US/ European Market seems to have reacted positively to the stance by ECB and lower oil inventory than expected. Having said that, there will still be weakness until oil start to bottom out at USD20 - USD23 levels. Given the high levels in market volatility, movements will be in large up and downswings. If there is a strong technical rebound expected, start looking at taking profit selectively.

If you come to think about it, its really not that bad.. Instacom seems to have survived at current levels depending on how other stocks like Gadang, Canone and Thong Guan performed etc. Having said that, still there are down side risk. Just pray that things will rebound.

thinkinheadd, no one values any security based on historical earnings. I am just making a statement and that doesn't mean it will send the share price soaring. It could just be an indication that the counter will turn around as the old Instacom has never lived up to its promises.

If you are savvy enough, you will know that a share price is not valued based on historical earnings. FYI, the valuation by CIMB is based on FY17 PAT of 240.0 mil. Ascribing a 9x PE ratio to an enlarged share based of 3,468 mil will give rise to a TP of 0.65 (after proceeds and conversion of warrants). The projections here are made based on the existing and expected order book from Vivocom. It's fine if you don't trust the earnings because none of us here knows how it will perform.

Further, if you are unhappy with MyView or whoever - bring it up to him alone as I am not here to find fault with anyone. LoL

I have worked as an equity analyst in the past and I am more than capable to analyse as well as weighing the risk and return of any security. As I have always mentioned, I am not fully or 100% convinced by the story but I will just fancy my chance. If I lose money in this counter, than too bad la. If I make money, then good lo.

p/s: Btw, who the hell is kcchong - As far as i know, those who are making lots of money from the market has no time to give training la... You don't see investment gurus like Warren Buffet / Steve Cohen / Mark Mobius organising classes. I don't prescribe to technicians or layman trying to profess investments.

Good luck to you and hope you make money in your pursuits during such turbulent times.

Latest market news is that the full year FY15 PAT is between. RM9 - RM11 million/ Name change to Vivocom should be effective by next week. Good luck

PETALING JAYA: Instacom Group Bhd has announced to Bursa Malaysia that its subsidiary, Vivocom Enterprise, has secured yet again another construction project – this time totaling RM240 million from Coneff Corporation Sdn Bhd thereby further strengthening its already huge order book of some RM726.8 million announced earlier to amount to the current RM966.8million.

The project, a joint venture development with Dewan Bandaraya Kuala Lumpur, known as Phase 3B of D’ Idaman located at Lot 36071 and 36072 Desa Tasik, Mukim Petaling Sungai Besi, Kuala Lumpur, comprises 2 condominium blocks, 2-storey of retail lots, one-storey recreational centre and a seven-storey car park.

In addition, Vivocom Enterprise is presently in final negotiation for another parcel of works estimated to be no less than RM200 million.

Emergence of formidable regional construction group On Bursa Malaysia, Vivocom has transformed into the biggest ACE company in Malaysia and remained the market volume leader for the past several weeks, a phenomenon seldom seen in Malaysian stocks.

Vivocom has a strategic relationship with CRCC Malaysia, a subsidiary of China’s construction behemoth China Railway Construction Corporation Ltd, and is their in-house contractor as well as their Project Delivery Partner in Malaysia.

Its recently awarded notable projects include a RM116 million project in Gombak and two projects totaling RM378 million related to the 1Gateway project in Klang and 1Pavilion Hilltop in Mont Kiara, Kuala Lumpur.

These projects together with the company’s current order book are expected to give a strong earnings visibility until end-2017 and beyond.

Vivocom currently has a project pipeline estimated at RM2.3 billion.

The company’s executive director, Choo Seng Choon, said: “We are very pleased to secure the latest RM240million contract.

There will be further announcements to come as we are successfully awarded more contracts.”

“Instacom CEO Dato Seri Dr Yeoh Seong Mok was instrumental in securing this project.

“There will be more to come and Instacom is looking forward to delivering stronger and better financial performance ahead.” ­— Bernama

A good resilient stock will be Supermax which stock should play catch up following recent upgrades from Brokers. Hear that Mgmt will start meeting investors in February.

WTI Crude - 6.71% to $26.55; market should remain bearish not unless if China stage a rebound. DJIA dropped as much as 500 pts before staging late rally to ease the damage. We live in interesting times having to witness both equities, fixed income and commodities at a bear cycle

Hopefully provide some relieve tomorrow.

