1. Intrinsic value of Rm 1.46 is over ambitious and even somewhat illogical.

2. DXN is now trading at 50sen and hence, it must soar 200%.
It would be great if you could write an analysis to show and outline the basis of arriving at 1.46

3. Would greatly appreciate and look forward to you attitude of sharing, learning and earning together.

4. Kindly enlighten us.

21/12.24

Heavy selling pressure today

1.Can someone who is still in school, green and ignorant with no investment knowledge and experience, knows nothing, does nothing but journey unknowingly into becoming a millionaire via Bursa without lifting a finger.? Let’s examine.

2 If you are like John who is born in a huge family and receives great angpows from generous paternal and maternal grandparents, uncles and aunties, siblings and parents, then it is not highly improbable

3 Assume that John was born in 2000 and in 2006 he was 6 years old and had successfully received Rm13,750 in ang pow money.

4. In that same year MYEG was listed on Bursa and the IPO price was 55 sen and his father had acquired 25,000 shares in MYEG on his behalf,( RM13750 / 0.55)

5 In 2023 John is 23 years old, still studying and preparing for his final exam for his degree at a university. Over the years, unknown to him his investment had multiplied and grown in this manner.

6 In 2006 John started with and owned 25,000 shares

7 In 2007 myeg had a 1 for 1 bonus issue corporate
exercise to reward its shareholders. The number of shares increased to 50,000 shares.

8 In 2008 myeg had a 6 for 5 bonus issue corporate exercise to reward its shareholders. The number of shares increased to 50,000 + (50,000 /5 x6) = 110,000 shares

9.Again in 2014 myeg had a 1 for 1 bonus issue corporate exercise to reward its shareholders. The number of shares increased to 220,000 shares.

10.Again in 2015 myeg had a 1 for 1 bonus issue corporate exercise to reward its shareholders. The number of shares increased to 440,000 shares.

11.Again in 2016 myeg had a 1 for 2 bonus issue corporate exercise to reward its shareholders. The number of shares increased to 440,000 +( 440000/2 ) = 660,000shares.

12. Again in 2021 myeg had a 1 for 1 bonus issue corporate exercise to reward its shareholders. The number of shares increased to 660,000+ 600,000 = 1.2m shares.

13.From 2006 to 2023, in a span of 17 years his shares had grown from 25,000 to 1.2m shares. MYEG closed at 95 sen today. The value of his portfolio is 1.2m x 0.95 = RM1,140,000.

14. Now let us come back to our question;
Can someone who is still in school,green and ignorant with no investment knowledge and experience, knows nothing, does nothing but journey unknowingly into becoming a millionaire via Bursa without lifting a finger.? Let’s examine.

15. If you are John, THE ANSWER IS A RESOUNDING YES.
16 Incidentally, you may be interested to know the enlarged share capital of MYEG upon listing in 2007 was 126,250,000 shares and at 55 sen IPO price the market capital was a tiny RM 69,437,500.

17 Today, with all the corporate exercise and bonus issues, the number of issued share capital of MYEG had enlarged to 7.63b shares. And at the closing price of 95 sen the market cap is RM 7.25b. That’s incredible.

18 It is hoped that this posting has inspired you and it is intended for sharing, learning and earning together.

19. Happy Trading
14/12/2024

Note: source of bonus issues are taken from KLSE Screener - capital changes.

1. After a month of decline from 60sen to an intra day low of 44.5sen, DXN has finally managed to recover some loss ground and made some recovery in its daily closing prices.

2 There were evidence of fresh buying. And last week with the support of new buying interest together with the 96m shares that changed hands over direct business transaction ( director buying ) the counter was able to see some light at the end of the tunnel. The bulls had returned and the closing prices had managed to close above 50 sen and sustained for 5 consecutive days.

3.Suffocation is gone and long term investors can now breathe. The pain that still remain has somewhat eased.

4. DXN continues to make remarkable and commendable performance in its daily price performance. Basing on the candlesticks chart, DXN has successfully established a GOLDEN CROSS yesterday on 11/12/2024 in which the 9-day moving average line has successfully crossed over the 26-day moving average line from below to above at 49.5 sen This is a most welcoming technical sign after a big fall.

5. The daily closing price had been moving faster than both the average lines. In addition, the closing prices for the last five 5 days had consistently closed above the golden cross. And that is truly impressive.

6. A golden cross is a bullish indicator and generally investors view this chart pattern as indicative of the beginning of a strong bull market. Perhaps, in the case of DXN be view as a reversal pattern from bearish to bullish.

7. If you trade according to and guided by technical analysis, the golden cross present the most opportune timing to buy.
Nonetheless, this is my personal and layman perception and opinion of the counter. It is not a recommendation to buy or sell. It is not intended to influence you investment decision and strategy.

8. The discussion and analysis is continuing.
Happy trading

12/12/2024

1. All these while since 2023 when the appeal proceeding is still on going, Leong Hup has treated the legal penalty as a Contingent Liability. Hence it is placed and categorized as an off-balance sheet item.

2. when it is place as an off-balance item, the penalty and payment is assumed to be 50%/50% chance and hence payment is only considered possible -> Disclose a contingent liability.

3. Last Friday LHI in its filing with Burse confirmed CAT has rejected its appeal and uphold the MYCC verdict and the payment of 157m penalty.
When this happened, the penalty has become greater than 50% and the payment is highly probable.

4 Going forward LHI may have to respect the verdict, recognize the penalty and makes a provision and charge it against profits in P/L accounts.

5 Despite the decision, the Company together with its legal team still try their best with determination to downplay the situation. Actually, the legal notice by MyCC has been issued since 2023, but Leong Hup has continued to disclose it only as a contingent liability up to the latest quarter.

6 IMPORTANT NOTE (in December 2024 latest news):
Competition Appeal Tribunal (CAT) has rejected the request by LHI's subsidiary, (LFM) to pause or temporarily stop ("stay") the enforcement of the fine. This means that as of now, LFM is STILL REQUIRED TO PAY THE PENALTY.

7LHI in its filling with Bursa again to inform investors it intends to seek another type of temporary relief known as ad-interim to stop the enforcement of the fine while the review is ongoing. There is no guarantee that the review is forthcoming.

8 In my opinion, the payment of penalty seems highly probable now considering the latest news and decision by CAT. Auditors are RISK-AVERSE and will definitely require a provision to be recognized in the coming quarter results. In the end as much as we may not like it but a fall in profits by the provisional amount of RM157m is reasonably expected.

9 This has been a disturbing news for LHI and Market has reacted somewhat negatively. It is now traded at 60sen down 4 sen.

10 This is my personal perception and opinion on LHI.
This is not a recommendation to buy or sell and much less intended to influence your strategy and decision.

11 Happy trading
9/12/2024

Is DXN overkilled?

1.Just 2 months ago on 20th Sept 2024 DXN was trading at 61.5sen.
2 There was a off market transaction for 223m shares done at 60sen. And thereafter the company announced a related party transaction in which DXN in its filing with Bursa has informed the shareholders that it has rented an aircraft from the founder's company for an annual rental fee of RM29.6m

3.A day following the announcement the share price collapsed spectacularly in a few consecutive days to hit an intra day low of 44.5sen and close the day at 46 sen13th Nov 2024.

