Thursday, 28 December 2017

The Pearl of the Harbour

As the new year is coming, our investment portfolio should also reflect a new change and new direction which move according to the trend of 2018. For this, I had to tell you that Harbour Link Group Berhad (Harbour - 2062) can be one of the shining star to be looked upon coming in to the year 2018.

I had shown you that Harbour technical chart had actually hit rock bottom, and started to rebound from it's bottom consolidation with a solid break out towards RM 0.75. So what is the underlying recipe for Harbour to start moving upwards despite a mixed opinion on the global shipping industry which is biased towards a negative outlook?

If you are not well verse on the shipping industry, then I could probably brief you a little with my easy to understand knowledge for you to absorb. Shipping industry can be categorized into many different category, such as dry bulk (which carries commodity) and container shipping. For the case of Harbour, we are referring to container shipping.

In container shipping, there is a need to understanding different size of ship. For an easy understanding, here is an attachment from Wikipedia for you to know the difference in container shipping. As for the case of Harbou, it is definitely talking about Feeder category which carries around 1000 TEU. ( Container ship capacity is measured in twenty-foot equivalent units (TEU). Typical loads are a mix of 20-foot and 40-foot (2-TEU) ISO-standard containers, with the latter predominant.)

Now, why I think Harbour can be a next superstar for 2018 like GCB did in 2017.

Well, it is very simple.

First, the container shipping rates for smaller ship (Below 3000 TEU) had recovered. According to the global container shipping rates for a 1700 TEU vessel, it had recovered from a lowly 6150 to the current 8300, which is a 35% increase.

I had to tell you that a 35% increase in shipping rates is very strong and will be greatly impact the revenue and profit for the shipping company which fall in this category. For this case, Harbour will not be left out because their ship is in this category.

I do not know if you believe or not Harbour share price can be heading to RM 1.00, but I had to tell you that the 1Q of 2018 will be seeing China and Hong Kong citizen throwing big celebration for Chinese New Year, which will see the 2 country having official public holidays for 1 week. For this reason, there is all the reason for me to believe that the country will have to do all the restocking and imports before the celebration, which will be a major push demand towards the container prices.

Incidentally, Harbour will also be servicing both China and Hong Kong routes, which will make things look even better for Harbour now. If that squeeze happen, the container freight rates could possibly move towards 10000. Who knows, right ?

I had pointed out an opportunity for you now. Whether you want to act on it or not, that again, is your own decision to make. Of course be remembered that all investment decision, is by your own accord. This is just a piece of referencing material for your knowledge on the happening of the industry.

Whatever it is, if you do read my article and try to understand it, I would hope that you would now learn something, or if better, you might think that you are feeling like a shipping expert already. Next time when you are talking to your colleague, friends or relative about shipping industry, then you can spill out some shipping terms like TEU, Panamax, Feeder and etc which you will leave them in a bizarre.

Friday, 22 December 2017

Santa is coming to you on this Ship

Hohoho... Hohoho... That's it. 2017 is coming to an end, and what is left on bygone remain on bygone, and we shall welcome a whole new 2018.

But before that, Santa Claus might want to send you some present with his new found sleigh - a ship.

The market in 2017 had been tough and unforgiving for some. But despite that, everything bad will come to an end, and eventually good thing will come again as we endure over the challenging period.

Today I want to introduce you a good company that you can look into for your investment portfolio next year.

This stock had a strong fundamental, and had started to break out from a bottom consolidation.
This shipping stock is Harbour Link Group Berhad (Harbour - 2062)

According to the technical chart, we can clearly see that Harbour had broken away from a long term down trend line. At the current price, Harbour is deemed attractive as it has a solid fundamental compared to the other peers in the same industry.

As of the latest financial quarter, Harbour managed to perform better than the previous quarter, where most of the revenue are contributed from shipping. The company had also paid out a 1.5 cents dividend per share this year.

If Harbour is able to maintain a consistent earning for the next 3 quarters, we can see a projected earning per share of 10 cents for FYE 2017. That will easily put Harbour valuation to RM 1.00 based on PER x 10.

But the question here is - What are the contributing positive factor that can ensure that Harbour will be able to sustain such an earning, or improved earning in the coming 9 months. While there are a lot of different factor that can affect the revenue, the most direct factor will come from sea freight rates.

For now, I will be sharing with you on Harbour being a share that had bottom out, and just started on it's break out position from a low price. Further to that, Harbour is a fundamentally strong company which performed better than it's peers, and with consistent revenue and good dividend policy in place in order to rewards it's shareholder.

In the coming post, I will be sharing with you on the some shipping industry outlook, and how will that translate to possible improvement towards Harbour revenue in the future.

Stay tune, and stay happy with Harbour.

Thursday, 23 November 2017

This Aluminium stock that you can consider to keep

Approaching the end of the year, the Malaysian market had yet to see any excitement despite the global market reaching new high. For example, Tencent had become a company with a market capitalization of more than USD 500 billion, and the US DJIA Index had started to challenge 26,000. Despite this bullish event, Malaysian equity could be lofty now for several reason such as -

1. November is a month where most of the company will furnish their 3rd Quarter financial result.
2. As 2017 approach to the end, much of the fund will undergo a portfolio evaluation, and will start to trim equity position on company that are not really performing up to expectation.

