Tuesday, 21 February 2017

This quiet company is really worth a mention afterall

Since February is a financial reporting month, the coming few days will be very interesting, with much company presenting their quarterly result. While much of my previous recommendation had to do with potential corporate exercises, change in company direction, emergence of new shareholder, I am thinking that it would be good mix "dishes" to bring in some company that are growing and doing well financially and fundamentally but still undervalue according to their share prices.

Typically, the company that I am going to introduce later will not be going to see much interesting moves in the corporate direction, except for normal day to day business. Hence, this kind of company will be suitable for investor with strong holding power that will know how to appreciate the company fundamental and wait upon their business to reward them at the right time.

Now this company is quite similar to Arank, which I had introduced to you last year when it is still RM 0.67. At that point of time, I am able to see 2 thing that can benefit Arank, which is the improvement of margin and the improving demand of it's products.

Since Malaysia already implemented measure to protect the local steel industry, I will continue to stand believe that local steel player will continue to benefit from this. In additional, the start work of MRT 2, LRT extension and revival of housing project from affordable housing will also contribute to the resumption of demand in steel products.

For this, I would like to recommend this undervalue yet potential company again - Chuan Huat Resources Berhad (Chuan - 7016)

Technically speaking, this company had dwindle down a lot from it's previous glorious peak. Now, the share price is looked prepared to make a come back, supported with improving fundamental and financial.

Actually, I had made a previous recommendation on Chuan when it is still laying lowly at RM 0.48 last year. However, due to the volatility surrounding the market from crude oil to the US presidential election, this counter had been hidden into the forgotten woods again.

Since this is a fundamentally doing well company with improving earning, especially improving profit margin from a better selling price in steel product, I think it is very fair for me to give this company a small mention, especially for the coming quarter report for the 4Q FYE 2016 that will be going to be around this few days.

The 3 rolling quarters had saw EPS at 4.78 cents now. Going to do a small projection of the company performing another 1.5 cents, which can make an estimation of total FYE 2016 EPS to 6.3 cents, relating to a valuation of RM 0.63 at PER x 10.

Since this company had a huge base of NTA at RM 1.55 per share, this will be a good cushion for you to hold this company longer.

I believe that the commencement of work from MRT 2 and LRT extension as well as affordable housing will contribute greatly to Chuan earning, especially under the circumstances that the local steel industry is protected by MITI from external cheap imports that damages the profit margin.

Since the coming quarter report is anticipated with a good result, this will probably worth your pick if you believe that Chuan is going to do better in the future.

Thursday, 16 February 2017

I do not want you to regret forever if you miss this opportunity

The beginning of 2017 is a powerful start in the equity market scene, especially on impending corporate exercise that will be taking place this year. Because of this, I am putting up even more extra effort in order to bring to you the corporate development that is happening in the market, and it;s coming direction as well.

As I understand that sometimes you will find it hard for you to trade on my recommendation due to the starting price gap that is resulted from higher price queue in the opening trades, however, I really do not have any control on this issue to be honest. But because of this, I am now going to give you one of the best pick in 2017 that had the potential to surge 100% from the current price, so that you will have a better buying and investing range according to your appetite.

Oh yea, I am going to show you a stock that have the potential to surge 100% !!! No joke on this, because it is proven from past experience, not 1, not 2, but more than 3 examples!!!

So before you will continue to read on, I have to tell you that you better be mentally prepared, because what I am going to unveil to you will just blow your mind off!!! However, please note that this investment recommendation is only suitable for those that are going in with cash to hold. Of course, if you have the appetite to make a contra-trade, you have to time it wisely.

Now, what is the big bang stock in 2017 that I am going to reveal to you that is packed with 100% surge potential ?

Before introducing, I will need to show you what had happened in the past to some other counters.

The first case is the case of Maica (Malaysia Aica Berhad) being RTO into Sunsuria Berhad.

According to The Star in 23rd Jan 2014, TER Equity Sdn Bhd had offered RM 0.85 for a share in the take over exercise. However, the take over exercise do not intend to delist the company. Subsequently, Maica went up rampage into RM 1.70, which is 2 times the value of the price offer in the take over exercise.

The second case is a landmark case in my analysis, which is Euro Holdings Berhad.

The major shareholder intended to take over Euro at a price of RM 0.44, however, I had
"Bonescythe'd" into Euro after acquiring convincing data on the future development of the company, hence causing the company to surge. Nevertheless, the company went into a corporate exercise involving a bonus issue of 2 bonus share for 1 ordinary share, and on Nov 2015, Euro traded above RM 0.30, which is equivalent to RM 0.90 before the bonus issue.

