Tuesday, 13 September 2016

TOP 5 Highest Dividen-paying companies ( September 16 )

This is the list of companies with highest dividen-paying that ex-date is on September ( 13/9 afterward )  not whole year.

5 ) Lbalum = 3.28% ( EXP 30/9/16 )

4 ) Sedania = 3.85% ( EXP 19/9/16 )

3 ) Khind    = 4%      ( EXP 23/9/16 )

2 ) L&G     = 4.6 %   ( EXP 28/9/16 )

1 ) Sapres   = 9.74 %  ( EXP 15/9/16 )

Thursday, 25 August 2016

Hevea- A broken Gem is still a Gem

First of all, I would like to thank a " Blogger "  for bringing Hevea to spotlight again. Hevea has been trading boringly last few months. I am glad that they have brought some excitement to Hevea again.

I don't really know the truth of the allegation that made by Robert since I am not an insider. So, my evaluation of Hevea is solely based on the financial report and I still believe that Hevea is a good company and worth the risks.

Here is my reasons:

1 )  Despite all the allegations made by the " Blogger ", the performance of Hevea is still quite satisfactory judging from the latest two quater reports. Nothing really bad as proclaimed by the " Blogger " has happened. Company has turn to a net cash company and profit and margin is good. Cash flow is good too.

2)  Director has fulfilled his promise of rewarding shareholder. As promise in the AGM, director has started to pay dividen ( around 2.2% ) in two consecutive quater report. For me, I would say that he is the man of his word and trustworthy in my humble opinion.

3 )  I don't see any big problem in the latest report. Indeed, the profit has dropped 6% but it is mainly due to the shut down of operation and higher tax which don't really affect the fundamental of company. Besides, It has performed better than its peers such as evergreen and flbhd.

4 )  Hevea's prospect is still good. Tokyo Olympic is coming soon and Japan is the biggest custumer for Hevea. Ringgit is stable at RM 4. Company still focus on high quality product and it is popular in China. Everything seems fine for me.

Conclusion, I would like give my 2sens to those who are still holding keep calm and relax lah. We don't know what proclaimed by the " Blogger " is true or not but judging from the report, it is doing fine!! Ignore all the noises and believe in yourself and have faith. Let's walk through to this storm together!! Cheers !! Have a great day everyone!!

Monday, 1 August 2016

TOP 5 Highest Dividen-paying companies ( August 16 )

This is the list of companies with highest dividen-paying that ex-date is on AUGUST not whole year. For some, please read carefully and stop being ignorant and accusing me of being a liar. Thanks!! Based on all the announcement made and price on 02/0816.

5 )  AHP/ RM 1.02= 2.95% ( 18/8/2016 )

4 ) TNLOGIS/ RM 1.64= 3.05% ( 26/8/2016 )

3 )  PERSTIM/ RM 6.32= 3.17% ( 03/8/2016 )

2 ) PANSAR/ RM 0.45= 4.44% ( 24/8/ 2016 )

1) RCECAP/RM 0.75= 4.67% ( 26/08/2016 )

Saturday, 23 July 2016

WZSATU- Awakening of Bauxite

Happy Sunday everyone.
Recently, market is surrounded by hot stocks such as Vivocom, Air Asia, AAX and Bornoil. To give you all a " refreshment ", I would like to introduce a much low-profile company, Wzsatu.


( i ) Background
Wzsatu was previously a manufacturer of steel products. The performance was not well back then due to the stiff competitions and dropping of the steel price.

However, thing had changed in Oct 2013 where there was a major transformation of company from the emergence of new management team and substantial share holder, Dato Seri Tengku Uzir bin Tengku Dato Ubaidillah to the acquisition of new business. Since then, the company had became the limelight of the investors and the stock price had increased from RM 0. 32 to RM 2.4.
Now, the company is trading at the price around  RM 1.0-1.10.

( ii ) Core business
Wzsatu is involved in four segments which are:

- Civil Engineering and Construction
Most of the projects from this segment are related to construction and maintenance of highway.

- Oil & Gas
Wzsatu is the onshore oil & gas service provider and most of the jobs come from RAPID.

- Mining
Bauxite mining in Kelantan.

- Manufacturing and others business

It also involves in steel manufacturing and trading of cold drawn bright steel and set up a factory recently in Indonesia to reduce the costs and expand its market.

( iii ) Financial Performance

- Revenue 

It can be seen that the revenue from 2012 and 2013 is much more the same which is around RM 85 m and had increased significantly after 2013.
In 2014, the revenue has increased from around RM 89 m to RM 120.29 m ( + 35 % ) and from RM 120.29 m to RM 351.42 ( + 65 % ) in 2015.

- Profit

Same as the revenue, the profit also increased tremendously after 2013 from RM 1.39 m to RM 8.76 m in 2014 ( + 530 % ) and RM 20.73 m in 2015 ( + 136 % ).