The situation had almost been the same last year. As experience tell, it will be good now to invest into some fundamentally performing stock which are still within the valuation, and have the room to appreciate.

One of the stock that I would like to point out will be this almost forgotten "Aluminium" stock which could one day, become a next PMetal hopefully. As for me, even becoming 30% of PMetal is good enough.

This stock is no stranger for you and me i suppose, is none other than A-Rank Berhad (Arank - 7214)

As you can see, technically speaking, Arank had been trading in the range of RM 1.05 to RM 1.15 for almost the whole year of 2017. Technically speaking, anything near RM 1.05 would be a good point to accumulate on the stock. Short term wise, Arank can easily rebound towards RM 1.20 should the coming quarterly result is performing well.

One of the most important thing in order for the stock to perform is to have it's result talking directly to the investor. Attached below is the FYE 2017 result for Arank where EPS is 13.5 cents, and giving out 3.25 cents as dividend to investor.

As you can see, there isn't much good stock left in KLSE which are giving good dividend and trading at single digit PER. For the case of Arank, it is only trading at a PER x8 which is still had the room to appreciate. As this stock is suitable for long term investment, and not for flipping purposes, it is understandable on why it's PE is slightly lower.

However, I believe Arank will be trading higher soon as investor start to realize the steady performance of Arank, and also rewarding investor with dividend.

Do you think Arank is a good for investment now ? Now that is your call again.


Tuesday, 7 November 2017

Monetizing this vast land bank is good for the shareholder of this company

Despite the slowing property sentiment surrounding Malaysia, corporate exercises involving company diversifying into property development and construction in fact happen even more frequently this year.

However, most of these corporate exercise falls into company that are struggling to perform in their existing industry, and a diversification could give the company a new light of hope in order to turn the company back into the black.

While there are a few example, some notably successful example on listed companies diversifying into construction had to be Mercury Industries Berhad and Voir Holdings Berhad.

As you can see, for the case of Mercury where Dato Tiong inject his own construction firm into it, the share price appreciated much and shareholder are confident on the diversification that will bring in more benefit. That had been the same case for Voir, and shareholder view the diversification as a good.

While such are the successful case, it had me wondered if this company can also repeat such wonderful feat created like the above 2 example.

So, this company is the little known Bsl Corporation Berhad (Bslcorp - 7221).

This company had been laying on the lower side for the past few years. However, the recent month saw the company share price appreciated as the company start to turn into profit with new manufacturing contracts.

What is interesting is the latest development where Bslcorp had formed a JV with Mr Wong Sze Chien to explore on the property development and construction opportunities.

Prior to that, Mr Wong Sze Chien had also some dealing with Bslcorp through Bsl Eco on the purchase of net metering system.

Albeit the current share price which could be trading at a considerably higher PE, the share price of Bslcorp had been sustainable at the range of RM 0.60, implying that the company had greater plans ahead.

The joint venture will be able to see Bslcorp diversify their income stream and tap into the property development.

According to the latest annual report filling, Bslcorp had a vast land piece at the area of Kundang, which is near Rawang. The land spanning 1214 hectares, which is almost 3000 acre, can be suitable for township development.

It will be very wise for Bslcorp to finally tap into this resourceful land and monetize the land to reward the shareholder.

Currently, Bslcorp is having a NTA of RM 0.80 per share.

Will Bslcorp break above RM 0.65 and trade higher in the coming days after consolidating at the range of RM 0.60 for more than 6 months ? That depends on how you will see it.

Thursday, 2 November 2017

When your chance come, Just seize it without doubt!

Life is tough, but the tough gets going. Market is always tough and not for sissy investor. As the year 2017 is coming to an end, it is a good time to reevaluate how far you had gone this year. Be it in your studies, your career, or your investment. It is always good to review on everything you had done, so that you will pick up on the mistake, rectify it, and tell yourself that you will never repeat it again.

In investment, sometimes, our mistake comes when we do not believe in our instinct when the stock price is still low and not moving with any momentum. But the problem is, when it is moving with momentum, it is either without you, or you are chasing it at a very high point which will in turn put your position in a high risk situation.

While some instinct leads to miserable outcome, it should not shy us away into trying to believe our instinct again. Some say, once bitten twice shy, twice bitten and dun wanna try.

But, I am sharing with you one instinct that is proven before with result, and I want to challenge you one more time to believe this will happen - Are you with me now ?

As you had know, 1 of the landmark case involving the take over of company in the KLSE had to be Denko Industrial Corporation. Denko got a take over offer from a Singaporean company at a price of RM 0.55.

Today, Denko is trading at a range of RM 1.40 as more corporate exercise took place including asset injection and private placement at a higher price as well.

If you had acted upon the time where this take over offer is announced, then you would had see your investment double up easily.

