DRBHCOM poised to rise?...

Ok, the Islamic banking merger with Bank Islam seems to be hitting a snag....

pos malaysia value unlocking will accelerate from here and more "news" is expected to be flowing to the public soon....

Technically speaking, the stock is looking strong and well supported at a 2.17-2.24 range.

Local institution is net buyer for a while now... more aggressive share purchase is expected from here until the month of Jul-Aug timeframe.... watch the stock closely...

Personally, I expect the stocks to reach RM3 within this year and for Q3, RM2.75 is within reach...

Equity,a sit out or buy in?

Since my last posting on Perisai, the stock has since went up to beyond 80 sen and come back down to about the same level when I posted the trading buy call...
Anyway, if you're "superstitious" then its a bear from now till Aug-Sep timeframe afterall we're in May and we all know what the saying is for May.... and you should go on a break from equity and take a long deserve holiday while keeping your cash in non equity forms.

On the other hand, knowing fully well that Malaysia is on the verge of its general election (13th, likely end of the year), and the many projects being announced particularly the Petronas projects in Johor state, and also the many privatisation plans for list of companies under Tan Sri Syed Mokhtar and Khazanah's selling of its GLCs' stake is to some extent can be viewed as positive developments for KLCI.

Bear in mind that the government (BN) needs money for their election campaign and apparently Syed Mohktar is one of BN/UMNO main banker, the list of privatisations will happen soon because it will free up cash and return much to the banker.

In particular DRBHCOM tranformation is going to accelerate, Bank Islam and Bank Muamalat will merge and DRB will emerge as main if not the sole owner. TCubes will go into oblivion. The news of the myemail appears to be a marketing gimmick for shareholders to unload.

So what does it means for investors on the street? Buy selective counters with relation to BN/UMNO might be a good start. Afterall, >90% of the counters in KLCI are junks most of the time... mainly due to lousy management and incompetent SC.

Well, IPOs are a good investment too but my rule will be to sell within the first 1 minute of listing. Like it or not, there are more MClean counters in the future so as long as the SC remains what it is, its the first 1 minute transaction for me.... take IJacobs for example, those who did would have made few folds... :) those who don't just might have waited too long that the shit hits the fan, at the very least Ijacobs is still above IPO price... anyway MClean deserve the title of "The fastest decline in IPO price in history so far" thanks to all those who partake in the IPO process, Kenanga et all.... you sucks.
Think the stock is going to stabilize at 29sen.

How government screw POS Malaysia and ...

One example of why foreign funds will never be interested with KLCI is the latest 1 malaysia email project.
This is a classic example of how pos malaysia is screwed after khazanah have decided to disposed of its stake. Now DRBHCOM, if they get POS and this 1 malaysia email thingy is imposed on all GLCs to use the service to notify its customers instead of snail mail, then DRBHCOM is screwed too.

POS Malaysia stake... sold to....?

Well, Khazanah will have its board meeting today to decide on the successful bidder for its major stake in Pos Malaysia....
Sources mentioned that only DRBHCOM and Scomi were the finalists that will be considered by the board. For those who have been in the market long enough and have done their homework will know that between the 2 companies, DRBHCOM will emerge the winner.... 90%... Why I said so?

All these are relative comparison which favours DRBHCOM:
1) Good corporate governance
2) Strong balance sheet and financial capability
3) High ability to unlock Pos's value - value and profit maximization

I would be very dissapointed if Scomi emerge as the winner.

Regardless, whether DRBHCOM gets the stake or not, it's stock price is still valued at above RM3 no matter which method you use to assess and evaluate the company.

DRBHCOM's spectacular run!

DRBHCOM just continue to rise with both local institution and retailers loading up on the stock in anticipation of equity market recovery and future growth story for the conglomerate.... Latest news of DRBHCOM's bid for POS stake from khazanah is not a surprise... on offer price alone, DRBHCOM is certainly one of the favourite to clinch the deal. Whether the deal will benefit DRB in the long run? the answer is YES. Strategically the stake will enable DRBHCOM to "unlock" more values.... not surprising if DRBHCOM will embark on more value unlocking activities in the future given the positive sentiment on the equity market...

Like I said, its management has done a great job since the turn over and I expect the stock to rise further and hover at probably ~RM2.50 before going further depending on the market condition and impending news and announcement.
Congratulations to those who follow and bought earlier... :)
Stellar ROI indeed!!!

DRBHCOM on the rise...

This company certainly is one of the best in recovery of the equity market and has been attracting steady interest from investors... Well with today's market performance, many who bought in the past may have started to lock in the gain... its perfectly alright if you want to do so....
Will the stock continue to climb? Likely, the large seller at RM2.15 is merely a small bump... will pass with ease soon... :)
In summary, great company with great return and more to come...

SPSETIA-WB a bargain...

Well, I have to bring this up.... SPSetia, target price beyond RM7.60 but its warrant is only RM1.54 which translate to a discount of 15% at least... why is that so?
Now is this a situation of market efficiency issue or is there something in the pipeline about SPsetia that the public are not aware of which keeps the warrant from matching its worth?

If you are familiar with the industry, some people are starting to say the property market is cooling down with the high oil price and rising inflation in the emerging market and blah blah...
hey, the housing market might not be able to distance itself from the risk aversion the the general public may have due to the unrest in mid east and Arab region... but the growth we see in the world economy in general is very much intact and US in particular is very encouraging...
today we say the world economy recovery risk being put to halt due to the above issues, tomorrow things may change... perhaps Ghaddafi finally relented and step down and Arab manage to reverse the dissatisfaction of its people by offering cash distribution and more job creation as well as wealth sharing....

My point is, we're on track to grow and equity is certainly the better way to grow your money if not the best bet... SPsetia will certainly lead the recovery of the KLCI... hence at 2013 expiry, its warrant certainly have future (lots of it) in my opinion.

On a separate note, DRBHCOM is moving up.... :) Good job to those who bought in during the low.... this is just the beginning...

DRBHCOM to begin its run?

DRBHCOM rose 10 sen today dragging most of its warrants along. Since I last posted about this stock as a must buy about a week ago, this stock has not yet moved much but will today's movement mean anything to us? Stock price well supported with heavy buying on the warrants indicated that investors are anticipating stock price appreciation going forward and are leaveraging the warrants which gives higher return in a bull run.

Last financial report was excellent and with more news to come and certainly with today's uptick, it goes to confirm the bullish signal for this stock. Those who bought in last week, good job...and those who didn't its not too late to act.... :)

Stock trend is a classic run up and my personal target, easily beyond RM3.

KLCI Bull vs bear....(DRBHCOM)

In today's situation, both macro and micro economic perspective, most people who follows the financial news will say that the KLCI is trading at a high level... however they also believe it will go higher from here... question is how high and what stock to ride, typical question that none other that ourself will be able to convince and should be convincing ourselves to buy or sell.

So should we be focusing on the potential M&A candidates or perhaps better of on the laggards?
Of late mahy people have came out to comment on the DRBHCOM recent run up and honestly I think this stock is obviously going to have more news in the pipeline (privatisation of subs or spin off, etc) On the potential of more government contracts from defense ministry, I am rather sceptical to that in view of the little material impact even if something along that line does materialize.

Well the stock have rallied close to 40% since Dec 1st and therefore in my opinion its time to take profit and lock in the gain. Sell the stock and buy back when it retreat to ~RM1.70 would be a reasonable way of playing this.

Never get carried away with the sentiment of the bull in today's market....