4. As you may be aware, DXN has 4985m issued share capital say, 5b shares. The lost in market capital arising from the RPT of 29.6m is absurdly enormous.

5. The RPT of 29.6m had erased 5000m x (61.5 - 44.5) sen = RM850m in market capital. This is insanely ridiculous and yet it is true.

6. Insiders believe it was somewhat over done and has since begun to acquire the bashed down share in 2 direct business transactions. First, the director had acquired 76m shares at 50sen and on the 2nd transaction it had acquired additional 16m share also at 50sen on 20/11/2024

7 Market players sell their share for all kind of reasons, or for hundred of reasons.

8.But, director buys back its own company shares for only one reason. He believes the share price will rise.

9 DXN has recovered some lost ground. Today, it hit and intra day high of 50sen and closed 1 sen higher.

10. Personally, i believe there is value in DXN on a the long term basis. Market and the investors had over reacted on the RPT.
11. Again, if you buy DXN, there is no guarantee that you will make profit. Nonetheless, at 49 sen, the margin of safety is attractively high.

12. This is my personal perception of the counter and it is not a recommendation to buy or sell and not intended to influence your investment strategy and decision.

12. Happy Trading
26/11/2024

what happens to LH?
This company has all the ingredients of a value investing stk.
1 The company has just announced its Q2 financial result with a profit of 29.7m
And the 4 - quarter running PE is 2.2X which is far lower than its peers.

2 The ROE is 20.6%
3 NTA is 82 sen
4 eps is 16.5 sen
5 Dividend is 0.08sen n DY is 2.1%

6 Looks good and undervalue and surprisingly not many are interested.
Happy Trading
26/11/24

1.If you have been holding LB, congratulation. Tomorrow is the dividend ex date for 2.5sen. It would be unwittingly wasteful to dispose after having come this far.

2.In addition, the company has announced its 1st quarter result that is correspondingly and comparatively impressive.
Hopefully. the result could sustain the raising share price.

3 Have a great day and happy trading.
26/9/2024

The call warrant will expire in a week time. Today is the beginning of the 5 day VWAP. There is an inclined tendency to push down the price of mother share to render the warrant out of money and mature worthlessly.
Happy trading
17/9/24

The counter is horribly bearish. The bears continue to charge violently with no sign of fatigue. In the next few days it could possibly fall to 105 and below.
Trade wisely
9/9/2024

1.In the past few months, YTLP has staged a spectacular rise in volume traded and share price performance. The counter was like a great ball and everybody enjoyed the party the noise and the excitement that did not seem to end.

2.This is what Warrent buffet would describe as a behavior that is akin to Cinderella at the ball. Overstaying the festivities, that is continuing to speculate in YTLP that has attained a lofty valuation will eventually bring on pumpkins and mice. It is happening.

3.The counter has hit its peak at 5.50 and thereafter began to move south. On 19/7/2024 it has staged a dead cross in which the 9 day moving average line has crossed over the 26 day moving average line from above to below.

4.Besides, the gap between the two moving average lines continued to widen. The share price has fallen drastically and rapidly over huge volume. In the last 15 out of 20 trading days the daily closing price are well below both the 9day and 26 day moving average lines.

5.YTLP is on a downward spiral with a powerful bearish momentum that is persistently continuing. Technically speaking and reading from the technical candlesticks chart, the dead cross and the moving average lines, I am of the opinion that the worst is yet to come.

6. In addition, the MACD line has crossed over from above to below the signal line and trending below the zero line. The gap between them are widening and the red histogram that is expanding also indicate that the rate at which the price is falling is accelerating. Hence, basing on the MACD chart and indicator, it does not look good for YTLP.

7. The RSI indicator showed that YTLP has moved from the overbought region at the 82 points level on 23/5/2024 and crossed over the 50 points neutral line on 12/7/2024 and currently trending at 33 point level. Likewise, the RSI also painted a bearish trend for YTLP.

8. Hence, if you are seriously considering to buy, perhaps you might want to wait for it to hit below the 25 point oversold level

9. This is my personal perception of the counter and it is not intended to influence your trading method and investment strategy and much less a recommendation to buy or sell.

10 Trade wisely
7/9/2024

1Mudajaya has lost all the ingredients of a value investing stock. It has continuously sustained losses for 6 consecutive quarters with no signs of recovery in the medium term.

2 The company has 326m long term borrowings and 506m short term debts, hence the total borrowing is abnormally huge (832m) with interest expenses amounted to 14.1m for the quarter ending June 2024. Mudajaya is literally working for the banks.

3The company under Jerry and his management has a new focus and direction. The eventual acquisition of the cement factory and geographical expansion into China was intended to revive and rejuvenate the revenue and earning of the group. Unfortunately, the collapse of property market in china and the dwindling demand for cement has negatively affected the financial performance of Mudajaya for several quarters.

4 The company has recently completed a corporate exercise to raise exceeding 100m to pay off the remaining debts to the seller of the cement company. The rights issue with warrant has enlarged the already huge issued share capital and hence dampen the share price.
5 Visibility of recovery and much less earning growth for mudajaya is highly improbable in the foreseeable future.

6The only comfort you may derive from acquiring Mudajaya at 10sen a share is knowing that Jerry the boss has made his entry into Mudajaya by acquiring a block of shares at 38sen previously followed by another block at 32 sen. He also subscribed to the 1st right issue at 17sen and converted all his warrants at 22sen. He also undertook to subscribed to all the shares according to his entitlement in the 2nd fund raising exercise at 17sen a shares. He now holds a big block of warrant with exercise price at 22 sen

7. My friend, if you are planning to buy Mudajaya at 10sen, it only means it is low cost but does not mean it is cheap.

8. If you have indeed purchased mudajaya at 10sen today, you would derive a sense of satisfaction and a mental comfort in the mind that you are smarter and better than Jerry who owned exceedingly 1.6b shares.

9 However, there is no guarantee that you will make a profit although it is seemingly possible. Let us be forewarned.
9 Trade wisely
6/9/2024

On 2/8/24 i wrote,
1.Mudajaya now has 2125m shares. At 12.5sen it has a market capital of RM255m. On 6th of August 531m new shares will be added and the enlarged capital will be 2657m shares.
Therefore the price would be RM255m divided by 2657m shares is 9.5sen theoretically.

2. Apparently, speakup disagreed
3. Today, the closing share price speakup for itself.

Trade wisely
5/9/2024

MSM -CP
1 Exercise price is 1.48
2 Ratio is 4 ; 1
3 Last day of trading 28/8/24
4 will be suspended 30/8/24

Current share price 1.22
Hence, the call warrant will die out of money tomorrow.
It also means it will become worthless.

Question?
WHY ARE YOU STILL QUEING TO BUY AT 2.5sen , 2sen and 1.5sen for something that is worth nothing tomorrow.

If you think acquiring investment knowledge is expensive, ignorance could kill you.

