Posted by duitKWSPkita > 2014-09-09 22:15 | Report Abuse

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2222222222222222 SWOT Analysis 2222222222222222
{{Strength}]
- Experienced management team to spear growth
- First mover advantages in e-Broking business
- Largest market share(70%) in Malaysia's online trading platform & estimated 1.1 million clients
- Largest operator (4000 terminals)which is 60% from Bursa Malaysia
- Largest Exchange trading platform provider (200 brokerage houses) in Philippine Stock Exchange
- Strong synergy through "Strategic Business Alliance" acquisition in Japan's media heavyweight NIKKEI CORP and QUICK CORP
- Strong recurring income stream from every matched trade order that is routed through its online trading system
- Strong R&D team for cutting edge Cloud technology
- Competitive advantage in Cross-border InterBrokerage system

{{Weakness}}
- Dependence on e-Brokering business
- Limited ICT sound R&D specialist
- Dependence on investment sector; less diversified portfolio
- Fluctuate NET INCOME; long term investor distraction
- Giant investment capital for server maintenance and speed accelerator

{{Opportunities}}
- Growing number of online traders blobally
- Obtaining market capital through global market acquisition
- Competitive online trading fees vs conventional trading fees
- Technological evolution expedite Baby Boomers to use e-trading
- Over take Bursa as the prime real time portfolio management system for online trading
- "Bloomberg of Asia" - The Region's largest financial information provider

{{Threats}}
- Comepetition from ExcelForce (EFORCE: 0065)
- Antitrust law enforcement
- Foreign exchange risk
- Software cost increase by Citrix Company
- Government regulation "trading info tracking"- thread to traders
- Currency risk
- Increase of hardware price



3333333333333333 Key Facts 3333333333333333
In order for long term improvement, I would like to compare this long term FA stock with the much more experienced peer,Excel Force (EFORCE: 0065).
A) Revenue (RM,000):
~~~~Year EFORCE vs N2N
~~~ 2013 20,626....31,327
~~~ 2012 28,361....26,611
~~~ 2011 16,052....20,724
~~~ 2010 13,382....14,948
~~~ 2009 12,118....12,271
Remarks: Year on year basis, N2N's REVENUE GREW 17.72% while EFORCE grew 12.33%

B) Net Income (RM,000)
~~~~Year EFORCE vs N2N
~~~ 2013 7,001....6,041
~~~ 2012 5,257....1,789
~~~ 2011 6,046....-1,350
~~~ 2010 5,363....-6,474
~~~ 2009 6,171....-21,547
Remarks: Year on year basis, N2N's NET INCOME surged up 237.83% due to the effectiveness of turnaround project and profiting from newly introduced online trading platform managemnent system.

C) N2N has recorded a Gross margin-59.21%; Net Profit Margin-20.66%; Operating Margin-24.71%. However, the ROA & ROE was lower at 9.61% & 14.23% and EFORCE was 14.02% & 17.71%.
Remarks: The double digits net profit margin is inline with peer industry. However, the current ROE of 14.23% should be improved to compete with peer's performance.

D) Earning Per Share (RM cent)
~~~~Year EFORCE vs N2N
~~~ 2013 3.38....2.01
~~~ 2012 2.55....0.59
~~~ 2011 2.92....-0.45
~~~ 2010 3.75....-2.24
~~~ 2009 5.45....-7.22
Remarks: Year on year basis, growth in earning per share increased 215.37%. The five year annualized earning per shares growth ranks HIGHEST in its industry.

E) Cash flow
~~~~Criteria---------------EFORCE vs N2N
-CashFlowPerShare----------0.0462....0.0369
-Price/Cash flow per share--14.06....32.75
-Book value per share------0.1942....0.1649
-Tangible book value-------0.1546....0.1280
Remarks: The company is in healthy financial condition and able to score positive in business sustainability.

F) Debt ratio
~~~~Criteria--------------EFORCE vs N2N
-Total debt/total equity--0.1967 vs 0.3019
-Total debt/total capital-0.1640 vs 0.2319
Remarks: Both company has logical value in debt ratio and inline with the industry benchmarking of 0.50 (total debt/total equity). After the screening of long term investment for N2N, it is heartening to assume N2N is aggresive financing the rapid growth with DEBT.

