If you are going by just the EPS growth rate%, SSTEEL is even better.
Latest EPS: 6.85s
Previous EPS: 1.80s
% growth: 380%

Oil is now down 1.7%
Silver and copper also down, both over 2%
Hope all can recover

Gold suddenly coming down 1857 down 11
Was 1873 at 2.30pm
What's happening?

Interesting possible OTB stock

Chairman has passed away

Tek Seng
Research by RHB
Target Price: RM1.06

"Opportunities In Uncertain Times"

MYR1.06 FV, 12x FY21F P/E, premised on rising demand for polyvinyl chloride (PVC), timely capacity expansion to meet growing demand for polypropylene products (PP) non-woven products and diversification into new markets. On a backdrop of FY20F-22F earnings CAGR of 18%, the +2.5SD from its 1-year mean valuation is undemanding as compared to the perceived COVID-19 related peers of 15x. Furthermore, it is backed by solid financials with a net cash position of 10.5 sen per share

3rd qtr Sep results were very good with EPS of 2.26
At 76s, p/e is 9 with the latest eps annualised, and still have a 30s margin to the fair value amount

Waking up now.
RHB's research report this morning says fair value for tekseng is 1.06.

No bad eh, to have 3 sens up today despite all the persistent adverse comments posted here.

Closed at 1.28 today!

CPO up AGAIN and AGAIN !!!

It is obvious the big boys are holding back FGV price (still at 1.22 this morning), but not for long though.

Another article on the continued uptrend for the CPO price:


Crude palm oil for 3M futures up RM56 to RM3,420 per tonne

Crude palm oil (CPO) for third month futures rose by RM56 to RM3,420 per tonne at midday on Thursday, the highest since March 2012.


KUALA LUMPUR: Crude palm oil (CPO) for third month futures rose by RM56 to RM3,420 per tonne at midday on Thursday, the highest since March 2012.

Bloomberg reported the strong CPO price was due to surging soybean oil prices and lingering concerns over production in Malaysia, which is the second-largest grower, because of a labour shortage.

It reported US soybeans climbed to a six-year high as rising demand from top importer China and dry weather in the major producing areas of South America threatened supplies.

Soybeans have jumped more than 40% since March, helped by a surge in buying by China to meet demand for hog feed and poor rains in Brazil and Argentina.

Soybean oil is also at the highest in more than six years.

“All markets are on fire and palm is following, ” said Rajesh Modi, a trader at Sprint Exim Pte in Singapore. Although demand is weak at these prices, low stockpiles across all edible oils and weaker production are driving the market.

Bloomberg reported that still, palm is vulnerable. Its narrow discount to soybean oil, which hurts demand in price-sensitive markets like India, and the decade-high premium over gasoil may deter some investors. Any forecasts for rain in South American growing areas would also cool prices.

Indonesia, the largest producer, will likely put on hold its plan to use higher biodiesel blending in gasoil next year, as the government has to provide a larger stimulus to the biodiesel program on the back of rising prices.

On the technical front, palm oil’s 14-day relative strength index hovered around 70, which is an overbought signal.

http://www.klsescreener.com/v2/news/view/755381/crude-palm-oil-for-3m-futures-up-rm56-to-rm3-420-per-tonne

Quickly, get in there !

Wow - CPO is up again!
Feb 2021 Futures is up RM53 at 3336!

Here's an article by Reuters published in The Edge recently:


Palm oil prices to rally in first half of 2021, say top analysts

KUALA LUMPUR/MUMBAI (Oct 8): Palm oil prices are likely to jump in the first half of 2021, three leading industry analysts said in a webinar on Thursday, as La Nina weather pattern is set to hit edible oil supplies amid lower soybean crushing in Argentina and rising sunflower oil prices.

Heavy rainfall brought on by La Nina has started to disrupt output in Southeast Asian palm producing countries and will bring down global supply this year, said analyst James Fry.

