1.Consider yourself smart had you bought the share for 47.5sen in Dec 2022. It was trending upwards and all the way to hit its peak at 68.5sen. There is a 30.6% gain.

2 You can't say the same had you bought it today at 47.5 sen. The reason being that the counter is undergoing and right now in the middle of a major down trend. The worse is yet to come.

3. The collapse in share price over the past weeks clearly explain the 3Q result. Share price move ahead by weeks or months of news and fundamentals.

4 The fact that it bounce back 2sen despite a serious reduction in profit does not in any way alter the bearish candlestick chart.
5.There is no reason to overjoy and celebrate for a counter that has fallen from 68 to 44 and inch up two sen today.
6. Bear in mind, one swallow does not make a summer. In this case it opens up an opportunity to exit at higher price and lower pain.
29/3/23

Candlesticks chart flag and pennants formation, MACD cross over from above to below the signal line with wide histogram.
2. Moving average and the occurrence of death cross with daily prices falling faster and lower than the moving average line.
3. RSI below 25
4 Downwards flag and daily prices had broken through the pennants

5 All these are the signs and chart formations of PTRB. These are very bearish indicators and you have been forewarned numerous times.

6.This evening PTRB announced less than favorable quarterly result. Market will react and respond negatively. Selling will resume and price is expected to weaken

7.PTRB gradually gliding back to its IPO price of 36 sen is a near certainty.

8. Jump off the train to lessen the pain.
28/3/23

1.The critical determining factor for share price is earning and profit. When a company makes profit the share price will go up. And conversely, it will tumble when a loss is reported.
2. Share valuation is base on earning basis and certainly not dividend basis. Therefore, PTRB dividend policy is unable prevent the price from falling.

3.Look at Topglove, it pays very attractive dividend. However,when the profit is gone, the share price is not sustainable despite its dividend payout.

4. In short, dividend is like the ginger and spring onion on your steam fish.
It looks nice but nobody rush and much less fight over it.
28/3/23

1.PTRB closed 44 sen down 1.5sen with 3.6m shares traded today. Selling persisted and the falling momentum has gained strength.
2.The death cross that happened on 1st of march and the gap between the 9-day and 26-day moving averages had widen tremendously. Daily prices is falling faster than the moving average.
3.Today it has decisively pierced through the average line. This is a signal of greater fall to come basing on the interpretation of the candlesticks chart.

4. What is alarming and should not be taken lightly is the comparatively smaller volume traded compare to its active days with huge market participation.
5.The severe reduction in volume traded followed by falling prices tend to convey the message that the key player and its partners had already left the counter with enormous gains.
6. Graphically,the key man had started to unload its shareholdings beginning 16th Feb for 4 consecutive days over huge volume and again on 2nd march.

7.The sentiment for PTRB remains bearish and from hereon price could fall further and the quantum of fall will be impacted by the quarterly result and financial performance.

8. There is nothing wrong with the company. It is well managed and the business is profitable.
9.It is just that someone has identified the good company, played up the news,attracted huge retails participation, pushed up the share price, took advantage of the ignorance, sold out to take profit and caught many by surprise.
10.This is my personal perception of the counter.
27/3/23

1.Candlesticks technical chart remain very bearish. Nothing has changed since 14th. Mar. In addition the moratorium of a substantial numbers of IPO shares will be lifted tomorrow.
2.Weakness in share price expected. In the coming days if the announcement of quarterly result is below market expectation, prepare for pain.

26/3/2023

1. BSL has 75m share capital. On the completion of the fund raising exercise with right issues and free warrant the company has successfully raised additional 91m cash. Hence, the share capital has increased from 75m to 166m and the number of issued shares had ballooned 1.95b shares.
2. Together with the retained earnings and adding up the others reserve, the company has total equity of 241m.
3. The definition of PN17 implies that a company has continued to incur losses to the extent that its total equity is reduced to less than 25% of share capital with no or little working capital and cash balances. In simplicity, it means the company has lost 75% of its capital.
4 In the case of BSL it has 166m capital. Therefore, the threshold of PN17 would be 166m x 0.25 is 41.4m. BSL now has 241m in equity. That means it can continue to burn200m to fall into pn17. IF the company announces 10m losses year after year that would also take 20 years to kill them. Be care with what you write and try to support it with facts and numbers.
5. According to the circular dispatched to shareholders and to make a fair comment without negative bias, BSL has 12sen in net tangible assets, strong balance sheet and after the fund raising exercise it has added an unthinkable and yet it is true an amount of 91m cash in its bank balances.
6. So, It is indeed laughable that its share price closed at 4sen today. The explanation for this would be the value of a company and its share price does not depend on the value of its assets. It depends on the ability of the management to utilize the assets to generate revenue and profit. And sadly BSL has none. Share price and its valuation are based on earning basis and not assets basis.
7 Until BSL begin to make profit it will remain as a pathetic penny stock. In case you are not aware just more than a year ago BSL was trading near Rm1.45 and today it closes at 4sen. It is not children’s playground but a high risk and dangerous battle field. You could lose an arm or a leg. This is BSL.
8. In its last 10 years of business operations it has generated multi years of losses and even on the year that it made profit it was negligible. They are good at fund raising.
9. Now, the management has additional 91m cash at its disposal have you any idea how it would be spent. Are you not worry and concern?
10. Well, if you elect monkeys to provide security and safety to your bananas you must be prepared to be ridiculed and faced embarrassments.
15/3/2023

What is the price of warrant when it starts trading tomorrow?

1.Those who followed through the fund raising exercise would have subscribed 12k right shares at 5.5sen per share and received 5k free warrants.

2.Their cost of investment would be 12x55 is Rm660. Given that the closing price today is 5sen, therefore their shareholding has fallen to Rm600. There is a loss of Rm60

3.Warrant has two components value and that is the intrinsic value and time value. Given that the exercised price has been fixed at 5.5 sen,which is higher than the mother share it therefore has no intrinsic value.
4.So,the BSL warrant only has time value for a period of 5 years. How much is the time value is truly difficult to ascertain.

