Friday, 24 October 2014

Euro - Writing A New Chapter

The global equity market had saw some hit back from the bull after seeing a strong sell off from the bear that had triggered panic selling across the board last week. The sell down featured a strong selling from oil and gas related counters as crude oil dipped lower, putting up a bearish outlook for the sector as the price will not encourage risky exploration, while some operator will tend to increase output to make up the losses with a greater volume, putting the crude oil lower with oversupply. Currently, WTI Crude Oil is traded at $80.52 and Brent Crude Oil at $ 84.71.

While waiting for the next event to unfold in the coming up Feds meeting, Euro had started to unfold with more solid news lining up in the corporate ladder.


As of the latest announcement, Euro had went through a corporate reshuffling in top management level, marking it's first major move to reshuffle the company directions into focusing on properties development from it's current business operation that had been dealing with corporate furniture and fittings.

Major changes that had taken place will be the appointment of Dato Sri Choong Yuen Keong@Tong Yuen Keong as the Managing Director of Euro Holdings Berhad. As a businessman by profession and owns several businesses involving in property development management and aluminium recycling, Dato Choong had a 30 years of extensive working experiences in the construction and the property development industry, which includes 11 years in construction site management and 19 years in the management of property development. He was involved in a few housing and commercial development projects including Taman Maju Jaya, Wisma Cheong Hin, Pusat Perdagangan Tasik Perdana and the most recent being Beverly Heights which is located at Ulu Kelang, Gombak.

The appointment of Dato Choong as the Managing Director in Euro will earmark the new beginning of Euro Holdings Berhad in their property venture.

Dato Tong Yun Mong (brother of Dato Sri Choong Yuen Keong) had also been appointed as an executive director in Euro. Dato Tong Yun Mong had more than 20 years of experience in property development and building construction, ranging from civil engineering works, earthworks and transportation for ready mixed concrete plant. He is the founder and director of Beverly Heights Group.

The board level reshuffling includes Mr Teh Hock Toh (pic) being appointed as the CEO for the manufacturing division which will continue on the manufacturing and marketing of office furniture and equipment with the Ms Foong Yein Teng as the CFO.

New comer appointed to the board will be Kevin Sathiaseelan A/L Ramakrishnan being a non-executive director, being a member of the audit committee.

Amongst those relegated from their executive position will be Lew Fatt Sin and his wife Law Sim Shee, Ng Wai Pin, Pua Kah Ho, and Lew Hin.

Let's have a quick look in the technical chart.
Euro had been seeing a strong support above RM 0.60, weathering the global equity sell down last week. Should Euro penetrate above RM 0.70 with a convincing volume, this will earmark a new stage for Euro. While the consolidation had seen saturation, Euro is on a high stake to pierce further upwards after a series of corporate ladder reshuffling that took place, strengthening the investor confidence in the coming up direction for Euro Holdings Berhad.


Coming Up
A series of corporate exercise will be certain to take place as it will be anticipated that Beverly Heights Properties Sdn Bhd will be injected into Euro to form a new division - Property Division. However, the injection will definitely comes with a price that is to be paid from Euro to Beverly Heights Properties Sdn Bhd, suggesting a capital restructure then private placement, or a right issue with free warrants. Euro will definitely need to go through a series of corporate exercise in order to inject Beverly Heights Properties Sdn Bhd which is carrying 30 acres of freehold land in the northeast of Penang Island, carrying a potential value of RM 1billion, and a GDV of more than RM 10billion in bag.


With the solid performance of Euro's share price recently, I would like to reaffirm on the potential of Euro in the coming days which will be coming in a stronger note.

Meanwhile, congratulation to the newly appointed management team in Euro as we believe they will drive the company into greater heights.


Bone's short term TP : RM 0.88 (Maintained)

Cheers and have a nice day.