However, the rain and better estate maintenance due to current high palm prices will significantly boost supply in 2021, said Fry, who heads commodities consultancy LMC International.

"Look out for a La Nina-induced price rally from January 2021 with soyoil leading the way," said Dorab Mistry, director of Indian consumer goods company Godrej International.

Vegetable oil prices next year should be higher due to improved demand and tighter supply of soft oils such as soyoil and sunflower oil, Mistry said.

Thomas Mielke, the executive director of Oil World, forecast Indonesian crude palm oil price in January-June 2021 would rise to US$700 a tonne.

Malaysia's benchmark crude palm oil contract has slumped about 7% so far this year, to RM2,888 (US$695.90) a tonne on Thursday, as the COVID-19 pandemic hurt demand.

Losses were pared by a recent rally in edible oil prices due to stockpiling by top buyer China for food security measures.

The rally in sunflower oil due to a lower crop has also been making soyoil and palm oil attractive to price sensitive buyers.

China's stocking policy is expected to continue with fund buying and, combined with problems in Argentina's soybean crushing, could further increase palm prices, Mielke said.

"If consumer buying plus funds buying (come together), it is possible that we temporarily reach RM3,200," he said.

Argentina's soy crushing volume is set to drop around 9.5% this year, as growers in the world's top exporter of processed soymeal and soyoil hoard beans due to unfavourable prices and taxes.

But Fry warned higher palm prices could dampen consumer demand, especially in lower income countries.

Besides, the higher palm prices cannot sustain without higher crude prices, he added.


https://www.theedgemarkets.com/article/palm-oil-prices-rally-first-half-2021-say-top-analysts

… cont'd

As of Nov 11, daily CPO prices were commanding a US$14.43 or RM59.6 premium over soybean oil, based on daily spot prices provided by the Malaysian Palm Oil Board (MPOB) and the US Department of Agriculture (USDA). Soy oil prices stood at US$817.03 per tonne, while CPO was at US$831.46 a tonne.

In fact, CPO has been posting premiums over soy oil since Oct 27, 2020, having reached a US$44.86 per tonne premium on Nov 5, 2020.

High CPO prices an earnings boost

Given the CPO price rally, upstream plantation companies have been seeing better fortunes in terms of earnings.

For instance, United Plantations Bhd’s net profit for the third quarter ended Sept 30, leaped 58.3% to RM95.33 million, from RM60.2 million a year ago, thanks to higher palm prices and production. Quarterly revenue grew nearly 20% to RM334.04 million from RM278.66 million, according to the group’s filing.

For the January-September period, the company’s net profit ballooned almost 48% to RM300.1 million from RM203.07 a year ago, as revenue increased 8.7% to RM947.26 million from RM871.46 million.

United Plantations’ latest earnings figures could be the bellwether for its plantation peers who are mainly involved in upstream.

MIDF Research analyst Khoo Zhen Ye said higher CPO prices are positive for upstream players. Companies operating downstream segments would see their segment earnings growth mitigated, as higher CPO prices represent higher raw material costs. Net-net earnings would be higher.

Khoo also pointed out that there is no worker shortage problem in Indonesia, so it would be good for those who own plantations there.

Areca Capital Sdn Bhd Chief Executive Officer (CEO) Danny Wong emphasised that cost management is important, and that will determine gross margins.

Both Khoo and Wong noted that companies with more prime hectares would have greater productivity, following higher fresh fruit bunches (FFB) and CPO production.

CGS-CIMB’s Ng views higher CPO prices would mostly flow through earnings, taking into account various taxes.

That said, she cautioned this would be partially offset by lower output — if the higher price is premised on lower supply.

Generally, investment analysts are not overly excited with the current strong CPO prices, as some are not that upbeat that the upward trend could go far from current levels next year.

“The market is concerned over whether this lift in prices is premised on demand or whether it is because of the performance of other competing vegoils such as soy,” said Areca Capital’s Wong.

