林俊松 alexanderSingapore, I already sold Insas. Looks like no energy same as PM Corp last time at 33.5 cents.
Who want to invest in safe + high profit r welcome to join me in Guh Holding.
Mikekong, RSI there only 14 indicates oversold, NTA RM2.50, PE ratio only 6.18 and price now RM1.03.
Although company issue 1 bonus share for 2 existing shares, it should fall from RM1.80 to RM1.20 but turn-out to be undervalued.

The NTA of GUH no longer RM2.50. already bonus issued and that NTA was as at June 2013. should accounted for the 1:2 bonus issue. hence NTA should be RM1.6 (if i'm not mistaken.)

Hexza announced a dividend of 10% on 24th October 2013. At the close of 77.5 sen this morning, the dividend yield amounts to 6.5%. This is twice the interest rate one can get from putting the money in fixed deposit in bank. Isn’t that good?

Hexza Corporation Berhad operates in three business segments: investment holding, which is engaged in investment holding activities; manufacturing, which is engaged in the manufacture and sales of formaldehyde based adhesives and resins for timber related industries, ethyl alcohol, natural vinegar, cooler, liquefied carbon dioxide and kaoliang wine.

Hexza has been in the business for a long time. Although there is not a single year of losses, there has been no growth in earnings for the last 12 years. However, the management has been generous to its shareholders with increasing dividend payment from 0.6 sen to the most recent 5 sen per share. Is this high dividend yield of 6.5% sustainable?

Referring to Hexza’s latest financial statements as at 30 June 2013, there is plenty of hard cash available. Free Cash Flow amounts to 20m, or 9.5 sen per share. It has an excess cash of 130m, or 65 sen per share in its balance sheet. Hence there is no problem at all for Hexza to continue paying good dividend in the future.

The liquidation value of Hexza is computed using the Graham net net is shown in Table 1 below:

Table 1: Graham net-net valuation of Hexza
Cash and cash equivalents 73,404 100% 73,404 0.37
Other investments 55,886 100% 55,886 0.28
Trade & other receivables 23,885 75% 17,914 0.09
Inventories 17,367 50% 8,684 0.04
Property, plant and equipment 66,959 50% 33,480 0.17
Other assets 3,295 0% xxxx xxxx
Total assets 240,796 xxxx 189,367 0.95
Non-Controlling Interests (6,876) 100% (6,876) (0.03)
TOTAL EQUITY AND LIABILITIES (20,421) 100% (20,421) (0.10)
Net assets 213,499 xxxx 162,070 xxxx
Number of shares 200,380 xxxx 200,380 xxxx
NAB 1.07 xxxx 0.809 0.809

The table above shows that the net asset backing (NAB) of Hexza is RM1.07. At this morning’s closing price of 77.5 sen, it is traded at a huge discount of 27% to its NAB. The net-net valuation of Hexza is shown to be 81 sen, which is still higher than its price.

Isn’t Hexza an undervalued stock as shown above? Wait until we perform some basic checks.

3 Basic Checks to Perform for a Net Net
For a net net to be investable, it should have
• a solid balance sheet, preferably more cash than inventories and receivables.
• is not bleeding cash. At least breaking even or positive in net profit.
• positive EBITDA

The first check shows that Hexza has most of its net-net assets in high quality assets in cash and cash equivalent amount to 65 sen per share. Hence we can safely confirm that the quality of the assets is excellent. Next to check is “Is it bleeding cash” and if it has positive Ebitda?

The latest annual financial results ended 30 June 2013 shows Hexza’s made a net profit of 8m and 4m, or EPS of 4.2sen and 3 sen respectively in 2013 and 2012. Cash flow from operations amounts to 20m with free cash flow of 18.7m last financial year. This FCF is a high of 15% (>10%) of revenue. Hence Hexza passes these checks with flying colours.

Conclusions
Hexza qualifies as Graham net net investment strategy with a wide margin of safety. It can also stand on its own as a value investment stock as a going concern with the high dividend yield investing strategy.



Posted by kcchongnz at Nov 8, 2013 02:42 PM

7.5 sen div will not have significant impact to the share price... if i know the price will continue to go north, then i'm god and will put in all my cash. Who knows tomorrow US will collapse 1000 pts? nobody will know.

can buy or not have to ask sifu here like rchi and uncle z...... read the RHB research report, and judge yourself.

my personal view, unless government don't award MyKad contract to this company, or Government declare bankrupt, which is unlikely to happen, or change control in federal government in 2018, otherwise i think still good prospect and sustainable contract for at least 3 more years.