Announcement coming also.. insiders didn't went in and buy; DJIA futures is trading 2% lower pointing to high weakness when US markers open

If the contract announcement is expected to be true, guess nobody really give a sh*t of this stock following the bloodbath in today's regional market. What a waste to the promising start in the morning

MyView, why does the particular person hate this forum so badly..

Haha..

I also hear that there could be some announcement coming up today.. could be contract in a region of RM230 - RM250 million; Lets hope is from CRCC as contract award from other parties may not carry such a large impact.

On a separate note:

KUALA LUMPUR (Jan 19): CIMB Investment Bank Bhd said Malaysia's Budget 2016 revision was "unlikely to be a huge negative" for construction projects, in anticipation the government would continue to spend on high-impact jobs.

In a note today, CIMB analyst Sharizan Rosely said industry players had told the research firm that the budget revision was expected to pose a low risk on major cancellation of projects.

The government will announce the Budget 2016 revision this Jan 28 due to lower crude oil prices. The commodity forms a crucial component of the Malaysian economy and government revenue.

“Government officials preliminarily indicated a 2.3% (RM6 billion) cut to Budget 2016’s RM267 billion total allocation, based on a lower oil price assumption of US$30/barrel versus the original US$48.

“While postponement of selected projects is inevitable, our revisit of the distribution of projects under Budget 2016 shows that more than 90% of the jobs are high-priority. Industry players concurred that the risk of cancellation for these jobs is minimal. MRT 2, LRT 3 and Pan Borneo [Highway] are among the safe ones, Sharizan said.

Sharizan said builders like IJM Corp, Sunway Bhd, Mudajaya Corp Bhd, Gamuda Bhd and Bina Puri Holdings Bhd, which have formed consortiums with Sarawak contractors, were deemed frontrunners for the Pan Borneo Highway project.

Sharizan said CIMB maintained its "overweight" call for the sector, with Gamuda as its top big-cap pick and Muhibbah Engineering (M) Bhd as its preferred small/mid-cap stock.

So this must be the contract which the market is speculating which will be released today:-

Reference is made to the announcement of the Company dated 15 January 2016 in relation to the proposed collaboration to jointly develop Kharisma port and integrated industrial and commercial development on the parcel of land held under HGU30, HGU 39 and HGU40 at JL. Suak Kandis, Desa Sakaen, Kecamatan Kumpeh Ulu, Desa Pudak, Desa Kemingking Dalam, Teluk Jambu, Kecamatan Marosebo, Jambi Province, Indonesia measuring approximately 2,155.52 hectare (“Proposed Collaboration”) through the consortium of Vivocom Enterprise Sdn Bhd (“VESB”), Pt. Kharisma Kemingking and Instacom Group Berhad (“Instacom”) (“The Parties”)

Further thereto, the Board of Directors of Instacom wishes to announce the following additional details:-

a. The cost and outlay for the Proposed Collaboration have not been fixed and shall be determined once the feasibility and due diligence study to be conducted by VESB are completed and the terms and conditions of the definitive agreements are mutually agreed upon by the Parties. The capital outlay by VESB and Instacom, once determined, will be financed by way of the internally generated funds and/or bank borrowings, as and when required.

b. The feasibility and due diligence study is expected to be completed within the next six (6) months. Thereupon, the definitive agreements are expected to be signed by the Parties within three (3) months after the finalization of the feasibility and due diligence study.

c. The Company would provide further updates on the Proposed Collaboration, such as, amongst others, the capital outlay, the finalization of the feasibility and due diligence study and the signing of the definitive agreements, etc., once they are available.

This announcement is dated 19 January 2016.

I suspect there will be weakness tomorrow as most would have thought that there would have some contract award today.

ktsk88, the company needs a lot more contract if you want to see the stock trade alot higher. 1.9Billion in hand is not impressive at all and will not justify higher valuations. We need at least RM3 billion in new projects (only announced RM116 million so far). Presently, it is already a 720 million market cap stock which makes it one of the larger mid size contractors in town (> Gadang) Moreover, the Indon port project of up to RM2 billion is not going to be fully taken up by Vivocom as it simply do not have any capacity to look at it. It is likely to enter into a JV with a main Chinese party and come out with 30% equity resulting with additional order book of RM600 million. Therefore, there is still a substantial shortfall of RM2.3 billion to allow it to trade > RM0.60 level.

what is the news that you are hearing?

demotedloveangel, I really hope you are right. If doesn't happen this week, please don't circulate this around as the rest of us here will think that you cry wolf..

hmm.. Market doesn't seem to react positively to the news.

seems like this message has been going around. If this doesn't happen, expect further weakness on the stock after next week.