Still queuing? Are you?
The choice is yours. Trade wisely
27/8/24

Mudajaya now has 2125m shares. At 12.5sen it has a market capital of RM255m. On 6th of August 531m new shares will be added and the enlarged capital will be 2657m shares.
Therefore the price would be RM255m divided by 2657m shares is 9.5sen theoretically.

2. For those who are attracted by the sweetener of free warrants and opted to pay 17sen for the right shares whereas the mother shares is trading at 12 sen is unwittingly wasteful. It is unthinkable anyone would want to subscribe to the right shares and much less the excess shares. Yet, it happened and is true.

3The warrant has a life span of 3 years. The exercise price is 22 sen. Considering that the share is trading at 12sen it therefore has no intrinsic value,

4 Warrant has 2 price components. The intrinsic value and time value. When market opens on the 6/8/24 it will be interesting to see how much investor would value the warrant with 3 years of time value.
5. It will not be good.
Trade wisely
2/8/24

This article first appeared in The Edge Malaysia Weekly on July 15, 2024 - July 21, 2024

THE federal government is said to be mulling over the removal of Ekovest Bhd (KL:EKOVEST) as the project delivery partner (PDP) of the long-delayed River of Life project, which is facing cost overruns, sources familiar with the matter tell The Edge.

Ekovest’s wholly-owned KL Bund Sdn Bhd is the PDP, project coordinator and manager of the RM4.4 billion River of Life project that was launched in 2011 under the Economic Transformation Programme for Greater Kuala Lumpur to transform about 800ha of the Klang River and Gombak River basins into habitable waterfronts with high economic value within seven years.

“I think the decision [to terminate] could be finalised soon and Ekovest may or may not be aware of it but this comes after the Auditor General’s Report on Federal Agencies’ Activities 2024,” a source says.

The recently released report states that the River of Life project is behind schedule with none of its objectives having been achieved in 13 years, although some RM3.92 billion or almost 90% of the allocated RM4.363 billion has been spent.

The River of Life project is under the supervision of the Federal Territories Department and involves 12 components, which are still in the pre-implementation stage. There are also eight components with completion rates of between 21% and 97.3%, the AG’s report notes.

According to the report, none of the project’s objectives has been fully achieved, in particular improving river water quality. The government’s plan to generate up to RM4 billion from land sales to help finance the project had failed due to lower-than-expected proceeds.

2. Is this the reason for the volumn and volatility ?
23/7/2024

1.Ekovest is the project manager for the enormously huge project called River of Life. The job is to clean up the Klang river and Gombak river that would result in the value appreciation of all the land along the river banks.

2. It has been 10 years since then and a recent report by the Malaysian Auditors General claims that the rivers had not been cleaned and the many KPI for the project of river of life are not met.
3. This information could have dampened the sentiment and prompted the volumn and volatility
4 This is my personal perception and it is not intended to influence your trading strategy and decision.
5. Trade wisely
23/7/24

1.Trading of rights will begin on 10/7/24 and that is tomorrow. Considering that the right share is priced at 17 sen and the current market price is 14.5 sen, the rights therefore has no intrinsic value.
2. It is worthless. In addition the fund raising exercise is specifically intended to pay off cement factory acquisition debts has further dampened market and investors' interest.

3. On the plus side , the management is addressing the long overdue debts issue. Once this is resolved and when the property and construction industry in China improves and the demand for cement is forthcoming, M company could potentially recover and slowly bounce back.
4. Unfortunately, in the immediate term a V shape bounce back or a significant recovery is not expected.

5 Investment is about efficient allocation of capital resources. There is a difference between price and value. At 15 sen it is a low price but not a cheap price.
Die hard investors, it is time to move out and move on.

6.Mr Columbus. it is not a bad idea to sail out and to conquer new promising and prosperous territories elsewhere in Bursa.
7. Trade wisely.
9/7/2024

1.Finally the rabbit has come out of the magical hat.
They settle part of the Real Jade acquisition debts by issuing new shares.

2. The amount is 55m and the consideration price is 22sen. Hence, the seller was given 250m new shares.

3. Minority shareholders immediately suffer a proportionate share dilution. In some way they actually help to pay the seller. This also means the company does not have sufficient cash to discharge the acquisition price. Considering the on going situation, it is not surprising that the seller is willing to accept new share as payment and agreed to the consideration price of 22 sen whereas the quoted share prices have been languishing between 13.5sen to 16sen

4 In the coming days, the company will continue to undertake a right issue exercise to raise fund to discharge the remaining debts.

5 You can read about it and find out the details in their circular to shareholders.

6 Until the debts are resolved and the the property and construction industry in China improve and the acquired cement company begins to generate meaningful revenue and profit, one should not be overly excited about M despite it selling at low price.

7 There is a huge difference between low and cheap. Think about it.

8. This is my personal and layman perception of the counter. It is not a recommendation to buy or sell and much less intended to influence you investment decision.

9 Trade wisely
21/6/2024

1Today is the ex date. And to those who have kept their shares, congratulation you have been rewarded with one bonus shares for every 3 shares held.

2 Consequently, there will be price adjustment arising from the corporate exercise of bonus issues.

3 Yesterday, seng fong closed at 118. Hence, the reference price on ex date 6/6/24 will be (3 x 118) / 4 = 88.5 sen This simply means yesterday you have 3 shares worth
3 x1.18 =3.54 and this morning you have 4 shares worth 4x 88.5 also = 3.54

4 Wait for the company announcement and check your portfolio. In the coming days the shares will be credited into your account.

5. Going forward one could expect more excitement. SF has a 50% dividend policy. It has upgraded its production capacity from 160000mt to 190000mt. Company has invested heavily on technology and automation to improve on efficiency and productivity. There will be cost saving and improvement on bottom line.

6.And hence earning growth is realistically expected in the coming quarters. Somedays the future profit performance will be reflected more prominently in the share price. For this one would have to wait and i believe it will not be long.

7 There is nothing wrong with SF falling from 118 to 88 this morning. In fact it opens up an opportunity for you to enter cheap in a big way

8 This is my personal perception of the counter but the bears may disagree.
9 Happy trading
6/6/24

1.Seng Fong not only survived the adage *Sell In May and Go Away*. Clearly, it has demonstrated resilience and triumphed over market adversity. Share price has stayed above 120 continuously.

2. As it sails into the month of June and moving towards bonus ex date, it will continue to attract market interest and buying supports.

3. Major shareholders through its flag ship company continued to scope up shares is a strong indication of confidence over the bright prospect in the future revenue and earning growth of the company.

4. The cumulative 9-month profit of Rm40.8m for 2024 has already surpassed the full year profit performance of 22m for year 2023.

5. If the final Q4 is to mirror Q2 17M profit and Q3, 15M profit than the year end profit for 2024 of 56m is realistically expected. Revenue and profit for 2025 could be explosive.

6. Seng Fong started off as a relatively unknown. It is now a promising counter and slowly and gradually becoming a raising star in the natural rubber and latex industry

7 As long as people need to drive cars, there is demand for tyres and therefore the business of Seng Fong is sustainable and durable

8 SF has all the ingredients of a long term value investing stock and hence, it is wise to stay invested. One would be unwittingly reckless to exit prematurely.

