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Wednesday, September 15, 2010

Undervalued Advance Information Marketing (AIM)

I posted about AIM before.Those who bought it after reading my blog and sold it would have been making super profit.Check out my previous post and see the share price for yourself!!!

Recently,AIM announced bonus issue of 1 share for every 3 shares. After the announcement,there have been a lot of activities in the company.

The company has been actively buying back its shares using its strong balance sheet.

Latest balance sheet revealed that AIM is very healthy financially,little liabilities and has about RM 23 mil on its account.AIM has also sold one of its factory to raise about RM 6.6 mil this week.This will increase its cash built up to RM 30 mil.But AIM 's market cap is about RM 35 mil (at RM 0.185 per share currently)

So besides the bonus issue,what is brewing in AIM?

One possibility:AIM is venturing into some special projects which will boost up its revenue in the future.AIM may give good dividend to its shareholders after the bonus issue too.AIM may be transferred to Main Board in the future.

Investing in AIM has more rewards than risk. Buy AIM now @ 0.185.

Sunday, September 12, 2010

Willowglen MSC is extremely undervalued

Willowglen is in the process to join the big boys in the Main Board.This will attract more investors and hence more liquidity or volume can be expected for this stock.

What really attracts me is Willowglen 's balance sheet is very strong. Check out my previous blog on this company too.

If you check on its balance sheet,Willowglen has about RM 50 mil but the company market cap is around RM 90 mil (at current share price 0.37).That means the business is only selling for about RM 40 mil.But past records revealed that the business is producing about RM 10 mil p.a in net profit.

Assuming a P/E of 7x for Willowglen (post transfer to Main Board), it should be selling at RM 120 mil (market cap). This means the price can shoot up to RM 0.48 post transfer to Main Board.

Investors can expect 30% upside, bonus issue, share buy backs and special dividend from Willowglen within this financial end.