Thursday, October 31, 2013

Update of MWE Holding - Lighting Unit Sales, Q2 Profit drop 22%

A week ago I wrote about a fundamentally strong company MWE Holding. ( Well, the company background is superb but recently it has sold its lighting units which causes the Q2 profit to drop 22%.

MWE Holding has yet to find a suitable business to boost up their profit. The recent action they took is to invest in KEuro company. If this investment goes well, the company will see an improve in Investing Income. So, if we choose to invest in MWE holding, why not direct invest in KEuro?

For the time being, I have take profit by selling off my shares in MWE Holding. There are some other better stocks to invest for now. :)

Source from The Edge Malaysia:
MWE Holding sold lighting unit

MWE Holding investing in KEuro:

I will be doing a research on KEuro soon. Stay tuned.


Tuesday, October 22, 2013

MWE Holdings Berhad (Stock Code: MWE 3921) Strong Fundamental Company to Invest

Hi all,
Here is another superb company to invest in. The company is MWE Holdings Berhad. MWE is a company majoring in textile manufacturing for garments (clothing and sales of clothing), property investment, telco, contract manufacturing for electronics, insurance, gold club, club houses, freight and forwarding and trucks distribution. It is a highly diversified company and this means it is stable but its business will not have a super boom like other small medium companies that is focusing only in one sector. This company is like a diversified mutual fund. (Just my opinions. :) ) Company website:

Below is my analysis on MWE, I hope you can have a look at its superb company fundamental.

Net Tangible Asset
 Shareholder'sFund/Equity                  597,452,000.00
 Total Shares                  231,559,015.00
 NTA                    2.58
 Current Asset                  346,463,000.00
 Current Liabilities               (113,452,923.00)
 Net Current Assets                  233,010,077.00
Free Cash Flow
Free Cash Flow 216990227
Total Shares 231559015
Free Cash Flow Per Share 0.937083909
Income Statement          Profit/Loss
Net Profit attributable                   134,444,000.00
EPS 0.58060361
Cash Flow Statement     
 Operating Activities                    15,053,080.00
 Investing Activities                  160,700,358.00
 Financing Activities                 (75,398,329.00)
 Exchange Rate                           70,639.00
 Cash at beginning of Year                  116,564,479.00
 Total                  216,990,227.00

 Net Cash  216,990,227.00

 Cash Per Share (cents)                93.71
 Cash to Liability (%)              191.26
 Margin of Safety Intrinsic                 5.93

Well, from all the numbers that is highlighted with yellow, you can see that this company is amazing.
1. Net Tangible Asset Per Share: 2.58
- This means the stock of this company theoretically should be selling at RM2.58 per share. But it is now selling at RM1.78 only (as of 22 Oct 2013). Isn't it cheap?

2. Net Current Asset: RM233,010,077
- Positive value of Net Current Asset is important because current asset is liquid. So, in case of financial problems, company can use it to liquidate to get cash to pay for their liabilities. From this net current asset, we can understand that the current asset is > current liabilities by almost 2 times.

3. Earning Per Share (EPS): 0.5806
- For every share you held, the earning is RM0.5806. If the PE is 10, means this stock is selling at RM5.806! OMG, that is simply amazing.

4. Cash Flow generated Net Cash: RM216,990,227.00
- The company has good management. They manage to create positive cash flow throughout the year with RM116,564,479.00 at beginning of the year ad end with RM216,990,227.00. That is almost increase 100% in cash.

5. Cash Per Share: RM0.9371
- The stock is selling at RM1.78 with cash per share of RM0.9371. You buy this share at RM1.78 is actually buying at RM1.78 - RM0.9371 = RM0.8429 per share after deduct cash per share.

6.Cash to Liability (%): 191.26%
- From this value, we know that the cash is almost double the liability. In time of financial crisis, this company can easily gain access to cash. In other words, this company has the ability to clear out all the debt using the cash in hand and even after clear all the debt, they still have a lot of cash left.

7. Margin of Safety: RM5.93
- This is calculated based on Warrent Buffett and Benjamin Graham value investing method. I am using the simplified formula. The margin of safety of the stock price for this company is around RM5.93. Well, this value is too high because I did not take into account the previous years performance. So, I personally, think that this company can at least reach the NTA value of RM2.58.

Share some of your thought with me if you have any. :) This is a great stock to invest in. what do you think?



Wednesday, September 25, 2013

The Next Big Crash is Coming - Debt Ceiling Crisis 2013

History tends to repeat itself. Two years back in September 2011, US is facing Debt Ceiling Crisis and caused the stock market to crash hard. Now the debt ceiling is nearing the max and it is expected to have problems coming soon next month (October 2013).