Now, Denko is a past tense. Nothing can be done if you had missed that opportunity. Denko is trading at RM 1.4x now, and no use to harp over things that had become something.

But, today I am giving you another chance of your lifetime - Once again.

This counter got a take over offer from it's major shareholder at a price of RM 0.785. This company is Yi-Lai Berhad (Yilai - 5048).

Talking about Yilai, I am telling you that this company is no mistress material at all, because they are tile manufacturer.

But, 3 years ago, this exciting company actually was bought in from it's major shareholder at a stunning price of RM 1.30. According to filing, Hampton Capital Ltd bought in 31.12% stake from the previous owner at RM 1.30 some where in May 2014. The director behind Hampton Capital are Aaron Tan Jian Hong and Wendy Kang.

Firstly, the person acting in concert had breached 33% and triggered mandatory general offer, where the offer is at RM 0.785. As you can see, this is an offer, and is not subject to any acceptance if any shareholder do not agree with the price. Yilai will be continue to be listed in the KLSE as long as the acceptance of offer is less than 75% (which is very likely to happen).

Secondly, the NTA of the company is actually sitting at RM 1.40, notwithstanding some plot of land that are not revalued.

Thirdly, Yilai is actually a company without any borrowings. That means, it's balance sheet can be stretched with new projects or new business.

Now Yilai is actually trading around the range of 80 cents, which is not far away from it's take over offer price of RM 0.785.

As you can see in many previous example of take over offer, I can tell you that there is high possibility that Yilai will be surging upwards very soon due to
1. Major shareholder bought in at RM 1.30
2. NTA is RM 1.40

Yilai will be properly valued at the price range of RM 1.50. Moreover with the x 2 take over factor, Yilai can be looking at RM 1.57 in the future.

Are you going to seize this chance with conviction ? I had done it, the ball is at your feet now.

See you above RM 1.00 in no time.

Wednesday, 25 October 2017

The rubber on ground can be a gold to your wallet

Today I will talk about what are the reason to encourage the usage of rubberised road in Malaysia.

I believe some may be wondering how does rubberised road come about to a hot weather like Malaysia - Will be rubber get melted on the ground ?

Well, I had to tell you that in fact, if rubber is added into the production of the asphalt road, it could actually strengthen the asphalt road in terms of preventing cracks compared to the conventional bituminous asphalt road that will melt due to hot season. In fact, in 2016, tar road in India melted due to extremely hot weather that disfigured the surface of the road as well.

Although there had not been such scene in Malaysia yet, but it is a global problem that the global weather had been rising every year due to pollution and diminishing forest from deforestation activities. I believe it will reach a time where Malaysia road will some how encounter such scenario like what happen in India, where the tar road literally melt. This will in turn become a hazardous event, as the melted portion will exposure a vehicle with risk of unable to brake in time, or skid off the track due to differences traction gain on the wheels.

For the case of Malaysia road, during the midday, it can achieve a temperature of 60 degree Celsius, which can soften then surface material and render the surface to be uneven when heavy vehicle ply through the roads.

Rubberised road is not a new thing actually. Back then in 1960, the US already have rubberised road, but by recycling the used tires.

For Malaysia, the rubberised road will be formed by using CMA technology. CMA (Cuplump Modified Asphalt ) is made by mixing freshly coagulated rubber with bitumen and asphalt. The coagulation of the rubber takes place in the cup at the tree with no manufacturing process being involved.

This kind of road pavement technology, although come with a higher cost, but is last longer than the conventional road, and also reduce the noise from wheel plying through as well. According to a research, rubberised road can reduce up to 7 decibels of noise, which is actually what the city folks in Kuala Lumpur need because a lot of building are constructed very near to the highways and main roads.

So how does all this thing translate to a better days for Greenyield ?

As you can see, Greenyield does not only cultivate rubber plantation, but also provides solution for this industry in order to enhance production through better harvesting material and stimulant. Solution such as latex stimulant, plant healing compound, and latex coagulant will be able to help smallholders to enhance their crop harvest.

The usage of rubber into road pavement will be looking to take up 10% of the total annual production, which will lift the price of rubber sharply.

In fact, Thailand had already started to build rubber road since 2013 in order to cushion the rubber price.

As Malaysia take part into this, I believe that the global price of rubber will stabilize and this industry will be able to see better prospect ahead again.

Tuesday, 24 October 2017

Why I am putting everything in here is what you need to know !!

Alright, it is me speaking again after not posting anything for 2 weeks. I know some of you guys are bumping in to my blog faithfully everyday just to wait for some red hot news again to help in your investment decision or ideas. Before your sand timer run dry, let me spark it up for you once again.

As you would know, this week is the budget week. Why I have to say this week is a budget week ? Firstly, our prime minister is going to announce the Malaysia 2018 Budget coming this Friday, 27th October 2017. Another thing we have to know that it is the end of the month, so as your salary dried up, it is time for you to go the "budget" style. Hahaha

Today, I have something really amazing to share with you, but it is not really going to be related to the budget, because I had highlighted on how Media can benefit from the budget last month when it is just trading at a mere 74 cents.