5. Instead we can look at it from this angle. The subscriber to the rights shares has lost Rm60 from the 12k share one has subscribed. And that means for each lot subscribed one would lose Rm5. Logically what is lost in the mother share must be compensated by an equal amount in the new warrants. Therefore the warrant is worth 0.5 or half sen.

6.The market may be willing to pay a small premium for the time value. Even it it happens, it will take a miracle for it to trade at any price greater than 2 sen. This is my personal perception. It may not be correct.

Happy Trading
14/3/2023

1.Silicon Valley Bank wound up. World Market, Stock Market, Everything Everywhere All At Once collapsed. PTRB burst out and bungee dive vertically towards the red ocean.

2. It opened at 50sen, inched upwards at 52.5sen and plunged to an intraday low of 44.5 sen and closed the day at 45.5sen.

3PTRB is trending on the candlesticks charts of a bear flag. Today at 45sen closing, it has broken the flag and smashed through the pennants from the upside to the downside with volume and volatility. Clearly the bears had rested and recovered its strength causing havoc again.

4. In the coming days, it will continue to charge more aggressively and violently. Enormous fall and greater damage are realistically expected basing on the technical analysis of candlesticks chart.

5. Share investments is not all the time about making profit. It is also about avoiding a loss from a counter that looks so palatable that you did not invest and ultimately turns out to be most deceiving and deceptive.

6. This posting is not a sarcasm and unintended to rub salt on a wound. Rather it is an attempt to forewarn that the worse is yet to come.

7. Be safe and avoid great exposure to danger.
14/3/2023

1PTRB had a spectacular bull run and price shot up sharply from 36sen to 68.5sen in the last 3 months. However, on 16/2/23 it experienced a first day reversal and price began to fall from its peak of 68.5sen over 4 consecutive days to hit a low of 57sen. Over the next five 5 trading days it recovered briefly to 63sen.

2 The bears resumed its course on 28/2/23 in which over 3 days PTRB had a sharp vertical price fall from 63sen to intraday low of 49.5sen and closed at 50sen. In the candlesticks chart this was the flag pole.
3 Thereafter, and over the next few days it consolidated in a parallel channel of ups and downs to form a flag. PTRB is now trending in a bear flag candlesticks chart pattern. Bear flag signals gloomy prospect and falling prices.

4 When the bears have rested enough and recovered its strength in the next few days or weeks, they will resume its rampage and further crash down the price.

5 The Company is expected to announce its 3Q result in March. Nothing except a set of good result could help to avoid the fall and salvage the damage. Otherwise, the collapse will be magnified.
6 Let the buyers beware and Caveat Emptor. Trade cautiously
10/3/23

1MN Holding has been listed more than a year ago. The initial public offer price was 21 Sen. Historically, the share price has hit 19.5sen low and peak at 40 sen. During this period the company has rewarded its long term and loyal shareholders with bonus issue of free warrants. For every existing 2 shares, you are entitled to receive 1 free warrant that has gone Ex and traded just two days ago.
2 If you had acquired 2 lots at 21 sen, your investment capital would be Rm420. You now have 2k shares trading at 28.5 sen and the warrant is price at 11 sen. The value of your investment slightly more than a year is valued at 2 x 285 =570 and 1k warrant is worth 110. Thus, the total value is Rm680. The value of your investment in MN has grown (680 – 420)/ 420 = 62%. A whopping 62%
3 Where do we go from here and what can be expected from MN?
In the 1Q the profit after tax was 1.19m over 27m revenue. In the 2Q revenue has jumped sharply to 41m and PAT increased to 2.58m. Considering that MN has secured strong order book of 356m with earning viability until 2025,it is therefore reasonably expected that the 3 Q could be better and final quarter stronger.

4 Basing on the positively increasing trend in revenue and profit, plus the energy and passion of the management to drive up revenue and push bottom line, a profit of 4m or even higher is realistically achievable in the coming few quarters. Thus the earning per share EPS will increase. The PE price earning multiple will compress and share price will continue to make advancement.
5 Notice that last month two directors disposed a total of 35m shares at 38 sen via off market transactions. This has created some worries and concern to the public minority shareholders. It is unnecessary. At some point in time when the price is right directors would sell and cash out to reward themselves for their hard work. It is not abnormal and not alarming. People do make adjustment to their portfolio and shareholding to realign with their current situation and preference from time to time.

6 Besides, the directors collectively hold 70% of the entire issued share capital. The shares are tightly held and in control thus rendering the counter relatively illiquid. This disposal is indeed healthy and would help to improve the liquidity and daily volume traded.

7 The company has made progress and the management has done well. This time it has managed to attract the attention of the Funds and Venture Capitalist. The company’s list of quality shareholders now include Proven Venture Capital PLT. Next target would be institutions and pension Fund.

8 The inclusion of Proven Venture Capital as substantial shareholders in MN and its continued existence with more than 20m shares is a comfort to minority shareholders. They are smart professionals managing investors’ fund and portfolio. They invest in young and dynamic companies with huge potential and enormous earning growth. They sure know more things about MN that we don’t know in its prospect and future, revenue and earnings growth and projects in the pipelines.

9 So, just invest with them.
I believe the next 2 quarters will be exciting and rewarding.
9/3/2023

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

2 According to the announcement, on 28th Feb Dato Toh acquired a total of 530m shares from the open market. Thereafter, MN surged upwards for 4 consecutive days from 25 sen to close at 29 sen today. That is 16% gain.
3. There is still money to be made if you dare. So,hop onto the wagon and ride freely with Dato and profit from it.

