Penny stocks

Efficient at 025. Data Processing (na 01, eps 2.4 pe 10 ), dv 0.2 sen ex.3rd Jun

Notion Vtec at 052. HDD components, SLR camera barrel (na 020 eps 4.5 pe 12 peg >2) dv 1 sen Oct/ Mar

Dufu at 044. HDD components (na 064 eps 5 pe 9) dv 1 sen Jan

EPMB at 050. Automative parts (na 129 eps 5 pe 10) eps likely reduced to 3 sen

Hubline at 024. Logistic shipping (na 040 eps 2 pe 12).. (rights issue 1 at 20 sens c/w free warrant for every exist 2 shares at 30 sens on 9th Oct)

TA Global launches prospectus

THE listing of TA Global Bhd on the main market of Bursa Malaysia on Nov 23, will position it as one of the largest listed property companies in Malaysia. TA Global launched its prospectus today for an Initial Public Offering (IPO) of 460 million shares at an issue price of 50 sen per share.

The executive chairman of TA Global, Datuk Tiah Thee Kian said with the listing, the TA Group would be divided into two main business entities, namely the financial division under TA Enterprise Bhd and the property division under TA Global."The property division will include hotel operations, property management, property investment and property development."

He said TA Global which have three new Klang Valley projects with a gross development value of RM6 billion over a period of seven to 10 years and is now looking towards expansion in Australia and Canada. - Bernama

DiGi to pay 80% of earnings as dividends compared to 50% currently

In a move read by some as a reaction to Maxis Bhd’s impending listing, DiGi.Com Bhd said it will pay out at least 80% of its net earnings as dividends from next year onwards. This brings its dividends payout policy – from 50% currently – closer to Maxis’ 75% of net profits.
If special dividends and capital repayments are included, both telecommunication companies have typically surpassed paying out more than 100% of net earnings, making them both high dividend yielding stocks.

DiGi also announced a 75 sen special dividend per share, bringing its total payout for the year to RM1.24 per share, giving it a yield of 5.9% at current prices. (This excludes any final dividend payment, which would raise its dividend yield further.)

Recently, StarBiz reported that Maxis will likely pay out more than 85% of net earnings (above its stated policy of 75%) once it is listed, as it will have sufficient cash flows to do so.
DiGi also said it will raise more debt to “better work its balance sheet.” Such funds will be used for capital expenditure and repayments to shareholders.
“We are committed to improving capital management all the time and to reach an optimal balance sheet position. DiGi is still charting growth with a strong operational cash flow and balance sheet. Returning excess cash is part of our effort to provide sustainable long-term yields to our shareholders,” DiGi chief executive Johan Dennelind told StarBiz.

DiGi’s operational cash flow amounted to RM321mil for its third quarter ended Sept 30.
DiGi has a net debt position of RM200mil, which is small compared with its huge annual cash flows. Its net debt to earnings before interest, income tax, depreciation and amortisation (ebitda) ratio is only 0.12 times.
Maxis on the other hand, plans to raise RM5bil in debt, which will give it a net debt to editda ratio of around 2 times. Even that is not high, as it is considered to be at an optimal level for a company like Maxis.

Dennelind added that DiGi’s investment strategy had not changed. “We want investors looking for strong yields from a company that has a track record of execution in the mobile market. We also see growth in this market in all segments,” he said.

Market Outlook: Buyers Fatigue

Buyers are losing interest in the market. Sellers are taking profit off the table.
It's a condition labelled as "buyers' fatigue" as buyers see limited upside on the share prices and huge potential fall in prices.
Considering the reward/ risk ratio of 1:1, I would not be interested to purchase anything at the moment and would look to sell on price action rally .

BJ Sports Toto AGM: Dividends???

BJSports Toto had their AGM on Weds instant.
Historically, it's around this time of the year that they will declare dividends for their shareholders. Since they were profitable for their first quarter (RM100 million, eps abt 8 sen), let's see if they will... Watch for news...

Kinsteel catching up

Traded 2 counters: Kinsteel (steel sector) and Supermax (gloves/health sector)..

