MPI seems like being forgotten, so few comments in its thread in past few months.. probably this signals it is a time to buy :)

Q2's EPS is lower QoQ but higher YoY.
There were RM0.6mil lawsuit settlement and RM0.7mil product harmonization (between Malaysia & HK) costs incurred in Q2. Those are one-time cost and are non-recurrence. Otherwise, the reported EPS in Q2 would be higher.

So today's stock price surge is bcos insiders or AWC's employees knew the contract award earlier ?
AWC is still undervalued at current price level. It should worth ~RM1 per share.
It is a net cash and consistently profitable company selling at single digit PE multiple.

The 2Q19 quarterly result for technology stocks to be announced by this end Aug'19 will mostly be poor or so-so. What we are looking forward to is 2H2019 and beyond.

The effect of 5G boom will not be seen so soon in Bursa stocks. As said, the momentum starts in 2H 2019. This means we may see gradual improvement in end Nov'19 when July-Sept'19 quarterly result is announced. The more obvious effect will be seen in year 2020 onwards.
Besides, 5G is not just benefiting smartphone related companies, many technology stocks (just refer to article above) will be benefited by this 5G wave. It is a mind-blowing technology development, otherwise, US won't be so afraid of Huawei. Who dominates 5G will nominate future technology world.

If u look at Taiwan stock market, the most bullish stocks there are 5G related.

The wave is going to be huge, the clearer effect should be in year 2020 and the momentum should start in 2H 2019.

5G is indeed the trend for near future. I have been busy buying 5G related stocks during depressed period in past few months :)

Krono achieved record high revenue and PATAMI in this quarter due to acquisition of Sandz Solutions. However, the reported EPS is so-so and lower if compared to some of the previous quarters due to new shares has issued for the Sandz acquisition.
We will know how market will react to such situation tomorrow.
I think stock price should follow EPS but not PATAMI, this means Q2 quarterly result is not really a positive factor to push stock price upwards..

I think the article above is more informative than what our local analysts have written. The analysts only stated Empire Resort has been at loss, but didn't analyse the GGR trend and etc to find out if Empire Resort has potential to breakeven in near future.

The improving GGR is quite convincing to show that Empire Resort is on the right track to breakeven. If GGR can continues to improve in quarters to come, I believe Empire Resort deal can turn from negative to positive.

Globally, there are many risks now, i.e. no-deal Brexit, HK riot, inverted yield curves, Argentina's crisis, and etc.
All the above matters would not be significant if compare to US-China trade war, which is the MOTHER of all risks. Thus, we should focus on trade war and not so much on other secondary issues. Trump won't let the trade war drag US into recession. Trump will do all he can to win the re-election.

Trump is emotional and unpredictable but he is definitely NOT stupid. A stupid person can never be a US president. By now, he should realise that China won't bow to him. He should know this fact better than us now (bcos he is not stupid).
From his decision to postpone the 10% tariff on major items to mid Dec, it is already a solid proof that he "blinked". If he cannot force China to bow to his trade request, he must find a way to settle or end this trade dispute somehow before Nov'20 re-election. One thing for sure, Trump won't let the US slips into recession before Nov'20. This is the reason and confidence I have to hold-on to stocks now.

The coming Apr-Jun19 earnings won't be "explosive" as the author claimed.
The egg production in Apr-Jun19 from Sabah farm also won't recover to 3mil eggs per day. This is because the affected Sabah farm just re-commenced operation in Mar'19 after 4-months quarantine, and DOC needs 21 weeks to mature before egg output can normalise. The full recovery for Sabah farm's egg production output should be in Oct-Dec'19 quarter.
But, bear in mind that Sabah farm is just one of the many layer farms owned by LayHong, thus its impact won't be very significant. The important point is no more culling cost will incur.

The coming Apr-Jun'19 earnings should be lower QoQ, but I suppose it won't be too bad based on the +ve factors I listed above.

Keep for ~one year (from now till end Mar'20), we should see higher stock price for LayHong in the end of one-year holding period.
The above is of course based on the condition that the world does not slip into recession by escalating trade war, or another bird disease breakout some where in Malaysia.

The elimination of negative factors in FY19 is enough to lift LayHong's FY20 earnings. The worst is over for LayHong and the performance improvement is almost certain in FY20.
The question should be asking is how much YoY improvement we can see in this new fiscal year ? The magnitude of improvement will determine the magnitude of stock price appreciation.