9 Share price may fluctuate up and down, but slowly and surely in the end it will conquer Everest.

Think about it and happy trading.
30/5/24

1. Astino has been buying back its own shares regularly and persistently.
When and why does a company undertake share buyback and what are the implications?

2. When the company believes that the current trading share price is far below the intrinsic value of the company, it will commence to buy back its own shares from the open market.

3 In order to undertake shares buyback, the company must have sufficient cash and cash balance. And Astino has Rm111m cash.

4. The effect of share buyback will reduce the number of shares in circulation in the market. Hence, when the number of shares in market circulation is reduced, the earning per share EPS will increase and theoretically, share price shall rise.

5. What does a company do with the buyback shares?.

6 The shares buyback shall be kept as treasury shares. The treasury shares can be canceled and thus, permanently reduced the issued and paid up capital of the company.

7. The company may chose to resale the treasury shares at a higher price to realize a substantial profit.
8. The company may also chose to reward its shareholders as in Astino to distribute dividend in species to its shareholders.

9 As for Astino, the cumulative net outstanding treasury shares as at 23/5/24 is 8,170,105 shares or 1.65%. If the buyback persist on and Astino subsequently manages to buyback 2% of its capital, than it is capable of rewarding its shareholders with a share dividend in the ratio of 1share for 50shares held. For this you must wait. Since, listing until now, Astino has rewarded its shareholders with share dividend 5 times.

10. Although there is no announcement yet, i believe it will happen slowly but surely.

10 Share buyback is good and should be undertaken as and when necessary.
11. Happy trading
24/5/24

1Tomorrow is the ex-date for 1.5 sen dividend
Congratulation to those who are still invested in Seng Fong.

2. The next good news will be the bonus issue. It is happening.
3Hang on to it
Happy trading
16/5/24

1 On the 7th of May after which Seng Fong has announced a 3 fold jump in profit against its last year corresponding quarter, share price hit 122 and then strongly collapsed 9 sen to touch an intra day low of 113 and ended the day at 115 over considerably huge volume exceeding 5million shares traded.

2. There were volume and volatility and the 9 sen retraction on a single day has been the biggest and worst in Seng Fong.

3 Many may have taken profit and presumably laughing to the bank. Personally, I am of the opinion that if you can't handle Seng Fong at its worst, then you sure as hell don't deserve Seng Fong at its best.
Seng Fong is trading between 113 and 116 now. Somedays. it will bounce back slowly and safely.

4The dividend is just a week away and the bonus shares are forthcoming.

5. Hence ,If you are a long term value investor, you should not overly worry but, believe in the great fundamental, pro active, resourceful and result oriented management of the company.
6. Happy trading.

This write up was posted on 9/5/24

Astino has 111m cash, 144m inventories and 93m in accounts receivable. Hence, its total liquid assets and cash is Rm349m
2The company has short term and long term debts of 14m
3 When you take 349m minus 14m, you would notice that the total net liquid asset is Rm335m
4. The company has 493m issued and paid up share capital.
Hence, the liquid cash per share is 335m / 493m is 67sen

5. Considering that the share price is currently trading at only 63sen, it is an insanely and unbelievably a cheap bargain.

6 If you buy Astino at 63 sen, it is not only below its liquid cash per share of 67 sen you also get 181m of properties, plant and equipment plus 47m of investment properties or a total of 228m assets for free.

7 WOW, Is there a big fat toad jumping all over the streets?.

8 You decide.
Happy trading
14/5/24

1 Tomorrow is the EGM to obtain the shareholders' approval. Thereafter, the company will announce the ex date. The bonus issue has become a clear certainty after tomorrow.

2. Last Friday seng fong closed at 117 down 1 sen. With the bonus shares and renew buying support from the market, I believe the share price could reach new height and sustain at elevated level.
3 The company will announce its result in the month of May. In the 2nd quarter it made 17.4m and EPS 3.35sen and declared 1.5sen dividend. If this is served as a guild than SF will announce 17.4m or higher profit performance in its 3Q.

4. The company has a 50% dividend policy, hence it is realistically expected that loyal and steadfast shareholders may get to enjoy additional 1.5sen dividend in addition to the bonus shares.

5 Many good things are happening in SF.
Ride on the news and benefit from it.
6. This is my personal perception and it may or may not reflect the true situation of SF in the coming weeks.

7 Happy Trading
5/5/24

1Sumber Panji Sdn Bhd (SPSB) is on a buying spree. In two 2 days it has acquired a total of 1,494,300 shares.

2Why is SPSB aggressively buying its company shares and increasing its stake ?

3. You may be aware that before the private placement Seng Fong has 518.91m shares and SPSB effectively holds 59.39% of the issued share capital.
4 Upon completion of private placement of 22,281,000 new shares, the enlarged share capital become 541.19m shares.

5. To avoid dilution of shareholding SPSB needs to buy back its company shares. Considering the enlarged capital is 541.19m and to maintain its original shareholdings of 59.39% , it must directly own 541.19 x 0.5939 =321.41m shares.

6. After 2 days of buying seng fong in its filing announced that SPSB now has 318.72m shares.
7 The short fall is 321.41m minus 318.72m is 2.69m

8. Therefore, it is reasonably expected that SPSB will continue to mop up 2.69m shares from the open market to preserve its original shareholding of 59.39%

9. Hence, the share price will continue to climb and sustain at elevated level leading into its EGM and announcement of its ex date for the bonus issue.

10. This is my perception of Seng Fong and the implication of SPSB aggressively buying back its own company shares.

Happy Trading
30/4/24

1.We have divested from Ekovest since Jan 2024 and moved into other counters that can generate impressive profits and return on investment. In a short span of time we are truly delighted and blessed with a bank full of latex, processing and selling processed rubber sheet SMR to the tyres and auto industries since Jan 2024 with remarkable and commendable result.

2.Now let's get back to Ekovest.
The counter has just completed a Double Top pattern and formation that began on 24/8/23 and cumulated to the top on the left on 25/9/23 at 61 sen. It than began to fall and on 13/10/23 settled at the neckline at 44 sen.

3. It consolidated for 7 weeks and began its climb again on 7/12/23 and reached the second Top on the right on 15/1/24 again at 61sen in which Tan Sri has seized the opportunity to dispose 6m shares. Thereafter, it resumed its decline and on 4/3/24 the counter reached the neckline again at 44.5sen

4. That completes beautifully the Double Top pattern and formation of Ekovest. Where does it go from hereon?. I truly do not know. But it is quite certain according to the candlesticks chart ekovest will move into consolidation and trade sideways in the coming days or weeks. Nevertheless, let it be forewarned, double top is a bearish pattern and formation.

5. However, if it breaks the neckline from above to below than, the immediate support is at 41.5sen and the next formidable support is at 36sen. So bear in mind and you have been forewarned. However, there is no need to panic. Again I could be completely wrong.

6. Technically, the 9 days MA line has crossed over the 26 day MA line from above to below on 7/2/24 at 55 sen. This is a dead cross and the gap between the 2 MA lines has widen and continued to worsen. It is seriously alarming that in the last 10 trading days the share prices had declined below both the 9 day and 26 day MA lines.