The third case is involving Mulpha Land being RTO into Thriven.

By far, this is the fastest surge that I had seen. Prior to the Mulpha Land take over offer at RM 0.50 a share, the offer lapse and the share price went rampaging towards a peak of more than RM 1.00 in less than 3 months. Again, this had proven the theory that a company that is being offered with a take over price, but intend to maintain it's listing status, will be fired up 2 times from the take over price!!

Now this is 3 real life example, and no bullsheet here. Amazing finding here right? There is one more, which is GW Plastic (RM 0.65) being RTO into MCT (RM 1.30) as well.

So, now I need you to look at this company in detailed and carefully. This company is called Rex Industry Berhad (Rex - 9946)

On the 7th February 2017, Rex received a take over offer from the MD and the major shareholder, both joint as the Person Acting in Concert, for a price of RM 1.65 a share. According to the prospectus of the take over offer, there is no intention of delisting the company.

If you are sensitive enough, the movement of the share price had indeed reflected on a certain corporate development since March 2015, where a significant amount of volume is recorded at the transacted range of RM 1.60. Now that the game is revealed, Rex is offered a take over price of RM 1.65.

If the above 3 real life example is speaking to you straight to your heart, then you will know that Rex is going to boom towards RM 3.30 in the coming days. Yea, I am not joking, it is RM 3.30 and you can mark my word for this.

But when will this happen is a real question mark. So I will give you 2 scenario to think about it.

Scenario 1 - If the company decided to do a bonus issue, then only pushes up, it might easily take 1 year, same like the case of Euro.

Scenario 2 - If the company decided to push first, then only do a bonus issue, then it will replicate the movement of Mulpha Land, booming up to the value 2 times of the offer within 3 months.

Most importantly, being Scenario 1 or Scenario 2, Rex is going to head towards RM 3.30 in value from the take over price of RM 1.65.

And I have to tell you, lately, the Malaysian food related packaging company are hot on heels being targeted for take over exercise. Just recently before Rex, Denko is being offered RM 0.55 a share for take over.

As you can see, Denko already trading at 27% premium (Currently Denko priced at RM 0.70) from it's take over price of RM 0.55.

So what are you waiting on at REX ??!! Currently, REX is trading only 11% above it's take over price. Now at RM 1.83 towards RM 3.30, you are standing to see your investment flourish 80%!!! Invest 100 lots worth RM 18300, and let it grow and become RM 33000 in 1 year !!! Let's say a worst scenario that it takes 1.5 years for this 80%, that is 4.4% of return every month for 18 months!!!

I don't know what are you thinking now, but I have to tell you that I am going hold on to this golden nugget until it become another landmark case for my research analysis.

And one more thing, you better act real fast because I don't know if this thing will go Limit Up or not, because limit up is RM 2.37, and it is still far away from RM 3.30!!

Wednesday, 15 February 2017

If you had missed Padini run up 1 year ago, you better not miss this!

Today, I am going to share to you on a company that had the potential in replicating the success story of Padini Holdings Berhad. As I believe most of us know of the brand Padini, it's major growth in the recent years had been spectacular, which is creditable to it's new concept store - Brands Outlet.
As you can see, Padini expansion with Brands Outlet had been very successful, because this concept store understand the market demand and cater right to the need of the consumer.

To summarize on Brands Outlet, this concept store offer a wide range of variety at above average quality but at a attractive price. And it's purchase always enticed consumer to buy more for a cheaper price. For example, a adult long sleeve shirt will cost RM 80 for 2, where quality are not compromised. If you were to go to Parkson, 1 long sleeve shirt will easily cost you more than RM 100. (That is the reason for the downfall of Parkson)

Clothing and apparels is a must for everyone, unless you are still living with in the jungle with some tribes. Padini ability to capture the right market demand had been heavily rewarded with a rising up share price. Now, Padini is sitting at a market capitalization of RM 1.6 billion.

Now, Padini is already very successful. Of course, today I am not going to promote Padini to you, but in return, I am going to promote a very unique company which had the capabilities to replicate the journey of Padini. Of course, I am not going to say that this unique company is going to replicate Padini success in 100%, but being able to replicate 50%  will still consider as not bad already, because this company is still quite unknown to most of the retail investor, and the potential of this company is so huge.

