Also not to mention, all analyst have not impute earnings coming from Thailand and Peterborough. I guess they are equally skeptical. However, if it starts contributing, it will add RM0.30 to its valuation. I'm not creating this story. Check yourself in i3.

Have a nice day.

KNM is not always a one night stand stock. Have you seen how it soar from RM0.40 to RM1 or RM2? How can it be one night stand stock? It depends on the period you went it. Yes lately, it seem like a one night stand stock because there are many traders.

If you read The Edge weekly last week, the company was mentioning they are hoping to be chosen for tires waste to energy partner in US using pyrolysis technique. Good effort to find business in renewable energy but I think going to be hard. All efforts will be learning curve anyway.

Don't blame trader to trade in and out by making 10 - 20%. They are different. And they are correct to say, it provides opportunity. No stock will go up and up without any noises in between.

But if you are investor, 1.5 - 2.0 years are actually very short time frame. And if I can 60% to 100% or more within 1.5-2.0 years, I am a happy man. KNM is such stock.

There math is very simple. KNM is at the lowest point of all history (for some reason) and their orderbook is at the best coming from RAPID. Outlook also at its best because they are diversifying into renewable energy. So today RM0.40 is no longer than previous years' RM0.40.

Now, comes the earning. I will do the breakdown and you guys judge yourself whether it's true or not:-

RAPID - earnings only coming in this year 2016 and will flow through till 2018. If 2H2016 new contract from RAPID, then visibility will be at least until 2019.

Ethanol Plant - 1/4 in 2016. Full year contribution in 2017 of RM10mil and onwards for Phase 1.

Peterborough - Full contribution of RM50mil in 2018

Others - They have couple O&M recurring income coming from renewable energy in Malaysia and UK. I don't know what are the earnings contribution.

And one key takeaways is recurring income will be at least 60-70% of its earning while contracting business continue to be the same (assuming). We are talking about at least doubling income in 2 years. Let's assume contracting income is RM40mil and assuming 50% comes from recurring income, that will mean recurring income will give RM40mil too. That makes RM80mil. So it is doubling just by taking into account 50:50 contribution.

So to hit RM0.60 it is no issue. I'm more inclined to think in 1-2 years time it will be at least RM0.80- RM1.00 stock. Rerating will happen 1 year before it happens. Peak is reach when result is shown in 2018.

Why argue so much? It is true this stock is severely undervalued as mention by Mr. Lee. The risk however is the execution risk. That explain why there are so many skeptics here.

http://www.thestar.com.my/business/business-news/2016/07/23/from-billionaire-to-millionaire-in-less-than-four-months/

A lot of people talk shit about KNM. Not interested yet so much comment. Too much free time.

Read the fine line in the announcement with regard to Blanket Working Capital Loan. It was mentioned, the working capital loan is for projects secured for RAPIDs. Nothing special about that line, until you read further, that mentioned the RAPID projects will provide "recurring income in the future".

None of the RAPID projects secured by KNM is recurring in nature. But I am pretty sure they have secured projects which was not announced by the company due to non-disclosure policy from the clients that gives them recurring income with O&M in nature.

This is a good news.

Meanwhile, on the impact of Britain’s potential exit from the European Union (EU), Lee said if Brexit happens, the group’s waste-to-energy project could see better profitability.

“The impact of a Brexit on us could be positive. We are producing power for the local population; we sell to the local domestic grid. In the case that the UK leaves the EU, the country will have to be more independent.

“There could be more pressure on the UK to produce its own power. Logically, demand for our power will become stronger,” he said.

Besides that, he pointed out that nearly 50% of the waste in Britain had been exported to EU countries, after the country discontinued the usage of landfills in 2013.

“There’s an excess of waste in the UK. Currently, they are enjoying the common tax when exporting their waste to EU countries, but if they leave, there would be some tax imposed on the UK, so we could get a higher premium on waste collection fees.

“So if Brexit happens, we can get better tariffs and gate fees from waste collection as well, which means that the project would be more profitable for us,” he said.

Source:- http://www.theedgemarkets.com/my/article/knm-widen-recurrent-revenue-base?type=Corporate

and when it hits RM0.40, you will also collect right? Awesome strategy deric123

snwong13 and mjy88 make most sense.

