Today trading

Buy in Petra Energy 2000 shares @ 3.32 and kinsteel 2900 shares @ 1.34.

Kinsteel

Last few days i saw a good news:

The China Securities Journal had reported that China plans to raise its export duties on some steelproducts w.e.f. 1 Jan 2008. Citing some steel company officials, it was reported that export tariff onsteel billets would be raised to 25% from the current 15%. In addition, export duties on long andstrip steel products, and welded tubes would also be raised to 15% from the current level of 0%-10% respectively. China, the world's largest steel producer, had earlier scrapped its 13% exportrebate (VAT) on carbon steel welded tubes as of 1 July 2007. The export tariffs increases wouldcome amid increasing overseas dumping charges against China's massive steel exports at thesame time cut energy consumption and pollutant emissions.

With less steel export to here, we would expect the share price of steel might going on, who would benefit from this act? Sure is local steel maker, like Masteel(in over bought region), ornasteel, and not forgeting would be Kinsteel.

Kinsteel latest Quarter report shows EPS 68sen , and Q1 and Q2 are 43sen and 45sen respectively, assuming better result at Q4 EPS 70sen year end, the PE is stood at (1.39/2.26) = 5.7 , which is almost in par with Masteel and Ornasteel PE.

However, giving it high production and also, fund manager favourite, this counter indeed is a theme play counter. With the high growth in EPS, this counter might deserving PE 7 and above.

I would buy in with 5k allocated with this counter.

ECMlibra and Airasia

Thanks Sam again for providing such good counter on ECMlibra.

Based on PE 10++ and politic link counter ( Why political link?
check this out : http://www.malaysia-today.net/blog2006/corridors.php?itemid=6185 ), this counter definetely is a good buy with recent high volume.

and also, the yesterday announcement:

ELAB had on 1 December 2005 obtained its shareholders’ approval for the ESOS, the details of which are set out in the Company’s Circular to Shareholders dated 9 November 2005. The effective date of implementation of the ESOS is on 27 December 2007. Pursuant thereto and in accordance with the provisions of the bye-laws of the ESOS, the Options Committee has on 27 December 2007 granted options, (subject to shareholders’ approval for the specific allotment) to the Directors as detailed in Appendix I (“collectively referred to as the Interested Directors”) at an exercise price of RM1.00 per Share (as defined below)(“Offer”).

wow, ESOS RM1.00, now they are telling you this share worth RM1 and more. if i can buy current price 0.92, i would love to purchase more shares.

And for Airasia, i have seen large volume of trading on past few days, with price drop from 1.70 until 1.60, which means there are two condition, first would be foreign fund is selling in large volume and also at the same time some other foreign fund is buying in. ( No individual share holder can hold such large lots of sell pressure). Or the share holders behind is playing with the volume and share price.

I plan to hold for 2 more weeks before i decide my next step. Or consider cut loss at 1.55.

today Trading

Buy Airasia 3000 shares @ 1.63 and buy ECMlibra 4000 shares @ 0.86 and 2000
shares @ 0.865

Bought Ecmlibra following Sam (Please refer to samgang.blogspot.com) and airasia for trading play purpose.

Happy New Year and Merry Christmas!

Happy New Year and Merry Christmas!

I have decide to put some capital to venture into Singapore SGX Market.

The initial capital would be 4k sing dollar.

While Malaysia market capital would be 23400k. (Compare to previous 26.1k cash).

The deducted amount would be added into 4k SGX portfolio.

Total Ringgit invest would be 32.6k. (Include SGX and KLSE)

This has exceeded my target to have 30k investment capital before 2008.

And also, the next target would be 100k investment capital before 2010.

For this month only 2 small transactions have being done. It would be Melati 1000 shares @1.49 and Rcecap 2000 shares @ 0.86.

Let's hope everyone earn big money on years 2008.

Today trading

Bought Melati @ 1.49 with 1000 shares cost RM1490.

I plan to put more money in Melati.

But due to external factor like China and Dow Jones not stable, i will increase slowly.

Today Trading

Buy RCECAP at 2000 shares @ 0.86 at last minutes, Cost RM1720.

RCECAP

What's so special with RCECAP?

RCE Cap provides personal loans to civil servants. Loans are disbursed to cooperative members to buy cars, electrical appliances,furniture and others. Repayment is by way of direct salary deduction facilitated by ANGKASA.

Here is how it looks like :

Base on Quarter Report, their main income would be loan financing , at 2004 loan financing revenue is 18 millions and net profit is 11.4 millions, 2005 is 33.94 millions with 16.339 millions, 2006 is 53.76 mils with 21.378mils, and 2007 is 95 millions with 46mils. We can see that margin of this business is so high that every revenue increase will directly contribute to the net profit. The margin can be seen ranged from 30%-50%.

At current price 0.89, the PE is around 9, which is considerably cheap to me. This stocks has been soared from 0.3x to current price within 1 years, which make you a handsome profit with over 300% if you bought at last year.

What's make this stock more attrative would be they are charging those lender at 15.90% to 16.70% p.a . Wow, they are charging like credit card, and some more they salary will be automatically deducted to pay the loan. The loan would be ranged from 7 years to 10 years.

Other News:

RCE is looking to establish a finance company with Southern BankVietnam (SBV). The firm signed an MOU with SBV to form a JV companyfor the application of licenses to set up a non-bank credit institution. RCE’scost of investment is an estimated US$5.7m (RM19.6m) for a 30% stake inthe venture, while SBV will take an 11% stake and the remainingshareholdings taken up by other strategic partners. We expect a formal agreement to be signed by end-2007 and the first branch to be set up in mid-2008.

Another thing would be they are eyeing MBSB, which may allow RCE to grow into the biggest non regularised financial institution.Currently they are getting money by either lending from financial bank or either by issuing bond, where ranging from 3%-10% and loan to the lender. If they managed to get the MBSB from EPF, that would be a big boost to the fundamental of company as MBSB is licensed to take deposits. Imagine, the cost of getting money is decreasing from 10% to 3.75% or lower, i would not be surprise if they managed to acquire share in MBSB and analysis report would give a "Buy" with Price RM2.

I will buy this counter if the price is good for me. I believe i still have chance to buy with price lower than 0.89.

Mahsing Quarter Report Analysis

Mahsing Latest Quarter has been exciting one, they have managed to sustain the excellent earning result.

With 3Q 2007, the eps stood at 0.10 eps, assuming Q4 with 0.4 sen ( which is better than previous 3 Q), we have around 0.14eps, with current price RM1.90, the PE stood at 13.57,to me the price is fairly value, unless there are some kind of good news like Middle East investor is eyeing on Mahsing stakes. The best price we can is on August 17 where we can buy Mahsing at RM1.60.

The most special parts of Mahsing is they did not adopt buy land and hold and develop in future. They just bought the land they interested and develop it. This kind of strategy cause you wont find any value on "Land held for properties development" which you can often see on other companies annual report.

This strategy prove to be success one and surely they wont mind to buy land at higher price as the brand "Mahsing" would make the property they sold worth higher value.

Hang Seng November Index

PE : 22.15
Dividend Yield: 1.94

To me, Hang Seng still in danger zone, and i can see they lack the volume and energy to push the stocks again, maybe they are waiting for FED announcement?

I still want to wait and see, except buying Maybulk at 4.50.