Thursday, August 21, 2014

Time to Tread Carefully

"Shares traded on the stock exchange hit a feverish 7.67 billion shares yesterday after heavy churning the day before saw the volume of shares reaching 5.11 billion.

Active trading, especially among the penny stocks, saw the 10 most-active stocks on Bursa accounting for about half the traded volume of shares. 

The selldown in selected penny stocks spooked sentiment, as the number of losers outpaced gainers at a ratio of three-to-one, but that did not deter the buying of blue chips" more

"Trading in shares on Bursa Malaysia continued its uptrend to hit a peak of 7.67 billion shares yesterday after recording 5.11 billion shares on Tuesday, suggesting a market correction "will not be too far away", according to industry players.

A fund manager who declined to be named said despite heightened trading in the local stock market off-late, he opined that it is not a healthy scenario that could lead to a correction in the market.

"Each time when the volume shoots up, the market will go down then," he told SunBiz.

The fund manager revealed that the fixation on small caps has led "a few" security houses to impose trading restriction on large margin trading of certain stocks.
"They (securities houses) cap the trading to avoid a counter becoming a designated security," he added." more

Tuesday, July 29, 2014

Stock Watch - SASBADI

I reckon SASBADI could be among the cheapest "education" stock in Bursa now at RM1.40 per share. With a dividend policy of paying up to 50% of its net profit and a growing profit track record, I am comfortable with accumulating some of its shares.

Pro FormaActual
Financial Year Ended 31 August20102011201220132014
No. of Months121212129
Gross ProfitRM'00018,55224,81826,90532,13329,758
Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA)RM'0009,35814,10716,45619,44217,122
Profit Before Taxation (PBT)RM'0008,24612,94214,89817,66314,975
PBT Margin%17.5421.5822.9822.6624.18
Profit After Taxation (PAT)RM'0006,0709,47610,89212,75411,033
PAT Margin%12.9115.8016.8016.3617.81
Profit Attributable To Owners Of The CompanyRM'0006,0709,47610,89212,75411,033
Basic Earnings Per Share (Basic EPS) ^sen5.748.9610.2912.0510.43

^Basic EPS is computed based on the profit for the financial years / periods attributable to the owners of the Company divided by the number of ordinary shares assumed to be in issue of 105,800,000 Shares.
*Please read this section in conjunction with Sasbadi Holdings Berhad's Prospectus dated 7 July 2014 and latest Quarterly Report.

Thursday, July 17, 2014

Stock Watch - JAG

On 2 July 2014, Bursa Securities had approved the following:

(I) Proposed bonus issue of shares in JAG on the basis of 9 new shares for every 20 existing shares; and

(II) Proposed FREE WARRANTS on the basis of 10 warrants for every 20 existing shares.

An EGM will be held on Friday, 25 July 2014 to seek shareholders' approval on the proposals.

...while waiting for the entitlement date to be announced, JAG shares are being actively traded.

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