Edited by Kathy Fong


https://www.theedgemarkets.com/article/bumper-year-plantation-companies

A bumper year for plantation companies




KUALA LUMPUR (Nov 13): While investors have been obsessed with the abnormal strong demand for rubber gloves, few might have paid attention to the solid V-shaped rebound on the crude palm oil (CPO) prices, which is now at an eight-year high level.



The two-month CPO futures contract closed at RM3,391 — highest since May 2012.

The steady climb on CPO prices since June, according to commodity experts, could last until the first quarter of 2021, if not longer, given the sustained tight supply-demand dynamics. This paints a rosy picture on the plantation companies’ earnings prospects. But, some quarters say the commodity may be nearing its peak soon.

Just when many thought that the CPO price rally, which started in August last year, was ended by the coronavirus, the commodity prices, however, has not only regained lost ground since June but it exceeded last year’s peak.

The CPO prices plummeted in the first half of the year to RM1,946 in May, from RM3,137 in early January. It then staged a strong rebound from the trough.

The latest statistics show CPO stockpile has dropped to a three-year low of 1.57 million tonnes at end-October, prompting investment analysts to lift their forecasts on CPO prices.

CGS-CIMB raised its forecast on CPO average price to RM2,620 per tonne from RM2,500. “We expect CPO prices to trade in the range of RM2,600 to RM3,200 per tonne in November and raise our average CPO price to RM2,620 per tonne for 2020 from RM2,500 per tonne, in view of the stronger-than-expected CPO price achievement over the past month,” CGS-CIMB said.



Maybank Kim Eng’s analyst Ong Chee Ting commented in a note that low stockpiles in Malaysia and weak Indonesian output in the third quarter have lifted CPO spot prices to more than RM3,000 per tonne.

“While prices will remain robust in the near term, we are concerned about its sustainability on widened palm oil-gas oil spread and prospects of an output rebound in 2021.

“Nonetheless, we raise our CPO average selling price (ASP) assumptions for 2020 to RM2,660 per tonne (from RM2,400) and for 2021 to RM2,500 per tonne (from RM2,400),” Ong wrote in the note.

CGS-CIMB Head of Research and Regional Head of Agribusiness Ivy Ng earlier commented that tight supply and festive demand could sustain the CPO prices at current level until the first quarter of 2021, if not longer.

What drives CPO prices higher?

The Covid-19 outbreak did not hit palm oil demand in China. The country has been restocking over the past few months, this has lent tremendous support to the CPO prices, according to analysts.



For the cumulative 10 months ended Oct 31, 2020 (10M20), exports of Malaysian palm oil to China grew by 20.5% y-o-y to 2.82 million tonnes, from 1.89 million tonnes in 10M19.

However, exports to India, the country with the second highest Covid-19 infections, shrunk by 52.2% y-o-y at 1.97 million tonnes for 10M20, from 4.13 million tonnes in the previous corresponding period.

Among other countries that have bought substantially higher palm oil from Malaysia are Kenya (up 180% to 372,923 tones), Saudi Arabia (up 163% to 311,870 tones), Egypt (up 245% to 135,283 tones) and Bangladesh (103% to 289,118 tones).

Meanwhile, La Nina weather phenomena have also played a role in lifting the edible oil, including soy oil and palm oil.

According to palm oil consulting firm Ganling Sdn Bhd’s director Ling Ah Hong, the development of the La Niña weather conditions would impact soybean production and in turn, CPO prices.

Ling anticipates a moderate La Niña production impact on palm oil in 1H21 can yield average CPO prices of RM2,800 by end-2020, RM3,100 in 1H21 and RM2,200 in 2H21.

A stronger La Niña, meaning drier weather in south-western America, would result in a more severe impact on soybean production. He said this, combined with a limited supply of sunflower and rapeseed oil from the Black Sea region, would result in generally higher vegetable oil prices in 1H21.

In this scenario, CPO prices are expected to be RM2,800 end-2020, RM3,300 in 1H21 and RM2,200 in 2H21. He believes the chances of a severe impact is lower.

