaga. Doesn't matter either way. Petronas CAPEX in 2018-2020 is set to rebound and lots of offshore fabrication contracts to be had.

Limited loh the warrant's price, hence "stuck" there

"Cost of sales increased by 10.6% which was not in line with the inrease in revenue of 9.1% for FY2017. The higher cost of sales was due to the increase in cost of raw materials as the result of weakening of RM. The RM traded between RM3.95 and RM4.50 in FY2017 as compared to RM3.75 and RM4.46 in FY2016. Besides, cost of raw materials increased also due to higher in the price of paper in the global market."

Revenue for Malaysia was at ~25% for FY2017.

So long story short, CWG will indeed be impacted adversely by the strengthening Ringgit given that it is a net exporter, but I presume there are some elements of natural hedging at play here given that some costs are Dollar denominated. Plus, CWG's selling point is increasing sales of the Arto range of products and moving on to higher-margin products. This should lead to an increase in profitability no matter the Ringgit's level vis-a-vis the Dollar.

Regardless I expect profits to be up by at least 50% in FY18, if not more than 100% increase in net profits.

Sebastian, not a big issue. CWG has substantial costs denominated in USD for imports. Also 30% of sales are in MYR. This is unlike furniture manufacturers where costs are fully in MYR and sales in MYR is at less than 10%.

So yeah, no big deal. Continue holding. Growth in export sales will beat any impact from strengthening Ringgit, plus costs will be lowered.

Read latest annual report for confirmation of what I am saying.

Quite bad in short to mid term, but value is superb for long term holders.

Heck if the warrants go down to 10sen region I might have to consider it strongly.

Stock Pick 2018.

1) CWG (30%)
2) MHB (25%)
3) TCHONG (20%)
4) SKBSHUT (15%)
5) AJIYA (10%)

Entered once more today @1.38. Avg price now at 1.60. Tan Chong Motors is well-positioned to benefit from the strengthening Ringgit, rebound in consumer sentiment (which always eventually mirrors GDP growth rate) and launch of new models in the new year (namely Serena Hybrid 2018 and Xtrail 2018, plus one or two other launches). Possible upside from quick growth in Indochina as well, namely Vietnam and Myanmar.

Tan Chong trades at very undemanding valuations. True, it could be a value trap, but this is also precisely the type of company that becomes a multi-bagger over the long term (5-10 years) due to the depressed valuations.

Who cares about technicals? Just buy based on fundamentals and intrinsic value.

Some value is emerging. Very attractive. Buy for the very long term (3-5 years++) and it should be a good investment. Be disciplined and average down every 15% drop or something, and NEVER SELL unless the fundamentals deteriorate.

@Sebastian, I "incorrectly" bought ES Ceramics in March at 0.465, sold in October at 0.370.

I have no strong opinion on ES Ceramics. I think there are better buys out there honestly speaking.

Dividend is OK. Now to play the waiting game and to let the story unfold.

@Jon, don't fall for the "sunk cost" fallacy.

This is just cross trades or between the same fund house (like RHB to RHB fund).

Don't get so excited about yesterday. It might just have been rotational play (churning). Hold and keep till this goes to the RM0.80-RM1.00 region at least.

Sell, then buy again once MYR hits ~RM3.95 to the Dollar and the price is at ~RM1.05. Hevea still has solid fundamentals and is probably the best fibreboard company in SEA.

Not a bad result. But PNB still got many to throw. Might go up a bit but upside is capped as PNB continues paring down their stake.

Got booted out of the FBM Mid 70 Index and thus the FBM Top 100 Index. This means that there might be some selling pressure in the week ahead.

How come SIMEPROP have 8 characters in the ticker? I thought Bursa max limit is 7 characters? Any info on this ?