Tuesday, July 29, 2014

Stock Watch - SASBADI

I reckon SASBADI could be 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.

Friday, June 20, 2014

Retailers - Your days are numbered

"The founder of Rocket Internet, the German venture capital company behind dozens of online start-ups, warned the retail industry on Thursday that e-commerce and smartphones would mean there will be little future for stores in emerging markets.

Oliver Samwer, 40, told the annual summit of the Consumer Goods Forum (CGF), an industry network of some 400 retailers and big brands from 70 countries, that many of them risked being left behind as the growth of e-commerce accelerates.

"You only have stores because there was no Internet, but that does not mean there is a right to have a store," Samwer said, adding that traditional retailers focused too much on older shoppers and not enough on smartphone-savvy youngsters.

"What you fear will come much faster," he warned...

...Samwer said the stock market value of Amazon and Alibaba would soon dwarf the world's biggest retailer Wal-Mart.

"What would you buy for your children? I would buy Amazon and Rocket (shares)," he said, adding he believed French retailer Carrefour would have been better off buying a stake in Alibaba than trying to open stores in China.

Noting that 75% of the world's population lives in the markets Rocket is targeting, Samwer said e-commerce had better prospects in emerging markets than in developed economies, as online sites do not have to compete with established stores.

"If you don't have to share with offline, your percentage will be much higher," he said. "It will all move online. You will have 10% left that will not move online." - read more

Saturday, May 31, 2014

YTLREIT - Stock to Watch...and to Hold!

Latest good news: A property revaluation exercise has increased the unaudited net asset value per unit of YTL REIT and its subsidiaries from RM1.0028 per unit as at 30 April 2014 (before the Revaluations) to RM1.2618 per unit upon incorporation of the net revaluation surplus of RM343.043 million.

The latest Quarterly Interim Income Distribution of 2.0804 sen per unit (of which is taxable in the hands of unitholders) will go "ex" on coming Monday, 2 Jun 2014. At the last traded "cum dividend" price of RM0.925, the net dividend yield is around 8% p.a.

How will the "ex dividend" price trade on Monday be in view of the adjusted net asset value of RM1.26 - an increase of 26 sen in net asset value per unit? 

YTLREIT remains an anchor stock in my portfolio, with its undervaluation and high dividend yield. I just adore the quarterly payouts.