Oil World’s Thomas Mielke commented that overall prices of vegoils will be impacted by higher prices of soybeans until 1H21.

Any drop in soybean production translates into higher soy prices, thus having a spillover impact on other vegoils.

That said, it is worth noting that CPO had been at a discount for the most part of the year, reaching a US$104.08 discount on May 12. Since then, the discount between the two vegoils has been narrowing, and ultimately turning into the premiums that have been seen since late October. This might point to downward pressure on CPO prices.

Guys, I don't think there is any point in arguing about the dismal performance of FGV in the past. The main factors in determining the profitability for FGV all point in the right direction. The evidence is clear: - costs are being effectively controlled; production yields are significantly up qoq from their quarterly production figures announced, and CPO prices are currently at its 8 year high, and forecast to continue to increase into 2021,

Unless there are any unforseen circumstances, then it is likely that this quarter and the next few quarter results will be very much improved over the previous ones. Have a look at the results of the other plantations companies in the sector, like TSH, Chin Teck, Kim Loong, and the big ones like KLK and Utd Plantation, to see the trend.

Yes, the issue of high debts, LLA etc, shall continue to persist over some period of time. But hey, we are talking about short term investing, so, let our judgement not be clouded by such issues at this moment.

If anyone should not agree with the evidence available and have a sense of doubt in your mind, then you should stay away. I am in at 117 as well.

In the meantime, check out this article in today's The Edge:
https://www.theedgemarkets.com/article/bumper-year-plantation-companies

CPO futures hit 8.5-year high, Jan 2021 at RM3,346 a tonne

KUALA LUMPUR (Nov 11): The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher for a third consecutive session, hitting its highest level in eight-and-a-half years, following upbeat sentiment in anticipation of lower production and depleting stockpile in the country.

The third-month benchmark CPO futures for Jan 2021 was traded at RM3,346 a tonne today.

Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the better performance was also backed by a stronger soybean oil price on the US Chicago Board of Trade and China's Dalian Commodity Exchange.

“Market players are also optimistic over a potential COVID-19 vaccine announced recently,” he told Bernama.

Furthermore, citing the Southern Peninsular Palm Oil Millers' Association (SPPOMA) data, he said that production was still low at -11.88 per cent for the Nov 1-10 period and this situation would continue to support the CPO prices.

At the close, the CPO futures contract for November 2020 and December 2020 increased RM50 each to RM3,494 per tonne and RM3,456 per tonne, respectively.

Meanwhile, January 2021 added RM90 to RM3,346 per tonne while February 2021 perked up RM97 to RM3,267 per tonne.

Total volume rose to 78,038 lots from 58,736 lots on Tuesday while open interest inched up to 282,968 contracts from 265,454 previously.

The physical CPO price for November South rose RM20 to RM3,470 per tonne.

https://maa.theedgemarkets.com/article/cpo-futures-hit-85year-high-jan-2021-rm3346-tonne

jinv9 CPO futures open at 3314 up 58!

11/11/2020 10:48 AM
---

CPO closed last night at 3346 up 90!

Just remembered seeing this Bloomberg article over the weekend, giving 9 reasons for the increase in palm oil prices:

Palm oil price rallies to eight-year high

KUALA LUMPUR: Crude palm oil climbed to an eight-year high of RM3,262 per tonne on concern that a labour shortage in Malaysia will hamper output at a time when dry weather is threatening soybean crops in South America.

Expectations about a drop in palm and sunflower crops, lower soybean ending stockpiles in the US and a dry weather in Brazil are offering a bullish outlook for edible oil prices, said Sathia Varqa, owner of Palm Oil Analytics in Singapore.

“A weaker dollar is also moving soybeans higher, ” he said.

Soybean futures in Chicago traded at their highest since 2016, holding above US$11 a bushel, on deepening concerns about dry weather in Brazil and Argentina.

Farmers in Argentina, the largest exporter of soybean meal and oil, have been stopped in their tracks at the start of the planting season because it’s too dry to sow.

