Hey so what if people are "front running"? I recommended Inari at 0.75 after I bought enough of it, after which I recommended my family and friends. Nobody complained that I bought first. Instead of thanking a professional for sharing his work, you all blamed him for your own investment decisions? Well guess what, if you bought just based on OTB's recommendation without understanding his reasoning, then you all should not be making money in the first place! And guess what, OTB is not responsible for the price movement of the share. If you want a risk free investment just put your money in FD.

heavyth, I would be a god if I know the debt at the end of 2013. But let's see, free cash flow for 3Q13 exploded to RM23m. If they used it all of it to pay off their loan, which in my opinion they should, they should push it down another RM20k, just like what they did in 1Q13 where cash flow from financing shows big outflow of RM18m after they received a RM23m cash flow inflow in 4Q12. They should pay down their USD-denominated loan fast instead of giving out dividends because the interest from that loan is eating a big chunk out of its profit, and interest rates is foresee to increase due to weakening ringgit. BTW, their cash flow from financing has been negative since 1Q12 except for 2Q13, indicating consistent performance in free cash flow.

heavyth, I'm not exactly sure, but I know Hevea almost went under during the '07-'08 financial crisis. So they must have incurred those debt then.

cheeseburger, total debt at 31/12/11 = RM164,482k, total debt at 30/9/13 = RM118,815k. Fast repayment of debt is possible due to strong free cash flow.

Inari

Although prices has gone up much, if 3Q13 results can be sustained (EPS 4.69), we are looking at a forward PER of 8.6 only, vs Gtronic's PER 17.

All external factors indicate that they should be able to sustain, at least for 4Q13 driven by Christmas sales and 1Q14 driven by China Mobile deal. New ipad sales are good, and they carry Avago's chip (from iFixit). Furthermore, Apple has just signed with China Mobile, which may boost their 1Q14 sales. As an export oriented company (84% products exported), they also should benefit from a weaker ringgit and a stronger USD in 2014.

No time to post detailed analysis like the sifus in this group. I'll just do some paragraphs on the selections.

Hevea

Other than having investment grade metrics, the reader can do the Excel himself, external factors are all positive. Ringgit may weaken, USD may strengthen. 90% of its products are exported, the first plus. Although its earnings are affected by the USD-denominated debt, it is able to pay down the debt at a considerably fast pace, pointing to a healthy free cash flow. As they get charged less interest as their debt shrinks, future earnings should grow. 2nd plus. US housing is also recovering, and they already have a presence in Philippines, which most likely will boost sales the same way as the reconstruction in Japan is now.

These are what I called "growth catalyst". Sifus like kcchongnz does not really like to include these in decision making, but I beg to differ. Everybody loves a growth story. If you manage to catch one before the breakout, the rewards are tremendous. I have 3 stocks that doubled up this year, Muhibah, Inari and Agritrade International (HK). If can catch one, the return is in the triple digits. I always look for growth catalyst and overweight my counters appropriately based on the feasibility of the catalyst. Strategy served me quite well in 2013. Let's see if 2014 can sustain.

External factors are all positive. Ringgit will weaken, USD will strengthen. 90% of its products are exported, the first plus. Although its earnings are affected by the USD-denominated debt, it is able to pay down the debt at a considerably fast pace, pointing to a healthy free cash flow. As they get charged less interest as their debt shrinks, so future earnings should grow. 2nd plus. US housing is also recovering, and they already have a presence in Philippines, which most likely will boost sales the same way as the reconstruction in Japan is now. 3rd plus. I'd say this is one of my good horse this year. I entered $0.76, congrats to those spotted before me, including Cold Eye sifu.

I'm in:

Stock / No of Share
1. CBIP 7,800
2. MALTON 18,200
3. PANTECH 10,300
4. INARI 9,200
5. INSTACO 58,000
6. ENGTEX 6,200
7. HEVEA 7,300

Thanks.

Haha... "standing by the policies that hv been agreed to be implemented, once an election has been completed and a leader elected". Ya ya, a minority gomen who won through widespread gerrymandering, aided by a biased EC (by their own admission) and a biased judiciary shoving their misrule down the rakyat's throat. Truly represents the aspiration of the rakyat thank you. BTW, the kerajaan in Perak was not 'gulinged' through democratic means. The people chose PR, not BN. If it was legitimate, the seat that the frogs held should have been re-contested.

What happened to all the pro-BN cybertroopers who were raining praises on BN before GE13? Silent as a mouse now. They don't dare to come out for fear of being f*cked

Let the speculators go. Inari will post another spectacular Q4 results because the new iPads are the hottest selling item during Black Friday.

http://www.forbes.com/sites/chuckjones/2013/12/01/apples-ipad-a-big-winner-on-black-friday/?partner=yahootix

Ipad air confirmed using Avago chips. But not so sure about Ipad mini.