---------------To be continued---------------

Posted by duitKWSPkita > 2014-09-09 22:15 | Report Abuse

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4444444444444444 Top management direction 4444444444444444
International experts like to call N2N Connect as Asia Bloomberg after its ventured into Japan's most largest information financial business. In Malaysia, investors like to call N2N Connect as Mini-Bursa because it will eventually take over the Bursa's service platform to provide trading database and online management system. Should you agree, Bloomberg is a US-based company started with financial information provider way back in 1980 and has evolved into becoming a leading global financial media organisation and was ranked-42th on the Forbes America's Largest Private Companies List. I strongly believe that "WHY DREAM LITTLE, WHEN YOU CAN DREAM BIG". The N2N Founder Mr Andrew Tiang is a brilliant, far view, innovative, passionate and super DARING entreprereneur. Andrew Tiang, aged 42, started his career as a programmer in a accounting & software company and WAS PRMOTED to SENIOR CONSULTANT at the age of 25.(hahaha...duit is cleaning the floor at the age of 25 & 26yrs old till present). After 6 yrs he resigned and joined Citibank N.A South Asia as the Head of IT audit section of the regional audit division. He quickly became a remarkable person in ICT line when he was awarded the BEST IT AUDITOR for Asia Pacific Region after the subsequent year. He has assumed the role of MD at Computer Associates Pte Ltd in Malaysia and Regional Director at i2 tech Pte Ltd.
$$$$$$$$$ WHY DREAM LITTLE, WHEN YOU CAN DREAM BIG $$$$$$$$
Mr Andrew Tiang began his entrepreneurial pursuit by founding N2N in year 2000 and then listed the company on November 2005. The company long term plans are always aligned to the Vision to SERVE INVVESTORS ANYWHERE IN THE WORLD TO TRADE IN ANY MARKET OF THEIR CHOICE THEY WANT, ANYTIME.
N2N's top management is strategically invest the company with substantial amount into creating new products and a service channel leading to Bloomberg-like services eventually.

The top management is ensuring its leadership in the industry. It can be seen when they developed and launched the sophisticated programme known as "STRATEGY OPTIMISATION ACCELERATOR", which is to ensure that the latest programme not easy to be emulated.

Besides, N2N Connect is also working closely with its prime software developer-Citrix NetScaler to seal the potential business opportunities from cross-border InterBrokerage services. Again, Andrew Tiang is fully utilised the competitive advantages of optimized bandwidth, enhanced customer experience, lower cost of investment, improved user response time and most importnat Multiple features in ONE BOX to enabling every cross-border trading business. Mr Andrew has highlighted their company direction to deliver applications to any trader in any trading situation with the FASTEST PERFORMANCE, HIGHEST SECURITY, LOWEST BROKERAGE FEES and off course BEST USER EXPERIENCE.

---------------To be continued---------------

Posted by duitKWSPkita > 2014-09-09 22:16 | Report Abuse

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555555555555 Hidden opportunities for long term investment 555555555555
The world of technology is changing at an ever-increasing pace. Some say YES while some complaint to it. Today users and applications are moving apart.The increasing of distance between users and applications have caused the difficulties and growing challenge in business, not just one dimension but across physical. technical and organizational. I strongly believe no matter how fast computing evolves, the pace of change is faster still accross all three of these dimensions.

Online trading companies are struggling to keep up the face of ongoing transformation. N2N Connest has rule out several strategies to "shape and reshape" to "penetrate and capture" in order to turn every single end user problem into business opportunities. The e-Broking and e-commerce business are getting bigger and bigger because:
1) Baby Boomers brought IT to where it today, now their new generation the Echo Boomers, Gen X and Gen Y & Echo GenY/Z are likely talking computing to new heights of user freedom and control
2) Distruptions caused by disasters are increasingly common so online electronic transaction will reduce the risk from physical aspects.
3) Globalization is shifting work to where the talent lives and N2N has not excuse not to tag along with the talent pool
4) Consolidation is rampant as industries and companies seek to squeeze out cost so I will bring great opportunities to a well established yet competitive cost driven company-N2N Connect.

We are the trader, we are the end user and we are fully aware of more workers continue to work in more ways in more places, the ability to deliver any trade transaction anywher, to any server who control it, with the least lead time, fastest performance, highest security become a crucial decisive and even critical. As a result, users are becoming more and more decentralized and ALL IN A BOX solution (like what N2N offer) becoming more centralized (hidden opportunities for investment) to lower management costs.

ANother hidden opportunity to be revealed is the above mentioned "Strategy Optimization Accelerator". This development is certified by the company to be able to process a large amount of data, or Giga Tera Peta data in much cheaper price with a wider reach. It would be the MAGIC Product from N2N to compete with all the competitors. The selling price is about RM25,000 compared to a competitor's common price of RM20 million. WHY? WHY? WHY? Don't trust magic? YES, I do not trust Magic as well. The latest technology is built on the foundation of GPU(Graphics Processing Unit)which made up of more than 1,000 core processors with the ability to process massive data without compromising on stability. And fantastic news is the GPU incorporated with a programmed algorithms that able to process numerous stocks/securities wwith a single instruction to track the TA chart to come our BUY/SELL Call. In future/currency trading the so called robotic algorithms can perform the "job" in minimal supervision.(AGAIN just RM25,000 investment cost).

