You are definitely more competent to recommend a suitable entry price with your superb TA skills. I just know that it will climb back from the abyss. Blind faith? Ha ha.

Connie, you could be right that it may dip further if 3.50 does not hold. Will convert more if that happens. I am holding it for a longer term so my strategy may be slightly different.

Connie, it's a straight forward transaction. Selling and buying at the market price. My reasons for doing so is I reckoned that Narra will move up faster than HLI and also some roll-over interest issues. Narra will move back above 4. Just a matter of time. Trust me on this one.

Novice, sorry don't have any reports as the cement business have just been injected into Narra so I guess there's no investment write-up yet. But I can say with certainty that the expansion is ongoing (am from the area) and the new production is supposed to commence in late 2016. So I think it's valid to state that the business is expanding rapidly cos' after only 1 full year of operation, they are already going for another line. Have deliberated on your info over lunch and I think I will take a gamble and convert more of my HLI into Narra as I think it will move up faster. Just my personal view.

Did the same for some of my HLI shares. Everyone has different strategy to play the market.

Novice, difficult decision to make. On the one hand I believe that Narra definitely has more growth potential than HLI as it is expanding it's business rapidly as compared to the matured environment that HLI is in. However the worst for HLI seems to be over and should be on an uptrend from now on and I am expecting them to announce an interim dividend next month. As such timing is critical and also what time horizon that one is looking at. Of course, if the market turns bad all this becomes academic.

Alfred, from the Bursa announcement and you can also verify with your remissier. All pre ex-date holders of HLI have been waiting for the new shares to be credited into their a/c.

Alfred, 448M new Narra shares are listed today so the selling pressure is to be expected.

Happyman, I believe that once the dust settles that equation should easily give you more than 9. Am expecting Narra to move back to above 4 once the selling eases.

Morning all. Great Dow and S&P close augurs well for today's trading? New Narra shares will be listed today. The deluge of new shares is likely to put it under selling pressure. Watch for buying opportunities.

Already dropped 22 cents in anticipation of the deluge of new shares tomorrow.

My apologies, it's 448M new shares and not 348M as stated by me earlier. Got my figures wrong. Narra will be under tremendous selling pressure but am expecting it to rebound back above 4 once the dust settles. Predict that it might go to as low as 3.50 if CI drops heavily tomorrow.

Happyman, sorry, it's within 8 market days from the entitlement date not ex-date. It has now been announced as tomorrow.

You overlooked the Deepavali holiday. Could be tomorrow too as it state "within" 8 working days and not "on".

Bruce, no registration is necessary. It will be credited into your account latest by the 28th (within 8 working days from the ex-date).

Determining the correlation coeffient of the US market and our Bursa is not an excact science as evidenced by the current hike in the CI as against last night drop in both the Dow and S & P. However short of any noteworthy domestic development our KLSE generally take it's cue from the US market.

Connie, in my defence I guess I should be allowed usage of one foreign lingo phrase after your "carpe diem" and "bon apetit". But seriously it was to highlight the risk and the imperative to be cautious.

This is only meant for risk-takers and savvy speculators. I went into MPHBCAP-CA at an average of 0.375 about a week ago. It's a structured warrant with strike price of 1.70 and the conversion ratio is 1.5 CA. The mother share price is now 2.27, so there's no premium but the expiry is quite near, 30-1-15. Am banking on the insurance deal going through which should see it go above 0.50. Would like to emphasize caveat emptor applies greatly in this counter.

Connie, not really knowledgeable on financials. Have only superficial understanding and some info gleaned from investment write-ups. Still need "forensic" analysis by competent FA pro like sephi. Chow time.

For those who are able to hold for a longer term, Narra may be worth a look in the coming days. 348M new Narra shares from the capital distribution will be credited into the a/c of those pre ex-date holder of HLI within the next couple of days. As such there will be tremendous selling pressure and I expect the price to drop very much below 4 (currently it's at 4.10). Projected eps of 0.23 is based on <75% utilisation rate of the cement plant. Currently it's running at above 80% so I reckon that the eps should be nearer 0.25. The PER of it's peers in the industry is around 20x. Furthermore it is embarking on an expansion which should double it's capacity. I expect the price to rise back up to way above 4 when the dust settles. Perhaps those competent in FA can evaluate.

