Friday, 24 August 2012

What did Fong Siling say about COMPANY GROWTH?


Fong Siling always says  that buy stocks is to buy the company's shares, equal to investment. As long as corporate earnings are increasing, your shares will be increasingly valuable, your wealth will be growing.
So, after you buy the stock, you should be concerned about the progress of the company's business, not the ups and downs of the stock.

If you do not have confidence in your company, you would not have to make long-term investments, as long as the price is slightly since, with a little petty, divest fear less, this investment law, it is difficult to accumulate wealth.

The success or failure of the stock investment, since determining the success or failure of the company, then, to invest long, or to withdrawal or to continue to invest in it, depends on the company's performance.
If the company's profit is rising every year, you may choose not to sell. So, buy the best long-term investment plans, however, if the company's earnings performance than you expected poor, and short-term (1,2 years) is unlikely to improve, it is best to act decisively, divest you shares, invest your money in a more promising company.

So, after you buy the stock must close tracking the company's business progress. The company's every move, should be analyzed to see if the company is favorable or unfavorable. If it is unfavorable, then, the best Divestment. Protect your capital, and should always be your most important investment conditions.

so, what are the reasons for SUPERMX now? correct!! it is the increasing in earning!

  • CEO, Datuk Seri Stanley Thai said its company aimed for 15-20% growth for the next 5 years ,based on the full automation of its operations, better business opportunities and aggressive marketing and distribution activities worldwide.
  • Falling natural rubber prices ( increase the earning)
  • Automated systems which will fully implemented in year 2013 which will reduce the operating cost to 60%!!!! ( 27 Millions / year) ~ almost 20 % of the revenues! 
  • Supermax also recently started work on its new, national distribution headquarters in Chicago, United States which will enable the group to have additional capacity to accommodate its business growth in the US market.
In short, 15- 20% growth ! with new dividend policy! SUPERMX really looks attractive! 

Friday, 17 August 2012

冷眼 (Fong Siling) & Neo Choo Ee : CSCSTEL

冷眼 (Fong Siling): CSCSTEL 

(1 million share ~ 0.27%)

Neo Choo Ee & Company ( 1.7 million share~ 0.46%) 

This is one of the stocks own by Mr Fong Siling.

With the China steel market heavily hit the local steel market at lower price, CSCSTEL seems to be one of the victims with the significant drop in EPS in Q1. But, surprisingly the Q2 results showed the EPS increased from 1.7 cents to 2. 86 cents! WOW, what a black horse!!!

What i like for this company at these moment of time are:
  • Year Low currently ( due to the poor outlook for steel market at the moment of time), it is time to collect! Don't you think so?
  • Cash rich, debt free company with high NTA RM 2. 04 ( almost 80 % discount from current share price! ( debt equity ratio at 0.1!!!!!!! only)
  • With the government implementation of ETP in which infrastructure construction are being released one by one, the Director of the company is confidence that the company will back to Rock & Roll! 
Do you think it is wise to collect now, when the bar start to show turning point! wow! 

Thursday, 16 August 2012

冷眼 (Fong Siling): TDM

冷眼 (Fong Siling): TDM

Planting is the most time-tested enterprise, because the most important asset - land owned by the plantation companies, the value of l drop, preservation assets.Although the original product price volatility fierce, palm oil, with its low production costs and a variety of uses, with the strongest competitiveness. Four decades, the share of palm oil in the cooking oil market, from 5% to over 40%, to prove their superiority.

Buy planting stocks, it is the most prudent investment. Unfortunately, most individual investors do not familiar with the oil palm industry, does not assess the ability of planting stocks missed the opportunity of the low buy planting stock.Let's us ponder TDM!!!

History: development history of over 45 years.
Plantation Location: Terengganu.
The major shareholders: The company is the investment arm of the Terengganu state government, state government and state development agencies have 53% and 14.9% stake in this company.
Plantation area:
(A) The company has oil palm plantation: 26,162 hectares (60,000 4649 acres).
(B) the company on behalf of the management of oil palm plantation: 32,897 hectares (80,000 1292 acres).
(C) Other land: 6734 hectares (16,640 acres).

