Thursday, 31 October 2013

Hohup - Breaking Heaven Soaring Sky

As we are reaching the end of October 2013, usually this day will always be "marked" by the local giants in a manner to create a better history in the Malaysian share market KLCI index. The 1st month of the 4th quarter of 2013 had mark some remarkable event like the Malaysian Budget 2013 which had given the Malaysian market some direct boost towards certain sector and direct damage as well on certain sectors. The 2 main talking component - GST and RPGT had speared into the market with their chain effect which we saw property counter shredding off value by a higher tag on RPGT and certain IT company receiving countless demand which had lifted the shares higher.

While there are many happening out there, it had been some happening moment for Ho Hup Construction Company, or well known as HoHup.

Let's have a quick look up at HoHup recent activities in the market.


The share price of HoHup had escalated fairly fast when they had started their restructuring process after getting the nod from shareholder and creditors. As HoHup had been consolidating off the mark at RM 1.80 for around 1 month, the golden land bank that HoHup had at Bukit Jalil which had been in tussle with Malton had came to an agreement where both parties will be collaborating into developing the 50 acre land in Bukit Jalil. Apart from that, the construction of Pavillion 2 which had been in the talk had further spiral HoHup into a better outlook as they are possibly involving in the construction of Pavillion 2 which had been one of the KL busiest area.

HoHup, with a total share issued of 102m shares and Par Value of RM 1.00 had been targeting earning of RM 1.00 EPS for FYE 2014 prior to the contribution of the Bukit Jalil project with fast running project and easy to sell. Their SOVO which had been sold out more than 75% had been one of the major contributing pipeline in the revamp of HoHup.

A quick technical outlook will definitely suggest that impending volume will be marching forward once consolidation had reaches it's level of saturation, and we are looking at HoHup to consolidate further which might be likely near to RM 2.00 on it's next flight. While on the fundamental outlook, HoHup repackaging and revamping their business through debts capital restructuring process and on going projects with future prospectus had change the outlook of HoHup into a turning point.

While we are looking at HoHup potential, Insas Berhad had been busy accumulating off open market up to a stake of 10% and I believe HoHup primary values will be unlock in a quick manner if major shareholder Formis Resources Berhad, FRB, decides to take HoHup private as a wholly owned subsidiary.




With the similar spike on 9th October 2013 in HoHup and FRB, the possibilities of HoHup getting privatized by FRB could be just around the corner as FRB might look to unlock the deeper and stronger values in HoHup on their own.

Bone short term TP: RM 1.95

Cheers and happy trading

Wednesday, 30 October 2013

Farlim - Firing Limitation

The local market had been responding quite well after the Malaysian Budget 2014 which had featured a RPGT increased which is marked at 30% of profit for the 1st three years which had raised concerned by developers who had been trying to tag the prices of the development higher and higher after each round. Foreign investor will need to qualify themselves for RM 1million property in Malaysia which had somehow put some speculation to a coma for the time being. However, I believe that there will still be speculation once the market get used to it.

While all properties sector had been downgraded by the implementation of the new regulations that are trying to curb speculations, it could be another side of the story for a low profile Farlim which could be firing the other way.

Farlim is locally known by the Penangnites as they are one of the core developer at Bandar Baru Ayer Itam. However, Farlim had not been active, not until their recent land disposal which had sparked some activities over the open market.

Let's have a quick look at Farlim share prices.





Farlim had taken a sharp increase some it's slumber of RM 0.30 region when the news came to light in the papers as Farlim dispose a piece of land at Bandar Baru Ayer Itam. The stock had came as high as 60 cents and had been consolidating at RM 0.50 for 1.5 months prior to the spike. A quick look will suggest that the consolidation at RM 0.50 had reached a level of saturation and a new fresh volume will be possibly taking place at Farlim to bring it's share price to another level for a higher note of consolidation.