There are also concerns about supplies.

Palm oil output in Malaysia in October appeared to be below the average of 1.89 million tonnes in the past 10 years, Ivy Ng, head of research at CGS-CIMB in Kuala Lumpur, said in a note.

That could be due to the implementation of movement control orders in Sabah state since Sept 29 due to rising Covid-19 cases and a worker shortage, she said.

Sabah is Malaysia’s biggest palm producer.

Rising palm oil prices indicate that demand is higher than supply, said Derom Bangun, chairman of the Indonesian Palm Oil Board.

Some analysts are estimating that Malaysian output will be lower than previous estimates because of labor issues.

Indonesian output could be flat this year, he said.

Supply worries are emerging at a time when demand stays strong. Palm oil imports by India, the largest buyer, probably climbed to a three-month high in October as traders built up stockpiles before the Hindu festival of lights when consumption of fried food increases.

Indian purchases are expected to remain strong amid a gradual recovery in demand from bulk users such as hotels and restaurants that account for 33% of the total consumption, according to G.G. Patel, managing partner of GGN Research.

“Talks about Indonesia raising levy made consumers speeding up buying, ” Bangun said.

It appears that Indonesia is committed to its biodiesel programme, he added.

Indonesia, the world’s biggest palm oil producer, collects palm oil export levies through the Oil Palm Plantation Fund Management Agency, which in turn uses the money for biodiesel incentives. — Bloomberg

They've blocked 1.17; lai liau ...

Soybean futures poised to finish at another 4-year high as USDA cuts soybean production forecast
By MarketWatch - 9 hours ago

Soybean prices climbed Tuesday, on track for the highest settlement since June 2016, after the U.S. Department of Agriculture lowered its forecasts for U.S. production and ending stocks for the 2020/2021 marketing year. "Soybean ending stocks in the U.S. are down 64% from last year and 79% from two years ago," while domestic usage for soybeans is projected at annual record highs, said Sal Gilbertie, president and chief investment officer at Teucrium Trading. "Supplies of grains are tightening." The USDA said U.S. soybean production is forecast at 4.17 billion bushels, down 98 million from the previous forecast due to lower crop yields. Soybean ending stocks, meanwhile, are forecast at 190 million bushels, down 100 million from last month's forecast. If realized, that would be the lowest ending stocks level in the past seven years, the USDA said. January soybeans traded at $11.42 1/2 a bushel, up 32 cents, or 2.9%. A settlement around the current level would be the highest for a most-active contract since June 30, 2016, FactSet data show. Prices on Monday also settled at a more than four-year high.

https://invst.ly/ss9kl
https://www.marketwatch.com/story/soybean-futures-poised-to-finish-at-another-4-year-high-as-usda-cuts-soybean-production-forecast-2020-11-10

Bollinger squeeze on 60mins?

CPO futures open at 3314 up 58!

Soybean is now at 4 year high.
Looks like it's akan datang for FGV
Also looks like smart money has been accumulating over the last few days
Now at 117. Get ready guys

Soybean was 1103 on Fri close
Yesterday was 1146
Now is 1157
Soybean is up 5% in just 3 days

Nov CPO this morning is now RM3400, up 47 or 1.3%
BP 49s +1

The Jan 2021 futures closed on 3 Nov up RM94 at 3069 after down 36 yesterday.
Nov 2020 delivery closed at 3353 up 88!
I think the market consensus is that the uptrend will continue in the near term at least.

Between 19 Oct 20 and 3 Nov 20, CPO has gone up by almost RM300, an increase of over 10% for the Jan 21 contracts, and RM465 or 16% for Nov contracts, the increase for both of which have yet to be reflected in the share price.

Seems like a good time to buy some at 48s. Good luck guys!!!

So, between 19 Oct 20 and 3 Nov 20, CPO has gone up by almost RM300, an increase of over 10% which has yet to be reflected in the share prices.