6/3/2023

1Basing on the technical candlesticks chart for PTRB,, the MACD line has crossed below the Signal line on the 20th Feb 2023. This is a bearish indicator and the momentum is likely to persist on. In addition, the gap between the MACD and Signal line continue to widen as indicated by the larger red histograms. The bearish momentum is building up fast and will gather strength in the coming days.
2 Two days ago the counter experienced massive sell down over huge volume. It has collapse from 59.5 sen to close for the day at 50sen with intraday low of 49.5 Sen. Technically, it has established a Death cross on 2nd Mar 2023 in which the 9 day Moving Average line has crossed over the 20 day Moving Average line from above to below and fast approaching the 50 day moving average.
3 A death cross is an important signal that should not be taken lightly and much less ignored. It is a trading pattern and chart formation that point towards the transition from the bull market to a bear market. Hence, PTRB is currently undergoing severe stress and weakness.
4 Further, the Relative Strength Index RSI concurred with the similar bearish sentiment as indicated by the death cross and MACD and Signal lines indicators. The RSI is currently below 50 and gradually heading towards the oversold level. The bear will continue to charge and take control. Injuries, bruise and pain had inflicted. Going forward blood anticipated.
5 PTRB has enjoyed a mini bull run since its debut on Bursa. The bullish uptrend has reached its peak at 68.5sen and cooling off for a little while. It decline has begun and the downwards momentum will gather strength with accelerated speed in the coming days.
This is my technical analysis basing on the candlesticks chart and various technical indicators. It is just an expression of my personal opinion and it is not intended to influence anyone’s trading plan and investment strategy.
4/3/2023

1PTR has a spectacular fall today over huge volume. In the last 10 trading days it has fallen from a height of 68 sen to close today at 50sen. In percentage term, the share price has collapsed 27%. Basing on the fierce thrown down, it seems that the momentum of decline will persist resolutely.
2 PTR has 535m issued capital. The current 4 qtr running EPS is 5.92sen. At 50sen it is trading at a PE of 8.43x. It has a strong balance sheet and health financial ratios. The company has (93.84+10.63) 104.47m cash and bank balances but 46m in borrowings. According to its dividend policy, the company aspires to pay out 20% of its earning. It is in the food industry. The business is sustainable. In fact it is flourishing with the signing of MOU just 2 days ago.
3 In a nutshell, there is nothing wrong with this company. So, what happen? How to explain the brutal sell down today?.
4 From the listing circular PTR is listed on 27/9/2022. It has 535m share capital of which 380m is in the hands of the founder and principle shareholders. There was no offer for sale during IPO and that means the founder did not cash out. And hence, have not truly benefitted from the listing exercise. These380m shares are subject to 6 months moratorium ending 27th March. That means it cannot be traded and therefore at the onset only 155m shares or less are in circulation.
5. With such small number of shares in circulation PTR could become an easy target of control and manipulation. It is not impossible for the manipulator to scope up the share of penny stock and somewhat corner the counter and dictate the price at their fancy. It has happened. The feeling has been euphoric.
6.However,the music and party cannot go on indefinitely. Everything has a beginning and ending. They must find a reason to end the ball. The operators are aware that in the coming weeks the moratorium will be lifted and 139m owner shares could potentially flood the market. Today’s brutal sell down could be a deliberate exercise to frustrate any game plan after 27th March.
7. In addition, the current monsoon session and heavy rain and serious flooding in many parts of Malaysia particular in area where PTR has production operation will be affected. Supply of fish and all kinds of sea food could be disrupted. This would affect negatively on production, deliveries, sale and ultimately profit of the company. Investors are rushing out and creating a deadly stampede.
8. This explains the swift ascent and steep decline in share price over the past trading days.
9. This is my personal perception of the counter and it does not reflect the true market situation and much less the endeavor of market participation.
10. it is written and posted for your reading pleasure.
2/3/2023

There are rules and regulations to observe and compliant to listing requirements for bonus issues of shares and warrants.

1. once the management has decided to give bonus shares or warrants it must declare its intention through an announcement on Bursa.
2. Engage an investment bank to prepare the proposal and submit to Bursa.
3. wait patiently for the approval from Bursa.
4. prepare the circular containing the details of the bonus issues and dispatch to shareholders.
5.Convene Extra General Meeting EGM to obtain shareholders approvals.
6. after securing shareholders' approval announce Bonus EX date
7. Announce lodgement date in which shares/ warrants will be credited into CDS account
8. listing of warrant.

As for MNHolding we are now at stage 7.
For those who are interested, it is hopeful that this would help you to understand better.

2/3/2023

8.

1. For a month and after considerably huge effort SCG managed to forcefully push its share price from 30sen to 36sen. Yesterday, it announced its 4th quarter result. A day right after the final quarter announcement, the interest on this counter has somewhat faded, the upwards momentum ceased and volume traded enormously reduced. Why?
2. Market was trading and speculating on a more impressive result that did not materialize. With a full year earnings per share of 1.82 sen and currently trading at 34.5 sen , the counter is trading at 19.25 PE multiples. Considering that the Bursa PE is between 13x to 15x SCG is therefore somewhat overvalued. And hence, no amount of sweet talks or promotion could lift share price except earnings growth. Institution buyers turn their eyes and look elsewhere.
3. Despite making 14.54m on a full year basis, the company continues to generate a negative cash flow of( Rm41.3m). And more alarming, the debts and borrowings of the company continue to increase from 158m a year ago to 211m in the 4th quarter. Until this is resolved the share price will not make any meaningful advancement in the near future. In the coming days it will revert back to its IPO price or even worse off.
1/3/2023

1. Mudajaya has just announced its 4th qtr result. It reported sale revenue of 99.4m and a profit after tax of 13.95m. These numbers compared unfavorably against last year corresponding quarter in which the company recorded a revenue of 58.6m and accomplished a profit after tax of 21.3m.
2.Just by looking at the numbers, it would seem Mudajaya has faced a setback in its financial performance. However, it is worthy to note that last year's profit contribution has included a one off fair value evaluation gain of 21m from its join venture investment with RMK a power generation and sale of electricity company in India
3. This JV company has enormous execution and creditors issues and protracted business challenges. Fortunately, this problem had been resolved and after the debts restructuring and creditors agreement Mudajaya has an equity dilution.
4. It now has a 19% stake in the JV and it is merely treated as an investment company in the accounts of Mudajaya. Mudajaya is done with the heartache and headache of RMK. It has moved on and venture aggressively into new pasture.
5. On a quarter to quarter basis mudajaya has made enormous improvement in its final quarter performance. There was substantial jump in revenue from 69.3m in the 3rd qtr to 99.4m in the 4th qtr, and profitability from Rm2m in the 3rd qtr to Rm13.9m in the final qtr. This is the result of improvement from all of its operating activities.