Based on the history, the market will crash. The Fed on-hold tapering is a great news for the stock market but the debt ceiling is creating another problem for the market. The market will go through hard time again because of debt ceiling and the next meeting for tapering.

Are you out of the market?


Monday, July 1, 2013

The Central Bank Bubble! When will it CRASH? End of Year 2013

I think market crash is inevitable because it always happen BUT when next? Asia Bubble, .com Bubble, Great Big Credit Bubble and now what do you think will be the name for the next Bubble? See the image below:

This image is obtained from Google Image search and the graph originates from Kit Juckes. Basically, his analysis is quite interesting. With is graphical approach, we can see how deep "sh*t" the world economy are in now.

From the graph, you see Fed Fund at low, GDP will grow high. BUT when Fed funds get higher, GDP will drop and stock market will follow to drop. Fed Funds increases based on the interest rate. So, in order for the Fed Funds to increase, The FED has to increase interest rates. In this case, it will hurt GDP and of course, the global stock market as well.

The FED is keeping the interest rates near to zero since 2008. For now, any negative blow to our economy will be deadly and so far we never know how to save the economy without the help of reducing interest rates (it is near to zero, how to reduce?)

Personally, I saw a BIG Crash coming. The market looks optimistic now, if it continues to be so optimistic for the months to come, I believe The FED will announce to increase interest rate.

What Warren Buffett says?
The world's Greatest Investor - Warren Buffett Guarantee New Crash and New Recession (Source).

I think it is coming very soon. Prepare your cash and it is almost time for us to get rich in this BIG CRASH.



Saturday, June 8, 2013

Have you sell your P&O?

Hi all,
In my previous post, you know that P&O is giving special dividends. After the dividend announcedment, the stock price shoot up from around RM1.50 to RM1.80.

Did you bought t at around RM1.50? If yes, have you sell it? It is time to take profit. That is rouhly 20% return within 1-2 months time. :)



Thursday, May 9, 2013

Pacific & Orient Berhad (P&O) Fundamental Strong with Special Dividend Coming Soon!

Dear all,
As promised, I will write about this stock named P&O. This stock is going to fly up high very soon. If you have not purchase this stock, go and get it. There are some factors that will cause this stock to fly up high. you can read about them below:

1. Selling of 49% Stake of Shares to Sanlam
This selling of their share to Sanlam have generated total cash RM270,000,000 to P&O.The management has mentioned to use a part of this big amount of money to give special dividend.

2. Special Dividend (As promised but not yet announce.)

According to the Circular to Shareholders on 15 February 2013 (Refer here: Circular to Shareholder P&O 15 February 2013), the total proceed of the selling of 40% share to Sanlam generated total cash of RM270,000,000.

P&O announced to give out part of the RM270,000,000 as Special Dividend to shareholders and to be completed in 3 months period. Since the announcement is on February 2013, now it is May 2013, it is 3 months. Soon, P&O will announce this Special Dividend. Announcement will be around these few days or weeks.

3. How much is the Special Dividend?
Based on the circular to shareholders, P&O will give out RM37,000,000 as Special Dividends. Total share of P&O in the market is 245,954,000 units.

Special Dividends per share = RM37,000,000 / 245,954,000 = RM0.15 per share.

Total of 15 cents will be given as Special Dividend!

4. What is the P&O Stock price now?
The stock price is now selling at RM1.48. If you buy in the share now and wait for the special dividend, you are going to get more than 10% return just by getting the dividend.

% return = 0.15/1.48 x 100% = 10.14%

5. Target  Price for P&O
Based on i3Investor, the target price is around RM1.37 - RM1.80. (Check the P&O target price)

Is it a good buy? I would say yes!

What is the possible return?
If announcement is made, we are expecting the stock price to go up to around RM1.60 to RM1.80.
Assume you buy 5000 units at RM1.48.

Total Money Purchase = 5000 x RM1.48 = RM7400
Sell at RM1.65 = 5000 x RM1.65 = RM8250
Earnings = RM850
% earnings = 11.5%

From my point of view, it is very likely that P&O will announce Dividend + Special Dividend together. So, it mean that we can expect P&O to announce Dividend + RM0.15 which might be more than RM0.20 div per share.

If this is announced, I think very likely this stock will fly up high. Stay tuned and watch (if you don't dare to buy)!



Monday, May 6, 2013

Post-Election - Momentum Acceleration Point Triggered

Hi all,
There are a lot of stocks showing the symbol of Momentum Acceleration Point. Here I list out all the possible stocks that might continue rally for the next few days based on the Momentum Acceleration Point Technique.

Remember Momentum Acceleration Point? Read about the technique:

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