I had to tell you that we are actually at the end of October 2017 now, and you have to be aware that we are left with just 2 months+ to go in 2017, before we have to wrap up and go into 2018 to start the new year again. If you are still with me, I am sure you will know, I am bringing you some important stuff for your consideration in your 2018 investment now. Yea, that's right, it is 2 months ahead for you to think think and think. But remember to act on it when you are convinced, it is useless just to think without action.

The year 2016 and 2017 had been a great year for steel related company. But, if you do not know what is the main factor for the steel company in Malaysia to blossom, then you really have to buck up in your investment reading and research. You must know that MITI (Ministry of International Trade and Industry) had imposed an anti dumping tax on all the steel imports from China in order to restore the ailing steel industry in Malaysia that had been suffering for decades of low prices. This in turn had gave fortunes to company like Masteel, Lionind, SSteel which had fall as beneficiaries of such move.

Now the steel wave already past, it is useless to harp over it now. But if you missed the steel wave 2 years ago, then I had to tell you that the coming rubber wave, you better not missed it, because it is going to be very strong in 2018.

While there are not much pure rubber planting company listing in the KLSE with good liquidity, this particular company which is at it's all time low, is actually a listed company involved in cultivation and development of rubber plantation. Not only that, they are also involve in R&D on rubber plantation enhancer and harvesting tools and materials.

This seemingly quiet rubber plantation company is Greenyield Berhad (Greenyb - 0136).

Alright, back to my topic - Why am I saying that 2018 could be the year for rubber planter?

Actually, the idea of making rubberised road had been in talks since 2014. Even the popular car site - Paultan.Org mentioned about this since October 2014 that the government is planning to build rubberised road in 2015.

Throughout 2015 to 2017, there are some parts of the roads in Malaysia being used as R&D in order to make sure that this method is viably in the long run. In terms of initial cost, it will be higher, but for a longer tenure, it could be a good cost saving for the government.

And according to the latest result from the research and development effort by the Malaysian, it is acclaimed that the Malaysian new rubberised road technique is the world first ever!!!

Wow, doesn't that sound amazing, Malaysian ?

Alright alright. For now, that is what I want to share with you and you can digest it as soon as possible. I am not going to feed you with too much information now, but in my next posting, I will be telling you : -
1. Why rubberised road should be adopted in country like Malaysia.
2. Which new highway will be possibly paved with the rubberised road.
3. How much rubber will be needed for all this fuss.

But, one important thing I need to tell you. Since this piece of news is not a bullshet from me, I want you to ask yourself - How much do you want to make out from this opportunity? RM 10? RM 100? RM 1,000? RM 10,000? RM 100,000? Is all for you to decide now.

Now, I am telling you at a point where Greenyb is at a all time low. Look at this chart, all time low and just break out from the 3 years long term downtrend line.

Once this is implemented in a wide range, and highway road paving adopt to this, I can tell you, this rubber will be your biggest happiness, or your biggest regret.

Act now? Act later? Don't act? You decide.

Monday, 9 October 2017

Malaysia Budget 2018 potential beneficial is here!!!

Knowledge is the key to success - That is a very general saying for motivating students in excelling at their studies. So, what about turning this question into the ever challenging equity market?

What are the keys to success in the equity market ?
Honestly, there is no one single solution for this. As for me, I had to tell you that information and knowledge is one of the vital ingredient, but that is not enough to ensure you success in the equity market. Getting a piece of information is one thing, understanding the piece of information is another thing, but able to foresee how this piece of information can be applied into the market before the majority of the market does is what you need to strive to achieve in order to be successful in the equity market.

Which one do you want to understand more ?
The Red Ferrari or Pink Dressed Model ?
To make this happen, one of the most important things to do is to do a lot of reading. As for me, I read a lot of materials. For a start, I consume the local newspaper and financial dailies for the latest news and event happening both in our own social, political and financial arena. Then, I will also take it extra supplement such as medical journal and magazine, building and architectural design and concepts, IT software and hardware, automobile magazine. You might wonder, what heck use is there to read up automobile magazine have to do with stock market ? Of course, if you are just looking at hot models standing beside the car, or just glancing through the design and looking at how fast this car can go from 0 to 100kmh, that is quite useless. To make that reading more informative, you have to drill down to details such as what are the material used for the body frame, what kind of specification and what kind of sensor used, what kind of light bulb. In fact, the booming electric automobile development is the one behind pumping in the demand for aluminium because of it's lightweight function. And the multiple sensor around the car are fueling stock such as KESM and Gtronic. And the usage of LED is behind the reason for LED maker to gather steam.

Same piece of information, different reading technique, different interpretation.

However, one sad reality - Not many people can do this, because all these kind of reading require a lot of time and effort.

But fret not, because I will be doing all this work for you and sharing to you all for free. And if that is not enough, you can get latest update by liking my facebook page here and get the latest update. Of course, you can also ask me question while I will try my best to answer them - Great deal altogether?

And as for today, I want to bring your attention to the upcoming Budget 2018 and it's potential beneficiaries.