# Both of the revenue and profit of Wzsatu has increased significantly after the transformation in 2013.

Debt to Equity Ratio

2015- 0.82

2016- 0.68

# Total liabilities has dropped from RM 203 m  to RM 194 m

Cash Flow-

Net cash has increased significantly from RM 57 m to RM 83m.

( iv ) Advantage-

( i )  Strong performance from Construction segment

- Wzsatu has secured many projects recently such as West Coast Expressway.

- Order book has increased from RM 261 m last year to RM 768 m

- With the current order book, managements are confident that it can last the group for over next two to three years.

( ii ) Bauxite  mining restart

- Bauxite is the main source of aluminium. Increased demand for bauxite is set to continue as aluminium use in developing countries is well below that typical of more developed economies.

- Due to environmental issue, the mining of bauxite has been banned by government for 8 months effective on 15 Jan 16 and now the ban is over and we can expect the mining segment to contribute more profit to the group.

( iii ) Rapid Project

- Despite the negative outlook of O&G sector, Wzsatu has just secured a RM 32.7 m contracts for Rapid Project.

- The project will contribute positive earning for group in 2017 and 2018.

( iv )  Consistent share buy back by the CEO

- YM Dato Seri Tengku Uzir bin Tengku Dato Ubaidillah, which is the CEO of the group has consistently buy back the share since 2014 and his stake has grown to around 25 %.

- I always believe that there can be many reasons why a director sell his share but there can only be one reason for director to buy back his share. It is because the company is undervalued. 

( v ) Disadvantage

- Negative outlook of O&G sector

- Doubts on profitability of SILK

- Environmental issue of Bauxite

# In conclusion, in my humble opinion, with the strong book order of construction segment, Rapid project and restart of Bauxite mining, the prospect of Wzsatu is endless and worth more than its current price.

Wednesday, 20 July 2016

A Uni Student's thoughts on investing

Recently, I have read an article on newspaper about whether an university student should invest in stock market. It made me think back of my time when I started to invest  when I was 18 years old and it has been five years since then. Today, I am 22 years old and like many of the people who are same age with me, I am still pursued my tertiary education. I am glad that I have realized the important of investing when I still young. Started from 1k to the five figures worth of  portfolio today, I will not say that I have extraordinary or great experience in investing or I have earn big bucks, but I feel confident that I will able reach my financial goal in future.

For me, investing is a lonely path. Not many of my friends realize the important of it as many are still "subsidize" by their parents and money is not really their big concerns. They prefer more to the latest IT gadgets or beautiful girls in College. Even they do, most of them still have the negative perceptions towards stock market such as it is the game for rich or it is a gambling. Funny thing is for them, forex trading is less risky and less "gambling". 

I not really agree with the thinking that stock market is for the rich. Indeed, if you have enough capital, you have the capability to control the price. However, I think it is more to a game which only the strong will survive. If you know the game well, you can turn 1k to 1M and vice versa. At the end, it is nothing but your capability that helps you to survive in this game. 
However, i do agree that stock market is gambling in nature. No matter how those bloggers try to argue or sugarcoat it, we are still a gambler no matter you are a fans of fundamental or technical analysis. We bet that our research is true and it will appreciate in future, we bet that the our analysis of the chart is correct that it is a uptrend.  It is just like our life. Every choice you make and every step you move, you are taking the risk and bet that it is good choice or good move. The point is how are you gonna increase your percentage of winning? There is not a conclusive answer on this. Some might say that fundamental or technical analysis will do or perhaps the tips from your brokers or your friends or maybe all of it.

Undeniable, all of them are important for every traders but does it really help you to increase your chance of winning significantly? From my experience, I don't think so. Look around the street, if they really work then I think the investment bankers or perhaps those mutual fund managers have already make millions of dollar by trading. They have the best technical software, or may be a degree of finance and the direct tips but do they really outperform the index? Unfortunately, most of them don't. We all know that they are earning big bucks by the brokerage fees ,management fees and selling "story' and "research" to retails investors with their genuine intentions. 

Throughout my years of investing, I realize that indeed those skills are important but what determines a good and bad investment is always about your vision and your perceptions. Do u have the ability to forecast what the world need in one year time or maybe ten years? Can you predict the future trends of our society? Take an example, can you forecast the world's demands on electric car before the rise of Tesla? Or can you predicts the revolution of the way we shop from physical store to e-shopping before the rise of E-bay and Alibaba? Technical and fundamental analysis only can give you a guidance of the past performance of a company but you need to be visionary and able to see whether the product of the company is needed by the world in future and whether the company have the good prospect in future. Just like what Mr Koon Yew Yin said ( although I not really agree with his stock picks), the company must be able to make more money than last year. At the end, just like starting up a business, you must be visionary in making your decision.

It is just my own opinions. Everyone has their own philosophy and methods. If you don't agree with me, just treat this as a joke and no hard feeling ya. After all, the only method works is the method that help you earn money right? Thanks for viewing everyone and wish you all the best in your life.