Posted by Bruce88 > 2014-09-26 20:49 | Report Abuse

The low PE may not correct. it may be due to one-off huge profit.
Based on the total of last two qtr eps of 2.1sen, annualize to 4.2sen
The forward PER could be 18. Trader is advised to be cautious.

Posted by mking77 > 2014-09-26 21:09 | Report Abuse

I think you are right. Mr.Bruce88. We must do our home work before invest.

Posted by teamzmalaysia > 2014-09-26 21:45 | Report Abuse

Bruce88. I have updated the article to include the reason of sudden spike in 2013. I also added comments about the low PE. Don't want to be misleading.

Posted by kingcobra > 2014-09-26 22:07 | Report Abuse

teamzmalaysia....what about Melewar? Don't u think it is worth investing?

Posted by Alex Chan > 2014-09-26 22:14 | Report Abuse

Steel ain't exactly bullish now

Posted by cnyang > 2014-09-26 22:18 | Report Abuse

Did you look at the company's cash position and receivables? Very interestingly. the marginal increased in sale in comparison to last year is exactly the same ie all in receivables.. Does it means that the company does not collect proceed from its additional sales..ie all in credits. And look cash position too, it dwindled. As an investor, I certainly worried.... Haha how could it be like pmetal ?

Posted by raymondanoh > 2014-09-26 22:24 | Report Abuse

Look good but l will start fishing when the price come down to 35 cent.

Posted by teamzmalaysia > 2014-09-26 23:22 | Report Abuse

kingcobra, Look at previous few years results, Melewar consistently making lost except last quarter, don't you think is risky?

Alex Chan, when steel become bullish, you will not get such price. Alumimium price hike a lot few months and that's why it contribute so much to the revenue of PMetal. PMetal immediatly gapped up when the news was out.
Currently, US is very bullish about STEEL. In India , traders very bullish about STEEL company. Will Malaysia be next, that's not what I can answer but potential is there.

Cnyang, it's something that need to ask in Annual meeting as I don't have access to information in detail. A lot of payments are made from export and FX risk has to be considered too.

If you don't like this company, there are hundreds of others out there. I will keep you posted for the next one soon and thanks for the feedback. If you have any good company to recommend, please post here and I will investigate.

Posted by Bruce88 > 2014-09-26 23:52 | Report Abuse

Teamzmalaysia, anyway thanks for sharing. Could you pls investigate CVIEW !

Posted by tpchuayap > 2014-09-27 07:56 | Report Abuse

thanks for sharing

Posted by limpek > 2014-09-27 09:05 | Report Abuse

PE of 15 to 18. dun you think is high? Y most of your comparisons only show loss making companies? wat about those like Masteel, leonfb, etc which are relatively have lower PE and more undervalue than KSSC.

And u are comparing with Pmetal? both are different industry.

Posted by hevea > 2014-09-27 10:26 | Report Abuse

You only see such article after the share has moved up in price.

Posted by Ahmad Muzamil Ahmad Murad > 2014-09-27 11:27 | Report Abuse

Hi team Malaysia, very interested to join this counter.

Just need to know 3rd quarter 2013 earning of 11.77 cent is contributed from what source?

Really interesting if its purely operation earning. If its only one-off then it will be less interesting.

However keep up analysis on hidden gem.... not many investor will do thorough analysis on each counter really need a lot of analysis contributor coming from investor itself than investment banking.

Posted by Teoh Boon Leong > 2014-09-27 12:38 | Report Abuse

You will regret if you don't enter now, the price is still low at 0.72.

Posted by teamzmalaysia > 2014-09-27 20:49 | Report Abuse

Limpek, my resource is limited. There are 8 steel company that I have omitted in my research and they all have large market capital. I choose low market capital mainly because I see more potential for further upside. Most of the large market capital stock has warrants attached that keep diluting the earning year after year and also the number of shares may also be great. This means there is more liquidity but at the same time less chance to go up significantly in comparison to small cap stock.

There is nothing wrong with both the company that you mentioned and if I spotted volume, then I may consider it. There are many company with good profit but unfortunately there is lack of buyer. In our research we give both basic fundamental and technical analysis for you to judge. There is no intention of any misleading and unlike some blogger with big fund backing them.

I am sure you will allow us to have our view and bias too or else we all end up buying one stock. You have to make up your mind.


Ahmad, the answer is in the note under until profit chart.

Hevea, we are hoping to spot stock before they rise. Unfortunately, there is a rare chance or else we would not be here. What we can do is to spot trend and notice fund is collecting so that we can catch the early phase before they push the price further up. We hope we can succeed and share our information with former here.

Apologies for missing other stock.

We will post more in the coming future and you can start buying if you start having confidence in our research.

Posted by Steven Yong > 2014-09-28 11:34 | Report Abuse

This is joke. Next pmetal. Haha.

Posted by teamzmalaysia > 2014-09-29 17:08 | Report Abuse

You can treat it as a joke and it may not be comparable to Pmetal, but for those who believe has made a handsome 10-11 % if bought on Friday after the post when the price was 0.71-0.72.

It's good to be sceptical as this is our first post. Watch out for the next one.

Posted by Caitlyn > 2014-09-30 02:23 | Report Abuse

Wow,great job , teamzmalaysia. Thanks for the sharing . Waiting for the next one whilst still holding onto KSSC.

Posted by tjhldg > 2014-10-12 23:10 | Report Abuse

: )