Right on, connie. Digi's chalked up some impressive results; 8.5% rise in profit and 3.3% increase in revenue and announced a decent dividend of 6.2 cents. Yet, the counter went down 8 cents. Another case of buy the rumours and sell the news.

Morning all and congrats to yesterday's winners. Uptick in both the dow and S & P though marginal should augur well for today's trading. Seize the day.

Thanks duit and connie. It's my pleasure. Am always on the look-out for trading ideas and this forum offers up many.

Morning all. Strong rebound in the Dow and S & P. Should calm some market jitters. Hope it's a harbinger of better days. Happy "green" trading.

However having said the above, I have noticed that HLI still have a share premium reserve of about 152M after the capital distribution. So I guess further goodies are possible though unlikely.

Don't think there will be special dividend. Like rc15 mentioned, the 1.08 Narra is the special dividend. Bear in mind that HLI was around the RM5 region when this exercise was first proposed. It's now 8.50 as computed by ericoconut.

NK, I believe that Narra will face some selling pressure once the new shares are credited into our a/c cos like you said a lot of ppl will be looking to cash out due to the volatile market conditions. So to sell or not depends on your time horizon.

You are absolutely right, Novice. I am looking at disposing some of my HLI shares at higher price and will be holding and perhaps adding more of Narra as it's growth is expected to be higher than HLI which is a mature enterprise. The latest UOB KayHian has given HLI a target price of 4.56 which I believe is a 20% discount on it's SOTP.

Thanks again, twobits.

Thanks, twobits. Any expectation on how much will the rebound be?

Sephi and connie, thanks for the advice. Did AD on Mpay but at an inopportune time and it went further south. Am comtemplating doing the same for Seal as my entry price is quite high. Probably have to do the same for Extol if that's the last resort. Can take a hit on Big. Anyone into HLI? It went up 4% to 4.16 which is a big comfort. Read from the Bursa announcement that their financial head bought at 4.19 on the 15th. Full disclosure: I am heavily invested in this counter.

Connie, I feel that it's too late to dispose of those counters now at these horrendous levels. So I guess I will hold them for as long as required. Thanks for taking the time. Read from the Edge that it's probably better to accept a share swap with OKSH for PJD as while the offer price of 1.60 is a steep discount to the latter's NTA of 2.54, the issuance of new OKSH shares at 2.00 is also lower than it's NTA of 2.75. Any differing views?

Am mentioned earlier, I feel that it won't drop below the RM4 level. Am more inclined to believe that when I read from the Bursa announcement on 16th that their top financial officer purchased 25-lots at 4.19 on the 15th.

Morning to all. A belated thanks to Connie for the compliment. I am from the old school and my writing probably reflects that. Dow still in the red though the S & P is up marginally. Am still holding the following non-performing stocks : Amprop, PJ Dev-WC, TA, Mpay, Bimb-WA, Sona, Extol, Seal and Big. Guess it's too late to bail out of those counters. All the lifeboats are gone so have to endure the Halloween ride. Would appreciate any insightful comments.

I don't think price can go down much further and 4 should be the support barring any further steep fall in the KLCI. At 4, the PER is now only 7.5 and dividend yield 6.25%,

Oh yes, I do take heed of his and others recommendations on FA counters. I am not adverse to occasionally go for some TA play so my portfolio is now an eclectic mix of counters.

HLI's agm is at 2.30pm today and the agenda is only about recurring party transactions. I believe that the interim dividend for FY15 will only be announced towards the end of next month if we were to go by previous years practices.

Thanks but I reckon I fit the profile of an investor more than a trader so I tend more towards FA.