7 The MACD or moving average converging and diverging indicator is looking equally bad. The MACD line has crossed over the signal line from above to below on 29/1/24. The gap between the 2 lines continued to widen and the solid red histogram which is a measure of selling momentum is expanding. Hence, the MACD indicator has indicated that the worst is yet to come.

8. The Relative Strength Index RSI is currently at the hugely oversold 30 points level. In the absence of positive news flow and worthy catalyst it could remain languishing at the oversold level for a prolonged period of time.

9 Considering that Ekovest is still a loss making company, and the highway to profitability is delay for the next 2 years and there have been no news and update on the due diligence involving the mega proposal hence, it may not be a bad idea to divest and allocate more efficiently scare capital and resource elsewhere.

10 No matter how deeply you love a company, one should not be inextricably entangled in emotional value. We should only be bonded by intrinsic value.

11.And sadly Ekovest has none in the meanwhile.

12. What would you do tomorrow?.
The choice is yours.
Trade wisely
29/4/24

1.The director through its flagship company Sumber Panji Sdn Bhd has further consolidated its position and shareholdings in Seng Fong by acquiring 825,200 additional shares.

2.Directors and insiders purchases are a sign of confidence and positive conviction in the prospects and future earning growth of the company.

3 These are the people who know best and have the most up to date information about their company. Hence, directors buying its own company shares and continuing in its efforts are certainly worth examining and following.

3. One of the greatest investors of all time Peter Lynch was noted as saying

" insiders might sell shares for any number of reasons, but they buy them for only one reason ; "THEY THINK THE PRICE WILL RISE".

4. Directors surely know something about the company that we don't know. So, ride on their knowledge and expertise and profit from it.

5 The EGM for bonus shares is on the 6/5/24.
Hi guys get into action and excitement.

6. This is my personal and laymen perception of the counter and it is not a buy or sell recommendation and certainly not intended to influence your investment strategy and decision.

Happy trading
29/4/2024

The corporate exercise to raise fund through a private placement has completed. The available allocation for the placement shares is 51.8m.

2. Very fortunately to minority shareholders the company only aspired to sell 22m shares instead of the entire possible allocation of 51.8m shares.

3. This is a positive and intelligent management endeavor to limit the share base and to minimize share dilution.

4. The outcome of placement shares is favorable to minority shareholders and those steadfast long term shareholders and founder as well.

5. The company has very strong balance sheet and generate healthy positive cashflow. Going forward, it is hope that the management would abandon the idea of second tranche and limit the negative impact of share dilution arising from the enlargement share capital base

6. In the coming days, the share price will be supported at the elevated level by the bonus shares of which the EGM has been fixed on 6th May 2024.

7. The 50% dividend policy and the remarkable and commendable performance in revenue and profit for 2024 and 2025 will boost share price in the days to come.

8. For the 1Q the company generated a profit of 8.3m and for the 2Q the company made 17.4m in profit for a total of 25.7m in 6 months. If this is taken as a guild the year end annualized profit would be 51.4m say 52m. Hence, a 50% dividend policy would mean 26m will be marked and distributed as dividend.
Next year might even be better.

8. This is my personal and laymen perception of the counter. It is not intended to influence your investment decision and strategy.
9 Happy trading.
26/4/2024

1.The 1 for 3 bonus shares have become a near certainty. The extra general meeting to obtain shareholders' approvals has been fixed on 6th. May 2024. Investors who has the strength and stamina to hold onto the shares will be rewarded handsomely.

2. It is surprising that there has been no news on the placement shares considering that the EGM for bonus shares is just 3 weeks away.

3. Market is anxiously waiting for the news and development on the placement shares. Once it is done, the new shareholders with a 10% stake in the company will will have and interest to sustain the share price at elevated level.

4. Seng fong for the past few trading days had closed between 106 and 109 with intraday height reaching 111 on considerably big volume.
5. Once, this is broken, better days are forthcoming.

6. Happy trading
15/4/2024

1.No one would respect you and your one line utterance of *pp will kill u* until you support it with an analysis and substantiate it with facts and numbers.

2. In the spirit of sharing, learning and earning together and for the benefits of fellow members in the forum, Lee YY could you write an analysis to enlighten us in what way and how PP would kill anybody.

3. In the meanwhile, many and I remained undeterred and unperturbed by your single line expression.

4. The ball is in your court.
Awaiting your response.
22/3/2024

1. Lee SK has a string of corporate exercises. In addition to the 3.5sen cash dividend and one for 25 dividend in species it has again on 14/3/24 announced in is filing with Bursa to reward its long term shareholders with a bonus issue. For every 2 existing shares you will be rewarded with 1 bonus share on a date to be determined subsequently.

2. Despite the positive news, share price did not move much yesterday. Where do we go from here?.
3. LEE has EPS of 8.13sen say 8sen. Before the announcement of cash dividend, share dividend and bonus shares the price was 70sen. Hence, the PE multiple then was 9x. Share price usually trade in advance of fundamentals and it has gone up to 1.20 leading up to its filing with Bursa. At this price ,the PE was 15x

4. It gradually retracted and upon announcement yesterday share price did not move much and close at 108 and a PE multiple of 13x.

5. What will happen next?
The company now has issued and paid up capital of 167m shares. Upon completion of corporate exercise, the issued capital would enlarge from 167m+6.7m+86.8m =260m shares.
6. The company last year made 13.6m net profit. To ascribe a future value for Lee, let's assume the company is able to sustain an earning growth by 25%. Therefore the year end profit will be 13.6 x1.25 =17m
7. Hence, the EPS post bonus would be 17m divided by the enlarged capital 260m is equal to 6.8sen

8. Now, A PE of 10x would price it at 68sen and PE of 11x would value it at 75sen post bonus.

9 with this line of reasoning, we can logically assign a pre bonus value to the shares calculated in this manner.
If the PE is 10x simply take (68 x3)/2=RM1.02
if the PE is 11x simply take (75x3)/2= Rm1.12

11. LEE sk closed at 108 yesterday. In my opinion, it is fully value.

12. This is my personal and layman perception of the corporate exercise and its impact on share price. It is not intended to influence your investment decision and strategy.

13. Have a good day and happy trading
15/3/24

In its filing with Bursa several months ago.
15/3/24

1. The company has some time ago acquired Real Jade a cement company in China for RM240M of which it is still owing Rm119m including interest payment.

2. Mudajaya has a proposal and resolved to undertake a right issue together with free warrant to raise sufficient fund to pay the creditor, Real Jade.

3. The right share has been fixed at 17sen and ever since the share price has tumbled down and for several weeks has been languishing without volume at 13.5sen until this morning.

4. It is not difficult to understand why they must push up the share price to 17sen and slightly beyond in order to attract potential investors to subscribe for the right shares.

5. For any price below 17sen, no one would subscribe to the right shares and the fund raising exercise would fail and the debts will not be paid. There will be implication and consequences.
6. In my opinion, this is the reason for the sudden volume and volatility this morning.