⑴ oil palm garden.
(2) medical services: three small hospitals.

Reasons for choosing TDM: 

  • its Terengganu has 82,248 acres of oil palm plantations (33,284 hectares), all mature, and rich period in the current prices of crude palm oil (CPO) tall and graceful, the greatest beneficiary.
  • The company will in the next three years, in East Kalimantan, Indonesia, planting 50,000 acres of oil palm has been planted at the beginning of this year of 5000 acres.The company plans eight years, the planted area expanded to 100,000 hectares (250,000 acres), planting stocks, growth stocks.\
  • The company with capital of 200 million to 31.46 million ringgit, with 100 million 65.01 million ringgit in cash and no debt.
  • The company requires at least 30% of the net profit as dividends distributed to shareholders, last year net profit of 41.49 cents per share, distribute a net dividend of 13.50 cents.

Current Outlook:
- Current EPS dropped significantly due to low production of the palm oil, but this is picking up in JULY. Therefore, there is no doubt the EPS of the remaining 2 Q will be good!
- At current level, maybe it is still high RM 3.80, should we wait for the falling knife to stabilize before we go in? 

Monday, 13 August 2012

MR Fong Siling Vs Mr Koon Yew Yin

Fong Siling Vs Mr Koon Yew Yin

( TA Nominees (Tempatan) Sdn Bhd Pledged Securities Account for Koon Yew Yin 637,700  0.57 %- annual report 2010)

Up to more than 900 listed companies, good and bad, only a part of better quality, it is worth buying as an investment.This part, there are three, five hundred, from three to five hundred companies to elect three, five worth the investment, easier said than done.Human stock market, the vast majority do not do homework, or do not do their homework, to more than 900 companies, the separation of the pros and cons, and make the right investment decisions, difficult of difficult.The majority of the stock of human, simply choose to cut corners - speculation, ignore stock fundamentals alone "message" to get into the blaze, the result is that most get bruised and battered.

In fact, as long as we read more to see, in more than 900 companies, to find five worthy of your investment in stocks is not impossible.But first you have to be "heart share", will it be possible to find a good share of your dream.The so-called "heart shares" is that you never forget, tirelessly to find good stocks.Whether to see, read or heard of any stock-related message, we must constantly ask yourself: This is not an investment opportunity?As long as you never forget to invest in, you will one day find a good investment opportunity.

This situation, as if you're driving on the highway, if you are looking for your girlfriend, you will definitely side of the driving side of the constant attention, you will find on the roadside waiting for your girlfriend.If you've got no idea of ​​looking for a girlfriend, your eyes just look ahead, even if your girlfriend is on the roadside station, you are turning a blind eye to miss the opportunity to invite her on the train.Most people see investment opportunities, because they have no idea of ​​investment (the hearts of shares), the results and opportunities for passing, and lost a good opportunity to make money.

Success Transformer: 

  • PE : 5
  • Steady increasing in EPS 
  • ROE: 14.63 % 
  • Sudden surge from RM 0.98 to RM 1.08 in one day today! 
  • Any ongoing good news? let's take a look at the chart, price slowly rise from RM 0.90 to RM 1.06 , someone collecting? 
Lets wait and see! 

Tuesday, 7 August 2012

Does Mr Fong Siling Agrees with ICBC


Why Mr Fong Siling think reading annual reports is the key of success in stock investment? Does the same goes to ICBC, HK . Mr Fong Siling said...

