I have been enjoying the dividend from Samchem every quarter for a year. Samchem is a deeply undervalued stock with undemanding PE even at current price. Top line growth is impressive and the business is well diversified. Vietnam IPO will be another X factor. Reliable management and major shareholders. RM2.00 should not be too difficult to achieve.

Sorry. gross impaired loans is at 7.1% instead of 4%. I thought I read somewhere that they managed to reduce it to 4% but I can’t find.

Thanks Jon for the sharing. I must say I don’t know how to value banking stocks. RCE is probably my first investment into this type of stock.

Anyway, I stay out to wait for their QTR and hopefully I can get more information about their impairment.

Unfortunately our market will react negatively to poor QTR result, whether it is due to real loss or accounting loss.

Yes I did study ELK Desa closely. The company just announced a respectable QTR but the market chooses to overlook this company. ELK impairment allowance is below 1% and they further declared that MFRS would not have much impact on them. Even their current ratio is much higher as compared to RCE.

RCE impairment allowance is about 4% if I am not wrong with lower current ratio (or you can say that they are more efficient in utilizing their fund). I have doubt in their asset quality. This may explain why this company is selling at such a low PE.

The recent share price movement suggests that either some insiders have been selling or more optimistically the buayas are trying to shake out poor holders. Only time will tell which one is correct.

I like your recent article. Very good analysis. Actually I already sold all my RCE share by last week. My biggest position with about 18% gain. I like the fact that sifu FSL and a few savvy investors are into this stock. I still like the stock but choose to stay out until I have more clarity.

To Jon and all RCE investors here - what is your view on the impact of MFRS 9 to RCE Capital?

Good analysis. This is in line with my estimate that M-Mode fair value should be above 50 sen.

What really interest me is who took up the balance 17% of M-Mode share at 57 sen. My guess is Titijaya related companies/ individuals but this cannot be confirmed at this point. Will this new shareholder/s bring more opportunity to M-Mode in terms of new projects or injection of new business?

Can anyone help to shed some light on this.

This company will likely earn about 7 mil this year. With this project, the company can make another 7 to 8 mil (assume 10% margin) per year. So the potential upside can be quite substantial.

In fact, the stock is currently undervalue with market cap at only 46 mil, which is equal to cash in hand. Amazing bargain!

I added some 30,000+ shares at around 1.45 yesterday morning. Could have bought more in the afternoon but was caught in a long business meeting. Anyway, I am happy with my position. TA wise I think Monday was considered a breakout. Last two days volume is also increasing. Good sign overall.

I like this stock because of low PE, high ROE, high dividend yield (20% to 40% of earning as indicated by management), decreasing NPL, high margin, steady growth in terms of topline and bottomline. Hard to find another stock like this. Too good to be true unless there is hidden risk that I don’t understand. One more thing, the company is also buying back own share on a daily basis.

Should never allow any stock to drop by 30% unless it happens to abruptly that you have no chance to react.

The stock price was pushed up in the last two weeks in anticipation of a good quarter. Today is knee jerk reaction after “not such a good result”. Maybe the expections were too high. This happened to many stocks and I especially remember Frontken two quarters ago. Frontken subsequently recovered fully and reached new high recently.

I think I might have accidentally deleted my earlier comments. short redraft as below.

Thanks my fellow investors for your support and agreement.

Johnny - I read your comments on other stocks before. I think you are good in TA and FA as well. To answer your question, I normally invested in fundamentally sound small cap for medium to long term. I do not have the luxury to trade short term due to my other work commitment. Occasionally I bought some less quality stocks when the time was right. This year the market is very kind. I am up about 50% YTD but this is nothing compared to many sifus here.

My stocks - SOP, OKA, Orna, Poh Kong, IQ, OCR- PA, N2N and mudajaya. My portfolio reached all time high on Tuesday despite Mudajaya was down on the same day.

One very important point to add - this is my ultimate guide It is not my stock pick that gives me the most gain, It is how i deal with the stock when it goes up or down.

I am just giving my advice. Nothing personal. Investment in stock is meant to be exciting and rewarding. Suffering big loss and becoming extremely bitter, negative and outright aggressive will not help. The mind will be hellish rather than heavenly. This end result can be tragic and I hope my fellow investors can pull themselves together and clear his/her own mind to come up with a constructive trading or investing strategy.

The only good stocks l like are the one going up. Your might have bought a fundamential stock and yet suffered big losses, e.g IQ, FLB etc. Or you bought a loss making stock and double or even triple your money. Just too many examples this year alone. There are many ways to trade or invest in stock market. Know what you do and creating your own expertise will definitely help. Mudajaya is not my normal kind of investment but I see opportunity to make good money with their turnaround story.

Stock market is not an easy place to make money. That's why I do not wish to see any of my fellow investors losing their hard earned income. Having said that, I noted some of us may not have learned their lessons. To do well, you need to have a cool head and strong heart. Being emotional and becoming irrational will only cloud your good judgement.

The market is full of opportunities but you must be able to see it and seize these opportunities. Do you have a clear game plan and discipline to face the treachery of the market? Ranting and viciously attacking anyone with different view is definitely not a strategy.

I have my fair share of bad calls and my favourite strategy is actually to cut loss. This requires ultra high discipline and a humble mind not to allow the loss to become a disaster. What happens if you fail to cut loss and now staring at a substantial paper loss - do you have a trading strategy to recover?