Farlim had disposed 116.89 acres of Penang land at Bandar Baru Ayer Itam to 1MDB for a consideration price of RM 112.5m, or RM 110 per square feet. While the land had appreciated much, Farlim disposal at RM 112.5m had actually pegged 12.5% higher than market valuation of RM 100m which directly contributes to the group earning at RM 46.11m.

With 140.326m shares issued, the gain from the disposal will reflect at a 32 cents gain per share as it had sparked some eye brown on the group possibility on giving back in the form of special dividend which will be announcing at their next quarterly result at the end of November 2013.

Standing at a NTA of RM 0.82 per share, the group performance had been rather low, but we would believe that the group are going forward for a better change as they reposition themselves again in the coming year.

A shorter term outlook will foresee Farlim on heading back to RM 0.60 and breaking a higher as Farlim will be projected to linger higher from RM 0.50 as they try to find another point for a higher consolidation.

Bone's short term TP: RM 0.56

Cheers and have a nice day

Saturday, 26 October 2013

Malaysia Budget 2014 - Summary

Here is a general summary for the Budget 2014 for Malaysian.


Cheers and have a nice weekend.

Regards,
Bone

Thursday, 24 October 2013

Scomies - Die Another Day

As market had unleashed the Western bulls recently by cracking the ceiling of debts, Malaysia had unleashed it's Malaysian's bulls as well. Waiting on the next big event in the nation of Malaysia will be the next upcoming Budget Malaysia 2014 which had been the limelight and focuses of all Malaysian in this coming Friday, 25 October 2013.

As bullish as the market can be, probably it will be the time to look on some bullish turning corporates that might be having a string of benefits in the link of the upcoming Budget Malaysia 2014 - Scomies

Let's have a quick look at the chart of Scomies or Scomi Energy Services Bhd


A quick outlook will probably suggest that the stock is just waiting upon the next pending volume will be lashed out in the coming days, or it might probably turn out to be one of the major player in the Malaysian Budget 2014 benefiting player.

Scomies quarterly result had been lying in the red for the previous year, however, we had seen some turnaround and overhauling in the management level which had seen Scomies had been repackaged for a better outlook for FYE 2014 with their quarterly bagging on the positive portion. Scomies had also been seen involving in quite some projects as strong demand for it's drilling fluids and waste management solution which came from Malaysia, Thailand, Turkmenistan and West Africa. We will be likely to see revenue flowing in from the major projects that will significantly affect Scomies next quarterly result.

While the group had been struggling on the Bursa requirement to balance out the public shareholding spread after being given an additional 6 months extension from the previous deadline of 30 September 2013, it will be a crucial 6 months for the group to :
i.) Inject 5% of total issued shares (around 117million shares) to the public
ii.) Garnering strong public supports and attention
iii.) Maintaining the share prices

In order to achieve this, the group will have to convince the public with a solid fundamental outlook on the group performance in which I believe is the major turnover and makeover for Scomies.

Scomies had been rallying up from a lowly 30 cents zone to a peak of RM 1.00 back on 5th of July 2013. However, it had since fallen apart for a period of 4 months which could be a period of consolidation on the volume and price. As fresh volume emerged, we are looking for Scomies to soar higher towards the 80 cents region, while challenging the RM 1.00 mark in the coming days. I strongly believe that Scomies will probably need to soar higher in order to make a comfortable cushion for it's distribution of 5% into the public market.


Buying your ticket for a ride this time again? You decide.

Bone's Short Term TP: RM 0.80

Regards,
Bone

Monday, 21 October 2013

Tebrau - Tomorrow Never Dies

As merry and happy like most of the traders who are anticipating a positive outcome in the US crisis issues, the market will take it's time to resume it's higher note again after the recent shot down for the issue of the US debt ceiling issue coupled with the Government shut down that had spike drama for 16 days. Although this drama did delay a little bit longer than my expectation of probably 3 to 4 days, the congressman did a good show for some 16 days where the world kept watching day by day on their next progress.