And please stop linking KNM to oil price. Seriously, this is getting very annoying already. KNM is a process engineering company and not an O&G company. All just to let you guys know, they focus on downstream and RE. Downstream players are flourishing and RE is the next energy play.

Sure. Have you sold yours Leonardo12?

Please read the financial statement properly rather than the headline figure. 1Q15 was distorted with RM22mil one off gain from the sale of Australian asset. This quarter marks the fourth quarter of increasing profit. If KYY buying strategy is right... KNM is the kind of stock to buy.

Actually it is a good time for non-believer of this counter to leave today. Result expected to be announced today or tomorrow plus crude oil hits USD50/barrel for the first time. Good time to exit.

It is interesting to see how the announcement made in regards of the contracts awarded are on increasing pattern. Believers of KNM should find comfort that there will be more contracts announced on higher contract size. Also bear in mind contract award are also backloaded,i.e. most announcement will be on the 2H of the year.

Brace for more good news. Let's aim RM0.65 and beyond.

Win money? Don't be surprise there will be a lot of seller. Win money only comes when it hit RM0.65 and above.

Upcoming result this Friday or next week is expected to be positive.

Don't buy this stock if you cannot hold on.

The better hint or lead is to look at how has Ho Hup performing versus KNM. You will find there are some relevance but KNM is still lagging. This is of course, coming from the assumption, something major going to be announced between KNM-HoHup most recent JV.

To me, oil price is irrelevant to a fundamental investors. Since oil price is favorable anyway, so who cares?

Unbelievable there are still among us that are bullish with KNM, still link the outlook of the company with noises coming from oil price.

Hpppy selling people and there will be someone happy buying.

Levere:- On the response,"Shit no more RAPID". I think you need to brush up your English. Read the article properly. It is downsizing the project by RM1.3bil from RM3.9bil. That petrochemical products demand is lesser than the other two products. The RAPID is still ON. And RM1.3 bill downsizing compare to the total commitment by Petronas in PIPC RAPID is insignificant.

Please read properly because posting. Post with responsibility.

Just wait for better news soon. Consolidation maybe over.

It is pretty irrelevant whether oil price up or down. If you have notice from the most recent report by Kenanga, you will notice that KNM actually get awarded with close to RM100mil contract from Kuwait Petrochemical Refinery. It was not announced probably because of non-disclosure agreement with client. And KNM is expecting more contract from the same downstream project in Kuwait. The story is the same for RAPID, Malaysia. Expecting more from RAPID.

So whether oil price up or down, focus will be on downstream now. And KNM will benefit from this trend especially from their subsidiary BORSIG. Trust me, accumulate and wait for more good news.

RM0.65 this year is very possible.

The problem with stock of this kind is people are too afraid. And when people are afraid they sell when the macro is unfavorable. And do you know who is the happy one collecting? EPF is happy collecting at lower price when people is selling. And then they sell when they make some money. Then announced on Bursa, they sold some. And people are scare again, be it because they are selling or macro not so favorable. And they collect again. This cycle will not end.

This cycle will only end when people stop fearing and big shark or EPF has no choice but to collect at higher price. And they can repeat the same cycle but they only can sell at higher price.

These period is definitely a period of consolidation/accumulation. It is just a matter of time for this stock to reach RM0.65 this year.

Yes KNM is not an O&G company.

It is a process engineering company that build equipments to O&G, power, renewable energy, mining, palm oil refineries and etc.

In fact low oil price is beneficial to KNM because focus will be on downstream such as petrochemical and refinery even those hardcore still think it is an O&G counters.

Bull and bear fighting at 0.505 now.

yingkang87: Since March, this stock has witnessed strong accumulation. We are officially entering 2Q2016, so do not be surprise of some award being announced. If you notice, oil price only affects weak holders and these are the one that miss out what is in store. If this level is break, next target is RM0.55.

My personal TP is RM0.65. If you want to find out more, just read the comment and analyst reports.

What just happen to KNM? Last minute surprises?

Yeah, "kena game" to those that are scare to hold. Isn't it obvious the selling is to entice weak holder? Since March, there have been a lot of accumulation. For what reason, no one knows. Aim for RM0.65 for this year. Don't aim short term.

Also what's interesting, it seems the most recent award from RAPID seem like KNM is doing Ho Hup favor to be part of RAPID. Look at the job scope, essentially most of it is Ho Hup's expertise and I don't see how KNM can contributes other than labors. