Tuesday, 21 March 2017

Alibaba will give this company a big splash of profit

Alright, I can sense that some of you guys might be anxiously waiting for my next exciting stock pick. So, in order to satisfy the hunger of yours, I had poured in additional efforts, sacrificing my rest time during my weekend, in order to share with you my up coming insights on potential developments that are taking place in Malaysia which will benefit this company.

Although the market continue it's bullishness even grow stronger than ever, it remained important in selecting the right stock to invest, with a potentially great future growth in it's prospect. As of now, the latest news that are taking the market by storm will be the news involving Jack Ma's Alibaba to make Malaysia as the regional distribution hub.

As for me, when this kind of news arises, it is most important to be very market sensitive towards the beneficiaries of this kind of big capital investment that will boom up the supply chain of the whole industry. Of course, when you are fast, you take position on a cheaper price, when you are late, you will have to pay high premiums.

If you don't believe me, then I will have to refer back to the case of Dataprep in order to wake you up to the brutal reality. As you can see, I had started to mentioned on Dataprep starting in the earlier January 2017, that was 15 cents then. Subsequently, Dataprep had traded towarads 20 cents, and 25 cents. In my latest highlight on Dataprep and it's potential corporate action, that was just 30 cents, but I had warned that anyone who is slow will be left out, or risk paying a high premium towards the growth of the company. To date, Dataprep is now trading above 50 cents, and I will rest my case here.

As gracious as I am, now I am willing to point out to you yet another company that have great future prospect, and this time, it will be closely related to the investment that Alibaba will be making to make Malaysia as the regional distribution hub.

So for those that had missed out on Dataprep, I hope this will give you another chance again, but provided that you are quick enough to make the decision. And as for those that continue in disbelief on my sharing, please do not waste you precious time here, because I am going to write a very long article, and you will feel terribly stupid if you read it, and do not belief it, because I do not want to waste your precious time.

So, that's a deal, alright?

Now, if you would remember, I had took mentioned that the Malaysian packaging industry are being the most active industry that are prone to take over / privatization exercises. In fact, the recent few years had saw company such as Maypak, Century Bond being privatized. Denko was offer take over while maintaining listing status. Then we have owners of Century Logistic selling controlling stake to CJ Express Korea, the largest logistic player in S.Korea. To summarize, all this corporate exercise involved huge money, and it doesn't come by mere luck.

Of all the company, I am most interested in the privatization of Century Bond, which I believe will be the key of a series of chain events that I forecast to see. And for this, since Century Bond had been privatized by Kumpulan Perangsang Selangor Berhad (KPS - 5843), then I believe that greater things are going to happen to KPS in the coming future.

I know, now you would be wondering how will KPS be linked to Alibaba and the rest.

Let me bring you back to some history on the privatization of Century Bond by KPS. It was in August 2016 that KPS had proposed to acquire the remaining 71.44% equity interest in Cenbond for RM 150 million, which work out to about RM 1.75 per share.

And to be honest, albeit KPS paying a premium of about 20%, this is a way straight forward to the point, fast cut deal, and Cenbond was delisted in January 2017. Of course, looking on surface, this is a very good deal for Cenbond shareholder as KPS is willing to pay a good premium, putting a valuation of PER x 14.21, which is slightly above the industry average. But what is boiling behind the quick privatization could opened your eyes bigger than ever.

Now, I will link you up on the relationship of KPS and Alibaba, so listen up.

As you would know, Alibaba is e-commerce B2B, B2C. And after a transaction is seal, the purchaser pays, and the supplier deliver the goods. If you had experience of ordering goods from TaoBao, you would notice that your parcel will be wrapped up with plastic stretch film or adhesive tape to protect your goods from water and act as a cushion towards the ruthless handling from the workers. Internally, they will also put in EVA foams to act as a cushion of protection from external pressure.

All these protection are very crucial for the parcel to be delivered and arrived to the customer in a good piece. Aside from these, the demand for corrugated products will also increase, such as corrugated boards and corrugated cartons.

So what have all this to do with KPS ?

Since KPS had acquired Cenbond, then I will have to tell you that it will have to do with Cenbond, and such, will benefit KPS since they took it private. The strong reason is due to Cenbond actually had a factory situated at Nilai, which is very near to KLIA, and the upcoming KLIA Aeropolis which will also see Alibaba regional distribution hub, is also very near to Nilai.

Being a regional distribution hub, we are talking about handling very huge volumes since Alibaba business is so terribly huge and still expanding.

In fact, according to close sources, KPS could have a close hand involved in the distribution hub, leveraging on Cenbond current packaging services, proximity to the KLIA Aeropolis and experience in warehousing solutions, which is the ultimate reason on KPS choosing to privatize Cenbond in a quick manner.

With the long awaited take over of Splash by the Selangor government, KPS which holds 30% will also stand to benefit from equity payment. While the exact amount is yet to be identified, a RM 1.5 billion payment of equity will land KPS will RM 450 million in cash.

I am predicting that the "Splash saga" will resolve by 1H 2017, and subsequently, the money received by KPS will see a special dividend to shareholder, and the remaining cash load will be reinvested to the new business - which could potentially involving warehouse and packaging solution to cater for Alibaba expansion in Malaysia.

Technical chart wise, KPS had indeed broken on some long term resistant line, supported with substantial volume. I believe this event is a significant pointer in seeing the KPS benefiting from Century Bond future prospect, and also concluding the Splash take over issue by Selangor government.

As usual, chances are sometimes once in a life time. However, I do not want to label KPS being in the same ranking of opportunity as of Dataprep. But, it's prospect is just too big to be ignored, especially when we are talking about Alibaba making Malaysia the regional distribution hub. If you are sensitive enough, you would have know by now that Alibaba had sent Gdex shares flying, Appasia shares flying and Century Logistic shares flying.

Since no one talks about packaging solution, so I am going to point out KPS to you now. And for this, I am looking to see Alibaba sending KPS shares bursting into sky. After all, KPS is sitting on NTA of RM 2.60. If it is heading towards RM 2.00 without you, again I have to tell you this, you have nothing but your own to be blamed.

Champagne or Water, you have to decide.

Friday, 17 March 2017

What happen to IWCITY will also happen to this company

The global equity market had welcomed the decision of the US Federal Reserve in raising it's interest rate, sending out a confirmation to the global market that the US economy had improved and forecast to continue it's strength as more jobs are added and lesser unemployment.

Of course, if you had been standing at the bearish side of this hike, I would reckon that you would had missed out a lot of great opportunities, especially in the equity market.

As for me, I am a dedicated market analyst, and also looking to bring to you exciting pieces of news, back with my own findings, research, analysis and forward making predictions. And this is the reason why you are still reading my KLSE stock market journal, because you would not be able to find it anywhere else, for FREE.

Just few days ago, I had mentioned on this very potential company - Notion Vtec. Although it's share price had already flew way up, but due to it's future prospect, I still decided to highlight to you in order for you to make your own decision, which is to Buy In or Stand Out.  Of course, if you had followed me on Notion and decided to Buy In, now you are richer by 100% if you had traded into Notion-wb at the price of RM 0.14, because the latest closing price is RM 0.285.

As you can see, this kind of opportunity doesn't come every time, and you have to make the crucial decision. There is no right or wrong in any of the decision made, but only different consequences in the end.

If you are thumping your own heart now for missing out on Notion, I am now giving you another chance to make back your glory in this company. Although this company is not dealing in the same industry as of what Notion is doing now, however, it's forward looking prospect is just as great as Notion, if not, could be even greater than that.

But you have to remember again, you have to be fast to decide, because the seats are limited. And once it takes off, I do not know when can I meet such an opportunity to share with you again.

As for now, basically, the talks of the KLSE market as of lately is all about Tan Sri Lim Kang Hoo's company, primarily Ekovest, and subsequently IWCITY. I have to agree that both these 2 companies are making a ruckus in the market with up soaring share prices that defy gravity. In fact, the latest corporate move by Tan Sri Lim Kang Hoo to merge Iskandar Waterfront Holdings (IWH) into Iskandar Waterfront City Berhad (IWC) by offering a take over offer of RM 1.50 for each share in IWC had spook the share price of IWC into almost reaching RM 3.00.

Actually, this is a much anticipated move, because of the large scale of development that IWH is having, the easiest way is to leverage with the public through fund raising, which will ultimately put the asset into public listing. The most prized asset injected from IWH into IWC will be the Bandar Malaysia land and Danga Bay in Johor.

Because of this ultimate event, I have the urge to tell you that what you had seen in IWCITY will most probably repeat itself in this company called - Dataprep Holdings Berhad.

As you can see in this graphical comparison, both Tan Sri Lim Kang Hoo and Dato Lim Chee Wah had privately held asset which are not listed. If Tan Sri Lim Kang Hoo got Danga Bay and Bandar Malaysia, then Dato Lim Chee Wah have Genting Secret Garden Resort which is the ultimate hosting place for Winter Olympic in 2022 that is going to be held in China. The Genting Secret Garden Resort is a USD 6 billion project, in MYR sense is RM 27 billion!!! And not forgetting, Dataprep too have contract with VXL as Project Delivery Partner for Genting Secret Garden.

Not only that, the VXL group is also having on-going program in developing integrated casino resort in Cambodia and Vietnam.

With such a huge project in pipeline, the one and only public listed company that Dato Lim Chee Wah is controlling now is none other than Dataprep Holdings Berhad (Dataprep - 8338)

Now, if you had been following me on Dataprep, you would had know that I had mentioned on the prospect of Dataprep since January 2017. In this post that I had made, you will see how VXL increase it's stake in Dataprep from 53% to the current 64.2%.

Prior to my introduction of Dataprep, they are a lot of critics locking their guns and shooting at me for promoting such a company, and they are looking for Dataprep to fall back below the 20 cents region.
But I am sorry to tell you that even though I keep quiet on Dataprep for 2 months, despite a flat result on it's financial report, Dataprep had been trading at it's range of RM 0.21 to RM 0.25. However, the latest move in breaking out above of RM 0.25 had confirmed that Dataprep is moving forward to a new range. Looking at this, Dataprep will be challenging above RM 0.30 in no time.

Now you have saw how the did the puzzle of IWH and IWC unravel. As you can see, all this big negotiation that Tan Sri Lim Kang Hoo did is parked under his privately held asset - Iskandar Waterfront Holdings. Why? The simple reason is because they do not want you to speculate on the share price and affect their collection of shares (Accumulation). This scenario is totally the same with Dato Lim Chee Wah's VXL. VXL is being privatized and engaged in large project in China, such as the Genting Secret Garden and the upcoming Integrated Casino Resort in Vietnam and Cambodia.

So now, I am here to tell you that if you had missed out on IWCity, you would better not choose to miss Dataprep again infront of your eyes. On the event when Dato Lim Chee Wah had decided to do corporate exercise which involved merger and acquisition between it's own companies, that could be a little too late, or too expensive for you. I really had no idea what will the price be. Maybe RM 1.00 or maybe RM 2.00, because the asset are big names such as Genting Secret Garden or Cambodia Vietnam Integrated Casino Resort City.

Now at the price of RM 0.27, which is still below 30 cents, I had presented to you once again - Dataprep.

You would had miss it when it is 15 cents, or 20 cents, or 25 cents. Before it goes beyond 30 cents, now you have the key to choose, because when it is 40, 50, 60 cents and all the way up, you will be sighing and regretful if you do not own any Dataprep shares.

Alright, no joke here. Dataprep is your once in a lifetime chance. You had saw how IWCITY unveiled it's plan, and I have to tell you that it will be Dataprep soon. At the end of the day, when Dataprep is RM 1.00, you will be either toasting your champagne, or drinking a cup of plain water.

What you decide to do today will determine, a champagne of success or a cup of regretful water.

Wednesday, 15 March 2017

Driverless Technology land Mobileye's shareholder USD 15 billion jackpot, this Malaysian company is the next in line

The search for the solution in the next generation disruptive technology in the automotive industry is none other than - Autonomous Driver-less Technology. In fact, big names in the industry such as BMW and Tesla had started on the pursue on this disruptive technology, and this new segment is going to make some industry rich and booming, while those that are not in line with this will be relegated into the bygones.

The question now is -
1.) How attractive is this new disruptive technology ;
2.) How much money is the leading corporation is willing to pour into this segment.

In order to answer the above 2 question, I will point towards the first big move in the global arena by Intel, which is a USD 15.3 billion buy out deal for Mobileye, a pioneer in car sensor and camera manufacturer.
Now, I have to tell you, USD 15.3 billion is really a lot of money involved. In MYR terms, that is RM 69 billion, which is more than the market capitalization of Sime Darby Berhad. (Currently Sime Darby market capitalization is RM 62 billion)

This new disruptive segment of driverless technology in the automotive industry is not only heavily pursue by existing big automotive player, but had took the interest of major tech company such as Apple, Google and Uber into the arena. As a matter of fact, I have to tell you that this industry will going to take on a big rampage, either with or without you.

Now, if you are planning to be involved in this boom, then I had the right piece of news for you. But if you are not ready for this, please for goodness sake, stop reading and quickly close the browser.

Alright! Now, I assume that as you are reading this, you had consented it on your own into exposing your money into this risk of having too much money to spend when the next jackpot hit your hand. Yea, I am not joking here because this jackpot can land you into your wildest dream that you can imagine.

But before that, I have to outline to you on how government policy and the available of new industry technology can influence a particular industry. As we are talking about the automotive industry, I will give you a sample on some of the latest development here.

As developed country are moving towards reducing carbon footprint, one of the most effective ways into handling this problem will be reducing the weight of the automobiles, hence saving fuel. In order to handle this, the solution is towards using aluminium as the body frame of the automobile. So this is a straight forward case - Look for aluminium producer and invest in them to make your fortune.
You do not need to look into other countries to find where are the producers, because Malaysia's Press Metal Berhad (Pmetal8869) is one of the largest aluminium producer in the world. As a matter of fact, this share had saw 2 bonus issue, paying consistent dividend, and looking at the trend, it is not going to stop anytime soon.

If you had followed me thoroughly, I am sure you would not have miss this wonderful piece of company that I had highlighted which will be the beneficiaries of the use of aluminium in the automotive industry. And to point out, I had highlighted on Arank at a freaking cheap price of 67 cents on 3rd May 2016 !!! Yes, a freaking cheap price of 67 cents, because Arank is now trading at RM 1.16. That is almost a 100% gain in the coming days, not counting the dividend received.

Now, I am going to tell you THIS company that is creeping up without you noticing, is a jackpot right in front of your door step.

But before this, I would like to tell you that this is not what I used to do in recommending share that are flying in the skies. But due to the opportunity, prospect and the hot money lurking out there waiting to barrage into this company, I had to thicken up the skin of my face by a freaking 5mm, and tell you what is happening in this company.

But, if you are not ready for this, I beg you to close it immediately before it poison your eye and mind!!! Do it immediately!!

Now this company is formerly known for it's involvement in the HDD manufacturing. But in the next 3 years, major revenue and profit will be derived from automotive industry. And this company is none other than Notion Vtec Berhad (Notion - 0083)

I am going to show you some mind blowing facts on Notion, and most importantly, it's co-relationship with the latest big hit - Mobileye.

As you know, Mobileye has 2 core products
1. Motion Sensor
2. Camera Lens

So, what about Notion ? Although Notion do not have motion sensor, but it is well known for it's digital imaging and camera lens technology, where they supply 80% of their products to Canon and Nikon.

As you can see, the digital imaging is essential for driver-less car, and a strong camera lens will be needed in order to support this. These are no ordinary lens, they are anti fog, strong weather resistant and in high precision, so do not expect it to be cheap at all, just like how DSLR camera lens can cost up to more than RM 20k.

And to put Notion and Mobileye on chart comparison, you will definitely be shocked!!!

Mobileye had started trend upwards in the beginning of January 2017, which is exactly the same as Notion. While the fairy tales of Mobileye had already came to a conclusion when Intel announce their buy out with USD 15.3 billion cash deal, the current surge or price in Notion is literally not known at all, and literally no research house have any solid findings on the development of the company despite the strong surge in share price.

Yes, I have to agree it is a little bit slow for me to spot this, but as I had mentioned, I had to thicken up my face and inform you that this is nothing compared to Mobileye USD 15.3billion deal. At the current pricing, Notion is only having a market capitalization of RM 300 million, which is a meager USD 66 million. This autonomous market is expected to be worth USD 6.7 trillion by 2030 according to Mckinsey research report. Mckinsey in a report also stated how this autonomous driving could redefine the whole automotive world.

Now, we are talking about Intel splashing USD 15.3 billion into this industry, and Notion being closely involved in this industry and just valuing USD 66 million. In fact, Notion is already involved in the automotive industry with the manufacturing of EBS (Electronic Braking System), and supplying them to customer such as ZF Friedrichshafen AG and Continental AG.

Now it's technology and plants in manufacturing lenses is very highly sought after by all the automotive manufacturer that are involved in the development of autonomous car.

The defining time is NOW! Yes, it is not later, but NOW!!! Intel did not wait, and strike the first deal in this industry. In fact, if you are familiar with the ongoing of Notion, you can see that the company is focusing in the digital imaging segment, which produce lenses.

According to a very close industry sources, Notion is already on a HIGHLY WANTED list by some big guns, and could potentially see an offer from USD 200 million to USD 400 million. Now Intel had started the fire cracker, it is time to see other splurging cash into securing trademark technologies and production.

Sources are looking at the supply chain of BMW, Nissan, Toyota and Honda to see big moves within 6 months. For these big guns, USD 200 million will not dent their bank account at all, but in the other end, it is up to you to decide now, how much do you want to benefit from USD 200 million, which is RM 900 million.

At RM 900 million, this will mean Notion can be looking at RM 3 now.

Yes, I admit that I am a bit late on putting in Notion for your reference, but for this case, it is better to be late than never, because the moving forward opportunity and prospect is just too bright to deny. I had shown you facts, shown you the charts of Mobileye and Notion with high co-relationship, and is telling you now right on your ears that Notion is on HIGHLY WANTED TAKE OVER LIST.

Before things unveiled further, now it is your time to decide. If it happened without you inside it, you have nothing to blame but your own.