According to online news portal FreeMalaysiaToday, one of the potential beneficial hit list will be focused at the digital economy, automation, robotic development, big data industry and cloud services.

This is one of the reason why IT related companies at boosting upwards in share prices recently.

Let's look at one of the example - Kronologi Asia Berhad, a service provider for online data storage and protection solution.

This share had been rocketing upwards from a lowly 30 cents in the beginning of this year. If you asked me, I would say I had no freaking idea on what sort of hype is happening to this company. If you can see the below result, you can assume that Krono is currently trading at almost PER x 20 based on annualize earning of 5 cents for FYE 2017.

But, if I were to tell you that Kronologi could be one of the recipient to benefit from the Budget 2018 in terms of tax incentives for being involved in Cloud Service, that would make a good sense of why this company had been flying up since this year.

As for me, I am not telling you to get into Krono now, because Krono is already quite hyped up already.

What I am pointing to you is this one overlook stock that had just restructured itself and involve in the big data industry. And this stock is no stranger to you - Media Prima Berhad (Media - 4502).

As you can see, I had previously informed you why Media is a powerful stock ever since it had acquire RevAsia online content marketing unit which comprises of several popular online content marketing sites.

If this doesn't convince you enough to invest into Media, you have to know that the upcoming Budget 2018 is possibly going to give Media a definite game changer as they start their involvement into Digital Economy, Digital Media and Advertising and Big Data Industry.

So what is BIG DATA ?

According to a popular site, the definition of Big Data Analysis is the process of examining large and varied data sets -- i.e., big data -- to uncover hidden patterns, unknown correlations, market trends, customer preferences and other useful information that can help organizations make more-informed business decisions.

20 years ago, nobody will know what kind of news you like to read, nobody will know what time you like to read newspaper, nobody will know whether you read the front page big news or end page sport news first, nobody will know you will show interest in which advertisement, nobody will know how you react towards a particular of news.

Thanks to the evolving digital technology, today, everything can be tracked and all these data can be processed into a meaningful set of data that is valuable to business owner to make accurate decision based on consumer patterns.

So how does this work?

Let me give you an example. So now Astro want to know what is the Malaysia public taste for Hollywood movie, in order to get a response, they engage popular online content marketing site, for a poll to get reader responses.

As you can see, this 1 single post can garner 62k of reads and 2.3k of shares. Most importantly, it got 15.5k of votes from the public. Of course, for to write this post, Astro might probably have to pay them like RM 20k to RM 30k, or even more, I don't know. But I can tell you that it is not cheap.

But compared to the conventional style, it could even cost more, and much slower. If you had ever worked as interviewer in research company such as Acorn, then you will know how "mafan" it is to gather 1 response, not to mention 15.5k response from all over the places in Malaysia. For 15.5k response, it would had probably cost Astro a whopping RM 1.55 million if 1 response is charged at RM 100.

So do the math, pay RM 1.55 million or RM 30k ?

Of course, what I am showing you now is just the very surface. There are deeper analysis with the use of Google Analytic that can show you reader came from which region, what keyword they type, how long they spend in the post and etc.

I know all these are very confusing and complicated to you right now.

In order not to complicate you further, I want to place a conclusion that Media is having big time to benefit from the coming Budget 2018. As you know, I had been advocating for Media when it is just 72 cents, and I had to tell you that this company is full of potential from A to Z, and that is one critical reason why Morgan Stanley had been buying in in bulk, non stop, everyday action!!!

In no time, Media will be at RM 1.00 with or without you. But since you are reading this post until the end, I have to tell you that if you had missed the previous one, it is not too late now. RM 1.00 is a no brainer target. With new revenue from online division, lesser losses from physical print division, tax incentive from government - How to prevent Media from blowing up ??? 

Don't think too long, better act fast now !!! And like my Facebook page here as well.

Wednesday, 4 October 2017

Good Models will enrich your eyes, Good Business Models will enrich your wealth

Everyone know what is a model, but not everyone know what is a business model.

Today I am not going to tell you about models, but I would want to share with you some new knowledge about understanding a business, and how a business function. In short, it is the BUSINESS MODEL that is the core mechanism of the company.

In order for you to understand what is BUSINESS MODEL all about, I can refer you to this Youtube video that can give you a very brief knowledge on BUSINESS MODEL.

The most important part of the business model is the Value Proposition. This is where your company's product deliver the value in order to fill up the demand gap in the market. If your company is offering something that none other market competitor are able to offer, that is where the value stand out.

Every business looking for profit must have a viable business model, and not only that, the business model must keep on changing and adding in value in order to keep up with the evolving market. As you see, Kodak used to dominate the retailer segment in camera when everything is still using film, however, when digital camera become more advance and cheaper, Canon and Samsung had overtaken Kodak into this segment as retailer shift to digital camera for more shots without wasting films. Moreover, the ability of a digital image to be transferred from device to another device is easier, especially when the generation nowadays likes to share their photo in social media.

Whether you agree or not, a lot of things in our life are going digital. Unless you are planning to spend the rest of your lives in cave, you have to either embrace digital or face extinction - Brutal Reality.