7 There is trading opportunity but the risk is enormous.
You must hit and run to profit from it.
8. I shall refrain.
14/3/24

1.Today is the ex date and for those who have kept their shares congratulation, you are entitled to 1.5sen dividend.

2. Good days have arrived and better days are still ahead of SenFong.

3.By tomorrow it will be exactly 3 weeks in which the company has submitted its proposal to Bursa for the 10% placement shares and the 1 bonus share for 3 existing shares.

4. Traditionally, Bursa will respond within 3 weeks and that means SenFong could reasonably expect to receive its approval.

5 In the coming days when the bonus issue becomes a certainty, there will be volume and volatility.
6 Enjoy the ride and profit from it.

Happy trading
14/3/24

1.Humpty Dumpty sat on the wall. Humpty Dumpty had a great fall from 145 to an intra day low of 106 and bound back to close at 125.

2. Considering that Ctos has 2310m shares and at the closing price of 125, it has collapsed 20sen. This also mean RM462m has been erased from its market capital.

3. At one point in time when share price hit 106 it has fallen 39sen. That means RM900m was wiped out from its market capital all because of a court case that required Ctos to pay RM200K in damages.

4.This is the Suriati effect. The impact is brutal and fatal.

5. Don't mess around with pretty woman.
Happy trading
12/3/24

1.There is value in SenFong and you have been enlightened since Feb 26th.

2.Share price has gone up from 77 sen to an intra day high of 1.03 and closed at 99 sen today. That is a spectacular rise of 28.5% in 3 weeks and an incredibly impressive performance.

3. What would you do tomorrow?.
If you keep your shares until tomorrow and the ex date is 14/3/24 hence, you are entitled to 1.5sen dividend.
4. Perhaps you are aware that the company has submitted a proposal to raise fund by selling 10% new shares through private placement and a 1 for 3 bonus shares to reward its loyal shareholders.
5. In light of the forthcoming corporate exercise, it may not be a bad idea to stay invested and ride on the positive news and profit from it.
6. All the best.
Happy trading
12/3/24

1.We have divested from Ekovest since Jan 2024 and moved into selling chickens and eggs. In a short span of time we are truly delighted and blessed with a bank full of protein. And now we are at the very initial stage of processing and selling processed rubber sheet to the tyres and auto industries since 26th. Jan 2024 with remarkable and commendable result in a week.

2.Now let's get back to Ekovest.
The counter has just completed a Double Top pattern and formation that began on 24/8/23 and cumulated to the top on the left on 25/9/23 at 61 sen. It than began to fall and on 13/10/23 settled at the neckline at 44 sen.

3. It consolidated for 7 weeks and began its climb again on 7/12/23 and reached the second Top on the right on 15/1/24 again at 61sen in which Tan Sri has seized the opportunity to dispose 6m shares. Thereafter, it resumed its decline and on 4/3/24 today, the counter reached the neckline again at 44.5sen

4. That completes beautifully the Double Top pattern and formation of Ekovest. Where does it go from hereon?. I truly do not know. But it is quite certain according to the candlesticks chart ekovest will move into consolidation and trade sideways in the coming days or weeks.

5. However, if it breaks the neckline from above to below than, the immediate support is at 41.5sen and the next formidable support is at 36sen. So bear in mind and you have been forewarned. There is no need to panic. Again I could be completely wrong.

6. Technically, the 9 days MA line has crossed over the 26 day MA line from above to below on 7/2/24 at 55 sen. This is a dead cross and the gap between the 2 MA lines has widen and continued to worsen. It is seriously alarming that in the last 10 trading days the share prices had declined below both the 9 day and 26 day MA lines.

7 The MACD or moving average converging and diverging indicator is looking equally bad. The MACD line has crossed over the signal line from above to below on 29/1/24. The gap between the 2 lines continued to widen and the solid red histogram which is a measure of selling momentum is expanding. Hence, the MACD indicator has indicated that the worst is yet to come.

8. The Relative Strength Index RSI is currently at the hugely oversold 30 points level. In the absence of positive news flow and worthy catalyst it could remain languishing at the oversold level for a prolonged period of time.

9 Considering that Ekovest is still a loss making company, and the highway to profitability is delay for the next 2 years and there have been no update on the due diligence on the mega proposal hence, it may not be a bad idea to divest and allocate more efficiently scare capital and resource elsewhere.

10 No matter how deeply you love a company, one should not be inextricably entangled in emotional value. We should only be bonded by intrinsic value.
And sadly it has none in the meanwhile.

11. What would you do tomorrow?.
The choice is yours.
Trade wisely
4/3/2024

1.Ekovest has just announced its 2nd quarter result. The numbers are bad and alarming.

2. I have written extensively and fundamentally about Ekovest. The company has great dreams but small value. It works hard but produce no result or negative results.

3. You have been forewarned repeatedly to get out months ago. Nothing good happens here. Bad days have arrived and the worst days are still ahead of them.

4. This is a short posting. I wish to end it by informing that the 4 months time period allocated for the due diligence of the mega proposal to reorganize, rationalize and merger of sisters companies is due on 27th Feb. 2024

5. There is no announcement and follow up news. It is not forthcoming. Where is the management commitment. Are you truly forgiving and continue to stay invested. Think again and think wisely.

6. The choice is yours.
28/2/24

1. What are you, Ekovest?
Historically in its heyday, Ekovest has ever achieved an annual profit of between 110m to 156m during the period from 2016 to 2019. However, in the last 2 years of 2022 and 2023 the company has suffered enormous losses of -124m and -110m respectively. For the 1Q2024 it has demonstrated a green shoot of recovery by reporting a tiny 3m in profit.

2. The company is schedule to report its 2nd quarter earnings by the end of Feb 2024. Investors are still waiting anxiously. I shall refrain from speculating and commenting with facts and numbers on the forthcoming result.

3.However judging by the trading volume and volatility and its persistent fall in share prices, it is anything but good.

4. The earning track record of Ekovest over the years had fallen from spectacular to great and from great to good and from good to mediocre and slide further down to rotten in the current time.
5. You would tend to agree with me the expression that said *nothing except profit would drive up the share price*. Hence with the depressed profit performance it is not surprising that the share price is persistently moving to the south and accelerating it its speed.

6. Ekovest is therefore a company without earning growth and not even slow growth. Expecting it to report impressive earning would end up in despair.

7 Ekovest has great asset and value as in the DUKE and SPE highway. Because, the monetization of highway has been extended for 2 years, hence ekovest is not expected to wake up to Bursa on asset play and highway to profitability is not expected. The reason why share price is not moving up.

8. Technically, at the closing price of 48.5 sen the cup and handle formation has been destroyed. It is looking more like a double top with the neckline at 43.5 sen. The worst is yet to come.

9. Company and business move following a cycle. It gets out from rotten stage to recovery to good and great and then spectacular and block buster earnings.

10. None of these description fix Ekovest. If it is neither this nor that, than what is Ekovest?
It is a group of shrewd people organizing a party of the year. Ekovest is a huge party and all of us are invited to the ball. You may have great joy and laughter but have been forewarned you must leave the moment Tan Sri left. Otherwise, there are consequences

11. Sadly, many got drunk by the music and overstayed the party that is continuing to speculate in ekovest that has no earning growth, no slow growth, no highway asset play, no cup and handle, no turnaround story.