CIMB forecasted PAT for FY15 as RM7.8 mil; Instacom's 9M FY15 is RM6.2 mil. Therefore, Insta is on track to surprise on FY15. Having said that, it is not going to matter alot given that what is crucial is FY16 which the Target Price is based upon.

CIMB only guiding a FY15 profit of 7.8 mil for the year. 9M results presently stands at 5.6 mil. I am not sure if Insta can do a quarterly profit of 25 mil? Even if they can repeat last quarter's feat of 7.0 mil, i think its fairly commendable performance.

Regional market has been suffering from diarrhea over the past weeks.

Hi can share report from CIMB. We can't assess it without an account

Lim123, foreign fund wont go in and buy just 825K. that is just too small of a quantum. The closing is the best time as there is less concern of price fluctuation. For penny stocks like this, every 0.005 counts. Lets hope for the best.

China can tender for all key projects here in Malaysia but the question that matters most to all of us here is whether or not Instacom will benefit? So far only RM300 mil of its 2 bil orderbook in hand is from CRCC. Until there are clearer visibility of the giant contracts, the stock will only be a "pump and dump" counter as there are no institutions supporting it. Less frustration if you don't look at it on the daily basis.

Friends from corporate circle told me that the name change may take up to 3 weeks (2 weeks from today) to be effective. Reckon that contracts will only be announced after name change as a mark of the new company. Meanwhile, it's going to be a roller coaster ride.

Does any of you all know when the name change to Vivocom will be effective? I hope with the change in name, the perception towards the company will change as well. Where are the damn contracts? Placement money is already in!

solidwater, what activities are you expecting? Are you going to "Goreng" the stock?? Hehe..

market is taking a hard beating and the trend will continue as I read somewhere that analysts expects china market to correct by 30% for 2016 given its high asset valuations and declining growth..

ccdev, hopefully what you say will come true for the rest of us. I am taking this chance still.

MyView, sorry.. i think you misunderstood. What I meant don't bother about those that create nuisance. If we lose money - not their fault as we are all matured enough to evaluate the risk and returns of the stock market. Don't waste your energy on them as rather that you go find genuine ideas for us to punt. Also, I am not here to be praised but got to admit that I visit this forum regularly to share and receive news from all of you whom I believe will go around asking about Insta (just like bro ccdev).

Having said that, the markets can be very unforgiving and therefore we should be open and evaluate all information on the table.

Good Luck!

MyView.. Chill la.. if the rest of here want to lose money, leave that to us la. Not going to affect you in anyway.

share22, none of us here knows what will happen. Meanwhile, those who are invested will just have to fancy our chances. If it happens for the better, this could be the biggest story for 2016! Evergreen was loss making before but look at what a "monster" it has become of today..

I remembered when CIMB once has a write-up on IFCA stating that it was something like an "excellent buying opportunity" following a weakness in the share price which decline until RM1.30 level from a high of RM1.80, if I can recalled correctly. However, the recovery didn't really happened since then as the stock had lacked catalyst after the GST factor. I hope this doesn't jinx the stock any further.

In any stock investment, there need to be strong catalyst. Referring to the recent article on Instacom, I think there need to be more than just small talk from the management as whatever reported is not new. We don't want a puppet show and therefore, management should do more to rather than using Dato Seri to just say a few words to justify its relations with CRCC. The existing contracts secured from CRCC is only RM300 million out of its existing orderbook of RM2.0 billion. Therefore, the market is still waiting to see what it has to offer and we can't be sure as to whether the contracts would even come. To secure RM3 billion in new contracts for FY2016 is not an easy feat especially when Insta has only secured RM116 million since the report by CIMB. Having said that, we still hope for the best but should remain cautious as Instacom is still seen as a gamble to most people. Therefore, one should expect strong headwinds in trading until there is greater clarity.