Masteel had some positive news on Tuesday and its share rose above RM1.00 from around 93 sen. In my previous posting, I had pointed the highs and lows of several steel companies counters with their ratio on the current share prices. I remembered Kinsteel at previous year high of RM1.80 and Masteel at RM1.30.

So I figure that Kinsteel at around 95 sen will play catch up. And it did....! Kinsteel have more upside in its share price considering that its fair value at 82 sen and will probably get a re-rating from analyst. Watch Kinsteel prices compared to Masteel.

Similarly Southern Steel (laggard) is playing catch-up with Ann Joo Resources. If memory serves me right, previous year high of Ann Joo was RM4.20 with Southern Steel at RM3.80. You might want to consider grabbing Southern Steel shares (still cheap) before it does catch up Ann Joo's.

There's another similarity in share prices currently between Lion Ind and Perwaja although Lion Ind previous year high above RM4. Knowing all these may help you spot some winners.

OSK maintains Buy on Genting Malaysia

The stock's current undemanding valuations of 5.7 times FY10 enterprise value/ earnings before interest, tax, depreciation and amortisation (EV/EBITDA) versus its historical average of 7 times and the regional peer average of 7 times to 10 times, indicates that the potential competitive risk emanating from the Singapore integrated resort has largely been priced in.

"Stripping out its net cash/share of 90 sen, the stock trades at 8.9x FY10 PER.
Maintain BUY with a target price of RM3.25 (10% discount to RNAV of RM3.60)."

Genting M'sia subscribes for Wynn Resorts' US$15m notes

Genting Malaysia Bhd (formerly Resorts) has subscribed to US$15 million (about RM50.51 million) mortgage notes issued by US leisure and gaming corporation Wynn Resorts.The US$15 million is part of the US$500 million notes issued by Wynn Resorts' unlisted units Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp. The 7.875% first mortgage notes are due 2017.

Genting Malaysia said on Wednesday, Oct 21 that it represented a good opportunity for it to expand its investment portfolio and enhance returns on its existing cash balances. "With yield returns in excess of 8%, the investment generates an attractive return compared to what is currently attainable in the money markets or in other secured investments regionally, especially within the Genting Malaysia group's core leisure and hospitality industry," it added.

Recent Purchases/ Top-Up

New purchases: TA, Efficen, Hap Seng... TA ((na 145, eps 6, pe 26, dv 4.5... (dv in spicie: 3 TA Global of 50 sen w/ 3 ICPS of 50 sen for every 5 existing, ex 28th Oct.) Efficen (na 12, eps 2.4, pe 10 ))... HapSeng (na 413, eps 20, pe 12, dv 12, dy 5, fair value 240)

Recent top-up: Axiata, GenM, Hubline, IJM

Existing holdings: Axiata, BjToto, Esso, GenM, Hubline, IJM, TDM, THPlant, HSPlant, TM, Digi, QL, Maybank, Lion Div.

Esso. PetDag. Shell on Better Pricing

Esso earnings surge.
Check out Shell and PetDag earnings too.
Accumulate on price share weakness.

If you have bought Esso at RM2.20, its (27 + 5 dividend) % gain at RM2.80 now.

IGB at 20 months high. Suncity, Glomac, MahSing. BRDB, KSL, IJM

Shares of IGB Corp Bhd surged as much as 33 sen to a 20-month high of RM2.31 in afternoon trade on Friday, Oct 16 before sliding to RM2.28 at 4.01pm. There were no fresh corporate news except that the company bought back 7.06 million shares at prices ranging from RM1.69 to RM1.70 for RM12.02 million. The recent share buy-back saw the shares retained in treasury at 30.328 million. Market talk was that there could be a distribution of treasury shares which has propelled the share price.

Stocks to watch and buy:
Goldis, SunCity (na 359, eps 28, pe 12, dv 12, fair value 325), Glomac, (na 185, eps 11, pe 12, dv 4.5, fair value 120), MahSing (see previous), BRDB (na 315, eps 22, pe 8, dv 3, fair value 150), KSL (na 185, eps 25, pe 9, dv 5 ex.19/8, fair value 125).
IJM Land, IJM remains my favourites