Now that is Brutal Reality

So for the case of Sasbadi, what is the brutal reality ???

According to the Malaysian Education Blue Print 2013 - 2025, one of the segment that the government will enhance is to leverage ICT to scale up quality learning across Malaysia.

As you can see from this excerpt taken out from the executive summary, this phase involve in providing internet access and virtual learning environment via 1BestariNet for all 10,000 schools.

Aside from that, this phase will also augment online content to share best practices starting with a video library of the best teachers delivering lessons in Science, Mathematics, Bahasa Malaysia and English language.

It also focuses in the use of ICT for distance and self paced learning to expand access to high quality teaching regardless of location or student skill level.

And to sum it all to you, I have to tell you that all these 3 important points in the Malaysia Education Blue Print will find a suitable solution from Sasbadi.

Why ?

Because Sasbadi is currently the only pioneering company that is involved in providing online e-learning platform through it's i-LearnAce online web education.

The i-LearnAce platform will not only cater for revision exercise, there are also video lesson for student to do referenced as well. What is more, Sasbadi is one of the contracted publisher for the printing of text book for schools throughout Malaysia.

And to answer you that, this could be one of the very core reason why EPF is buying and loading up Sasbadi for the future!!! Imagine how much for proprietary rights and provision of service that the government need to pay to Sasbadi when this is implemented at a massive scale ? It might not happen now, but what about the next 5 years, 10 years ?

Albeit having spent RM 6 billion, it is not enough. Of course, if Malaysia Government start to spend RM 2 to 3 billion for Sasbadi to develop, implement and execute, why not ? 

Now coming back to the Business Model, I would like to share with you my simple thoughts of the Business Model of Sasbadi i-Learn Ace. Okay, hear me, I am refering to i-Learn Ace product only.

So what is so special in this i-Learn Ace business model ?

This capability of i-Learn Ace is that this platform is able to transfer the equivalent amount of knowledge that can be learned from the physical books - through the thin air!!! Amazing right ?

Alright, the thin air I am referring to is through the digital media. As digitalized content do not have physical appearance, hence this will eliminate all the printing cost, logistic cost, warehouse holding cost, inventory defects and damage cost, inventory theft or lost cost and etc. And I had to tell you that all this cost when added up together is a hell lots of money involved.

All the user need to access such content is
1. Internet
2. A smart device (Computer, Laptop, pads, smart phones)
3. And of course, ticket fees to access the content

Let me give you an example by comparing iLearnAce potential profit and traditional book print profit.

Let's say we are talking about a pool of 100,000 students every year.
For traditional method, the publisher need to print 100,000 books to cater for 100,000 students every year. So let's assume the total all in cost is RM 5 per book, and profit margin of RM 3, total RM 8 per book in average. So for this, the company earn RM 300,000 each year. This is perfect scenario, assume petrol no hike, electric no hike, books not printed wrongly and etc.

Now, let's put it to iLearnAce business model for 100,000 students every year.
For iLearnAce, the cost will be a 1 time development cost for the whole system. Let's assume the 1 time development cost is RM 300,000. And since there are no physical form of delivery, hence a lot of cost are saved. Now, let's assume 1 student need to pay RM 5 for the access to the content of the system, so 100,000 student will be paying RM 500,000 each year.

For the 1st year comparison, traditional method might be seeing a higher profit or RM 300,000 while the iLearnAce will derive RM 200,000 only. But for the next subsequent year, iLearnAce will be deriving RM 500,000 as there will not be a need to develop the content again. But, the traditional print method might be exposed to higher cost due to raw material and logistic cost which can impair the profit margin.

According to my knowledge, iLearnAce will only need approximate RM 350 for a 1 year access to 6 subject, which is like RM 1 a day. It is only a matter of time that once iLearnAce gain enough publicity, then the system will be able to benefit from the massive of scale usage.

For now, I had shown you the massive potential of Sasbadi, and also the reason why EPF is buying into Sasbadi without in huge chunks.

In conclusion, the Brutal Reality will strike you with regret in the next 2 years if you did not invest in Sasbadi now. Yea, no joke, just like how I had mentioned about GCB at RM 1 when cocoa price hit rock bottom!! I had teach you how a lower material price will bring benefit to GCB here and now GCB is RM 1.70. Now I am telling you how this iLearnAce business model will be bringing in big chunk of $$ to Sasbadi now!! Is up to you and in your hands now.

Tuesday, 3 October 2017

EPF is not letting this company away from it's portfolio, which is why you shouldn't either!

Equity market had been riding tough and rough for the past few weeks. The weaker than expected financial result in most of the companies financial reporting announced in the 3rd quarter this year had took investor to reassess their investment portfolio. When this happen, institutional fund will start to do the buy and sell, and of course, this will also represent a good time period to do some good accumulation.

If you had been following me for the past weeks, you would notice that 1 of my notable finding on Media which highlight the potential possibilities of why Morgan Stanley had been buying into Media continuously without fail lately.