6. You may be aware that the company has on 9th Nov 2022 successfully acquired Real Jade Ltd a china base company for Rm223 million in cash. In the 4th qtr the substantial rise in revenue included contribution from Real Jade. Owing to the stringent movement control to combat Covid 19, china has ordered the shutdown of all factories operations. Obviously, production and deliveries by Real Jade were affected and Mudajaya has to absorb a loss of RM3.6m from china operation in the 4th qtr.
7.Without this loss and drawback the result and profit performance would have been better. Since Jan 2023 china has reopened and business has resumed. Better days are forthcoming.
8. I believe when Real Jade becomes fully operational and matured over the years, the profit contribution can even be greater than all the segments of business in malaysia combined.
9. Mudajaya has a new boss, new vision and mission, dynamic and aggressive management to successfully lift the company from 7 years of loss making to profitability,high gearing and near insolvency to strong balance sheet and healthy working capital.
10. It has successfully sailed the company out of trouble water. Going forward it will expand and grow. In the years to come, it will scale and achieve new heights.

11. Hence, it is unwise to ignore Mudajaya, a company that has a new life and all the ingredients of a long term value investing.

28/2/2023

1. I do not have shares in Penergy but have the itch and desire to write an opinion and post it.
2. Penergy has just announced its 4th quarter result. It reported a revenue of 110m and a profit after tax of 7.9m which is less than market expectation. It is therefore,not entirely wrong to say Penergy had a missed quarter performance.

3.Nonetheless, on a full year basis the company has managed to achieve a revenue of 370m and generated a profit after tax of 13.07m
4. The company has issued share capital of 321m. Its earning per share is 4.06 sen. At the current price of 83 sen, it is therefore trading at a price earning multiple of 21.78x
5. Considering that the Bursa PE is between 13x to 15x, Penergy is thus somewhat fully valued.
6. The company has a sound and strong balance sheet. Its net tangible assets is 1.21.
7. For the current year it has paid out 2 sen dividend and also declared another 3 sen final dividend in the 4th quarter.
8. The company has a surprisingly impressive cash and bank balances of a massive amount of Rm184.8m. And more impressively, it has no long term debts and borrowings but short term liabilities of Rm36m that does not have significant financial burden and impact.

9. Despite its less than favorable profit performance, Petra was able to generate a remarkable and commendable net cash flow from its operating activities of a massive amount of Rm65.69m

10. On the whole, the company's business is still profitable and sustainable. It has a healthy balance sheet with sound financial ratios. The business continued to generate free and net cash flow.
11. The 4th quarter less than impressive profit performance is just a temporary setback.
12. A knee jerk sell down is not unexpected. Nevertheless, it is not surprising.

13. Therefore the sell down and fall in price is not alarming. In stead it opens up an opportunity for you to buy cheap for long term value investing.

14 This is my personal perception and opinion of the counter. It may be wrong. Trade cautiously.

26/2/2023

The protracted issue of the join venture investment with RKMPowergen had been resolved. It is heartwarming to note that finally the JV company has been able to sell electricity in India. According to the press release in the period of 4 months it was able to generate a surprisingly impressive profit of 282m. Since this is not a subsidiary company of Mudajaya, therefore only the proportionate quantum of profit according to the stake of ownership 19.4% will be repatriated back to Mudajaya. It will be accounted as profit from join venture.
The RKMPowergen has huge earning potential and will continue to contribute positively to the future earning of Mudajaya.
Although the assets is valued at 2.8b and Mudajaya 19% stake holding is worth 543m it will not be reflected into the share price. Share valuation is base on earning basis and not assets basis.

MN closed at 35 sen yesterday. The counter has gone X and shareholders are entitled to the free warrants.This morning the adjusted reference price is 35 x 2+ 20 all divided by 3 is 30 sen.
2.When trading began, the counter exhibited weakness and share price fell sharply to hit 25.5 sen in the morning over moderate volume. Many saw the opportunity for a cheap bargain.
3. Buying support returned and the momentum gather strength and the counter closed for the day at 29.5 sen or half sen below the reference price over considerably huge volume.
4. Basing on the volume and pattern of trade, the bulls are obviously active and charging. They will spare no effort to secure a good price for the warrants to be listed and quoted in the coming days.

5. And that means the underlying shares must perform.

6 Technically, MN undergoes a price pattern of a hammer in the candlesticks chart. A hammer happens when the share price trade significantly lower than its opening price but rallies within the period to close near the opening price.

7.MN mirrors this trading pattern. It opened at 29.5 sen and quickly fell and hit 25.5sen and bounced back to close at 29.5 sen to form a hammer. Technical hammer is a potential bullish reversal.

8 Hence, price will continue to strength and is realistically expected to recover lost ground in the coming days leading towards the listing of warrants.

9 Still there is money to be made if you dare.

10. This is my personal perception of the counter

24/2/2023

MN holding has announced its 2Q result today.
It reported a 57% jump in revenue and 115% increase in profit

2. It has order book of 325.9m an increase of 89% from 172.2m since listing.

3. Management envisions a bright prospect for the company and the contracts are expected to contribute positively over the next 2 to three financial years.

4.Market believes the positive result will sustain the current share price and may be even elevates it further upwards.

20/2/23

1. Mudajaya has come to a closure with its power plant and energy business in India. After the debts restructuring, Mudajaya suffered an equity dilution and now has a 19% stake in the power supply and sale of electricity business in the join ventures company. All the numbers had been taken up and accounted for in the accounts years ago.

2.Today's Mudajaya is entirely different from the Mudajaya of yesteryear whose management was responsible for 7 years of consecutive losses. It has a new life and a new boss, who is a Taiwanese tycoon and a great entrepreneur.