Similarly, I had been watching the progress of Tebrau - day by day, after there had been vicious attack on the counter that had brought Tebrau from a lowly 60 cents to a high of RM 1.75 in the recent months which had also spark off some discussion on the land that Tebrau is owning in the prime season of the southern kingdom - Johor.

Let's have a quick look at the price of Tebrau.


A quick outlook at the share price will indicate that Tebrau had been consolidating off the mark on their volume and price. Tebrau prices had been maintaining in a good manner well above RM 1.00 after being brought up from the low, and the consolidation is targeted at RM 1.30 to RM 1.40.

Tebrau had been rather silent in the past couple of years back, not until recent when the Malaysian property had gone hot enough to see bigger company are actively acquiring land to secure a piece of cake in the hot market. As Tebrau financial had been doing better for the 1st half for FYE 2013 with, standing at a NTA of RM 0.78 which was last revalued 9 years ago, and EPS of 0.83 cents for the 1st half, I believe the tremendous increase in their share price doesn't really reflect for the financial result, but in fact, for their land banks that they are holding on which are highly sought after. 


Tebrau had been sitting in quite some big plots of land in the prime area of the hottest development in Johor - Iskandar. As Johor had been a target of both foreign and local investor, the land and property prices at that range had become hot like never before as heavy speculation targeted in that area. While the story get hotter, Tebrau added another boom to the story when they had a stretch of 12km long waterfront development which had been at the eyes of Datuk Lim Kang Hoo, who had tried to take over the company at 76 cents back then at 2012 but failed. While the story had yet to see an ending, Tebrau had continue it's course to rise towards RM 1.75 which had sparked eyebrown that Tebrau could be lingering at RM 1.80 for a take over exercise which will deemed better for the minority shareholders.

I would believe strongly that Tebrau will see another surge of greater volume in the coming days accompanied with a solid white candle that will bring Tebrau into the lime light once again. Factor in a 10%, we might probably be looking at RM 1.50 in the next upcoming flight while a mid-longer term outlook will suggest that Tebrau will march forward to RM 1.80 soon.

Decide to march along the wave or stay ground to watch - You decide.

Bone's short term TP: RM 1.50

Cheers and happy trading.

Regards
Bone


Wednesday, 16 October 2013

KLSE October's Spot Picks - Part 2 - TA Enterprise

While the debts are looming around the corner of the world, the US government are still sitting in a deadlock position that hadn't seen any solution for the stalemate, while their debt ceiling are giving some breathing space for a temporary rise, good enough for a one day party and bad enough to keep the world in a hostage position.

Do you think that the world economy is just too big to fail? Do you believe that politician will work out on something in curbing one of the "might be biggest" downfall of the history? That is something for you and me to think about. But overall speaking, the market is always volatile as no volatility will not benefit the market at all. I think you will agree in this.

M&A topics are always the hottest and most highly speculated in the share market. While there are a couple of high profile M&A last year, I believe the appetite for M&A in year 2013 is still strong as there are still quite a number of fundamentally well company which are performing in terms of their financial, however, not so well for their share prices, which some may deem - Not fair.

As interesting as a merger and acquisition can be, probably I would like to highlight to you again on TA Enterprise Berhad, where their performance are still decent. TA had been involved in capital market, property and hotel business. And as of recent, the group had revise on their focus to be a major player in the upcoming property market in the coming days. While there are talks of TA selling off their stock broking wing, TA had been actively being accumulated by Datuk Tony Tiah which had saw the stock breaking the silent to rise from 50 cents region towards 70 cents.

While the media had been mum on the party that might be showing interest, we are looking at possibilities from ECM-Kenanga alliance to forge a triple pact stronghold, while not erasing chances of approach from investment bank like CIMB, Affin-Hwang or even the recent RHB OSK to enlarge their appetites towards the commodities market.
Standing at a NTA of RM 1.75 per share and fundamentally sound in their business, TA is a good target for accumulation as their share price technical had been showing a sign of up trend pending break out. I will be looking forward for another large volume day which will probably bring TA up in a solid manner above 70 cents in the coming days as it might trade into the RM 1.00 region in 6 months time frame. A quick and conservative calculation of 10% +/- appreciation from the current price will reflect TA in a short term target of RM 0.80 in the coming days.