Regards,
Bone

Tuesday, 14 October 2014

Mieco - Riding on Typhoon

The latest world calamities definitely had Typhoon Phanfone and Typhoon VongFong on the headlines, especially when Typhoon VongFong had been categorized as a super typhoon, reaching a breaking speed that is greater than 257 kph (160mph), putting it as the greatest and strongest typhoon on earth for 2014's record.

Japan had been a country that is plagued with typhoons, however, typhoon that is of this quarter of the year had been seemingly more destructive and more dangerous than the previous typhoons that Japan had encountered this year. With Typhoon Phanfone just sweep through Japan, Typhoon VongFong had made is debut in Okinawa, and will be looking to visit Tokyo in Tuesday.


While the gloves sector had been seeing as a beneficial sector due to the ebola widespread, with Japan stricken with a couple of destructive typhoons, it will never be too late to look into the timber chipboard that will be an imminent ingredient in the reconstruction of the typhoon stricken area.

Topping the chipboard manufacturer will be Mieco Chipboard Berhad (Mieco - 5001)
Mieco had been trading at the range of RM 0.45 before seeing a strong breakout, leading the stock to hit a high of RM 0.60 in the middle of September 2014. Mieco had been seen as well supported with convincing volume being transacted at the range of RM 0.45 to RM 0.60 with the outlined vertical lines in red. While the recent correction had send Mieco lower towards the range of RM 0.45, Mieco should be able to see a strong rebound in the coming days at the back of an increasing order and turnaround year which is backed by the rebuilding and reconstruction of Japan.


Mieco - Roaring with Typhoon

Mieco, incorporated 41 years back then, had been envisioned to see it as a world leader in the manufacturing of particleboards with a special emphasis in high quality and value added wood based products. Till date, Mieco had one of the single largest particleboards line in the Asia Pacific region, located at Kechau Tul which had started operations in 2005. The plant had attained the MS ISO 9001:2008 Quality Management System and had it's product marketed to more than 20 different countries around the world.

On 2009, Mieco put another breakthrough after it's product had been certified the Japanese Industrial Standards, JIS 5908 on April 2009, putting a strong confidence on the quality and reliability of products. Then Mieco went further to be certified with California Air Resource Board (CARB) Phase II in January 2011, demonstrating the compliance of Mieco's composite wood products with California Code of Regulations for the US Market.


As of the 2Q of 2014, Mieco's revenue shot up to RM 88million, which is a RM12 million increase from the previous corresponding quarter. Mieco had netted an EPS of 1.44 cents, and will be looking to return into the black for FYE 2014 soon. With Mieco trading at a 62% discount from it's NTA of RM 1.21, Mieco definitely had a great prospects for a row of capital growth.


Mieco's fortune came when weather forecast analysis had predicted on a destructive typhoon that could be visiting Japan after a deadly Typhoon Haiyan that had stormed parts of Philippines into a wreck. The forecast had sparked the higher orders of chipboard that will be needed in the wake of the reconstruction after the aftermath.

While Typhoon Phanfone had done it's damage, another follow up by Typhoon VongFong had definitely added salt into the wounds as more than 200,000 citizen staying at Okinawa island had been ordered to evacuate their houses as the huge storm rip the roofs and walls of the houses. Although the storm had seen a reduce in speed, it is still destructive enough to uproot trees and put more than 60,000 homes without power supply.




A space view on the Typhoon VongFong heading towards Tokyo which will be landing on Tuesday.



I believe that Mieco will be an interesting counter to be look at currently before the mass media starts to unveil the damage that had brought to Japan from Typhoon Phanfone and Typhoon VongFong. Japan is prepared and ready to rebuild their cities after the aftermath from the typhoons.

Mieco will be of a good outlook with the following pointers
- Strong beneficiaries of the reconstruction of typhoon stricken cities and town.
- Certified industrial products by Japanese Industrial Standard - JIS 5908.
- Stronger revenue on 2Q 2014 with higher book orders, Mieco looking to turn into the black for FYE 2014.
- Trading at 62% discount from NTA of RM 1.21.