3.Mudajaya has a new vision and mission. After completion of its fund raising exercise in which a significantly huge amount has been funded and injected into the company by JERRY.
4. The company made its first move and expanded successfully into China.
Its expansion in china include the successful acquisition of Real Jade Ltd a company engaged in manufacturing and trading of cement and clinker for Rm224m.

5.The acquisition that began in June 2022 was completed recently. This acquisition is earning assertive.

6. Market is expecting the result and profit contribution from this new venture to realize in the coming quarters.

7.The share price has hit multi year low and now staged a mini uptrend.
Therefore it is not entirely foolish and reckless to jump on to the wagon.

8.There is no guarantee that one would make profit from Mudajaya but
the downside risk is limited.
19/2/23

1.Mudajaya has suffered 7 years of consecutive of losses since 2014. In 2021 it has turned around with Rm5m+ profit. For the 9M ending Sept 2022 the company reported profit of Rm4.1m. And by the end of Feb when the 4Q result comes in , market would see further improvement and and possibly some earning growth.

2. Taiwanese businessman Jerry Kuo has taken control of Mudajaya. He first acquired a 27.5% stake of the company and his average entry price was 38.66 sen. There was a 10% private placement at 32sen. Over the years, the company also has a corporate exercise involving a right issue of 668m new shares and 668m of free warrant of which the exercised price was fixed at 22 sen.

3. Several months age Jerry converted 578m warrants at 22sen and hence injected about Rm127m into the company to help paid borrowings, finance new business ventures in China and working capital requirements.
4 The current enlarged share capital is 1817m and Taiwanese roughly holds about 1318m or about 72%.
5 Mudajaya has ventured into China. Jerry has been instrumental in the new vision and course of business. They have acquired cement manufacturing business in china and embarked on a new mission and vision to expand and grow in the region.

6 Jerry is ambitious to make Mudajaya great again. The china venture is big business with an acquisition price exceeding Rm400m. It is ready and has been operational. Market is expecting the profit to come in beginning next quarter.

7. There has been some excitement in the counter lately. Volume traded has increased and share price has broken its consolidation in a channel and soared sharply to reach an intra day new height at 26.5sen. It has since retracted somewhat to close at 24sen today with relatively increased volume.
8. I see huge potential in Mudajaya. With the Taiwanese businessman Tycoon Jerry being the driving force behind the company, I have no hesitation to ride freely and financially on his mission and vision. His business acumen and grit, energy and passion has improved the surviveability of Mudajaya and would make it great again.

14/2/23

1.Yes, it is effortlessly possible. It is happening and yet surprisingly not many are interested in this counter. The price you had wished for and may be even better will be accomplished when it moves closer to the x date. \

2.The substance in MNHolding is in the forthcoming warrant. It is structured and created in a manner to reward and benefit the owner and his long term loyal investors. It could be you and for those who dare.

3.For 2 existing shares you are given 1 free warrant on 24th Feb 2023. Its conversion price has been fixed at 20 sen.

4. Assuming today is the x date for the purpose of analysis,and at the current price of 38.5 sen the reference price would be[ (2 x 38.5) + 20 ] / 3 is 32.5 sen
Therefore the warrant tentatively has an intrinsic value of 32.5 minus 20 = 12.5 sen.

5 It could be better because warrant has a conversion price and a maturity date.
And hence, it has an intrinsic value plus a time value.

6.Trading in warrants in highly lucrative owing to its high gearing.
High gain is naturally associated with high risk.
Therefore, trade cautiously and great care must be exercised.
Do you still want the MNHolding warrants?.

12/2/23

After much anticipation,MN Holding finally announced the X date for the bonus issue of free warrant. For every 2 existing shares you hold until market close on 23/2/23 you are entitled to 1 free warrant on the 24th Feb.

Over the past few weeks, the share price has gone up a few sen. Naturally, the bonus will sustain the elevated share price. With a bit of luck, it might even advance further upwards.
9/2/23

1.Share price of MN holding has gradually advanced since 2 months ago in December.. Its momentum has gather strength and consistently throttled upwards. Yesterday it has firmly conquered new height with moderate volume.

2.The path going upwards is supported by the reward of the forthcoming bonus issues of free warrants.
3.Bursa has approved the bonus issue. EGM has been convened and shareholders approval obtained. Market is awaiting its announcement of the entitlement date and X date any time soon.

4.MN holding has been relatively quiet and illiquid since listing. It has only recently exhibited some interest and excitement in the market.

5. Technically, it has established a golden cross and the distance between the 20 day and 50 day moving average continue to widen. Therefore the long term uptrend is expected to continue. At 35 sen, the price which is now above the 9 day 20 day and 50 day moving averages is a sign of strength and has further prospects of advancement.

6. Likewise, the MACD line has also crossed the signal lines. we can expect the MACD line and signal line to again widen in the coming days indicated by the larger green histograms. The positive momentum is expected to continue.

7. Fundamentally, the company has Rm365m worth of projects and orders on hand with earning viability until 2025.

8. With these orders on hand top line and bottom line as well as future earning growth are realistically expected.

9. Market is awaiting its announcement of x date and the date of entitlement of free warrant. The bonus issue is positive and price sensitive.
When this happens, the share price will be turbocharged.

10. Hence, it is unwittingly wasteful to further delay in action and miss out on the golden opportunity.

Happy trading.
4/1/2023

1.Today waseong opened and raised strongly during the trading session. It opened at 75 sen and reached an intra day high of 81.5 sen and thereafter experienced a massive sell down to close flat at 75 sen over huge volume exceeding 24 million shares.

2. In the candlestick chart the price movement and trading takes the shape and pattern of a shooting star or invert hammer.

3. Shooting star is a bearish candlestick in an uptrend as in Waseong. Clearly, profit taking has set in and the uptrend has lost and continued loosing its upwards momentum.

4. The implication of a shooting star signify that a reversal pattern has begun and will accelerate in the coming days.

5. Further selling and weakness in price is realistically expected.

6. Technical has prominently overshadowed fundamental.
2/2/23

1. In the last 3 years Waseong had a spectacular fall from 1.45 in mid 2020 and hit bottom at 40 sen in 2021. Thereafter, it consolidated within a range of between 55 sen sen to 80 sen until July 2022.