Bone's short term TP: RM 0.80

Cheers and have a nice day.

Regards,
Bone

Reference
TA - Fundamentally and Tactically Awesome

Monday, 14 October 2013

Movie Review - The Escape Plan

As the market rock, so do my weekend on the cinema platform watching a retired Rambo and an immortal Terminator with their old jobs again.

This time around - the Escape Plan, featuring Sylvester Stallone as Ray Breslin, together with
Arnold Schwarzenegger as Rottmayer in this movie trying to crack their way out of a prison that was specially invented by a crook to make sure no prisoners escape after going in. Well, after a series of Prison Break a couples of years ago with  Michael Scofield ever interesting plan in breaking from prison to prison, the tagline accompanied with 2 heavyweights from Rambo and Terminator definitely make this film a worth the penny.


This movie really able to crack some silly laughter in the cinema screen with Arnold Schwarzenegger playing a much "joker-like" hard core, big bad puncher character in the prison that meant serious business at his business, and the very observant, deep think tank, strategist, planner at Sylvester Stallone. Their mixed is really not bad as two heavyweights work together in a floating prison.

I am much impressed with Ray Breslin in this movie. Playing a calm and analytical person, his observation skills portray in this movie is excellent as into even counting the footsteps and behavior of the patrolling guard, while going to the max limit in exploring the weakness of the whole layout. I am again impressed with the planning that he can organized in the prison and camouflaging the plans like a crouching tiger hidden dragon.


This film is quite original and not much animated GUI that will spoil the rawness of the film. The plot is good, adequate of suspense and laughter in the movie, some unpredictable moves, adequate action and planning. Overall is a good film for the October month.

Bone's rating - 7.5/10

Have a nice Escape Plan.

Regards,

Bone

Friday, 11 October 2013

Google Malaysia hacked, as well as 188OMS

As news of a couple of team of hackers had started their mission in October, it just caught to my sight that Google Malaysia on 11 October 2013 (estimate time around 0100) was down after they got hacked by a team of hacker namely - Madleets, from Pakistan.


That made me wonder if the similar gang of hacker had targeted OSK trading platform to perform illegal trades that had resulted in OSK shutting down their OMS system and not able to do online trading, except viewing of prices and transaction.

There are rumors that Alliance Bank, MBB had got attacked by hackers in performing illegal trades as well. Bursa had intervene on the matter, and till now had not given RHB OSK the release until proper explanation and clarification as well as contingency plans are duly given.

On the other hand, TMS is one of the counter that got traded on hacked orders which resulted in a series of huge downwards selling force in the day. It is time to beef up the security and firewalls.

Regards,
Bone

Thursday, 10 October 2013

Gpacket - Fear or fear not?

As concerned as many people and as tension as many of you out there, I believe while there are many who are strike in fear and start to doubt on the news of Gpacket and Digi, many are still puzzled on the selling down of Gpacket occurred on Tuesday (8 October 2013) where price of the share tumbled from 60 cents to a lowest point of 51.5 cents and closing at 52 cents with a slight rebound towards 55 cents during the 2nd half of the trading day.

I believe that everything happen for a reason, be it a hike with volume, a sell down with volume. Same for today selling down, what could possibly be behind the scene? As many are guessing, there are talks of deal off, deal stuck and all sort of things. It could be Mr Ong Leong Huat disposing 5m shares in open market to proxy, and proxy rolling down shares to create panic events while he happily collects lower so that when Gpacket deal is up, he can have a bigger pie compared to other shareholder? It could be anything and everything. Probably, we might put everything together and see some pictures.

I do not know how many traders had went through privatization deal in the market, and how many go through the ride in a full manner, from the start, the course, and the end. I had went through few of course, and the most memorable will be Proton Holdings Berhad privatization by DRB Hicom.