Ranting will not help. What you do when Mudajaya is hovering around RM1? What action did you take when Mudajaya reached RM1.30 in less than 2 weeks....Is today's sell down unexpected??

Be humble and admit our own shortcomings. Read some books if you need to learn the right investment strategy. Stop the needless ranting and channel the energy towards learning the right strategy. Since I made my comments a few days ago, I was surprised to read some very good comments full of wisdom from my fellow investors. Those comments were made undoubtedly with good intention to help. I think I learned quite a lot and I hope everyone will contribute objectively and sincerely.

Not far from year end

Good news indeed. My suspicion has been that the stock price was suppressed before the private placement. Coincidentally, I was just informed this evening that there might be more good news coming. Anyway, I don't even trust such news so I will ask you to be cautious if you hear any rumours.

If I remember correctly, the management did say the issue relating to their second power plant would be resolved by this year. We are not far not year end anyway. This could be another good news.

There are hundred of stocks being manipulated by operators from time to time. Mudajaya might be one of them but definitely not the only one and will not be the last one as well. I believe the management got caught with their India venture and would like to make good of their investment. India is not an easy place to do business. Mudajaya was doing well prior to this and was paying high dividend then.

Let's focus on facts instead of continuing with the accusation. Someone (Kingsman Capital Limited Hong Kong) just took up a private placement of 53 mil shares worth more than RM60 mil. I can't find too much information about this company but for sure there is good reason for them to make such an investment. Help everyone if you can share some insight on this company. Or If we can find out more about their India venture or the tender of local projects, maybe there is a good chance the stock price may recover further.

A few individuals kept talking down on Mudajaya. This is an extremely unusual behaviours considering they have been ranting for months. If indeed they still hold on to their stock, such trash talk will not help anyway. This work against their interest.

Buying a stock and becoming so bitter is probably not good to them psychologically and mentally, they better off dispose their holding and move on with their money elsewhere.

If indeed they already disposed all their holding, why still bother ranting everyday?

Otherwise, I started to doubt their intention with such persistent ranting. In fact, my view is we probably seen the worse with this stock and there may be more surprises to the upside. New projects or completion of their power plant.

CIMB Research had made many bad calls before..setting unrealistic high target price only to be embarrassed later. Either their analysts were gullible or they actually acted in concjuntion with operators.

Good move by Frontken. It is always good to increase your shareholding in company that you know well and have control. I don't expect big price move straightaway but this is definitely a step towards the right direction. This is just a small investment with the amount of money in hand. The company still have money to make more smart acquisition.

My view is Frontken share price was pushed up by short term traders expecting good results just a few days ago. Still remember last week one day 3 sen gain with high volume. Now is sell on fact.

Frontken QR result is indeed very good if you take out the foreign exchange factor, considering first QTR of the year is a short quarter with long break during CNY.

I would prefer they pay dividend with the amount of money in hand. The last time the company paid dividend was 2011 and 2012. Last two years was not so good for Oil and Gas industry and the company did suffer losses in a few quarters.

Anyway, the management do make good use of the money to increase their shareholding in Taiwan business and share buy back. With the right opportunity, they can use the money for expansion or acquisition. Strong increase in cash position is always a good sign.

Major holder Ooi Keng Thye and chairman/ MD Ng Wai Pin both increased their shareholding during the last few months.

If frontken can maintain last quarter's performance of 1sen EPS, the stock can break 40 sen easily and possibly go much higher. All signs are pointing to a good quarter. If you read their recently released 2016 annual report, you will notice that a value investor bought 5 mil of Frontken during the last one year.

Kim Hin's BOD, especially the executive directors, earned a total of 10 mil per year. This is very high for a company that earns 30 mil in a good year.

OK. I presume you wanted to buy more but not sure. What makes you feel like sailing?

Hi Mr. Ong - N2N is very quiet. Why you choose this stock to sailang?

Strong profit contribution from Taiwan.

Tonylim, good move. I only managed to sell FLB at lower price as the 2 day sell town come in a sudden. The key is their QTR result this month. If the price drops to 1.10 level again, then it may be a time to buy back.

Brother Apini, I sold all FLB during the recent sell down from 1.60 to 1.40. I suspect their coming qtr profit may not be good. Anyway, I understand the Taiwanese directors have been selling down their holding. What do see in this stock?

I like Magni, Sign and FLB. Also buying some Homeric hoping the next qtr will be good. Anyway, please do your own homework as well since there is always risk in stock investment. So what stocks do you like?

I think cocoland is good. RM2 is not a demanding target. I sold because I want to buy other shares.

l still hold 10 lot of cocoland. I bought at 1.83. Nothing wrong with this stock. I nearly started to sell sign but decided to hold as I see the trend line is still not broken. Sign is my big holding now.

Also scicom. Wonderful stock. My main concern is profit warning by the CEO. Already bought and sold 3 times with profit. Now I don't have any share but may buy back later.

Yes. But I already started to sell my holding with small profits plus dividend. I still keep sign, Homeriz, FLB etc. I already sold IFCA but will want to buy back when the price is right. I think I saw your comments on these stocks as well. You are a very smart housewife.

Hi Susan84, by chance I noticed your comments in many stocks that I owned. We are looking at similar stocks for good reasons. What is your occupation?

Destined to become the best performing stock of the year. Sealed.

Small volume suggests that this stock can go up very fast! I think this is the right time to buy!