As for today, I would like to show you this 1 stock that had been accumulation by our very own EPF. For a stock to be qualified into EPF list of purchase, the stock must had a track record, making profits, paying dividends and potentially is a company that provide services that are crucial for the country.

You might had probably used the products of this company during your school days - Text Books and Exercise Books. For this case, I would want to introduce Sabadi Holdings Berhad (Sasbadi - 5252) into your radar.

So what is so interesting that is happening in Sasbadi that resulted in EPF buying into the company shares ?

EPF had been buying and selling Sasbadi shares previously. However, according to official records, EPF had started to become the net purchaser of Sasbadi shares in the open market starting this year. As you can see, EPF stake in Sasbadi during January is almost 6%.

However, rolling on 9 months later, EPF had increased it's stake to a total of 9.77% of Sasbadi shares now, with the latest acquisition being done on 25th September 2017 with 300,000 units at the price range of RM 0.88.

If you are a thorough investor, it would had strike your mind that - Why is EPF accumulating on the shares of Sasbadi despite some suppressed earning as of lately? This is a very valid question for every investor, and knowing the most accurate answer is important because it is the very key towards the success of the investment.

For commoner, Sasbadi is known for printing text books, exercise books and some other general titles for adult that had left the "academic" process. Other than printing books and selling books, most do not know what else is Sasbadi is involved in - Am I right to say so ?

One of the major move that the company had made in 2016 is that Sasbadi is actually diversifying into network marketing in order to derive more revenue from a new business sector. As reported in The Edge, Sasbadi sees a good prospect in the network marketing business and had obtained a network marketing license in April 2016 in order to conduct that business. I had to tell you that Sasbadi is not going to sell you health food like what other network marketing companies do,  but they are going to compliment it's existing business in education by providing an online learning platform that is able to cater to students from as young as 10 years (Standard 4) old to middle school student (Form 5)

As I know some people might be triggered by the word MLM, I had to tell you that not all MLM are scams. Some MLM are really legit, conduct proper business dealing and are even listed companies in the KLSE. And I had to point out to you that MLM companies in Malaysia are not too bad either, because some are really doing good, and some really had their very good season when the time comes.

If you do not know, Hai-O Enterprise Berhad is actually a traditional herb company that also have it's network marketing arm beside it's retail outlet. As you can see, Hai-O share price had been increasing steadily for the past 2 years, where revenue from the network marketing contributes a lot to the bottom line of the company growth.

Another MLM company - Zhulian. Based in Penang, this company involves in health food, beauty, home improvement products and jewellery.

Coming back to Sasbadi. The question here to ask is - What is so special about the network marketing product and services that Sasbadi is offering ? Will Sasbadi network marketing product be able to replicate the success like Hai-O, where share price rocket without fail for 2 years ?

If you are keen to know, then you will have to read below and click to the links and study further.

The product is called i Learn Ace. Basically, this product is an online learning platform that have a lot of exercises and revision material that can cater to students through online access using computer, laptop or smart phone devices.

The platform comprises of most of the important syllabus of the main stream subjects.
There are a lot of function in this iLearnAce, such as mind mapping, video lesson, dictionary and even competition board. Of course, if you want to give it a try, then you can contact Mindtech Education for more information.

As for me, I want you to know that Sasbadi will be a great emerging company to be invested into because education never dies, despite of economic uncertainties or downturn, education will have to continue and resemble an important process for every single children to go through.

Today, I had highlighted to you Sasbadi and it's latest product offering. Following on, I will share to you my insight on One of the reason why EPF is buying into Sasbadi and will decrypt the latest business model of Sasbadi for you to understand how explosive can this new product iLearnAce contribute into the bottom line of the company in the future.

If you are looking for a long term investment with future growth and dividend, look no further and Sasbadi will be your correct choice. I am confidently pointing to you to invest into this stock, because in my next article, all beans will be spilled out, and I am afraid that you might need to pay a premium for that.

Friday, 29 September 2017

Like this page and I will bring your investment to the next level

To all avid fellow readers,

In order to bring in some freshness and more engagement with the readers, there will be some new changes and some overhaul in activities - of course, for free again.

For a start, there will be a new Facebook Page set up - Bonescythe Stock Watch.

For a start, I will have some free stuff for you to grab again when the page reaches 1000 likes.

So what are the free stuff you can be looking at ?

I am referring to stuff like :
- 80% discount in stock training seminar and coaching
- Free stock updates
- VIP Chat Group and Discussion
- Merchandise and a lot more possibilities that is permissible under the sun and law.
No matter you are an old ginger or new ginger, we will present to you another new dimension in spicing up your next investment journey.

My teaching will let you how to do critical thinking on mind mapping  on factor that influence the movement of a stock price, and of course, before other people find out.
Such as are the example like Liihen, where I had informed you on the potential of recovery from the destruction of the hurricane in the US.

Aside from that, also can help you interpret what institution buying means to this stock, like how Media had appeared to be by Morgan Stanley continuous buying from the open market.