The Jan 2021 futures closed today up RM94 at 3069 after down 36 yesterday.
Nov 2020 delivery closed at 3353 up 88!
I think the market consensus is that the uptrend will continue in the near term at least.

Just came across this old NST article on MTouche. Wonder if anything came out of it.

mTouche inks deal with Celcom Axiata
April 16, 2015 @ 9:11pm

KUALA LUMPUR: mTouche Technology Bhd, through its subsidiary MTB Securenet Sdn Bhd, signed a Master Application and Content Provider Agreement with Celcom Axiata Bhd via Celcom Mobile Sdn Bhd.

In a filing to Bursa Malaysia, mTouche said the agreement was to provide subscribers with its fully Malaysian developed encrypted and secured mobile communication application with a range of features including email.

It added that the application allowed subscribers to communicate safely and confidentially, preventing data from security breach.

“The increasing number of data breaches, hacking and cyber intrusions making headlines around the world today clearly reflects the need for an application like this,” said mTouche Group Chief Executive Officer Zakhir Mohamed.

The application can be used to protect users’ personal data or an organisation’s commercial interest or even national security.

The application is the first in Malaysia for smartphones, utilising the advanced encryption standard (AES)-256 technology, based on state-of-the-art encryption algorithms.

In the future, the application would be made available for tablet computers as well, said Zakhir. – Bernama

https://www.nst.com.my/news/2015/09/mtouche-inks-deal-celcom-axiata

Not all La Nina weather patterns lead to higher palm oil prices — UOB Kay Hian Research

KUALA LUMPUR (Oct 8): Not all events associated with La Nina weather patterns lead to higher palm oil prices, according to UOB Kay Hian Research.

In a note to clients today, the research house’s analysts Leow Huey Chuen and Jacquelyn Yow said La Nina’s impact on palm oil prices is dependent on damage to soybean crops, the stock-usage ratio of soybean oil, palm oil supply-demand dynamics and major global demand disruptions.

“The current La Nina event may not have a significant impact on palm oil prices as demand is still weak, while production is expected to see accelerated growth. We maintain 'market weight',” they opined.

The duo explained that La Nina weather conditions mark the onset of high rainfall in Malaysia and Indonesia, but droughts in North and South America. The impact of such weather conditions would be greater on soybean production given that North America is in the midst of its growing and harvesting phase, while South America is moving into its planting season.

Furthermore, recent high rainfall in both Malaysia and Indonesia would lead to short-term disruptions to fresh fruit bunch (FFB) harvesting and logistics. That being said, the high rainfall and good temperatures would be conducive to palm oil production next year.

It was noted that while generally soybean and palm oil production is lower during a La Nina year, this is not always the case. A larger soybean planted acreage could compensate for the loss in production yield caused by a La Nina event. The team noted that soybean prices had always been the first to react to La Nina conditions after which soybean oil and crude palm oil (CPO) prices would soon follow.

However, based on the analysts' observations of the past four La Nina events, CPO and soybean prices strengthened when South American soybean production (particularly in Brazil) was below the US Department of Agriculture's (USDA) forecast before the planting season started, with soybean oil’s stock-usage ratio falling from the onset of the La Nina year — a year before and a year after — as well as palm oil not having a high carry-forward inventory into a La Nina year and a year after such weather conditions, on top of there being no major demand disruptions such as an economic crisis or a big swing in crude oil prices.

“The current situation pointing to a limited price upside is purely depending on La Nina because there is a high possibility for the palm oil inventory to trend higher y-o-y (year-on-year) in 2H21 (the second half of 2021) on the back of better yields following a recovery from the stress and good rainfall in 2020. However, demand may not grow as fast. Soybean production may not decline significantly as more planted areas would compensate for the impact of lower yields. The only short-term positive impact on soybean oil and CPO prices would be a delay in Brazil soybean harvesting, which would create a sudden supply shortage in January to February,” the analysts said.

Arjuna Chandran Shankar

2 hrs ago

http://www.msn.com/en-my/money/topstories/not-all-la-nina-weather-patterns-lead-to-higher-palm-oil-prices-%e2%80%94-uob-kay-hian-research/ar-BB19Oncr?ocid=ientp

Lack of rain hits soy crop in Brazil's Mato Grosso state

10/2/2020

SAO PAULO, Oct 2 (Reuters) - Only 1.7% of the projected 2020/21 soy area in Mato Grosso, Brazil's largest soy producing state, has been planted, according to data released by industry body Imea on Friday, indicating that dry weather is significantly affecting the area's soy crop.

Last year, 6.65% of the area had been planted by Oct. 4. Over the last five years, an average of 9.59% of the state's soy area had been planted by that time.

Last week, Imea chief Daniel Latorraca told Reuters in an interview that the current lack of rains could cause difficulties for the Mato Grosso soy crop. (Reporting by Nayara Figueiredo; Writing by Gram Slattery Editing by Marguerita Choy)

https://www.agriculture.com/markets/newswire/lack-of-rain-hits-soy-crop-in-brazils-mato-grosso-state

The executive director in an interview with Sin Chew on 15 Sep, has this to say:
Talking about business prospects, Chen Minkun said that the medical business developed by the company during the epidemic is currently operating smoothly and has submitted 5 test kit applications to the Malaysian Medical Association (MMA), which is expected to be approved by the end of this month.
http://www.klsescreener.com/v2/news/view/727995/

Let's see if something comes out of it.

Looks like accumulation at 5.5s?

On the subject of the impending expiry of the company's warrants, this must be a period of great anxiety for the current holders to find themselves that their holding could result in them suffering a huge loss.

In this respect, I wonder if the management would be kind enough to consider applying to the authorities for an extension of the expiry date for these holders. By doing so, it would show that the company would not want them to suffer the consequential loss when the 190.6m warrants expire on 2nd November at NIL value, and has therefore the interest of the warrant holders at heart

It must be remembered that when the warrants were issued, they were used as an enticement to shareholders to subscribe to the rights issue, details of which are as follow:

Description : FREE DETACHABLE WARRANTS IN MTOUCHE TECHNOLOGY BERHAD ("MTOUCHE")("WARRANTS C") ISSUED PURSUANT TO THE RENOUNCEABLE RIGHTS ISSUE OF UP TO557,500,566 NEW ORDINARY SHARES IN MTOUCHE ("MTOUCHE SHARES") ("RIGHTSSHARES") AT AN ISSUE PRICE OF RM0.20 PER RIGHTS SHARE TOGETHER WITH UP TO278,750,283 FREE DETACHABLE WARRANTS C ON THE BASIS OF SIX (6) RIGHTS SHARESTOGETHER WITH THREE (3) FREE WARRANTS C FOR EVERY TWO (2) EXISTING MTOUCHESHARES HELD BY THE ENTITLED SHAREHOLDERS OF MTOUCHE AT 5.00 P.M. ON 3 OCTOBER2017

People who subscribed to the rights were 'rewarded" with the warrants, and if the expiry date is not extended, their reward would be all in vain and now turn to naught.

By extending the life of the warrants, it would provide relief to the holders, and they may get to enjoy the reward that comes with increase price of the warrants, when the project takes off successfully, financed by the recent private placement.

Affin Hwang and Citi are one of the few houses that do not issue Call Warrants. For the others who do, it would appear that the calls made by their research side on the glove stocks have an interest to protect - it may affect the performance of the investment banks. With the call warrants issued by them set to expire soon, the previously high target prices of the glove stocks could have a material adverse effect.

The investment banks have underestimated the super profits now coming through for the glove companies when they issued the call warrants. Is this why their sudden turnaround in their valuations by downgrading the recommendations to cause a downturn in the share prices? One for you to ponder over.