Tax issues:
- Pioneer status for some products granted during period ending 31/3/13, resulting in tax return of RM4.1m
- Pioneer status for tax exemption till year 2018 - Affin
- 5 year tax exemption for Ceedtec Technology from commencing of production. However, production date has yet to be fixed.
- 5 year tax exemption for Inari Technology starting 6/4/12 for production of miniature integrated front end module for wireless mm-wave devices.
- 5 year tax exemption expired (starting 1/2/07) on wireless microwave telecom filters and wireless home broadcast digital tv card (DTVC)

Pretty innovative company, can consistently get free tax from their new products.

I hate to sound like a heartless opportunist, but I did donate to the victims of typhoon Haiyan. According to Hevea's annual report, they exported RM20.7 worth of stuff to the Philippines in 2012, which means that they have a presence in that country. So Hevea might benefit from the rebuilding efforts there.

Actually, I feel that it's better for Hevea to aggressively pare down its USD loan instead of paying dividend. The USD loan has been quite a drag of their financials for the past 4 quarters. The unrealized forex loss for past 4 quarters are: RM76k, RM896k, RM1.5m and RM2.2m. The last 3 quarters were significant numbers. With ringgit set to depreciate further, it would be better for Hevea to reduce exposure to this loan instead of paying dividend. Imagine without this loan they would be making 8 cents instead of 6 cents. That's a PE of 3 only!!

And... Improving margin presumably due to run up in plywood price.

Good point there houseofordos. So fortunately Hevea also present their net realized foreign exchange gain. This quarter they gain realized 944k and lost unrealized 2.2m, that would result in a net loss of RM1.3m. So the effect of USD rate is not neutral, but carries heavier weightage on their USD loan. In fact, weightage is about twice as high on their loan vs their revenue. So excluding the net forex effect, they should be earning about RM1.3m more which is RM6.8m (eps 7.5 cents) instead of RM5.5m (eps 6 cents).

Well, excluding unrealized forex loss of RM2.2m, which affects their particleboard division, the pre-tax profit margin for particleboard is about 9.3% for their latest quarter. In fact, excluding forex loss, their particleboard is actually making more money at RM4.2m than the RTA division at RM3.9m. That's a huge improvement over losses in 1Q13 and 2Q13. I think if plywood price holds up, Hevea should do well.

Wow, result is better than I thought. They took a RM2.2m hit from unrealized forex losses as a result of their USD denominated loan. If not because of that, their particleboard division is actually making RM4.2m instead of RM1.9m PBT. According to my estimate, if not because of the unrealized forex loss, their EPS is around 8 cents instead of 6 cents. In spite of lower revenue compared to 2Q13, their profit margin has gone up. So it seems like the run up in timber/plywood price has spilled over to particleboard as well.

Looking forward to a solid quarter. The run up in plywood price will certainly rub off onto particle board price, since applications for both products are interchangeable. The plywood price is greatly driven by strong demand from Japan as a result of the reconstruction effort. According to Hevea's annual report, Japan is its largest market. All indication points to a solid quarter.

"all chinese people pay the tax..." Actually it was Mahathir himself that said that Chinese paid 90% of the income tax collected. He said it sometime in the late 90s, when he was still PM. Not sure if it still holds today though. Its nothing racial actually, just repeating what Mahathir said.

News driven? Let me see... Inari is trading at PE of 9.3 whereas Gtronic is at PE 16. Lazy to write more? Sounds more like lazy to calculate.

Btw, 2 Avago chips r found in the iPhone 5s. Hope they come from inari.

Civil service will never improve if it remains the depository for academic rejects. But of course, umno needs to provide jobs to them to give a facade that their chest thumping, keris waving nep works eh

izoklse, bodoh, Rashid Maidin and Shamsiah Fakeh (both high ranking CPM officers) came back oledi lah. Why don't you scream at the gomen for allowing them back in?

Communists have more honor than the BN gomen. Speaking of which, didn't BN require Lynas to identify the location of the Permanent Waste Disposal facility before GE, and after GE the location is no longer necessary? Wow... Janji ditepati.

Janji ditepati PTUI!

mahli, the increase in share capital is due to the issuance of new shares to purchase Amertron. The deal was completed on 25 June, therefore the profit contribution from Amertron is not captured in the Q2 report, although the share capital has expanded.

The BN gomen is doing such a shit job in public finances that I've decided to set apart some of my capital to invest in non-ringgit denominated securities. BN gomen has dicked the rakyat over and hey if the minority rakyat who voted for BN don't mind, they all can tango on. I'm pulling some money out and the money that goes out won't come back.

In Malaysia, politics = business. U faham tak?

kssow, according to an article in The Edge Financial Daily on 19/8/2013, more 90% of their pricing is quoted in USD.

CSL has a 20% dividend policy. At the current share price, the dividend yield is 14%. At such a ridiculously low price, CSL might be a risk worth taking, if only to collect dividend.