Mieco will be looking to see a quick challenge at RM 0.50, and a short term price will see Mieco looking at RM 0.55 to RM 0.60. Should Mieco being able to maintain and continue to grow it's sales, Mieco will be looking to settle at the range of RM 0.80 in a longer term outlook.

Join the typhoon? You decide.
Bone's short term TP: RM 0.55

Cheers and have a nice day

Regards,
Bone

Tuesday, 7 October 2014

Euro - Time's Up

The latest development that had been happening in Euro Holdings Berhad should by now resembled a known and informed issue by a group of traders and investor in the KLSE market.

Let's have a quick outlook at the latest price chart of Euro.
Euro had been consolidating in a healthy manner after the spike up in the middle of July 2014. While the highest transacted price is RM 0.70, Euro's consolidation for the past 3 months had been in a convincing manner after seeing a lower volume consolidation, signalling a sign of saturation. Euro will be looking to challenge further above RM 0.70 with a series of corporate exercise that will be coming in with possibilities of private placement, bonus issues and asset injection that is worth more than RM 1billion in the coming days.


Euro - Playing On Tight Cards

The latest corporate event is on the RM 0.44 take over offer that is offered by the consortium of Dato Sri Choong Yuen Keong @ Tong Yuen Keong, Dato Tong Yun Mong and new emerging shareholder Tee Wee Sien. Let's look at a few important highlights that the public should be aware of in the take over offer circular.

Little known Tee Wee Sien had been involving in property development in 2009 after joining up with his best friend and partner, Mr Eric Low See Ching (current deputy CEO of Oxley) to team up with Mr Ching Chiat Kwong in Oxley. Mr Tee Wee Sien had been snapping up Oxley shares in the SGX market lately, upping his stake to 12.05%, a 0.02% up from his previous substantial stake of 12.03% as recorded in Oxley's 2013 Annual Report

With this in line, what could be possibly brewing in Euro in the coming days?

An extract from the circular had highlighted the future plans and direction of Euro, which is to focus on growing its property development business. This will ultimately place Euro as an upcoming property developer from it's current position as a furniture maker.

While Euro is on the verge of becoming a property player, the consortium of Dato Sri Choong Yuen Keong, Dato Tong Yun Mong and Tee Wee Sien may rationalize and/or restructure Euro towards the readiness of becoming a property player.

Currently Euro with only 81million shares and at the price of RM 0.66, Euro total market capitalization is just a mere RM 52.65 million, which will be paving way for a series of corporate exercise which will be seeing a high possibilities of Capital Reduction, Private Placement and Bonus Issue to enhance the liquidity of the share.

To recap back, Beverly Heights Properties Sdn Bhd had acquired 30 acres of freehold land in the northeast side of the Penang Island, which includes 19 acres of the Pepper Estate land. The current land value at Tanjung Bungah and Tanjung Tokong had been earmarked at a range of RM 500 to RM 1000 per square feet after the reclamation work that is done in the STP 1 which had shot up the land prices at that area. Based on the strategic location of the 30 acres of freehold land in a prime area of Penang Island, a skeptical estimation of RM 800 per square feet will be reflecting a booming value of more than RM 1billion in asset.


With all the solid happening in Euro, from shareholder buying huge stakes, and an official circular, notifying the new direction of Euro in the property market, and the emergence of Oxley substantial stakeholder Mr Tee Wee Sien as the director of Euro had everything to point at Euro to see the prized asset injection into it's portfolio.

To add on to it, Euro had been really lacking in showing it's true value on it's already owned assets and properties spanning a list of Freehold land in some strategic areas of which some had not been revalued since 1997.

Independent advice circular from DWA Advisory Sdn Bhd had also outlined the undervaluation of Euro existing assets and properties in reflection of the take over of RM 0.44 cash offer from the consortium, and had then advice the general public to reject the offer of RM 0.44 that had been made.