The price split will based on the day before x. Say is RM8 by then, if split to 5, RM8/5=RM1.60. To me, share split doesn't add any value to the company, but will create more shares in the market and affordable by ppl with lower price. Fundamental doesn't changed. Buying this stock is buy the company futures prospect and earnings. No speculation. Sifu here pls correct me if i'm wrong. TQ

don't blame ppl, buy n sell at your own risk.

erkongseng GUH之樂觀走勢~
1）大盤與大勢將是向上的，間中多少有小調，1.53 有支持力，不用擔心，過後會回升。
2）經5天的挑戰 1.60 不成功，此價位有套利，屬正常也。
3）待消化完這阻力，相信短期會開往 1.80 的路上。
4）進大展，沒有後悔，只有喜悅，豐衣足食，衣錦還鄉的日子不遠了。
5）方老闆有意，股民有心，一心一意，助紅股計劃成功。
6）休息下，看看海，聽聽歌，享用一杯Alicafe再上路，哈哈。
听歌请进-http://www.youtube.com/watch?v=2o8zFePZOcA
26/09/2013 17:50

Stock: [PMCORP]: PAN MALAYSIA CORPORATION BHD
Oct 31, 2013 09:13 AM | Report Abuse

Wait until the big profit appears first, then you can talk of the target price of 1.50 or 10.00.
Anyway, thank you for your advertisement. I had made some coffee money.

OTB:
Dear all,
RSI is on the high side, please take your profit and buy back later when price corrects. Please be realistic that the stock price cannot go up everyday. It needs a correction before it can go up further. Please remember that you can buy back during correction.
Final decision is yours.
Thank you.

Mr. Ooi already hint you guys on 31st Oct. Greedy ppl will always hope for higher price but in reality it is not the case.

to 林俊松 :
you mentioned earlier in the forum dated 15th Oct, saying u r new here and dont mind to invest RM2k and wait for 10 yrs, Therefore, just hold it, why worried? unless you take up margin facility now... then good luck.
I follow Mr. Ooi, when he said sell, then i follow though the shares still went up. Sometimes need to follow the right person if dont know how to read chart. Do not greedy.

ok thanks rchi

what i know is the EPS consider very good, but still not as good as dutchlady la... haha

rchi, too many comments and i may overlooked. sorry.

rchi,ok. just make a clear statement here, hold or sell? TQ

rchi, then why you said is a goreng stocks? yr comment is contradicted and make me confuse. tq

want to ask Uncle Z and the followers here what's the target price for Dsonic?

Thanks Mr. Ooi

Mr. Ooi, any thoughts of this PJD-WC? is the chart looking good as at now? Would this counter better than LBS-WB? Just want to hear your opinion and understand that investing is at our own risk. Thanks.

what's the target price for GUH?

my sell b4? any particular reason? tot after ex date will rise some more? correct me if i'm wrong. thanks sephiroth.

Mr. Sephiroth, any target price? should sell b4 bonus issue or after?

Hi Mr. Er, Tiongnam, Prolexus and SCGM still worth to hold??

Mr. Er, i thought target is RM5 or perhaps RM8 after 2 yrs? what's the reason behind if TNL 以2股配1凭单方式，发行2亿1025万8500张凭单?

（吉隆坡18日讯）东南物流（TNLOGIS，8397，主板贸服股）建议进行一系列企业活动，包括拆股、发行凭单以及修改公司章程。

根据文告，该公司计划把目前的1股分拆为5股，每股面值从1令吉改为20仙。

目前，该公司的缴足股本为8410万3400令吉，包括8410万3400股。

完成拆股活动后，该公司的缴足股本保持不变，但股票量将增至4亿2051万7000股。

该公司说：“过去3个月，股票交易价平均为3.79令吉，公司建议分拆股票将可提高股票流动量，让投资者可接触公司股票。”

该公司计划在完成拆股活动后，以2股配1凭单方式，发行2亿1025万8500张凭单，预计可借此筹集4205万1700令吉现金。

配合上述活动，该公司还建议修改公司章程。

Congrats.....

I guess this deal may dilute Affin's EPS as they may need to raise equity to fund this purchase. In a long run, it may contribute 5 to 10% to the net profit of Affin.

RM5.50 need a long time. Broking biz is kind of sunset biz that's y Hwang family wanna sell it. The jewel bought this biz is Hwang asset mgmt biz which is more profitable than broking. It's a fair price at 1.3 times book, unlike RHB bought over OSK at 1.77 times in my opinion was an expensive deal.

wanna ask all the SIFUs here, any comment on this stocks?

激成（KSENG，3476，主板工业产品股）今年派特别股息96仙吗？激成在新山8000多英亩园丘有产业价值吗？

为了获知真相，笔者于六月底出席公司的股东大会。

激成股东大会会议摘要

特别股息柳暗花明又一村

（一）公司审计证实激成拥有大约3亿2000万令吉未分配盈利，能以扣税股息方式派发，但必须在年底前完成。

（二）董事经理表示，公司无意派发特别股息，因需要庞大现金作投资。

（三）股东不满，批评董事部的内容如下：

（1）既然公司需要钱作投资，董事部不该多领150万董事费。

（2）公司最近几年只把数亿令吉现金存入银行赚取低微利息，根本没有什么大投资计划。

（3）公司大股东为大富豪，不稀罕股息，但大部份股东属中等收入人士，董事部应体恤小股东，派特别股息，让小股东向所得税局追回25%退税。

（4）公司即使派发每股1令吉特别股息，只用掉2亿7000万令吉，但淨现金高达7亿9900万令吉，即还有5亿2900万令吉供投资之用，何况另有5亿400万令吉股票可随时套现。