Well, let me present to you some of my studies in Proton here.
Basically, this is what Proton's share price had went through. From a sudden spike until RM 3.50 and a series of no volume support days which saw price plunge to RM 3.00 while going through some rough waters before hitting the limits at RM 4.50 which on the next day seeing similar volume hitting the price down again as media reported that on 6th December, the Proton Management deny any corporate development which saw Proton shares gap up on opening and sell down tremendously on the day itself, followed by a series of heavy selling on the coming on days. More read up on orignal article at The Edge - Proton Saga Continues. At the end, Proton got privatized by DRB with a price tag of RM 5.50 a share.

That is truly not a easy December at all, especially for those who are playing their call warrants. You would literally peed on your pants if you are caught on bad positions.


Probably I would list down some similarities from the Proton - DRB and Gpacket - Digi situation.

- Rumors of Privatization/Merger Acquisition
Proton had talked on getting privatized before a few times, in which also sparks negotiation with DRB in 2009 which had fallen out. However it went through. Similarly, Gpacket had talked about it as well, but didn't end well. The latest is Gpacket had initiate a discussion and negotiation with Digi almost 1 year back which had saw Gpacket price lifted towards 65 cents back on November 2012.

- In Bad Financial Performance
Proton, with their under performing management, had been shredding off investor money into the sea as their financial and cash flow weakens down the journey. It had not reached a situation of desperation mode, not until 2011. Similarly, Gpacket had been known to the light for it's terrible performance on their financial which saw NTA dwindling down the road every quarter and cash flow getting more tensed up every month.

- Industry Expansion
While DRB had been kicking in with more orders in the automotive industry, they are in hungry search for weakened cows to divulge to cope with the demand of the industry. For the telco industry, latest technology is the word for being in the game. For Digi without giving the latest technology to the market, they will get eliminated in no time with loss of client eventually.



While I am just putting in some similarities, I am not giving any confirmation, but these might be something that you would like to consider a little bit.

Probably, you might be asking, where are we now if we are to refer to the Proton's chart? Maybe you want to try printing it out and draw your own candles? Hahaha.

As there are many questions out there, and many rumors as well, the crucial question in my head is what would Gpacket want to do with P1 without any cash flow to operate it's business?
- Hug it tight tight and not releasing it for a sky price, and go down the drain together?
- List P1 ? But it takes time to do listing, and will there be people who want to subscribe?
- Fry their own shares to make money and cover losses?

I believe the "wireless data industry" is not easy to standalone and merger & acquisition are prone to happen. I had asked myself whether major shareholder will want to continue hugging their core money sucking asset and pump in more money to operate, or don't want to pump in any money and let it die just like this, or let people acquire and get some payment in return. Did I left out any other better option for them?

At times like this, the ride is definitely not an easy going one. Probably I would suggest that those who cannot take this to set a target in taking profit/cutting losses, while sitting at bench to watch the show. For those who still can take it, let's see what will happen next. Everything that happen, there is a head, and there is a tail.

My opinion - I am quite confident, probably up to 80 - 90% that there will be a corporate development in Gpacket with the analysis tabled out, and it will be between Gpacket and Digi. But the question mark for me - What is the price?
Your ticket can be purchased at open market to know the price. Good luck.

Cheers and Regards,
Bone

Tuesday, 8 October 2013

KLSE October's Spot Picks - Part 1 - Gpacket

Had you got tired and weary after the unending chasing of the latest news from the world's market with different kind of economical development everyday. I believe that it had been quite tiring for some in predicting what could be happening in the market soon with much dilemmas in their mind while media continue to spark and feed more fear and confusion to the market.

What do you really understand about economy? Frankly speaking, this is a question with broad answer, and probably you won't be surprised if you as a trader that had been trading in the market for 10 years not able to answer you in a proper manner too.