According to DWA Advisory Sdn Bhd, the RNAV of Euro is RM 1.03 per share. Source - Bursa Malaysia


Conclusion

To conclude, shareholder should not only reject the offer, however, at the current price which is below RM 0.70, Euro will be good for existing shareholders to increase their holdings, and also to public to lock a position in Euro as Euro will be the next prominent property player in the Penang Island after E&O, with more than RM 10 billion worth of GDV to be launched in the prime area. To put it right, Euro will be a possible replicate of Ecoworld in the coming days. With Euro currently below RM 0.70, it had nothing much to lose based on it's existing business, assets and properties, however, everything to win because of the future exploding potential in the upcoming development.



In short, Euro will be looking to trend higher in the coming day as time is running out. A short term outlook will place Euro trading above RM 0.70, while a longer term outlook will see Euro trading above RM 1.00.

Reference
Euro - On a Dragon Roar
Euro - Unleash the Dragon


Bone's short term TP : RM 0.88 (Maintain)

Cheers and have a nice day

Regards,
Bone

Friday, 3 October 2014

Supermax - On Hot Shots

The global equity market had been shedding off trillion in value after seeing a strong note of profit taking and selling down which had took the market into a correction. Many are still puzzle on whether this is a correction on the existing bull run, or the start of the economy slow down effect in the equity market. To put more confusion into the decision making of the investor and trader, ECB had announced it's decision to keep the interest rate at 0.05% and outlined an asset buying program that is to be started this month. While Ukraine and Russia had negotiated a truce, the latest shelling near the Donetsk's Airport had put the truce on the thin line again. And October will be a month where the US bond buying program will see a stop, raising speculation of a earlier than expected interest rate hikes which had sparked a strong buy back on the USD as US Funds are selling their foreign holdings and cling on to the USD.

While all these had been happening, the seemingly yet to be controlled Ebola Virus had reportedly spread it's wing into the US after Texas confirmed on it's first case of Ebola Virus infection on Thomas Eric Duncan. Currently, more than 80 people that had been in contact with the patient is under monitoring from the state. The deadly virus had infected more than 7,200 people in Africa and had then taken more than 3,300 lives.


With all this global event (Stronger USD and Ebola Virus Pandemic) that is happening, Supermax would somehow looking to call the shots as both event had inevitably benefit the glove sector.

Let's have a quick look at Supermax latest price chart.


Supermax had reached quite a bottoming level after sliding down from a peak of RM 3.00. However, Supermax will be looking to challenge higher after consolidating at the range of RM 2.25 for 2 months with double fuel boost from stronger USD and Ebola Virus Pandemic to charge Supermax into higher ground in the coming days.


Supermax - All The Reason For An Uppercut

Supermax had a very funny character with the KLCI - Inverse Relationship. Let's have a quick look on Supermax and the performance of KLCI from December 2013 to the current level.

From the past, Supermax had successfully displayed a relatively strong inverse relation towards the movement of the KLCI. With the current global market development, the KLCI will be looking to inch lower, possibly towards the support range of 1800 in the coming days due to :

1.) Stronger USD against the MYR.
2.) Ongoing Ebola Virus infection with no proven and guaranteed vaccination at the moment.


The USD will be looking to get stronger in the coming days due to the anticipation of a earlier than estimated interest rate revision from the Feds after the last tranche of bond buying program ends in October this month. The steep and strong pick up of the USD against the MYR will be looking to hit MYR 3.40 against USD 1 in the coming days.

Supermax which trades gloves in USD will see a boost on top of another boost after expecting a rising demand in gloves from the US and European Country amidst the Ebola Virus infection while riding on a stronger USD with will translate to a greater gain in forex.


Supermax will be even more interesting after being looked as the only laggard in the gloves industry that had saw it's competitor charging up.

