this counter must wait punya, i was told it will be second Dayang, slow slow collect and out of sudden Petronas award a package, they will goreng and announce bonus n share spli into 10 sen.
Selective small/mid caps to appeal. In our review of the last 14 years, small caps - as proxied by the FBMSC Index - are enjoying one of their longest sequential winning streak, having outperformed the FBMKLCI on a mom basis in the last seven months. While the index’s absolute PE and discount to the FBMKLCI’s PE are no longer compellingly cheap, we see good market liquidity and low risk aversion supporting moderate outperformance by small/mid caps. Stick with small/mid-cap plays that have compelling investment themes: a) O&G plays, namely Barakah and Deleum. Share price of Uzma has eased after our recent downgrade to HOLD (following its strong outperformance) and the stock would be attractive again if it softens further. b) Property plays, namely emerging developer MRCB, which has multiple catalysts (the upcoming prime Kwasa Land and PJ2 developments, more property disposals to a Quill Capita REIT, EDL tolling). We also like emerging REIT plays like WCT (which has some RM1.5b of investment properties, equivalent to 0.9x of market cap, that could be REITed) and Tiong Nam Logistics, which could set up a RM700m industrial REIT (1.3x current market cap). We also like Sunway, and expect it to successfully replicate its Bandar Sunway (Selangor) township development in Medini, Iskandar. Other themes we like are: Cyclical recovery plays such as SKP Resources (BUY on weakness) which is poised to deliver a 3-year net profit CAGR of 23-30%. Finally, we like the Sarawak Corridor of Renewable Energy (SCORE) theme, for which our key pick is Cahya Mata Sarawak, which is poised to benefit from the commencement of operations at its ferrosilicon alloy smelter plant by Sep 14. This should boost CMS’s earnings by 15% once it is in full production in 2015. RISKS Small/mid caps typically fare worse during downdrafts. In our small/mid caps strategy, note the downside risks during downdrafts. We note the FBMSC fared significantly worse than large caps during bearish markets. Hence, we advocate sticking to small/mid caps with compelling near-term catalysts.
anticipate Barakah will win BIG Saudi o&g project soon ... Buy now before too late .. Something big is brewing ... accumulate when it is Quiet at low price ... !! watch out !!
KUALA LUMPUR: UOB Kay Hian Malaysia Research expects market conditions will continue to favour small/mid-cap stocks, which have outperformed the FBM KLCI on a month-on-month basis in the last seven months.
The research house said this was one of the longest winning streaks in its 14-year performance review.
“Year-to-date (YTD), the FBM Small Caps Index has outperformed with a 21.7% year-to-date rise versus the KLCI’s 0.6%.
“We advocate being selective, picking beneficiaries of compelling investment themes or with specific event catalysts. These include Deleum, Barakah Offshore and Malaysian Resources Corp Bhd (MRCB),” it said.
UOB Kay Hian while small/mid caps have trounced the large caps’ YTD returns in all sectors under its coverage in 1H14, it reckons market conditions will still support further outperformance although it advocates being selective in stock picking.
“Valuation drivers include ample domestic liquidity amid government-led efforts to support undervalued small/mid-caps in Budget 2014.
“We also reckon retail investors, who have remained net sellers of Malaysian equities with RM500mil and RM6.5bil in net sell trades in 1H14 and 2013 respectively, would raise exposure in small/mid-caps.
“We also reckon the interest rate environment is still supportive, and even a potential further 25 basis point hike in the overnight policy rate (OPR) in September 2014 would not derail sentiment,” it said.
UOB Kay Hian said however, speculation in particularly the micro-to-small caps is stretched, for example companies trading at high multiples (nearing 10 times) or investors bidding up unproven conceptual stocks without perusing the strength of their business models (for example quality of earnings).
However, it pointed out that there was still value to be found. Small/mid-caps, as proxied by the FBM Small Cap Index, are up 21.7% YTD and 60.5% since the General Election in 2013, against the KLCI’s 0.6% and 10.8% respectively.
“Our top picks are MRCB, Deleum and Barakah (particularly its loan stock), while interesting situational stocks include Hong Leong Industries (see table overleaf).
“Notable NOT-RATED stocks include Suiwah, Tune Insurance and Heveaboard. Heveaboard’s earnings growth will be driven by higher operating margins from its expansion into higher-value ready-to-assemble (RTA) products, a more favourable product mix in the particle board segment, as well as a 50% decline in interest expense from 2Q14 onwards, having already settled its high-interest-rate term loans.
“Other beneficiaries of thematic investment plays include Sunway (emerging township in Medini, Iskandar) and SKP (cyclical recovery play).
“The recent retracement of HOLD–rated stocks that should rebound include Uzma and Tropicana. For year-end positioning, we like Perisai, Sunsuria and WCT,” it said.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
pradeep
1,324 posts
Posted by pradeep > 2014-06-27 14:21 | Report Abuse
Road block even though huge it is artificial