How huge is the potential of this company? I will reveal to you later on. But, I have to inform you that you need to act really fast, because good thing doesn't wait any long for those who are slow.

So, what is the name of this company ?

So it is Jerasia Capital Berhad (Jerasia - 8931). This company is host towards brands like Mango, Touch, Violeta, Terranova, Nike, CALLIOPE, Ladylike, Milani, Charlie, and concept store Trio Basic.

Before I will go down to the details on Jerasia expansion plan, I will like to show you a quick outlook on the company share price.

As you know, Jerasia is currently just having 82 million of shares. At the current price of approx RM 0.68, the market capitalization is just a merely RM 55.38 million (Padini is RM 1.6 billion). Although the share price had been subjected to some upwards rising, I strongly believe that this is just a start for Jerasia. Based on the technical chart, you can easily see that Jerasia had broken 2 long term down trend resistant line, which strongly suggest that on the coming upwards trend of the company share price. Jerasia share price saw the highest at RM 1.15 back at August 2015.

So why am I saying that Jerasia can potentially replicate the growth story of Padini ?

Here is one of the most important factor that you will have to know.

The brand is called - TRIO
If Padini is riding on the success of Brands Outlet, now Jerasia is coming out with Trio Basic Concept Store.

Of course, I will reckon that there are still space of improvement for TRIO basic concept store. For example, Brands Outlet have a grand entrance with a captivating color (Brown Orange Color), mixing with yellow ceiling down light and, it is able to give a different impression that carries certain quality and standard. In my opinion, if Trio can provide a little style on it's concept store (rather than just plain white based background), then they are capable for a head to head fight with Brands Outlet. Since this concept store is just a start for the company, I expect that there will be more improvement and upgrades in it's appearance.

But, what is most important here is, Jerasia had came out with a new offering to cater to the market needs, and this new concept store can be very potential if it continue to position itself and penetrate successfully into the market. Nevertheless, the TRIO Concept store are currently generating massive revenue and profit for the group, and this concept store will be expected to see more contribution in the coming future as the company continue to expands is foot mark into new market.

Expansion Expansion Expansion
Now that Jerasia had successfully tested on it's new concept store - TRIO, it is time to talk about growth and expansion, which ultimately bring forth to you - Public Fund Raising and Corporate Exercise.

As you can see, Jerasia is just having 82 million share of Par Value RM 1.00, with retained earning of RM 62 million. For the past 10 years, there had not been 1 corporate exercise, except for some dividend paid to investor.

I believe, Jerasia will be on the route of public fund raising in order to accelerate on the growth and expansion of the group.

Potential Fund Raising Option
Option 1 - 10% Private Placement. Since the Par Value of the share is RM 1.00, so the minimum pricing of the private placement will be RM 1.00. Based on the current share base, Jerasia can raise RM 8 million from this exercise, which is considered not bad.

Option 2 - Share Split 1 to 2, subsequent private placement or right issue free warrants. For this option, splitting the share into 2 will see the share issued becoming 164 million shares, and Par Value becoming RM 0.50.  A private placement of 10% will also raise 8 million if priced at RM 0.50. However, a right issue will provide the company with some cash and not diluting it's earning immediately until the conversion of warrant.

Now, I had shared to you a very valuable company with the potential of replicating the success story of Padini.

Currently at the price of RM 0.675, you are buying into a company that gives you
- a massive potential on future growth and expansion plans
- a share with NTA of RM 1.75
- a company with high potential of corporate exercise, with more than 40% upside potential from the current price
- a profit making company
- a resilient company being in apparel industry (everyone need to wear clothes)
- a company benefit from strong USD

Still not convinced enough?

Now, I will throw in some extra insights for you. Since the company is reporting on the performance from October - December 2016, which is a holiday season and mega sale season, it's coming quarterly report in February is expected to be stronger.

Alright, now that I had informed you on all the potential of this company, the only thing left now is your own decision again.

Lastly, you have all the rights to doubt my sharing, but I have all the rights to show you a lot of my success story in the like of such as AWC at 30 cents, Denko at 38 cents, Gadang at 80 cents before bonus issue, Penta at 27 cents, and the recent ones like Arank at 66 cents which is now trading at RM 1.20.

I am not asking you to believe me and my view. But if you believe in the management of Jerasia Capital Berhad, and believe in the potential of the new concept store Trio, and believe in the coming expansion plan, I don't know what is stopping you now.