In FY19 (ends in Mar'19), LayHong had the worst year in past 5 years mainly due to RM15mil bird culling in Sabah farm, uptrend in corn and soya bean prices, i.e. feed cost, and operating loss in new JV NH plant.
I foresee the worst is over for LayHong and its performance is almost certain to improve in FY20 (Apr19 - Mar20) due to the following positive factors :
I) No more bird culling loss
ii) Feed cost has reduced due to recent US-China trade war
iii) The new NH Foods operation should turn loss in FY19 to gain in FY20 when new plant's utilisation rate increases and start-up cost reduces.

LayHong's shareholder needs not be too alarmed by Leong Hup's last Friday's earnings warning.

LayHong's earnings is not much impacted by broiler prices, just like Leong Hup because LayHong's main products are eggs and processed chicken products.

The elimination of negative factors in FY19 is enough to lift LayHong's FY20 earnings. The worst is over for LayHong and the performance improvement is almost certain in FY20.
The question should be asking is how much YoY improvement we can see in this new fiscal year ? The magnitude of improvement will determine the magnitude of stock price appreciation.

In FY19 (ends in Mar'19), LayHong had the worst year in past 5 years mainly due to RM15mil bird culling in Sabah farm, uptrend in corn and soya bean prices, i.e. feed cost, and operating loss in new JV NH plant.
I foresee the worst is over for LayHong and its performance is almost certain to improve in FY20 (Apr19 - Mar20) due to the following positive factors :
I) No more bird culling loss
ii) Feed cost has reduced due to recent US-China trade war
iii) The new NH Foods operation should turn loss in FY19 to gain in FY20 when new plant's utilisation rate increases and start-up cost reduces.

This means Leong Hup's last Friday's earnings warning should not be too alarmed by LayHong's shareholder.

Herbert gets the points right that LayHong's earnings is not much impacted by broiler prices, just like Leong Hup because LayHong's main products are eggs and processed chicken products.

I am just tired hearing people keeps imitating what Buffet has said, but when come to real investment world, his/her return % just doesn't stand out. What is the use to win the argument but lose in return % year after year ?
There are a lot of "investment guru" offering investment course out there, but if they show u their investment portfolio and return, some of their students may do better than them.

It is true that result speaks much louder than words.
If person A keeps talking about his/her investment theories and person B doesn't talk much ; but B's investment return is relatively higher than A's (not just one year but several years consistently). B wins. A is just a Warren Buffet wannabe but will never close to being a real Buffet.

CMSB drops probably due to management guided that the performance of OM Materials is going to be weak for FY2019 due to weakening selling prices for FeSi. OM Materials' contribution has been quite substantial in FY18, thus if OM Materials is to perform weaker, it will impact CMSB's FY19 earning performance.
AmInvest analyst has cut the profit forecast in FY19 due to the reason mentioned above.

should be able to reap ~25% stock price gain by year end, provided no trade war escalation.

Bought some.
I think the coming quarterly earnings (Q1 FY20) should be on par with previous quarter.
The US shipment suspension has been lifted, thus I expect manufacturing segment's performance will improve in FY20.
As for trading segment, I expect its FY20's performance should be at least on par with previous financial year since O&G industry remains stable and PETRONAS has increased its capex for 2019.

It's better to one day up one sen only, and then show positive earnings results by end Aug'19, and then explode.
If stock price run early before quarterly earnings announcement, I will have difficulty to decide if to hold or sell. Haha, that will be happy problem anyway if happens.

Armada's engine re-started ? Hope this time can sustain..
The best would be showing positive earnings in coming quarterly report to ensure it's stock price movement is sustainable.

A growing company with net cash but selling at PE=7+ multiple.
AWC has all the reasons to go up in stock price but it just doesn't.

I believe EWInt's earnings will improve in quarters to come due to the handover of completed units. I also have been eyeing this stock but hesitate to buy due to several concerns i have in mind. I list them down at below, maybe someone can help to advise. My concerns are :

I) UK may face a no-deal Brexit soon, especially after PM position is taking over by potential candidate, Boris Johnson. If that happens, the prospect of property market in UK and prospect of EWInt will be negatively impacted.
Although the coming quarters' earning result is certainly to improve, but market people may think the prospect in extended future would not be good if no-deal Brexit happens, and therefore dampens EWInt's stock price.

ii) EWInt is categorised in "property segment" in Bursa. There are many property companies in Bursa selling at low PE presently due to market has negative sentiment on this segment. Market may also give low PE to EWInt even when it shows higher earnings in coming quarters.

Anyone has any comments on my concerns above, pls share. Thanks.

Uzma is one of the few O&G companies that remains profitable in depressed oil price period, that is not easy and thus i think it should receive higher valuation compared to other O&G companies. It is selling at 0.44x P/BV currently, indicating that it is undervalued.