12. This is like what Warren Buffett had said in his annual letter about Cinderella that we could learn for investing and that is overstaying or continuing to speculate in a company with lofty valuation will eventually bring on pumpkins and mice.

13. This is my personal perception and opinion of the counter. it is not a buy or sell recommendation and not intended to influence you investment decision.

14. I could be completely wrong.
Trade wisely
26/2/2024

1.Seng Fong never has a good day since its listing. Its share price has been loitering below IPO price for a prolonged and frustrating period. Today it has awaken and opened with a 2 sen gap up. It has attracted considerably huge buying interest and closed the day with a bullish engulfing candlestick at 81 sen.

2. In the last three quarters, SF reported profit of 2.97m in 4Q23, 8.29m in 1Q24 and 17.4m in 2Q24. Clearly the profit performance for SF has moved from mediocre to good and from good to great. The management in its advisory statement on the future and prospects of the company believes that it earnings will be spectacular and sustainable in the coming quarters.

3. In the 1H, the substantial rise in revenue and profit was attributed to the upgrading of production capacity arising from technology and automation as well as the implementation of factory operating time from 12hr shift to 18hr shift.

4. The additional hours of operation had permanently increased the production output from 166mt to 190mt annually.

5.The hard work and improvement effort undertaken by the management has begun to show up and reflected in the current remarkable and commendable result announcement of 17.4m as compare to 6.9m in the corresponding quarter last year.

6. For the 1H24 SF has accumulated profit of 25.6m. If SF is able to maintain its profit performance, than its year end earnings would be 51.2m. The company has issued and paid up share capital of 513m therefore, the EPS is 10sen.

7. The current bursa PE of 30 blue chips companies is between 13x to 15x and considering that SF being a relatively unknown, yet a PE of 11x would potentially value SF at Rm1.10 by year end.

8. Hence, basing on this analysis and valuation the upside potential of SF in the foreseeable future is astronomical. Therefore, it is unwittingly wasteful to dispose when SF has just only waken up to bursa. The selling would be somewhat pre matured.

9. The company has a dividend policy and the payout ratio is 30%. It has declared a 1.5 sen dividend and the ex date is on 15/3/24. The dividend payment date is on 5th Apr.2024

10. SF has also announced that it will undertake a bonus issues to reward its loyal and long term steadfast shareholders. For every 3 shares held, investors will be rewarded with one bonus shares on a date to be determined later.

10. In the meanwhile the company will undertake a private placement to place out 10% or about 51.3m new shares to selected investors or institutional funds. The indicative placement price is 75sen and SF is aspired to raise Rm38.5m.
Fund raising through private placement is fast, efficient, interest saving and less burdensome. There is no interest payment and absence of repayment of principle amount or borrowings.

11. It would be interesting to see who subscribe to the 51m placement shares. What transpire that motivates the subscribers and the reasons and great confidence they have on the prospect of the company and future intrinsic value ascribed to SF.

12. New investors have awaken to Seng Fong's remarkable and commendable profit performance. Good days have arrived and the best day is still ahead of the company.

13. There is value in SF. You have been enlightened.
Are you still sucking your thumb?. The choice is yours.

Happy trading
26/2/24

1.What are you and what are your criteria for stock picks?. Specifically what are the reasons that have led you to acquire Ekovest?.

2. Number 1, if you are like Warren Buffett who reads extensively all details in the company's annual report to unmask the strengths and weaknesses who than buy and never sell shares, than you have nothing to worry about. Have a cup of coffee, go to a movie and stay away from the screen and never have to look at the price of Ekovest again. And years later laughing to the bank. But, there is only one Warren Buffett in this world.

3. Number 2, if you are a lazy investor who does no personal research and having a self imposed hypothesis like HuatRex that investment theories are boring, monotonous and useless and have acquired Ekovest basing on the hot tips generated by trusted research house that Ekovest is on a highway to profitability with target price 116, than you must beware.

4. Notice that Ekovest in its filing with Bursa announced it has secured an extension of time with EPF for two years to monetize the highway assets. This means it is not happening in the foreseeable future.

5The criteria of your stock pick is not materializing or the company has become somewhat different from what you originally intended it to be. Would you still wait two years or jump off the wagon. The choice is yours.

6. Number 3, if you are a technical chartist and have acquired Ekovest believing in the bullish candlesticks cup and handle pattern and formation, many are concern and anxious that the cup and handle is been delayed or destroy. The next possible pattern could be a double bottom and share price could gradually move down to 43.5 sen.

7. Again the criteria of your stock pick is not materializing or delaying and has become somewhat different from what you originally intended it to be, would you still risk and agonize over the possibility of a double bottom. The choice is yours.

8. Number 4, If you are a fundamentalist and believe in the projected excellent prospect and earning growth of Ekovest would drive up share price, than you need to look into its segments of business and its contribution.

9.Besides the highway, the RTS and the land bank there is really not much activities or new projects or economic endeavors seriously undertaken by Ekovest. Upon completion of the highway, the construction expenses cannot be capitalized and hence it must be expended and that would have a negative impact on reported earning in the coming quarters. Company is schedule to announce its result by end of month. Again, there may be earning recovery with minor improvement but a stellar performance is least expected. Therefore expecting a sharp rise in share price driven by earning growth may end up in despair.

10. Number 5, if you are a strong supporter of TS and has acquired Ekovest believing in his mega proposal to reorganize rationalize and merger of sisters companies than you must understand the sequence of events in which i have delved with extensively in my previous posting and monitor its progress.

11. By 27th Feb, it would be 4 months since the acceptance of the mega proposal. Ekovest has an obligation to advise on the progress and completion of its massive due diligence. Hopefully there is no extension of time otherwise, it is not a positive news for the proposal and the company.

12. Investment is about opportunity cost and efficient allocation of capital and resources. And opportunity cost is the benefit forgone for choosing the next best alternative. In simplicity, it means with the limited capital and having purchased Ekovest, you can't buy another counter say Yinson for example.

13. Notice that in the 9 months YINSON has generated a revenue of 8.9b and accumulated profit of 686m. That means you have forgone 686m profit to buy Ekovest that only earns 3m in Q1.

14.HuatRex, if you come with an open heart, open mind and eyes, you would see and feel theory may not necessary be boring and useless. It may not guarantee that one would make money but when you make decision base on logic and consistency you reduce risk possibly avoid headache and heartache.

Happy trading
18/2/2024

1.Stop monkeying around. There is no banana on the highway of Ekovest.

2.Have not seen or heard you before. From where did you swing over.
Your suggestions are unwittingly wield and you ape mischievously.

3. You may hang around, but I have stopped to entertain you from hereon.
14/2/24

will75
1.You don't call the shot.

2.It is a free world.
I can write anything i like
and post any where i wish.

3. Mind your own business.
14/2/24

1.Writing and posting on i3 is my pastime and hobby. The short write up reflects my personal perception and opinion of the counter. It is not a recommendation to buy or sell and certainly not intended to influence your investment decision and strategy.