I would just put it simple and short in my own understanding - money. Our intention, be it work for a living, trade for a living, investing, short selling, long the index, our main point is to make money, for some is to earn a living, for some is to live moderate, while for some, is searching for luxurious lifestyle. And this game is the best to play with when there is volatility, be it going up or shooting down. So what is your current take with the latest US development with debt ceiling? Let the ceiling crush them? Or take down the ceiling, and make a higher ceiling? Probably you would need to ask your contractor how much will it cost to add another 3 feet to your ceiling.

Despite all this shaking up news, I would highlight a couple of picks that is still fueled for some joy ride for the month of October 2013.

1. Green Packet (0082)
This had been one of my favorite pick as long as the news is not officially broken out to the public light yet. GPacket had been rising from a critical low of 30 cents to the current 60 cents region in a month with heavy news lingering in the media on it's sale of P1 to Digi in a business trust mode.
A quick chart will suggest that Gpacket does really have impending good news looking at the positive growth of the price of the share which had been hiking up more than 45 degree slope with good amount of supporting volume traded. I am still positive for Gpacket collaborating with Digi for a greater heights in the industry, a definite win-win synergy for the pact of the Beauty and the Beast.

With media quoting CEO Puan C.C will be announcing the corporate decision on Gpacket in October, huge anticipation are forecasting the 1st 2 weeks of October as either party doesn't have any more precious time to play and beat around the bush anymore. As desperate as Gpacket with it's looming financial condition, Digi do not have much time left as they are pump up for an ALL OUT BATTLE in Q4 for their latest 4G LTE launch, which will translate to a critical month of October for both Gpacket and Digi.

While market speculation and rumors had started to spread capital repayment and price target of RM 1.30 and above, I am keeping my conservative approach for Gpacket with their possible internal price at RM 1.20 in the long run, and a short term price target at RM 0.80 being a 33% slash discount from RM 1.20.

If you are looking the deal to be seal this week on Friday itself, then we are looking no further as Tuesday (8 October 2013) will be the prime time for the final show down with volume spiking up in no time to prepare for the final stage. I am expecting a huge wave of volume, possibly contributed with huge contra limits from Tuesday to Thursday as the out breaking news (expecting the latest on Friday) will definitely be a selling moment.

Are you still looking around, or are you game on? You decide.
Reference:
Gpacket and Digi - The Designed Marriage
Gpacket - The Final Countdown
Gpacket - Setting up the stage drama
Digi - Synergizing with Gpacket, a better move?
Gpacket - On a Major Tech Stunner


Bone's short term TP: RM 0.80 intact.

Cheers and regards.
Bone

Saturday, 5 October 2013

TA - Fundamentally and Tactically Awesome

What is good in Malaysia is that sometimes KLCI tends to move alone without following the herds. The KLCI ended +5.19 at 1776.56 on Friday amidst US Government shutting down partially which resulted in global index shedding off some points as they are worrisome on the default of the US borrowing prior to the shut down of the government.

Well, it did gave me some surprises when the Obama administration did let the US Government to be in a partially shut down situation, as I am anticipating towards a last minute decision which will cancel out the shut down, but it did not affect my judgment that this whole thing is another drama altogether as I would in the other end treat this as a good opportunity to hunt on some fundamentally good and had the potential to soar above in the coming days to come.

While some might not be able to brain Gpacket and Pelikan in their portfolio with their worrisome financial statement, probably this might suit your appetite a little bit better to be included in your portfolio.

Cut the time short, present to you TA Enterprise Berhad.

TA Enterprise Bhd had been doing better QoQ on FYE 2014, where their first half of FYE 2014 had saw net profit increased to RM65.8m, which is more than double of what they had been producing for FYE 2013. With the latest accumulation from Datuk Tiah via open market which had been quite rampant at the later stage, Datuk Tiah Thee Kian had till now holding a 29% stake at TA, which is translate to 497.874m shares. With the other financial firms merging (ECM + Kenanga, RHB + OSK, Hong Leong + EON), I don't run away the possibilities of TA being a target of acquisition when they are sitting at a NTA of RM 1.75 with the current price.