2. Since then, the counter has staged a mini bull run and a confirmed uptrend supported by the announcement of project and award in the oil & gas industry from Yinson which is valued at 557.6 m.

3. The uptrend and its 1st leg began at 55 sen and soared to reach 68 sen for a gain of
13 sen. The 2nd leg which is a correction leg saw the counter retracted to 62 sen. That is a decline of 6 sen or 46%.

4.Early Jan it resumed its uptrend and kicked into the 3rd leg which is an up leg. Price has moved from 62 sen,and decisively broke the resistance at 68 sen and aggressively pushed upwards to reach an intra-day height of 77.5 sen to close the day at 75 sen which was down by 1.5 sen.
5. Technically, the trading day on 31st Jan is represented by a prominent red bar in the candle stick chart. This red bar is known as the 1st day reversal of the 3 leg uptrend. Those who rely on technical analysis to trade would have sold at 75 sen before market closed.
6.If there is any truth with technical analysis it also means the 4th leg which is a correction leg has kicked in yesterday. How much is the correction and by how much price will fall before its resume its uptrend and accelerate into the 5th leg.

7. The 2nd leg retraction was 46% but the 4th leg retraction would usually be mild because the uptrend has been confirmed and advanced into it course. Investors are conscious and aware of the project, company prospects and future earnings.

8. Many will hold onto the shares and endure the fall. If this observation is served as a guidance share price would arbitrarily retract milder say 35%.
Now, 35% of 15 sen is 5.5 sen. If you take 77.5 sen minus 5.5 sen that would mean 72 sen .
9. Technically, it will hit 72 sen or maybe slightly lower before the counter will resume its 5th leg uptrend. From thereon it can possibly go sky high unless impacted by a fundamental change that has a material impact on the profit performance and earning per share.
10. This is my personal perception and technical opinion of the counter and it is not intended to influence your trading strategy and investment plan.
1/2/2023

To a serious investor who cares about fundamental would easily realize that this company has little or no investment merits. They made many missteps to destroy the capital structure by enlarging the shares capital and decimated to negative earning per share to become eternally a penny stock.
I have written and posted a write up here on 12th June 2021. To the die hard supporters of Tawin it offers an alternative view.

1. Yes and truly we don't know why and much less understand its decline and continued weakness in its share price. In my opinion the current share price does not reflect its profit performance its fundamental and future value of the company.

2. Hence, the continued weakness in share price actually opens up an opportunity for you to invest in a great company at a fair price. The jewel of Sunway is in the health care business. It is profitable, scalable and sustainable.

3.Share investment is about buying a good stock, ignore the noise and holding onto it with endurance and perseverance. Sunway has all the ingredients of a long term value investing stock.

4.When they have a corporate exercise to raise fund by issuing Sunway PA, I wrote about it and invested in it. The Sunway PA has its shortcoming. It is absolutely boring and highly illiquid.

5. But, no one is complaining. At 155 it has grown 55% in 2 years. Investors are collecting 5.25% yearly interest and fearlessly waiting for it to mature and be naturally converted into mother share. The number of issued preference share is 997m and Tan Sri and Family is holding 70%.
Can it go wrong?. You be the judge.
20/1/2023

1. I am not sure weather 79's posting is an admiration or criticism. But, I will take it as an opposite of compliment.
2.Market has been informed and fully aware of the projects and awards secured from TM. SEB and its ambitious target to penetrate new market and aspire to export hundred of million worth of cables to the US. In the pipe line also include the construction of new factory to facilitate growth.
3.These are old news and nevertheless, they are good news.
However, when repeated good news does not drive up share price, than it is alarming and investors need to be cautious.

4. Perhaps the expectation of future value of the company despite it many projects does not realistically represents or reflect the fundamental of the company.

5. The company has very pressing issues that must be resolved. IT has 194m debts. It generates negative cash flow. It has little working capital. It's debts to equity ratio has enter a red zone. And their period of account receivable collection is horrendously long.

6. Today's Investors are sophisticated and they study balance sheet, cash flow statement and P&L to unmask its strength and weakness.

7.While, successfully securing new projects are great and impressive but it is the conversion of project into profits that count. Still it is the cash in the bank that is king. And sadly it is seriously lacking.
8. Once awhile someone will find a reason to buy, spike up its volume and push up the price. It lacks momentum and has no energy and passion to follow through. instead, It opens up an opportunity 4 you to sell and exit at higher price.

9. This does not mean SCG is horribly bad but rather it must be interpreted as the opportunity cost of investment for holding SCG is high.

10. This is my personal perception of the counter and it is not intended to influence your trading plan and investment decisions.

Tomorrow Jan 13th company will convene EGM to obtain shareholders approval to approve the bonus issue of 204,375,000 free warrant on the basis of 1 free warrant for 2 existing shares held on an entitlement date.
This is a kind gesture by the management to reward its long term shareholders. The corporate exercise would firmly support the share price.

Disagree.
Would appreciate if you could kindly share what is fundamentally good about this company.

1.When insiders are buying,do not ignore the implications of their action. More often than not they know some things of changes in value about the company which you are not aware.

2. When the investment bank initiate a coverage or issue a technical analysis and trading idea 2 days ago,do not underestimate its power and influence. They have followers.

3. When the volume increase and the funds start buying, it is not a one off transaction for some contra profit. They will follow through with energy and passion plus a deep pockets.
5/1/2023

1. On 9th Dec Tunepro had a golden cross between the 9-day EMA and the 20-DAY EMA. This signals a short term bullish outlook. In additional again on 21st Dec another golden cross was formed and this time between the 20-day EMA and 50- day EMA thus, indicating a long term bullish outlook.

2. Tunepro closed at 31.5sen with intra day height of 33sen is above the
9-day,20 -day and 50- day moving average. It has demonstrated excellent strength in share price performance. It is hope that the momentum would persist and raise above the 200 day moving average to firmly determine the beginning of a new uptrend.

3. The MACD line crossed from below to above the signal line on 9 Dec. The gap between the 2 lines has also widen and accompanied by larger histograms. Hence, positive momentum is building up and continuing.