If you ask me, I have to tell you that these are rare skills. And for that, I had to tell you that you do not acquire rare skill easily from the outside world. For me, I had not inherited this rare skill, but I had went through the exact journey to acquire this rare skill which I can share with you if you are the lucky one.

So, wait no more, and proceed to like this page - Bonescythe Stock Watch for more updates to come, exclusively for you.


Tuesday, 26 September 2017

This Company can be in the Multi-Billion Ringgit Deal

Hi all enthusiastic reader!! Today, I am sure you would be expecting me to tell you what the freak is happening to Media. As you can see, my previous post on Media had highlighted on the continuous buying of Media share in the open market by Morgan Stanley. I had to tell you that until now, Morgan Stanley had not been stopping this feat, and it is still being reported that the investment banker had been buying in huge amount of Media share last week as well. The latest filing show that Morgan Stanley is holding more than 8% of Media shares now!!

So, what is the underlying reason for Morgan Stanley to be doing so? As you know, curiosity kills the cat, so before any cutie cat get killed,  I will need to reveal my assumption for the cats to study first. Kikiki.....

As you know, one of the biggest acquisition done by Media Prima this year had to be the deal that involves RM 105 million with Rev Asia Holdings Sdn Bhd. Basically, this deal encompasses the purchase of digital asset from Rev Asia, namely - OHBULAN!,, Viral Cham, Rojaklah, JUICE, 8Share, MyResipi, and SirapLimau.

The acquisition which had finally completed at the 3rd quarter of this year is looking to transform the business revenue of Media Prima by increasing it's revenue from online segment.

So, what has these 9 websites got to do that can hook up a huge sum of RM 105 million ? I had to tell you that RM 105 million is a lot of money, and the website are purely intangible assets. And a lot of you probably do not have any idea what the fack are those website at all.

Because of this, I am here to explain to you, in a very layman term on the degree of interaction of such websites in the industry of advertisement.

Let's start out with something simple and understandable. In graphics, we know what is 1D, 2D and 3D, right ? 1 dimension is a flat, 2 dimension offer you flat view of an object with height and width, and 3 dimension offer you a 3D view of an object.

To put this into the media industry, let me explain it this way :
- Newspaper akin to 1D level, where reader can only read and see what is being written.
- Television Media is akin to 2D level, where reader can read, see and listen to the content.
- Online Content Marketing is like 3D level, because it offers the reader to read, see, listen and giving feedback and comment.

The ability to provide a media platform for a reader to interact with the marketed content is the current "in-thing", and that is what Online Content Marketing platform such as, ViralCham is being so hotly sought after.

The question now leads to - How big is this growing industry of Online Content Marketing nowadays ?

If you had been following this segment, you will be aware that the popular site in US namely "The Huffington Post" is sold to AOL for a stunning USD 315 million. That being said, this deal is done in year 2011. Under the Huffington Post umbrella are other media enterprises such as TechCrunch and MapQuest.

If you think USD 315 million is a big amount paid by AOL to acquire Huffington Post, YOU ARE DEAD WRONG HERE.

This is because 4 years later, AOL is sold to Verizon for a landmark deal of USD 4.4 billion !!! And the reason ? That is because Verizon is finding something to penetrate deeper into it's consumer base, and AOL is the bridge linking to that solution, where it is particularly strong in video advertising.

Whatever it is, AOL investment of USD 315 million had came back louder with USD 4.4 billion within 4 years. While I am not trying to prove to you anything, I had to tell you that the trend in advertising had to do with Online Content Marketing which offer a much more interactive platform to connect the consumer and the marketer.

That being said, I had to highlight to you that Media Prima Berhad is actually on it's way in replicating the successful model that AOL had went through. That is because Media Prima had everything that AOL had, from TV Channel, Radio Broadcasting, and now completing it with the acquisition of Online Content Marketing site.

Albeit Malaysia is starting a little slower compared to the US peers, things are picking up. Rev Asia had actually started to acquire and consolidate all these online content marketing platform since 2016. Rev acquire ViralCham and Rojaklah on August 2016, and continue to acquire Malay popular content portal such as Siraplimau, Myresipi and Kongsiresipi on December 2016.

According to official filing, Rev Asia paid RM 5 million for both ViralCham and Rojaklah. And as for the 3 of the Malay content site, Rev Asia paid RM 2.65 million in Dec 2016. Of course, the biggest prized asset had to be from the popular content site of, which is the reason why Catcha change it's name into Rev Asia after the RM 60 million merger.

That being said, the main question that I would want you to give a thinker is - Will Media be walking the path of AOL ?

Will Media become the solution for TM in the next 2 years ?

I believe, if you had read until now, and check through all the referral links that I had provided, you would by now know that, everything is possible.

Morgan Stanley could had been involved in the deal from AOL to Verizon. For this reason, given a similar reappearance of the case, but in Asia for this context - What will you do if you are Morgan Stanley? Sit and stare? Or buy when it is at it's weakest mark of the state?

In conclusion, I had show you the potential, possible, or even maybe the real reason of why Morgan Stanley is buying into Media continuously. As for you, what is your take now ? Watch or Act - Is in your hands!