TA had been performing better and better with it's prudent management team in their diversified industry which comprises of hotel division, property division and capital market division. The major rise in the revenue had been contributed largely from the rising Malaysian capital market, where TA had been championing the FCPO for 8 years since 2003. While a study also reported that the younger generation of Malaysian had been one of the factor for the rising transaction for the local capital market as many young generation had been seeking alternative way for more diversified income, this growing factor will be continue to contribute to the growth of revenue in securities broking company like TA.

Moreover with the latest introduction of Gold Futures which will be effective in the coming Monday, with the Malaysian appetite in trading gold that is not shy at all where we saw how Malaysian would want to get involved in gold related trading like Genneva schem, I believe that the Gold Future will further boost TA revenue as they had a solid customer base who are trading commodities, which I believe will not be shy to trade precious metal like Gold as well.

On a technical outlook, TA had been in a consolidation mode at 60 to 70 cents region. While I start to believe that the accumulation at this region is almost saturated, it could be the time where TA will be starting to explore further to 70 to 80 cents region soon with a 10% from the current traded price range. Should TA continued to improve on their financial, a long term outlook will suggest TA to be trading at RM1.00 range with projected EPS for FYE 2014 at 7.6 (1.9 cents per quarter) cents trading at x14 PER. Ride on the wave? You choose...

Bone's Short Term TP: RM 0.80

Cheers and Have a nice weekend.

Regards,
Bone


Wednesday, 2 October 2013

Faber - Scrapping a higher sky

Despite the market seeing the US having a partial government shut down, it seems that the world is happier without the US Government in a full operational manner as DJIA celebrated this shut down by welcoming the market with a +62 on it's index, and Asian market show green despite the heavy red that had been on all prediction. Sometimes, I wonder had it crossed your mind that this game is tweaked with the media and the other news that people are spreading. Probably, the people don't want the US Government to be operational for as long as they can, and the party will go on with the music. Ever questioned yourself - Is the world's economy too big for it to fail?

Well, as business go on, probably I might have another business for you at Faber. Probably you might be thinking what kind of fabulous business is that. Let's have a peek on Faber price outlook first.


As the broad market had been ever shaky during the past 2 months from Sep-taper to Amnesia and now Debt Ceiling to US Government Shut Down, Faber had been rather steady at the range of RM 2.30 to RM 2.50, a 20 cents margin for some upside and downside swing as the stock doesn't bolster a huge pile of queue in each stage.

A quick note will suggest that Faber had seen consolidation at RM 2.50 area with dwindling volumes and another impact on the volume will see Faber rising up above RM 2.80 to RM 3.00, taking a 10% rise for a conservative calculation.

With around 363m shares, and at RM 2.60 with a market capitalization of RM 936m, Faber had been doing in okay with a PE of x8.66 based on FYE 2012. Faber had been quite generous with a final dividend of 10 cents for FYE 2012. However, what had been more delicious is that after paying 10 cents on 5th July, the share propelled to a sky high of RM 2.70 in the middle of August 2013 which had been rumor for projects despite some on going suits that it had taken up during some construction accidents.

As far as I know, Faber will be packed with order for at least another 4 to 5 years as construction sector set to boost more infrastructure and more high end condominium, leveraging in Faber's expertise in towering these new sky scrapper and infrastructure. With mega infrastructure by the name of KVMRT, KIDEX Highway, DASH Highway, SUKE Highway all lining up, and on high stake for Propel, I am quite positive on Faber involvement in all this project which will definitely give their financial sheet another inch up soon.

I am forecasting on Faber Q3 result which will be significantly higher as projects revenue start to roll in further into their balance sheet. I am expecting Faber to see trading volume resume and break up to RM 2.80 in a short term progress, while looking at RM 3.00 in the coming days, back on more project revenue.

Bone's Short Term TP: RM 2.80

Cheers and regards,
Bone