Read the annual report is an important item in my investment career. Read the annual report, can enhance the understanding of the listed companies. All listed companies must comply with the Listing Rules to publish an annual report within the prescribed period, report to the shareholders of the past year the company's business situation.
Listing Rules, the provisions of the Annual Report, the report projects the annual report, each company are the same. Of course, the contents of the report due to vary.The purpose of the annual report is to make a comprehensive understanding of the shareholders of the company's business.
The company are the shareholders, the shareholder is the owner of the company.
Shareholders own the company, the shares of the assets of the shareholders, as a listed company, the shareholders have the right to decide to continue to hold or sell off his shares, the decision must be made according to the company's performance; read the Annual Report is to understand the performance of the company's most direct and simple way.
Each stock investors must read his holdings of the company's annual report, and then made the decision to continue to invest in, or withdrawal, according to the annual report.
To provide additional information
Many good company's annual report, in addition to the provisions of the Listing Rules to publish projects, but also provide additional information to help shareholders or investors, and understand all of their company.
Some of the company's annual report, further comprehensive report on the trades, to enable shareholders to make more informed decisions.
Malaysia Smelting (MSC, 5916, industrial products, shares) in the annual report is a good example. In addition to the company's business, the company's Annual Report on the World Tin made an in-depth and comprehensive coverage, is simply a mini World Tin encyclopedia.
From the annual report, you will find that Malaysia Smelting has a high-quality management, which is the company's most important and most valuable intangible assets.Read the Annual Report, you can often find investors to ignore the information in order to catch other investors can not be caught.
Read annual reports, and make you a better understanding of the companies you invest, thereby increasing your confidence in your company. Confident that before long-term investment; only long-term investment, you be possible to obtain huge profits; only get huge profits, in order to get rich.
⑴ to read the annual report to help to explore the treasures.
⑵ as long as earnings continue to rise, long-term hold on.
⑶ performance to reverse the valuation is too high, should be withdrawal.
⑷ stock investment, the need to regulate.
If good stocks are cheap to buy, as long as earnings continue to rise, it should continue to hold, do not ignore the short-term stock price volatility.

so, after reading Mr Fong Siling's way of investment...
Let 's us ponder, why the ICBC the 5 star blue chip bank in HK , China drop from sky since May 2012?
- China government's policy to reduce the interest rates by 2 times which reduce the EPS of the bank?
- Europe sentiment and ongoing volatility of the share markets?
- China economy slow down?

But, i think that this is the time for us to invest in this company... at almost year low. Reasons?
-From TA point of view, it turns from the bottom to higher high, higher low. Good signs definately! 
-From FA point of view, 
P/E Ratio6.19
5 star bank with PE of 6? and Dividend yield of 5.46 % ( higher than the fix deposit)
Bear in mind that ICBC is one of the biggest bank in China, if the economy starts to recover, don't you think that the bank will lead the Hang Seng Index to the sky?

Let 's us see whether it will rise from the close today at HK  4.58? 
Just have a look at the earning of the company,
What do you think?

Thursday, 2 August 2012

Why 冯时能(冷眼) , Fong Siling pick MSC?

Malaysia Smelting Corporation

MSC is facing the restructuring of its Indonesia branch which cause the share price to slump since last year December. I think this is a valuable chance for investors to buy in on the dip as reasons below. So far, Icap  had bought in almost 2.9% of the shares. Mr Fong Siling had bought in 0.5 % of the shares. Will it fly from now? RM 3.79 today ? let's see what is the chairman of MSC say about this ?

21 May 2012

MSC EXPECTS TO RETURN TO PROFITS BASED ON EXPECTATION OF 10-YEAR TIN CONCESSION EXTENSION MALAYSIAN SMELTING CORPORATION's operations in Indonesia is expected to return to profitability in 2H-CY2012 said Group CEO, MOHD AJIB ANUAR in early Apr 2012.
The Company hopes to secure another ten-year extension to its concession to mine tin in Indonesia after a planned stake selldown in its subsidiary there due to compliance with local government regulations. 