KWAP keeps disposing, I suppose this is the reason for it's declining stock price. Once KWAP stops disposing, Uzma's stock price should recover to >70sen. Subsequently, it will depend on next Q's earnings to decide which direction it's stock price will go.

I do not agree with the conclusion drawn by the author.
But, one thing the article revealed is it is an ideal time to do right issue when a company's stock price is at high level, i.e. at high PE. It is silly to raise fund when a company's stock price is at depressed level. This principle explains why Armada management keep mentioning they are not considering right issue at current junction because it is just not feasible to do so.

Although FIHB's earnings have been consistently good in last 3 quarters, it is selling at merely ~6x PE multiple. Good thing will happen to low PE stock when time is due, just hold on and wait.

I noticed that its racking system's earnings improves a lot in Jan-Mar19 quarter, and the analyst mentioned this business segment's future growth will be tremendous.
The earnings of 3 more PFPE plants have not been recognised yet. When it does, the equipment segment should also register improved earnings.
When the earnings of both business segments improve, EMetal's stock price should follow in tandem.
I suppose that's the reason AmInvest analyst dares to give 80sen per share target price, based on current <40sen stock price. That is >100% potential price appreciation.

One day praise LayHong, another day condemn its management ?

OCK is a growing company. It's tower portfolio has been increasing, especially in Myanmar. It's recurring income will keep increasing in tandem with the increased Telco tower.
OCK is the right company in right industry at right timing.
Having said so, OCK would not benefit from 5G that soon because the South-East Asia countries it operates in will not launch 5G in short term, that will take another 1-2 years. But, the future is bright.

What happens to Kawan ? It's stock suddenly surges today..
The directors have been buying in open market. Hmm...they must know what we do not know.
Kawan's new plant is ready but it will take some times for utilisation rate to go up. Probably, the new plant receive some big orders and the directors see bright prospect.

Understood :)
We are in the same boat, and I believe Armada is a stock that will let us 'huat' together in 2019/20.

Posted by Icon8888 > Jul 4, 2019 12:28 PM | Report Abuse

all I am saying is that I don't mind a rights

Although some argue Armada may do right issue and it could be a good thing, I personally don't think Armada will carry out right issue in short term because :
I) At current low price, it is not feasible to do right issue.
ii) The management repeatedly mentioned they are not considering right issue now. In order to strengthen their balance sheet, their strategy is to re-structure short-term debt (done), and sell the idle vessels (on-going).

The main problem for Armada's depressed stock price is the loss of market's confident. I suppose the only way for Armada to regain that confidence is to show positive earnings in next few quarters.
I am not certain if next Q's earnings can be positive, but I can see that Armada is on track for recovery. It's stock price will follow in tandem sooner or later.

The Jan-Mar'19 quarterly result showed Armada turned around from loss to profitability. But, it's stock price remains depressed. And, people still talking about the potential of right issue when it secured new FPSO project, albeit management has repeatedly mentioned Armada not considering right issue exercise.

Armada carries #1 weightage in my portfolio now. I have accumulated enough.
It's stock price came down since last 2H2018 due to people worried about its balance sheet, and some even said it would go to PN17.
Presently, the short term debt problem has gone away but it's stock price remains depressed. Isn't this a perfect opportunity to buy ?

Tashin is a profitable business unit for Prestar. When Tashin is disposed and listed in ACE market, Prestar's group revenue will be much reduced, albeit Prestar can use the money raised from IPO to pare down its debt and reduce its finance cost.
I view the listing of Tashin is no good for Prestar as a whole..

I am not saying IQ will end up like Karex, but the principle is we need to watch out when a company decides to develop its own brand, after being a OEM/ODM manufacturer for some times. It can be a make or break situation.

U guys can refer to Karex when it decided to have its own brand of condom, its sales from other customer decreased, and its marketing expenses for its own brand products increased. Resulting, decreasing earnings..

EWInt is selling cheap now, if based on its asset value and future earning potential.
But, it also has a negative point, that is UK's property price has been declining due to the unresolved Brexit issue. We can only have more clarity on Brexit after end Oct'19.

The below info I extracted from the last quarterly report. It sounds like the coming Feb-Apr'19 earnings result will not be very positive. The investor needs to wait for the May-July'19 earnings result to see better earnings (to be published in Sept'19) :

- London City Island is expected to hand over units in its remaining residential blocks starting mid-FY2019 (May'19 onwards) while Embassy
Gardens is expected to deliver Block A05 in 2H FY19 (May'19 - Oct'19). This means we should see higher earnings from Q3FY19 onwards (May'19 onwards).