Sunday, 14 October 2012

Fong Siling: Glove Maker...


Over the past 10 years, the Malaysian glove industry thriving, completely free from the impact of the economic recession, the sub-prime financial tsunami did not slow down the growth of the company.

Addition to the Top Glove, the other listed glove companies, including Supermax, Hartalega, profits, stability and so on, and also the performance of the standard green, in the next 10 years, according to the demand of international research institutions, gloves, maintain a growth rate of 8-10%.

Gloves shares as shareholders to create amazing wealth, but only a long-term investment of shareholders in order to enjoy the wealth created by the growth of the glove industry, those short-term speculators, buy a small profit on disposal can only get a teeny small Lee, salaried class investors, investment, investment growth is too low, when they retire is difficult to achieve the goal of financial autonomy.

A slight profit on the disposal, by no means the cumulative wealth of the road.

Sit on the Formula One project is the "reverse", and is cheap to buy, but the low price does not guarantee profits, it is the second project is the "growth", growth, such as Top Glove, long-term growth trend, but the only long-term holding in order to fully enjoy the fruitful business growth, short-term investments as if on picking one kilogram can grow up to 5 kg of watermelon, can not enjoy the sweet ripe watermelon.

  • If you notice, recently glove maker had been actively come out in the headlines of news! Why? 
  • 2 companys- e.g Latexx is being bought by other company.
  • the EPS of glove maker such as Top Glove is Fabulous! Same go to Supermx which is expansion mode!! 
  • The research showed that the international demand for glove is going to raise at the rate of 8-10 % , what about the profit margin? especially for Supermx which is moving towards automated systerm? 

Friday, 12 October 2012

Fong Siling: ICBC

Why Non Tangible Assets so Important?

ICBC had rocked the HKSE with shoot up to HK 5!!! wow! Awesome Return!
Based on the TA, uptrend is still intact, resistant at HK 5.6.
But , FA always the best! ROE 20% ++ Dividend of 5% for 5 star world class stock!

Let's us discuss about value of NTA since ICBC is top 3 WORLD brand!!!

A successful business living in the leading position in the industry. This fact alone is valuable.

(1) successful enterprise necessarily relevant products occupy a certain market new products to have a share, easier said than done. Therefore, the market share is valuable.

(2) followed by technology. When a company has the technology to manufacture high quality products or special products, the technology itself is valuable intangible assets.

(3) Third, is talent. The success or failure of the enterprise, whether the talent is the key, in particular, require special knowledge, skills and experience in the service industry. Such as financial institutions, information industry, the press, and so on. Some companies in the acquisition of other businesses, adhere to the original talent to remain a number of years before they agree to contract, that is, for this reason.

(4) place of business is also valuable, such as the banking sector. If you already have a bank branch in the same street, usually the National Bank will not approve another bank to establish a branch in its vicinity. Therefore occupy a key position in the branches, and is also valuable.Similarly, rent to superior status, crowded stores bits itself valuable.

(5) farming and industry, the company has a good location of the land, its stock should be higher than the value of tangible assets is reasonable. Such as good agricultural land have been listed company monopoly, again to establish the same scale of the company even more difficult, so the value of the stock should be higher than the net tangible assets per share is reasonable.

(6) The enterprise system is also valuable. For example, the financial industry, basically rely on the system to manipulate. Establish a system takes time, so the system is an intangible asset.

(7). Especially relations with old customers, but also valuable intangible assets.

(8) Time is intangible assets. At least to establish a successful enterprise for 10 years, eight years. During this period, the company to pay an enormous amount of interest to overcome countless difficulties. Some companies prefer to pay a higher price than the value of tangible assets (Premium) acquisition of the off-the-shelf enterprise, which is more cost-effective.

Wednesday, 10 October 2012

Fong Siling: ICBC RoCk !~!

As for ICBC, seems like it started it move already with intraday High at HK 4.70!! breakout of its higher HIGH!!! Let's Rock to HK 5++!! Not forget our BOC, 3988, started its move toward HK 3 ++!!!
Now in 11 October, it shoot up highest to HK 4.9! wow! 4% up in a day! seems like it will start to rock d!!! and in 12 October, It shoot up to hightest of HK 4.99!

Some people will ask why IcBc,
reasons :
  • 5 star world class bank
  • One of the WORLD class TOP brand 2012
  • PE < 7
  • ROE 20 % for past 5 years!
  • Heavy shares buy by China Fund Managers!
What say you!!

Wow! Let 's take a look at our pick.  As i said, ECS started to fly since 9/10/12 , with today high hitting RM 1.77! As for YTL WR, at the cost of RM 0.180, at YTL WB at RM 0.425, you will get RM 0.045 gain with each RM 200 conversion before 17 October! ( don't forget to convert! )
Not to forget our Scientex, start to move to RM 2.64 +-!!

As now in 12 October 2012, Scientex is moving up from Rm 2.4 to RM  2.9++

Let us ponder.....
We need to learn to be NORMAL people in stock investment. Normal human reaction is something you don't want to buy, the cheaper the more you want to buy. So, when department store sales, poll surge and gasoline price increases, on the eve of petrol station queues of vehicles. After gasoline prices, vehicle queues are rushing to "come on" If there is, is a "strange phenomena".

"Strange phenomena" are not normal, a normal phenomenon known as "strange phenomena". But in the stock market, strange phenomena ever. As always there, everyone was surprised. When stock prices high, people buy buying, when the share price is low, but nobody border to buy!

Monday, 8 October 2012

YTL WR- Hot Hot Stock!!

YTL- WR ...
to YTLpower


  • negative premium to the YTLpower WB at such a discount!!
  • YTLpower now at PE 9 +- with dividend 5 %, currently almost at year low!! EPS sustained!
  • what do you think? Fundamentally sound! yeah! Don't Miss this!!  

YTL-WR active ahead of Tuesday’s 5pm last trading deadline
Business & Markets 2012
Written by Cindy Yeap of   
Monday, 08 October 2012 15:28

KUALA LUMPUR: Renounceable rights to buy YTL POWER INTERNATIONAL BHD [] warrants (YTL-WR) given to YTL Corp Bhd shareholders at 20 sen a piece continued to be actively traded ahead of Tuesday’s deadline to sell them for a quick arbitrage profit.

At 2.57pm, YTL-WR was up one sen to 19.5 sen with over 24.4 million units done — the day’s second most active.

Simply put, YTL-WR allows the holder the chance to buy at 20 sen apiece YTL Power International warrants (YTLPOWER-WB), which was selling for 42 sen in the open market at 2.57pm.

This means that at 19.5 sen, an investor buying 100,000 YTL-WR could potentially make about RM2,500, excluding brokerage fees, using YTLPOWER-WB's value of 42 sen currently.

YTL Corp is offering up to 733.08 million of YTL-WR to its shareholders on the basis of one warrant for each 15 YTL Corp shares held on Oct 2, rights for which are being sold to profit in the difference between the 20 sen exercise price and the value of YTLPOWER-WB in the open market.

YTL-WR will cease to trade at 5pm Tuesday, according to a YTL Corp prospectus dated Oct 2 on the renounceable offer.

The value of the renounced rights had come off from as high as 27 sen apiece intra-day on Oct 3 when YTL-WR first started trading. This corresponded with the decline seen in the value of YTLPOWER-WB in the open market to 42 sen currently compared with 48 sen on Oct 2 before the renounced rights (YTL-WR) began trading.

YTLPOWER-WB, which expires in June 2018, has a RM1.21 strike price and one-to-one conversion ratio. YTL Power mother shares are going for RM1.61 apiece currently.