所以，董事部根本无拒绝派特别股息的理由。

（四）最后，董事经理表示，明白小股东们的请求，但董事部须开会讨论才作出决定。

尽管如此，激成仍然有可能来一两个月捎来令人惊喜的消息。

园丘地
依区最大地主

董事经理斩钉截铁地说，公司位于新山UluTiram以东10公里，Tanjung Langsat工业区以北的8000多英亩园丘，具有产业发展潜能。

但现今无意发展，5年后再考虑，因已有上千英亩地皮供产业发展之用。

如果把激成的1326英亩产业发展地皮和8167英亩有发展潜能的园丘地加起来，激成那9493英亩土地，就超越UEM阳光（UEMS），而成为依斯干达最大的地主。

其实，激成派特别股息，当然是股东们天大的喜讯，但落空的话，也无须太失望，因公司最有价值的并非特别股息，而是其霸级资产，尤其是9000多英亩依斯干达地皮，都是1980年留下的“阿爷地”，价值连城。

总结

股价极度低估

有人花数千元收藏一枚钱币，也有人用数万元投资古董，只因为他们相言其价值。

激成的淨有形资产是每股20.16令吉。

这是根据房地产行情、股票行情的公认标准计算而得。

新加坡籍管理层诚实可靠，所以激成的资产负债表是千真万确的，但股价只有5.20令吉，也许信者不多吧。

今日大马已进入“土地为王”时代，拥有土地的个人与企业越来越富裕，依斯干达经济区将是大马的“深圳”，房地产价如日冲天。

各位想到此地买地做地主，即使是新山地不佬或Pletong区，地价也喊到一英亩80万令吉以上。

3.8万股拥1英亩地

各位不用望地兴叹，若你相信买股票拥有地皮的话，请看下文。

你买1000股激成，就拥有0.02635英亩依斯干达土地；或买3万8000股，就拥有一英亩土地。

各位，看看激成的金库表，单是资产（1）至（7）已值得每股5.47令吉。

现在你以股价低至5.47令吉的价格买入，就是说资产（8）至（11）包括依斯干达土地都是免费赠送。

由此算起，买激成股票送依斯干达地皮非梦也，你相信吗？

Qiii, very good explanation about warrant.....

Mr. Er, any changes to TNLogis target if QE3 is tappering off?

in 90s, a rubbish company can goreng from RM1 to RM100, can you see such things happen nowadays?

1997 crisis, KLCI i guess was based on 100 stocks. Today, KLCI base on 30 stocks. Definitly it will not go down to 300 pts, how low is the KLCI and how long will be the correction period, nobody will know. High risk high return, invest within your affordability level. 2008 crisis, few US giant banks went bankrupt, 2013 any banks will go bankrupt?

Based on OTB's comments, if KLCI falls below 1685, a bear market is formed. However, i rather say it is a longer period of correction? judge yourself.

sound silly some one always say it will rebound, this and that ....bla bla bla...... and some one say will drop further.... 1997 crisis is back...bla bla bla....

if cannot take any risk please stay away from share market! put your cash in FD!

Buy or sell is own judgement, if you think you do not have any holding power, sell. if you have good prospect on this counter, hold. Don't affect by others and ends up blame ppl for wrong advice. No one pointing a gun on you and ask you to buy or sell!

damn syiok to play LBS-WA intraday..... buy at 87sen sell at 94 sen... but heart attack....

crawler, i cannot tahan sleeping Benalec and change target to LBS..... hopefully is a right choice

Yuhoooooooo~~~~~~~~~~Crawler, i'm gonna kiss you if u r a gal~~~~~~~~

initially my target is RM2, cost is RM1.50 in early June, since there's BI and a project to be annouced, no harm waiting... always remember buy at your own risk, i'm not a professional, there's thousand of stock here, sometimes may need some luck, just like LCW no luck to win any major title...

of course entitled if annouced, but the price will be adjusted accordingly

BI is confirmed, just when is the entitlement date.... FLy me to the moon~~~

Captain Cool calling... passenger please fasten your seat belt, and beware of this counter~~~~~~~~~ unusual gain may also be a loss...

Captain Cool: Fly me to the moon~~~~~~~~~~~~~~~~

buy at your own risk, i dont know how to read chart and do technical analysis, i believe sometimes analysis doesn't work, insider news would be better.

initially my plan is to slowly tambah when correction, but no correction at all, will see how it goes,

my rumuors said will reach RM3, usually stock will have correction after skyrocketing, but this LBS sibeh strong

how come?? only god will know

moving toward RM2.50 i guess