1. Hartalega Holdings Berhad - 5168

2. Kossan Rubber Industries Berhad - 7153

3. Top Glove Corporation Berhad

4. Careplus Group Berhad


In a conclusion, Supermax is just another big bomb that will explode upwards in the market of red sea. Supermax will be a good counter to be traded / invested based on :
- Stronger USD outlook against the MYR, with a projection of reaching RM 3.40 for USD 1.
- BNM had just recently announced the unchanged OPR at 3.25%, pegging the nation interest rate for at least another quarter to half year period, hence putting away speculation of a sudden increase in OPR to counter the currency outflow.
- Rising global concern on Ebola Virus infection, with 1st US patient confirmed in Texas.
- Supermax being a laggard compared to all it's peers which had responded towards both the events
- Supermax to see factory expansion producing more output in FYE 2014.


A quick outlook will see Supermax challenging RM 2.50 based on approximately 10% capital appreciation from the current level of RM 2.24. Supermax will definitely be the next big thing in KLSE with all the factors lining up for a great run upwards.

Punching in? You decide.
Bone's short term TP: RM 2.50

Cheers and have a nice day

Regards,
Bone

Thursday, 2 October 2014

October Highlight - Bornoil - Gold Blast

Borneo Oil Berhad (Bornoil - 7036) was used to be known as Sugar Bun Corporation Berhad back then before 2007. However, due to the company new direction in it's involvement in the downstream oil and gas, renewable energy and mining, Sugar Bun Corporation Berhad had since then changed to Borneo Oil Berhad to reflect the diversified business in the group. Currently under Bornoil's active business portfolio includes
- Gold Mining Division
- Fast Food Franchise Division (Sugar Bun)
- Oil and Gas Division
- Property & Management Division


Let's have a quick look at the latest price chart of BornOil.

BornOil had been consolidating at the range of RM 0.65 for a period of 9 months. The consolidation had saw a series of saturation and will be looking to see a new burst of volume visiting Bornoil after a corporate exercise which had saw a PAR value reduction of RM 0.90 from RM 1.00 which is effective on 25th September 2014. Bornoil will be looking to trend higher in the coming days ahead, and will be on a positive mark in breaking RM 0.70 convincingly.


While the mother share had been looking promising, BornOil-WB will be an even attractive target after being traded with a 6.8% discount from the mother share, as exercise price is being revised to RM 0.10, putting BornOil-WB into a huge discount. At the current closing price of BornOil at RM 0.66 as of 1st October 2014, BornOil-WB should be trading at RM 0.56 after exercise price had been revised to RM 0.10. To put it more interesting, the expiry of the warrant is slated at 28th February 2018, putting it more attractive to be trading at a premium instead of a discount.


BornOil - Gold Rush

BornOil had finally found it's way to a golden land after securing a gold mining contract from Champmark Sdn Bhd for gold prospecting and mining on a 400 acre area for 5 years and renewable option of another 5 years in Merapoh, Mukim Batu Yon in Lipis, Pahang. To recap back, MMC Corp Berhad had leased the mining land from Perbadanan Kemajuan Negeri Pahang which in turn contracted it to Champmark Sdn Bhd for mineral prospecting and mining.

In June 2014, BornOil had successfully recovered 43.5 kg of gold (current market worth RM 5.655 million) after processing 187,255 tons of alluvial which contain gold dust and fragments. Back then at 2012, Minarco Mine Consult had a site study and estimated around 4.02 tons of gold in the alluvial. However, a further study conducted by Professor Li Sezhuan of Champmark Sdn Bhd had indicated that the site might contain an estimated 30 tons of both indicated and inferred gold reserve (Worth RM 3.9 billion at RM 130,000 per kg) - Source (The Star - BornOil look for Gold in Pahang)

Currently, BornOil is operating in area 4-1, whilst another 6 more gold mining sites will be operation in the coming days once the green light is given by the authorities.