Another important thing to note the research houses do not seem to have taken into account is management's guidance. We are told for the next few quarters the results will even be better than the last one, and that the best is yet to come. Research seems to have ignored this guidance on future trading prospects of the company which often is the holy grail in any research paper. Usually that would upgrade the recommendation of the stock to buy or overweight. Here we have otherwise.

Affin and Citi are not involved in the issue of call warrants. So, maybe their work lends more creedence?

Affin says it is still too early to ignore the earnings of 2020/21, as there still could be earnings surprises, as ASP is still increasing. They maintain Overweight and will continue to re-rate on the back of positive earnings revisions. For Top Glove their buy call has a target price of RM15.45.

For CIti, their target price is even higher, as they see FY21E earnings to move materially higher. Management's guidance has pointed to even stronger quarters ahead with no signs of ASP coming off in a meaningful way anytime soon. Their target is RM16.00

The price now is RM8.03.

lil_bun, Please refer to the bursa announcement for more details

Additional Listing Announcement
Types of corporate proposal Private Placement
Details of corporate proposal Private placement of up to 30% of the total number of issued shares of mTouche Technology Berhad
No. of shares issued under this corporate proposal 243,759,500
Issue price per share ($$) Malaysian Ringgit (MYR) 0.0608

Date Announced 22 Sep 2020

I wonder if Regal Orion has subscribed for the pp. If they did, they have got 30% of a relatively clean listed company on the cheap, compared with what it would have cost to buy GPA, a car battery trading business.

In fact, Orion Regal's data centre business would suit mTouche very well, because the business relating to running a data centre is within the ambit of mTouche, as noted in the latest annual report:

"Our core business activities include:-
(i) mobile applications and related technology services ... based on wireless and internet technologies;
(ii) research and development (“R&D”) of software and provision of software maintenance and support services; and
(iii) managing computer data, data processing, data storage, systems design and analysis."

It would therefore make a lot of sense if they did. It seems the needs of Regal Orion in establishing a data centre fits like a glove to the services mTouche provide.

Also, Regal Orion could get an immediate positive return on their investment when the share price of m Touche takes off upon release of this information.

The pp arrangement must probably be completed by now and awaiting the timing of release of the info to the market. It would be interesting to see if this comes to pass. Let's hope it does.

PRIVATE PLACEMENT OF UP TO 30% OF THE TOTAL NUMBER OF ISSUED SHARES OF MTOUCHE ("PRIVATE PLACEMENT")

On behalf of the Board, UOBKH wishes to announce that the Board had on 14 September 2020 resolved to fix the issue price for the Private Placement at RM0.0608 per Placement Share.

The issue price of RM0.0608 per Placement Share represents a discount of 20.0% to the 5-day VWAP of mTouche Shares up to and including 11 September 2020 of RM0.076, being the last traded day of mTouche Shares immediately preceding the price-fixing date.

This announcement is dated 14 September 2020.

Outcome of Meeting: The Board of mTouche Technology Berhad (?mTouche? or the
?Company?) is pleased to announce that the resolution as set out in the Notice
of the Extraordinary General Meeting (?EGM?) of the Company dated 29 August
2020 was duly passed as Ordinary Resolution by way of a poll at the EGM of the
Company held on Monday, 14 September 2020 at 11.00 a.m.

Seems like Galaxy had pipped Regal Orion for the deal for a quick turn, making around RM7m so far.

Hang on in there guys, some good news may be coming soon

They may have sold more today.

Galaxy has sold 99.6m shares of the 277.6m shares bought from Robert Tan on 26 August, leaving a balance of 178m shares or 18.154% in GPA yesterday.

done at 9s and below that is

MTouche coming - accumulation done at 9s

Sanichi manufactures "... Hand Dippers Core Mold for Industrial, Household and Surgical / Medical Use." See:
http://www.sanichimould.com/sanichi/medical-section

NeymarJr If u know the answer to the question above then u will know the direction of MQTECH
13/08/2020 11:08 AM

What indicator/s do you use for the direction of the money flows, and the timescale used.

How do you look out for smart money flows?