Connie, you're most welcome. Have only superficial knowledge of TA (don't have the inclination/patience to learn more) and only some basic understanding of FA, so definitely not competent to opine too much. So will have to take more from your thread than give. But will try to share any counters that I may deem to be positive for yours and others evluation.

Hi, Connie and the rest. Have been a silent reader for a while and have derived some trading ideas from your thread. Won some and lost some. Saw some advice on picking up some good FA counters so thought I will offer up a counter for consideration. Have been in HLI for quite some time. It has now dropped to RM4 after the ex-date on Tuesday. HLI's eps is 0.54 and dividend is 0.25 giving a PER of 7.4 and a yield of 6.25%. Think it's good price as the fundamentals are strong. Of course when the market panics, fundamentals go down the drain.

Yes, so I don't think it will stay at this level for too long. They should be announcing their Q1 FY15 result sometime in November and also expect them to announce the interim dividend.

Current PER at 17 makes Narra the cheapest cement counter around. They are undertaking expansion to double their capacity. Price will likely go down somewhat due to the new shares and pp looking to exit with quick profit. But if you were to look at it objectively there's no reason that it will remain below 4. Those who can hold will be handsomely rewarded. Like I have mentioned earlier the drawback is the weak market and if it collapse, all arguments are redundant.

Thanks and you are most welcome. Can't predict price movement as not competent in TA so have to rely on fundamentals. The fundamentals are strong and I believe that you can't go wrong with Quek's counters. Have been making good money on all his counters. Not worried about this share only the market. Was expecting tremendous gains but unfortunately the exercise was only completed when the market was experiencing a serious downtrend. Hard luck.

Furthermore if you were to read yesterday's Star, UOB KayHian opined that "HLI's earnings are sustainable or could be stronger in FY15-16 after stripping out Hume Cement's ICPS and Hume Concrete". They have also stated that based on the theoretical ex-price of 6.43 HLI offers a decent dividend yield of 4-5% inFY15 to FY17. At the current price of 4.29, the yield would be nearer 6%. So just hold and sit tight.

Novice, the eps of 0.54 did not include any contribution from the cement business. There's a slight reduction of RM10M contribution from Hume Concrete which, I've read somewhere, should be off-set by their redemption of higher interest MTN wotj disposal of lower yielding unit trust. So they should be able to maintain eps around that level.

I agree too. Normally sharks stay away from HL companies as they are tightly controlled and the prices are too high. In most days the volume transacted is quite limited. Yes, focus on the solid fundamentals and I believe that you can't go wrong with Quek's counters. Currently there's too much turbulence in the market that it's difficult to see the true value. You can gauge Narra's value by it's projected eps of 0.23 and the current expansion is expected to double it's capacity. It's true value will emerge. I don't think you are losing yet unless you buy at the top at 8.81.

And it wasn't limit down right from the start. About 400 big lots were done between 4.80 to 4.52 before that.

Novice, this is to be expected. The ex-price is merely a reference price and most would have factored in the true value of Narra. You must understand that the recent buyers bought their shares at below RM8. Now by selling HLI at 4.51 and above, their remaining cost becomes around 3. They will be hoping to sell their Narra at 4 which will equals to 4.32 (1.08 x 4) giving them a profit of more than 10%. Of course they are hoping that Narra's price is sustainable.

Some statistics which can hopefully lift the doom and gloom. Going by previous years record, HLI will probably be announcing the interim dividend (10-11 cents for the past few years) for FY2015 between mid to late November with ex and payment date in December. Their eps for FY2014 was 0.54 and dividend was 0.25 which give a decent dividend yield of 5.54% and a PER of 8.35x based on the current price of 4.51. Their NTA is above RM4. There will be having their agm this thursday. But like I said, when market panics people becomes irrational. So hope this calm some jitters.

When panic sets in, fundamentals go down the drain. If you manage to sell HLI at 4.51, you can still make some profit as I believe that Narra will stay above 4 in the mid term which give you a price of 8.83. 4.51 for a counter with eps of 0.54 is quite cheap but noone cares when market is so bad.