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Sunday, April 10, 2011

Berjaya TOTO is Attractive Now!

Some reasons:

Producing around RM 400 mil free cash flow (FCF) consistenly but its market cap is at RM 5.8 bil, indicating BJTOTO is selling at 14 times FCF only.

Attactive dividend policy which gives around 6% yield at current price of RM 4.28

Defensive business in inflationary environment.Sales tends to pick up during economic slowdown

Potential privatisation target at RM 4.90 per share (Very very likely) :)

Wednesday, December 29, 2010

Malaysia Smelting Corp (MSC) to list in Singapore Stock Exchange

The news is out this afternoon that MSC is going to list in Singapore stock exchange after shareholders' approval.The stock flew to RM 4.50.But this post is not about MSC.It's about a company which also owns MSC,ICAPITAL.BIZ

ICAP is non speculative,does not pay dividend and it has very small daily volume for traders.Hence,it stayed undervalued since 2008 crisis because uncle and aunty weren't interested.Why ICAPITAL is attractive?

a) ICAP is one of the THIRTY (30) LARGEST SHAREHOLDERS in MSC now. ICAP bought MSC in April 2010 at around RM 3 per share.It owned about 1.9 mil shares and at current price of RM4.50,it's sitting on an unrealised gain of RM 2.8 mil today.Since ICAP will continue to hold MSC even after it lists in Singapore,the future potential gain is tremendous.

b) ICAP is still holding RM 100 mil in its vault and judging from its impressive record to double the NAV less than 5 years, ICAP's NAV can easily breach RM 3.00

c) Tan Teng Boo is "cooking something delicious behind the kitchen" to serve to ICAP's shareholders in order to justify the under priced share

d) Current share price offers almost 20% discount to its NAV.

ICAP is ripe for picking now

Saturday, December 18, 2010

Buy Some Stocks Before Christmas Holiday!

Bursa Malaysia is undergoing some healthy correction during year end holidays due to fund managers going for vacation,school holidays for children so no time for stocks or whatever reasons.

It's during this period when value investors should hunt around looking for undervalued companies.They should allocate some cash to pick up some good stocks with good fundamental to ride the bull in Jan 2011.

Are you ready for bull run in January 2011?
You still have around 10 working days to pick up great companies at attractive price.Focus on companies with good cashflow,healthy debt ratio,cash rich companies,mid to low market cap.Some of the companies you should be looking at are mentioned in my previous posts.

2011 is a great year for Malaysia due to snap election, ETP, foreign fund inflow and various government initiatives to boost the Malaysian Economics.In short term,these news will lift the market confidence.In long term,we shall see....well,in long term,the success of all government initiatives will depend on the man in the mirror.You are the main determinant whether Malaysia will be able to leap from middle income trap to High Income Country.If you want to make Malaysia a better place,start looking at the man in the mirror.Let's work hard,work smart,save and invest now!