4. The Price- Volumn Analysis; This rise in share price these past few days was accompanied by comparatively higher volume traded. An increase in price accompanied by higher volume traded confirmed new buying interest and confidence shown to the counter.
5. Therefore,basing on the technical charts and those indicators, it would be wise to maintain the long position and hold onto the shares for longer term value investing.

6. And likewise, it would be unwittingly wasteful and reckless to liquidate the long position prematurely for a tiny profit.
1/1/2023

1. Directors and insiders purchases are a sign of confidence and positive conviction in the prospects and future earning growth of the company. 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.
2. One of the greatest investors of all time Peter Lynch was noted as saying that
" insiders might sell shares for any number of reasons, but they buy them for only one ; they think the price will rise"
Hi guys get into action and excitement. Ride on their knowledge and expertise and profit from it.
31/12/2022

KUALA LUMPUR (Dec 28): Toyo Ventures Holdings Bhd's units have entered into an interim agreement with a consortium led by Sunway Construction Group Bhd (SunCon) to negotiate details for the consortium to undertake a US$2.2 billion (RM9.73 billion) job for the development of a 2,120 MW coal-fired power plant in Vietnam.

The agreement sets out the framework for negotiations and discussions between the parties to establish the detailed terms and conditions about the contractor's performance in design, engineering, procurement, manufacture, supply, construction, erection, testing and commissioning of the electric generation facility.

1.While operating cash flow is important, free cash flow is more crucial and net cash flow is significantly more critical. Temporarily, SGC has non of the latter two. And they are the heartbeats of business.
2. This is not surprising considering that scg collects its accounts receivable calculated by taking 222m divided by 637 multiply by 365 is 127 days.
3. it pay its accounts payable with lighting speed computed as follows.
Assuming 85% of 637m is purchases or 541m the accounts payable balance is 52m.
so the AP turnovers is 541m divided by 52m is 10.4x in a year or 35days.
4. See they pay creditors in 35 days and receive money from their accounts receivables debtors in 127 days. it is almost suicidal.
5. The accountant has enormous opportunity and room for improvements. More stringent credit control and efficient strategy need to be formulated and implemented to strengthen its collection.
6. otherwise continued and prolonged negative cash flow would require new funding to address the shortfall in working capital requirement. It could be further bank borrowings or corporate exercise of fund raising through right issue or private placement. All of which are discouraged for they are value and share price destruction.

1.The market PE is 13x. SCG is trading at 29 sen and a running 4-quarter earning per share EPS of 1.61 sen. Hence, it is trading at a PE of 18x. That is inordinately and disproportionately higher than the bursa PE. And that rates and ranks SCG more attractive, over and above a blue chip counter.

2 Despite its recent bonus issue of free warrant and numerous announcements of new contracts, sadly its share price has continued on its decline and its daily volume traded has severely reduced. What happens ?
3. The recent announcement that the company has secured 293m power cable supply contract with Tenage; 83m power cable supply with SEB; and its aspiration to export 100m value of cable to the US market is remarkable and commendable. The new business is 476m. Let's take a look at these letters of award and happy problems that come with a burden.

4. In the 3rd quarter ending September the company's revenue was 238m. the cost of goods sold was 225m and gross profit was 12m. Therefore the percentage of CGS and GP is 94% and 6% respectively.
5. To finance 476m new business the company would need 0.94 x 476m and that is 447m to finance raw material requirement and working capital.
6. Notice that the company has a cash balance of 19.7m and generate a negative cash flow of (-29.528m) This means the company needs more cash than the business can generate. The above new order will further aggravate the cash position and working capital requirement that is already distressed.

7 IN 2019 the company has 130m in account receivable. In 2020 the account receivable was 158m and these numbers had ballooned to 199m in 2021 and 222m in the 9- month of 2022. If you take 222m divide by the revenue of 637m multiply by 365 days, the collection period work out to be 127 days. That means it takes the company 4 months plus 7 days to collect payments after delivery. If the speed of collection can be increased and the days of collection can be reduced this would strengthen the working capital.

8. Considering the current situation in which it was awarded huge supply contract, the company has a happy problem that comes with a heavy financial burden. It is not unlikely that the company might have to look at various option to raise fund for working capital and to finance the new business.
9. The company has 197m in borrowings and 283m in total equity. Therefore the gearing is 197 divided by 283 is 69.6%. Sixty percent is considered a high gearing. By accounting standard any numbers beyond 60% signify the company has entered into a red zone

10. It will be interesting to see the next course of actions from the management. Share price will remain depressed and volume lackluster until this matter is resolved.
11. Friend. cut loss and move on. This is my personal perception of the counter.
It may or may not be correct.
21/12/22

1.Thank you for your analysis and contribution. Appreciate your advice and points of concern on the weakness of its balance sheet, income and cash flow statement.

2. My posting is intended to share an alternative view and my personal perception of the counter. It may or may not be correct.

3. Going forward , let's allow the natural forces of supply and demand to determine the long term equilibrium share price of Astro.

1.Since 2014 till the present day Astro has never have a loss year. In fact it has been generating profit between 450m and 770m every year and given out about 91 sen cumulatively in dividend for the past 9 years.

2.It is a well managed company with sustainable business that has demonstrated excellent resilience in a fiercely competitive operating environment. Judging by the distribution of cash dividend and its yield, the company is indeed a cash generating machine.

3.Just because Astro has a bad quarter,it is not doom and much less Holland. One undesirable and less than attractive financial quarter does not define ASTRO.

4.This is a bias perception and is akin to someone picking a beautiful white cat and search thoroughly all over its body, found a black hair then shout out it is a black cat.
17/12/22

1. Astro has experienced a major down trend for the past few months. The share price has collapsed from a height of 1.10 and hit bottom at 64 sen then inched up somewhat to close at 71 sen today. Market has expected the poor result and deterioration in profit performance. The fall in share price has preceded several months before the announcement of bad result today. Hence, to a great extend, the quarterly result has largely been factored into the declining share price.