Also, I hate but to agree with Desa that the outcome of the placement is not encouraging. The private placement was announced when the stock was trading at RM0.320 - RM0.340. Immediately after the announcement, the stock fell leading to the placement price being fixed at a huge discount of RM0.25 and managing only a take-up rate of 50+ %. This reminds me of some of the IPOs out there which needed to be fixed at a lower price but ultimately still fail to live up to expectations. Therefore, I can't confidently say that the exercise was a successful one especially most fund managers are already telling me that they will not invest in this counter until such time where the company demonstrate strong contract wins and demonstrate execution ability. Having said that, some money in the coffers is better than no money at all as it will definitely help them to secure some contracts, i gather.

I hope we don't get played out as I am optimistic (at least for now) and hope to rejoice with the rest of you here when that day (> RM0.40) comes... WB, WC *woohoo*

Good luck to all :)

Means that the shareholders have approved the change of name from "Instacom" to "Vivocom". This could take up to 1 week to be effective.

Suspect that some of the heavy selling could come from some of the private placement investors. At a price of RM0.25, they stand to make gains of at least 15 - 20% (based on current levels today). This represent a respectable gain over such a short period of investment horizon. On hindsight, We should have just club and take a position in the placement..

Myview, construction companies rarely give revenue and earnings guidance as there are too many variables affecting the revenue stream. Focus should instead be on the contract tender books as well as the expected tender conversion rates. Moreover, it is also vital to obtain clarification from the Board in the specific utilisation of private placement proceeds as well as timing of contracts expected. If i could recall, a large portion of the placement proceeds are for acquisitions! CIMB guided RM3.0 billion in new contracts (which is in addition to the RM2 billion it has) to be awarded to Vivocom in FY16 alone and based on their existing cash reserves, I am not sure if they will be able to sufficiently fund it. Conservatively, a 10% outlay will set one back for RM300 million. The Banks are unlikely to finance you in full and at 20 - 30%, you will need at least RM90 million to fund the equity position of the projects over the cycle.

At this juncture, doubtful that the other research houses will start covering until there are more clarity on the performance risk as well as replenishment of its order book. The assumptions adopted by CIMB is not one where can be easily accepted. Hence, that explains why it will remain challenging for the stock to trade at a new high. We must admit that the rest of us here are just going to fancy this chance as this is the only stock which can provide very promising returns still (albeit the prospects of the PLC is wide known)

For those who are attending the EGM later, kindly share your experience or any guidance provided by management. Thank you.

Nothing will survive when there is a circuit breaker in China!

the counter is coming quite heavy selling pressure.. wondered if the private placement investors have started unwinding and have no regards of the contracts to be announced soon, if any

Myview, I reckon ppl like Bhramal will not be overly excited over a 15 - 20% gain, he publicly sold down only when he was netting 40% after a few days. Having said that, nothing is stopping him to do for Instacom as there are no moratorium in place. Further, I would just rather cross the block off-market then selling it openly as it will work against him

Good show today by Instacom! I just hope the private placement investors don't throw their block in the open market considering they have gotten the shares really cheap at 0.25!

counter under speculation.. big time punters taking a break

Market rumour is that when the name change is effective, contract awards will be announced as a mark of a stronger company moving forward.

China's manufacturing index is on a decline and the domestic consumers are showing preferences towards goods manufactured in the west. Financial performance of some of the larger domestic sports apparel producer (i.e. Li-Ning) has also declined steadily after the Olympics. To consider this stock strictly on its balance sheet and cash position is going to be a tough sell. There has been reports of Company investing massively in new lines which is interesting considering that its sales have been steadily on a decline............. Why wouldn't management just announce a good dividend payout to demonstrate the strength of its financial position.. Why?

There are many investors out there who are currently trading this stock and therefore, every bps matters. Only news of major contract awards will help in the ST. Regardless, its better to make some money than lose money. Trade with care.

Despite so much coverage on the counter, we don't see season gurus in this forum like OTB, Icon8888, Koon Yew Yin recommending the stock.. have anyone here sought their views before?

I have gotten the similar SMS as well. Suspect its just rumor going around to spur interest in the stock. I doubt the other research firms will write about the company, not unless if there are major contract announcements and maybe after 1 - 2 financial quarters thereafter to demonstrate its execution capability. The counter hasn't really live up to its promised in the past and it will take a reasonable "good show" to get everyone moving.

Happy New Year ;) The selling pressure on the stock seems quite high. Guess there are many out there who are looking to unwind their position..

That is a valid explanation. Just that the report by CIMB is overly focused on the prospect of Instacom getting a large number of CRCC contract due to DS. Anyway, we shall see and hopefully all works well. With the change in name in early Jan, hopefully we shall see more positive developments..