Comment of Mr Fong Siling towards MSC:

Malaysia Smelting through a statement issued to Bursa Malaysia on March 9 announced a restructuring of Indonesia's tin business.
The reorganization will be conducted in two phases, completed after the interests of the company in Indonesia's tin, from the current 75%, reduced to 37.5%. An Indonesian company OSRL way through the subscription of shares, with 37.5 percent of Malaysia Smelting Indonesian business.
Before the reorganization, a subsidiary of Malaysia Smelting in Indonesia, through a special dividend, the undistributed net income distributed to shareholders, Malaysia Smelting will be able to share $ 33,750,000, or about 100 million ringgit.
The reorganization will take effect after the complete distribution of the special dividend.
Malaysia Smelting and business restructuring in response to the Government of Indonesia's new mining policy.
Invitation of the Indonesian company shares
In fact, the company is in Indonesia, business liquidation, inviting Indonesian company shares, re-starting.
Malaysia Smelting is the acquisition of tin in India Ni Bangjia Island 10 years ago, to the Australian company, to be developed, one of the company's main source of profit.
Bali (KOBA), Columbia, the company has a 75% stake in tin in the printed 尼邦加伯里 winter Island made 41,680 hectares (103,000 acres) of mining rights for a period of 10 years, the mining rights will be expire on March 31, 2013.
The equity condition is to seek an extension of the mining rights for 10 years
The Indonesia the company OSRL the shares: the company must request and approval to the Government of Indonesia to extend the mining rights for 10 to March 31, 2023. If OSRL can not do equity participation agreement will automatically lapse.
Indonesian Minister of Energy and Mineral Resources recently announced that foreign companies mining in Indonesia must be in 10 years, phased off the sale of equity to the Indonesian investors, 10 years after Indonesia must have a 51% stake of the foreign mining companies.
Malaysia Smelting restructuring of Indonesia's business plan will be early in line with Indonesia's new mining policy, so that the company no worries.
Indonesian authorities suddenly announced a temporary ban, with effect from October 1 last year, the brother Bali tin exports The company produces tin, this led to the Malaysia Smelting in the fourth quarter of last year, suffered the loss of up to 45.87 million ringgit. (See 3 dated 3 "cold Essays column Malaysia Smelting gutter capsize)
Therefore, I believe that the equity restructuring of Malaysia Smelting Indonesian business is to solve this problem once and for all, so back on the road and continue to develop business in Indonesia.
Restructuring of equity variation
It can be seen from the photos, Malaysia Smelting originally has a 100% stake in Indonesia BCL, BCL 75% of control brother Bali (KOBA) of tin.
The first phase of the reorganization, to subscribe in cash for 23% equity interest in BCL by Indonesian company OSRL, equity, OSRL immediately Bangka mining rights to Indonesia to obtain an extension of 10 years, If OSRL can not be done, the shares will automatically lapse. Allowed to extend by ten years in the mining rights OSRL the right to subscribe to the BCL and another 27 percent stake in the company of the shares of BCL equal to 50 percent, and Malaysia Smelting.
BCL has a brother Bali tin of 75% equity, so the effective interest Malaysia Smelting OSRL in the Colombian Bali tin are 37.5% (50% x 75% = 37.5%).
After the reorganization of a number of impact
As shareholders of the Malaysia Smelting, I believe that we are concerned, the impact of the restructuring of the company:
The ① Malaysia Smelting to retrieve 100 million ringgit in cash (exact number to be decided to industry valuation). The company can reduce debt or invest in new business or rolled back a portion to shareholders, in any case this sum, are beneficial to shareholders.
② Last year, Malaysia Smelting tin melting factory in Perak high black tin ore field (ie former Raman mine) are very huge profits, because the last quarter of tired of the Indonesian business, and reduce full-year earnings this reorganization will completely solve the plight of Indonesian business, Indonesian business in the future not only will not drag on the company, the opposite will contribute.
3 Malaysia Smelting interests in Indonesia by 75 percent to 37.5 percent, but is expected to expand its scope to compensate for the reduction of the equity. I believe new shareholders OSRL has a strong background, has the ability to obtain more exploration and mining rights. In fact, Malaysia Smelting In a statement also made it clear that OSRL will support the expansion of the BCL's business.
This restructuring is complete elimination of worry and uncertainty of the company's long-term, beneficial to the future of the company.