Contribution from POSH went from RM13.4m last quarter to RM18.2m. RM18.2m is equivalent to 1.82 cents per share and if PER of 18 is assumed, Maybulk's stake in POSH alone is worth RM1.30 per share. Perdana is trading at PER of 18, and based on size POSH should theoretically fetch a better price.

One is final dividend for 4Q13, the other is interim dividend for 1Q14. Pantech has been giving quarterly dividend.

Shifting their focus from low skill trading to the more technically demanding manufacturing. I like I like...

Avago forecasts strong 3rd-qtr rev on smartphone demand

May 29 (Reuters) - Chipmaker Avago Technologies Ltd , which counts Apple Inc among its customers, forecast current-quarter revenue largely above expectations, citing revival of demand from a large smartphone customer.

http://www.reuters.com/article/2013/05/29/avago-results-idUSL3N0EA3QD20130529?feedType=RSS&feedName=marketsNews&rpc=43

Ooo baby, come to papa.

Change of name is already mentioned in the proposal, why need to announce again? Old news lah. Come on inari u can do better than that.

The Board of Directors ("Board") of CB Industrial Product Holding Berhad ("CBIP") is pleased to announce that Modipalm Engineering Sdn Bhd (Company No.: 210753-U), a wholly-owned subsidiary of CBIP, has on even date, accepted the Letter of Award ("LOA") dated 2 July 2013 from Kemabong Sdn Bhd.

Further information on the said LOA is set out as follows:

Amount RM40,500,000.00

The Board of Directors of FFB is pleased to announce that its wholly-owned subsidiary, Favelle Favco Cranes Pte Ltd and Favelle Favco Cranes (M) Sdn Bhd had received the following purchase orders or Letter of Intent (“Contracts”) respectively in the months of June 2013 and July 2013:-

The approximate combined value of the above substantial orders secured amount to RM61.5 million.

The Board of Directors of Muhibbah (“the Board”) is pleased to announce that the Company has been awarded a License by PETRONAS as Approved Supplier for the Category of “OFFSHORE FACILITIES CONST-MAJOR ONSHORE FABRICATION” (“License”) subject to terms and conditions stated in the License therein.

Me me me thanks. soojinhou@yahoo.com

From Muhibah's annual report: "If not for this exceptional provision for debts due from APH, the Group would have reported a profit before tax of RM210 million in 2012, representing an increase of RM98.3 million or 88% in comparison to RM111.7 million for the financial year ended 31 December 2011." That's 88% increase in PBT for 2012! Don't play play.

...the Company wishes to announce that the Disposal Agreement with PT Ninda has been cancelled as the latter could not fulfil the terms of the Disposal Agreement and the deposit of USD345,000 has been forfeited.

http://klse.i3investor.com/servlets/anpth/908060.jsp

Yeah it's bad news. Interesting thing is, cost of maintaining these legacy vessels is higher than selling price. As long as they can't dispose of them, these vessels are going to nibble at their bottom line. Makes more sense to give these boats away instead of selling them. For one, you can save on the substantial maintenance cost.

Isn't it ironic? That BN needs banglas to defend their ketuanan Melayu?

"Peace loving malaysians will not subsribed to dirty politics as done by PR". One of the dumbest statements. Who continuously published porno CDs? Who murdered Teoh Beng Hock and Altantuya? Who dare not debate policies? Who send 1Malaysia Mat Rempits to disrupt opposition's ceramah? Who abuse government machinery during elections? Not only are you a peabrain, but a liar as well.

He's a criminal who instructed cecil abraham to draft a fake SD in the Altantuya murder.

Restructuring of Malaysia's civil service is necessary and long overdue. Malaysia has one of the highest civil servants per capita IN THE WORLD!! Compared to US which only has about 10+ federal agencies, Malaysia has more than 30 ministries!! This is because under BN's power sharing agreement, everybody also wants to be a minister. So, ministries are artificially created to placate all the component parties in BN. Instead of having a unified Education Ministry, now we have a Higher and Lower Education Ministries. It is neither efficient, nor cost effective. Guess what? Greece also has one of the highest civil servants per capita, and they are in deep shit now.

RPK is the same asshole who seemed to have condoned and partook in corrupt practices. In one of his latest blogs:

“From 1978 all the way up to 2008, for 30 years, my objective was to oppose Umno. And I opposed Umno over those 30 years because I hated corruption. And I, of all people, should know because during that time I was a businessman and I had to personally indulge in corruption to get ahead. So who better to talk about corruption than someone who had to survive and succeed in corruption?

I was just like all you wankers and losers. I hated corruption but I still got involved in it because I had no choice and only by getting involved in corruption could I get ahead. Corruption was necessary. You need to condone it if you want to meet your objectives and achieve what you aspire — success”

He seems to be behaving more and more like Warthy lately, probably another person who is bought off by BN. I wouldn't give two hoots what he has to say now.

Great Eastern Singapore took up a 5% stake in Cypark. See announcement.

Azmi Sharom is da man!

http://img854.imageshack.us/img854/2825/logic2.png