Invest Matter

Office tower, under construction project  Malton Berhad, a property  company which has two main business namely; Property development Construction and project management Historically, the company having completed a number of project worth more than RM1.3 billion as well  managed and completed projects with contract value more than RM2.0 billion. Previously, there was a gossip which linked Malton to “Datin Sri” who is a wife of senior government  leader, therefore it is good to buy. But difficult to confirm how far the truth of  the “gossip”, but I remain agree with the point of view saying Malton is “good to buy”. My judgment based on fundamental factors instead of “Datin Sri” factor as below; 1)  Financial Strengths a.  Financial report ended 30 June 2011 has shown, Malton was in a good cash position and very low debt level as illustrated  by current ratio which equal to 1.65 times and debt to ...

Every month of January, our stock market index goes up or higher than previous month (December of previous year) despite there are no positive events which push the stock price up. This such a sentiment is said as natural, unless if there are serious negative events occurred then the market sentiment will be different. How true this point of view? The statistic below will give you the answer. The table below presents the five years KLSE index which comparing highest and lowest index between January (current year) and December (previous year).                                                                Table 1: KLSE Index For January & December       ...

As reported by most main media on 20 th November 2010, Tan Sri Halim Saad has made offer to takeover KFC Holdings Berhad (KFC) by purchasing QSR Brand Berhad (QSR) shares from Kulim Berhad. Kulim Berhad is the company owns 59.58% shares in QSR and QSR in turn owns 50.3% shares in KFC. As known by public KFC is the operator of international well known brand outlets in Malaysia (a part from Singapore, Brunei, Cambodia and India) namely KFC Restaurants and Pizza Hut outlets. Apart from that KFC is also the owner and operator of Ayamas outlets. Since the takeover involving three public listed companies, what is the effect over the share price of those companies? From my point of view, the news of takeover which believed to be materialized will give negative effect to QSR price  but positive effect to Kulim and KFC price based on the following analysis. QSR A report says that, QSR price offered by Halim Saad to Kulim will be RM5.18 namely two times than book value of RM2.59 as at e...

After corporate exercise (bonus issue and share split) on 8 Sept 2010, the price of KFC Holdings was adjusted from 22.12 to 2.81 and it looks more attractive and cheaper thereafter.  KFC Holdings is owned by Johor Corporation which controlling 50.04% of shareholding via QSR Ventures Sdn Bhd and QSR Berhad. Buy opportunity for KFC Holdings. Why? Strong financial position KFC Holdings is a company which has good financial position as follows; a.        Current ratio is 1.22 which mean strong cash position. b.       Gearing ratio is 0.6 which mean  very low debt. c.        ROE measures the capability of making profit. Benchmark of ROE is 15% as recommended by Warrant Buffet where as the latest KFC Holdings ROE was 16.47 and for  4 years average ROE, it  was 17.42. Both are higher than Warrant Buffet’s benchmark. Good dividend payment Since year 2005, lowest dividend pai...

It has been reported that, a second largest ethylene maker from Korea, Honam Petrochemical Corp ,   will buy 72 per cent stake in Malaysia's Titan Chemicals Corp Bhd where a prominent   Malayisia’s investment agency namely Permodalan Nasional Berhad (PNM) is a one of the major shareholders. Report also says 72 per cent stake that to be taken over by Honam are combination shares which owned by PNB, Amanah Raya Trustees Bhd and The Chao Group (a Taiwaineese company). By acquiring 72 per cent stake from those vendors, it will enable Honam to proceed unconditional take over offer for the shares which not owned   by them especially from the minority shareholders as the objective of Honam is to fully control Titan. The price to be paid by   Honam is RM2.35 per share. The closed price of Titan was 1.83 before suspension last week and the NAV, in turn, is RM2.42. It is still good buy for Honam as the purchase price still lower than NAV. We expect that,   the shar...

                                                                    13 May 2010 was a bussines tragedy. Investors has been surprised by the news of Sime Darby which has been reported making losses due to cost overruns  for Bakun and a petroleum project in Qatar. The amount of losses was RM1.6 billion and first big financial crisis since merger in November 2007. In 2008 and 2009 Sime Darby has made net profit of RM3.5b and RM2.2b respectively. As an effect of the losses, share price plunged and in May 26, the price closed at RM7.60, lowest since 10 months. Based on 52 weeks highest price i.e. RM9.24, it was 21.6% drop. Some investors raised question, can we buy the Sime Darby share at the moment?  The following  questions will help you to make decision. As an investor, the most important thing shou...