2.When market opens tomorrow, there will be some selling pressure and fall in price. However,considering the remarks from its press release that the company still record a normal PATAMI of 73m and the decline in profit is largely attributed to the appreciation of USD against the Ringgit the quantum of fall in share price will therefore be limited and constrained in my opinion.

3. When this happen, it should not be alarming. In fact it opens up an opportunity to enter at a lower price level and ride on the bright prospect and great business of Astro for long term value investing and capital appreciation.

4. Share investment is about identifying a great company that has missed one or two quarterly performance like ASTRO or overwhelmed with bad news like ARMADA few years ago so much so that the share price has collapsed to an unthinkably low level, we want to buy them and accumulate more fearlessly. Otherwise, it is unwittingly wasteful.

1. In 2021 the revenue was 659.93m and the net profit was 10.929m. therefore the net profit margin was 1.6%. for the 9-month 2022 the cumulative revenue is 637.7 and profit is 9.07m. Thus, the net profit margin is 1.56%.
2. Basing on these numbers it is reasonably safe to assume that the company's profit margin is 1.6% on less.
3. This also means it has to send out a team to do marketing to sell the cables. it needs to purchase raw material copper to produce the products, ensures its quality, delivery on time and wait 2 months to collect its payment.
4. For all this troubles and risk, SCG gets 1.6% returns on its effort. This number indicates inefficiency in resource management and non effectiveness of its capital employed.

5.To criticize constructively, brutal and unpleasant in the fiercely competitive business environment if you are unable to secure a fair return, it is better off not manufacturing and instead invest with the bank, put it in FD and earn 3% risk free rate.

1 Upon closer examination one would notice that SCG has 800m issued share capital and a 4 rolling quarter EPS of 1.61 sen. At 30sen share price it is therefore traded at a PE price earning of 18.4x
2. The company has enormous borrowing of 191.6m term loan and 6.17m short term borrowing for a total borrowing of RM197.78m. Considering that the market capital is 236m hence, the borrowing of 197.7m represents significantly 83% of the entire company.
3.The company has a cash balance of 19.7m and generate a negative cash flow of (-29.528m) This means the company needs more cash than the business can generate. And hence, considering that it is transacting business beyond 750m annually, 19.7m cash is seriously lacking in working capital.
4. The company generate net profit between 10m to 12m a year. Because of its exceptionally high borrowings scg paid RM5.976m to the bank as interest payment.. This also means that for the 1st six months in a year the company is actually working for the banks.
5.The company had very recently gave its shareholders 400m that is 1 for 2 free warrants. Well,nothing is free in this world. What ever you have profited from the free warrant had been offset by an even bigger fall in the mother share price.
6. The exercise price of the warrant 27.5sen was intentionally set at below the mother share price to enhance its attractiveness. Upon warrant conversion years later the enlarged issued share capital would be 800m + 400m that is 1.2b shares.
7. The will be damage arising from the diminished earning per share upon fully dilution.

8. In conclusion after examining the balance sheet, profit and loss account and the cash flow statement of the company, the attractiveness of SCG may have been somewhat over rated.
14/12/22

If last year's announcement date is observed than Astro is expected to announce its 3rd quarter result on 9th Dec Friday.

Leasing Corp bought 50 million shares and increased its stake in KUB to 17.97% According to Bloomberg data the shares were transacted at 55 sen or RM27.5 million in total.

In my opinion,this transaction signified their confidence in the leadership and management of Johari Abdul Ghani the former Finance Minister.

extracted from the press release.
Pursuant to MFRS 15, development profit from two of the Group’s on-going property
development projects in Singapore will only be recognised upon completion and
handover of the projects, which is expected to be in FY2023. The accumulated profit
of these projects amounted to RM101.7 million, of which RM14.2 million was recorded
in the current quarter, but was not recognised.

2023 will definitely be a good year.

This company had in last year Dec completed a 20% private placement and raise RM97m for development and repayment of bank loan.
This year again propose to undertake 30% private placement to raise RM73m.
Placement shares enlarged share capital, destroy and dilute earning per share thus causing the share price to fall seriously.

In the year 2018 SPSetia had an intra day high exceeding Rm4.01 or thereabouts. Since than it was undergoing a protracted and massive down trend and decline in share price. Just last week it hit bottom at 41sen and rebounced a little and now somewhat stabilize at 51sen.
Form the high and low the share price has dropped 4.01 minus 41 is Rm3.6

SP has 4075m share. This also means 4075 x 3.6 = Rm14.67b in market capital has been wipe out. The share price has bounced back from 41 to 51, a gain of 10sen or RM407m in market cap. Long term investors are still suffering massive losses despite its massive re bounce in recent week. The covid and its aftermath, the ukraine war, supply chain disruption, raising cost of fuel and steel and the slow down in the property market has collapsed the share price. With all these issues and challenges it will need a lot of time for SP to regain its glory days and require great endurance and perseverance for investors to recoup their losses.

would you subscribe for the RCPS?
Assuming you have 100 existing shares,than you are allotted 67 rights to subscribe for the rcps at 38sen. The 67 RCPS can be subsequently converted into 32 mother shares.
If you subscribe you would have to pay 67x38= Rm25.46
It can be converted into 32 mother share and at current price of 50sen it also means the the value of your shareholdings is only 32x50= Rm16.
Hence, you pay 25.46 for something that is worth 16. Would you?

At the current price of 50sen and the predetermined conversion ratio of 67 : 32 means the conversion price is (67 x 38)/32 =79.5sen. This is 29.5sen above the current price of 50sen or 29.5/50 = 59% premium.
The good thing about the rcps is that it comes together with 5.43% interest payment. It will be quoted and listed in 2 day's time. Except for the 5 year time value, it has no intrinsic value. Therefore, any meaningful value ascribe to the Offer of rights is least expected. This is my personal perception and it may be incorrect.

On a long term basis anything below 60 sen is still a good buy. We buy YTL shares for long term sustainable dividend with high yield at 10- year historically low price. At the current price of 57 sen a 3 sen dividend has a yield exceeding 5%.