Whilst the Gold Rush had been the most interesting and exciting development in BornOil, it's longest operation asset - Sugar Bun, will be looking for a greater expansion in the Johor, Sabah and Indonesia. BornOil appointed franchisor SB Franchise Management Sdn Bhd had awarded an exclusivity to Indonesian firm PT Mitra Adidaya Perkasa to operate Sugar Bun restaurant in Jakarta, Medan and West Kalimantan which will see 20 new outlets to be set up by 2018. The first outlet will be phased in Ayani Megamall, the biggest shopping mall in Pontianak, West Kalimantan.


To further spice up the whole prospect in BornOil, the involvement in downstream Oil and Gas which focuses in bio diesel storage tank facilities had also kick out with a contract secured from Shell Timur Sdn Bhd for the engineering, procurement, construction and commissioning of 2 palm oil methyl ethylene bio diesel storage tank facilities in Kuala Baram, Miri and Labuan. With the government initiative to support a bio diesel roll out plan in the whole Malaysia in 2015, BornOil will be seeing more contracts in this division in the coming days ahead.


Current Catalyst

To fully kick start all the planning and to put them into work, BornOil estimated a need to raise a total of RM 35.5 million through a 20% private placement earlier in July 2014. The RM 35.5 million raised will see an allocation of RM 10million for new mining plant and equipment, RM 5million for gold exploration activities, RM 5million for new fast food central processing plant, RM 4.63million being PAR value of RM 0.10 for 46,248,000 new shares from private placement, while the rest will be used for repayment of hire purchase and expenses related to corporate exercise.

To raise RM 35.5 million from a 20% private placement, or 46,248,000 shares, the price for the private placement must be above RM 0.7675 in order to reflect the proceed.

Calculation
RM 35,500,000 / 46,248,920 shares = RM 0.7675 / share

However, while the private placement had been fixed at RM 0.56 per share in 25th September 2014, raising approximately RM  26 million, BornOil current ongoing gold recovery in Merapoh will had saw a further convincing result that will be looking to spiral the company further.

BornOil will be looking to recover at least 250 kg of gold in the end of 2014 in the current operation. which will be worth RM 32.5 million.



I believe BornOil will be an interesting counter to be looked upon in the coming days. With the huge potential into tapping a huge reserve of gold amounting to 30 tons which is worth RM 3.9 billion, a skeptical 50% slash cut will still put the figure at RM 1.95 billion worth of gold to be recovered. Currently trading at a 30% discount from it's NTA at RM 0.95, BornOil will be a shining leopard in the coming days.

In summary, Bornoil will be good for a long term outlook based on
- Potential tapping into 30 ton of gold reserve worth RM 3.9 billion
- Fast food arm - Sugar Bun, expansion into higher populated area such as Indonesia
- Involved in the downstream sector of the Oil and Gas, focusing in Bio Diesel tank storage which will see great prospect in 2015 once government open up whole Malaysia for Bio Diesel program
- Already secured several contracts from Shell for the engineering, procurement, operation and commissioning of the Bio Diesel storage tank in Kuala Baram, Miri and Labuan.
- Trading at 30% discount from NTA of RM 0.95


Place in your cards? You decide.
Bone's short term TP : RM 0.75

Reference
- The Star
- The Borneo Post
- The Edge Malaysia

Cheers and have a nice day

Regards,
Bone

Tuesday, 30 September 2014

Gpacket - A New Chapter with TM

The Green Packet saga that had been a hot hit last year with a stint on a the verge of being sold to Digi had abruptly ended with a pact with the local fixed line internet provide - TM. Speculation had been hot and furious back then with the heavily indebted Green Packet clinging with a small glimpse of hope in their money burning core asset - P1. Back then, Green Packet had invested more than RM 1 billion in P1 infrastructure and site, however, the investment had not been able to see a strong flow of income with tons of infrastructural upgrades which had continue to burn a deeper hole into Green Packet pocket.