Currently, N2N has market presence in Malaysia, Singapore, Indonesia, Thailand and joint partner operations iin Thailand, Vietnam, Saudi Arabia, Kuwait and United States. This can help to leverage the competencies and benefit from technology transferation process.

More and more global opportunities will be explored by the key management to reward shareholders with attractive dividend yield.



6666666666666666 Conclusion 666666666666666
Everything look good. Totality speaking N2N Connect starts to perform well since 2012 as we can observe from the key facts such as revenue, net income and earning per share. However, current they do not beat EFORCE mainly because of fresh recovery from losses from 2009-2011. We like to see N2N Connect to over take EFORCE and in future to take over most of the e-Broking companies in this region. The are in the midst of take over Bursa's database information provider poftfolio. I believe in current top management that one day the company can compete with Bloomberg and standing in the eyes of the world. Lastly, with this high potential and explosive counter you will be rewarded with handsome "share price appreciation" and "dividend yield'.

Invest in good FA stock so you can sleep well over the weekend and off-trading days!

Happy reading and warmest regards,
newbie duitKWSPkita

Posted by duitKWSPkita > 2014-09-09 22:19 | Report Abuse

Dear Readers,

You are most welcomed to give your comments and all positive/negative feedback will be accepted with open heart. I am still a newbie in stock market and really want to learn more from you all.

I am not perfect so learning, learning and learning will be my immediate priority throughout my participation here.

Lastly, hope you have a pleasant reading. I will start to prepare my third write up for new long term FA counter. I hope to share with you all my 7 good FA counters in sooner.

Thanks and warmest regards,
newbie duit

Posted by duitKWSPkita > 2014-09-09 22:30 | Report Abuse

bye bye....... can only curi curi tulang 3 hours after dinner time for my write up outside... will return to my sapu lantai work at Econsave now.

I m leaving now...

Happy trading!
duitKWSPkita

Posted by Metta > 2014-09-09 22:49 | Report Abuse

Thank You Mr Duit.

Posted by yong888 > 2014-09-10 06:35 | Report Abuse

duitkwspkita .

Good Write up on N2N....... Congra.................

N2N is one of my Blue counters since last year.....

N2N is a supplier of Bursa trading platform for many Bankers/ Brokers and Securities firms in Malaysia. she enjoys her fees/ income for both trading platform maintenance and services.......

Happy trading .

Posted by duitkwspkita > 2014-09-10 09:35 | Report Abuse

my pleasure Metta..

Thank for support

Posted by Metta > Sep 9, 2014 10:49 PM | Report Abuse

Thank You Mr Duit

Posted by duitkwspkita > 2014-09-10 09:37 | Report Abuse

Thanks very much my dearest Abang yong888,

Again. Thanks for review my work...... Appreciated ur kind opinion and comments in my learning process. I will improve better.

Catch with you later.... bit rushing... send my regards to ur daddy, and please take good care for urself....

Happy trading day!





Posted by yong888 > Sep 10, 2014 06:35 AM | Report Abuse

duitkwspkita .

Good Write up on N2N....... Congra.................

N2N is one of my Blue counters since last year.....

N2N is a supplier of Bursa trading platform for many Bankers/ Brokers and Securities firms in Malaysia. she enjoys her fees/ income for both trading platform maintenance and services.......

Happy trading

Posted by yong888 > 2014-09-10 23:36 | Report Abuse

Adik Duit,

hi, I am busy on my trading platform on EU and US futures ..... looking good as I hv been Shorting them since last week......... as Global downtrend is a better trading opportunity....... , Oil is weakening as Dollars gained strength, Gold and other commodity may head to further weakness...... ....,
Thanks for your tips on Glotec,....... I will look at it tomorrow..... how are you ?? I may leave for New York for a short business trips cum leisure this Sunday, will miss you and connie ....... ......

Wishing you happy, and do enjoy your life to its fullest,..... and don't worry, as charity work is my life's mission...........

Bye bye, happy trading, adik......

Posted by yong888 > 2014-09-16 06:35 | Report Abuse

Hai, Duit,

Good morning to you,

Wishing you happy and having beautiful days always.....

bye ... happy trading

Posted by duitKWSPkita > 2014-11-03 17:25 | Report Abuse

Dear Potential Investor,

Feel free to monitor N2N for your long term investment choice.

Happy trading!