2. I am not an expert and much less a professional.
3. I could be completely wrong. So, make your own decision.
Happy trading
14/2/2024

1.In securities analysis, there is a difference between positive news and good news.
On 13/2/24 i wrote and here it is.
*I am not pouring cold water. Today's announcement is not really a positive news.*

2. Positive news are news that would show the company's movement, progress and advancement towards its goal. Now Ekovest has originally set a goal to list and monetize its highway asset in 2016. This did not happen and the fact that it has applied for a 2 years time extension simply implied that it has not made any meaningful movement, progress and advancement towards its goal.
Hence, it is not a positive news.

3. On the other hand, a good news is a news that has beneficial impact and effect and would aggressively push up share price. Ekovest was trading at 52.5sen before the announcement of your definition of good news. After the announcement the counter closed 2 sen higher.
Does good news only push share price higher by 2 sen?

4.Notice that, according to some investment bankers and research house, the highway is worth close to 11b and after deducting all its debts, the value per share from the highway alone is between 1.49 to 1.69
The current trading share did not reflect this value and hence, it is not a good news.

5. It is not a positive news, and neither is it a good news. So what it is?.

Yesterday's filing and announcement on bursa is just a material information the company must disclose to its shareholders and the public on the progress and development concerning its contractual obligations with EPF. It is a listing requirement and part of the reporting regime.

6.Material information is information that has an impact and would affect the current and future prospects of the company. It must be communicated to the investors and stakeholders to enable them to make informed decisions.

7. The announcement has attracted some buying interest, but a helicopter rise in share price with speed and certainty is not expected in the foreseeable.

7. Investment is about opportunity cost and efficient allocation of scared resourses capital. If you search hard enough, diamond could also be found elsewhere.
Think about it.
Happy trading
14/2/2024

1. I am not pouring cold water. Today's announcement is not really a positive news.

2.Ekovest has divested the highway assets to EPF in 2010. It was structured with an exit clause of monetization. The announcement this morning served to confirm that Ekovest has failed in its ability to monetize the DUKE highway assets in which EPF has a 40% stake.
3.Hence, Ekovest is seeking an extension of time of 1 to 2 years from EPF to discharge its contractual responsibility and obligation.

4. If you have purchased Ekovest in anticipation of the monetization of Duke highway, it is not happening any time soon. Digest the news wisely.

5. Just like many of us I am disappointed too.
Happy trading.
13/2/24

1. A cup and handle is a very positive candlesticks formation and technically bullish price continuation pattern.
Can it fail?

2. Technically speaking the candlesticks cup is usually formed between 4 to 6 months and the handle would complete between 1 to 4 weeks. Psychologically, the handle is formed because some investors take profit at the edge of the cup after a mini bull run.

3.When the selling eased or ceased, new investors would come in to buy thus, pushing up the share price ,breaching the new resistance and shooting to the moon. Therefore, if the handle is to happens, it will be formed with speed and versatility. Otherwise, it would fail.

4.For Ekovest the cup that began in Sept 2023 was completed in Jan 2024 for a period of five 5 months. Sadly, after 20 trading days or exactly 4 weeks the handle is still not seen.
The bulls are not charging. Specifically it means Ekovest is not ready for a cup and handle formation at this point in time. Is there a reason?

5. It looks like the mega proposal to reorganize and rationalize and mergers of sisters companies that would turn Ekovest into a conglomerate and the potential monetization of the DUKE and SPE highway that has created enormous investors' interest and confidence to chase after the hot stock is slowly cooling down. It could dissipate in the coming months. Why?

6. You would tend to agree with me that nothing would drive up share price except profit. It is the greatest and strongest catalyst. Although Ekovest has turnaround with a 3m profit in the 1st quarter of 2024, it is still suffering from huge losses in a 4-quarter running basis. It has -3.64 sen EPS and trading at minus 14.15x price earning multiple. The numbers are discouraging and would put off any serious investors.

7. Further more, with the completion of SPE the company can no longer capitalize on the concessionary expenses. In addition, it has to provide depreciation and amortization for the new highway assets in the coming quarters. The earning will be negatively impacted. Until there is substantial rise in revenue and profit, share price would not soar. It may shoot higher manipulatively but it is unlikely to sustain. Just like what is happening now.

8. Despite its mega proposal, quality and value of its 3 highways, construction of RTS and potential unlocking the value of its land bank along the proposed new LRT route, yet investors are lukewarm, cooling off and indifferent.

9. Simply because these require lengthy process and precious time to execute and materialize. Many believe all these would take place only after the completion of the mega proposal when all the new shares are allotted to TS. Maybe towards the end of the year.
10. In light of the above, it is unlikely that Ekovest would experience a helicopter rise in the foreseeable future. Even TS is happy to dispose each time when share price moves beyond 60 sen.
11. Hence, It is not a bad idea to revisit this counter again when the company reports substantial rise in revenue and profitability. Better still, when the mega proposal has made some meaningful progress and there is also greater clarity and certainty on the monetization of highway assets.
12. Hope it helps.
7/2/24

1.Last week Ekovest was looking vulnerable and hanging at the cliff. Today at 51.5sen it has fallen off the cliff and the situation is undesirably painful. In the coming week or days there could be broken bones and blood spilt. Technically, there is a 50% Fibonacci retraction and hence, the cup and handle formation has been destroyed.

2. In an ugly and worst scenario, a greater pack of bears could come out from hibernation and continue with its rampage and destruction to shape a double bottom.

3. Going forward, the share price could progressively accelerate in its decline, and on a worst case scenario could eventually hit bottom at 43.5 sen forming the right bottom.

4.This expression of opinion has no malicious intent. It is an unbiased technical interpretation based on the candlesticks chart. Yet, it may or may not happen.

5. Technically, all other indicators are not gorgeous and nothing like Taylor Swift. The 9 day moving average is about to make a dead cross from above to below the 26 day moving average line. Share prices are accelerating in its decline and at 51.5 sen , it has fallen below both the average lines. This is bad and the bears are in control. There is no visible sign of fatigue.
6. The MACD indicators are more damaging. The MACD line has crossed over the signal line since 17th Jan 2024. The gap between them has progressively widen over the last few trading days. The red histogram is expanding and this means the momentum is accelerating and the selling is continuing. The worst is yet to come. There could be headache and heartache.

7. The RSI relative strength index is trending downwards and according to the chart it has drifted below the 50 point neutral level and advancing towards the oversold region. There is visible signs of weakness.

8. All technical indicators painted a lousy picture of Ekovest. The disposal by Tan Sri has dampened market sentiment ,damaged investors' confidence and destroyed the cup and handle formation.

9.In the circumstance, what would you do?
If you are a short term trader and had jumped onto the Wagen following Rakuten analyst report and chasing the target price of 1.16 you are caught and face an unpleasant paper loss. You could bite the bullet, dispose and cut loss and move on.

10. If you are a strong believer in ekovest, and subscribe to its mega proposal to reorganize, rationalize and merger of sisters companies and the eventual monetization of the quality and value of the DUKE and SPE highways than you should ignore the noise and stay invested.
11. The choice is yours.
Happy trading
5/2/2024