With the latest strategic partner TM on board, what could be the next course of direction for Green Packet?

Let's have a quick look at Green Packet latest chart outlook
Green Packet had been trading at the range of RM 0.35 for the past 5 months. Green Packet dipped further after an outlook of a possible entry of PN17 status, however to see a strong rebound which had been supported by shareholder buy back from Tan Sri Ong Leong Huat vehicle OSKVI and Tan Sri Dato Kok Onn open market purchases. Green Packet is looking to see a good reversal in the coming days, which will be suggestion a stronger pick up in the participation of volume as Gpacket looks to challenge a quick resistant line at RM 0.50



Green Packet - Riding on TM

Recently, it had been the government effort to see a higher penetration rate of high speed internet coverage in the whole Malaysia. The MCMC had set a 75% of penetration rate in the internet coverage by 2015, which is still seeing a gap to be closed up after 1st quarter 2014 reported a penetration rate of 67.3%. The Budget 2014 had also highlighted the launch of HSBB phase 2, a total capex of RM 3.4 billion which will be broken down into RM 1.8 billion for the expansion of HSBB coverage in major town and cities and RM 1.6 billion for the suburb area. (The Star - Budget 2014, HSBB Phase 2 to take off)


With TM holding the sole concessionary towards the development of HSBB in Malaysia, the acquirement of stake in P1 under the arm of TM will be a good a strong indicator for Green Packet to see a life in the coming days ahead.

Based on the research did, penetrating into the rural areas with through land line cable might be difficult and also not cost friendly. The investment might not be able to see a visible return in should TM be laying ground lines to penetrate into rural areas. However, turning around the table towards and shifting into wireless HSBB coverage might be a good solution now.

While TM had been lacking of higher frequency spectrum that can carries more data, TM definitely need to get hold of a higher frequency spectrum in order to see the services being labeled as HSBB. With this in line, Green Packet's P1, carrying 30 MHz of 2300 spectrum and 20 MHz of 2600 spectrum, had come as a good solution for TM as the duo joint together to compliment each other.


Based on the outlook, the framework to penetrate into the rural areas will be seeing TM expanding fiber optic coverage and building more than 1,000 telecommunication transmission tower for wireless transmission, and P1 to disseminate the data using the 4G LTE data spectrum. (Sinchew). ZTE and OCK will be the prime consultant and contractor for the building and construction of the telecommunication tower.



With this in line, this will bring TM back into the wireless game to compete against Telco which had been providing services in this lucrative market. With the world moving around, wireless market will be the next "huge data consuming market" in the coming days. TM will be hitting the road soon with the recent completion of acquirement in P1 and Green Packet restructuring deal which is to be finalized this week (3rd Quarter of 2014). TM will leverage on the all ready sites from Green Packet to roll out TMgo (Broadband-to-go). According to sources, the sites that had previously installed by Green Packet under P1 can be switched into 4G ready in a couple of hours, putting TM on a strong front for an official launch of TMgo to hit the major towns and cities in Klang Valley. (Source - The Malay Mail)


Gpacket will be an interesting stock to be look out in the coming days. While the financial data of the company had been weak, the entrance of strategic partner - TM, will be going to do huge magic for Gpacket in the coming days ahead. Gpacket will be an interesting stock to be traded / invested based on:
- The finalization of deal and work out structure with strategic partner - TM
- Exposure in the HSBB Phase 2 which is worth RM 3.4 billion
- Convincing buy backs from substantial shareholder - OSKVI and Tan Sri Dato Kok Onn
- TM soft launch wireless service - TMgo in rural area


I believe Gpacket will be able to challenge higher in the coming days, with a short term outlook at RM 0.50. Should the joint roll out effort of TM-P1 to be strong, Gpacket will be definitely going to see a better change in the future.

Begin a new chapter with Gpacket? You decide.
Bone's short term TP : RM 0.50

Cheers and have a nice day

Regards,
Bone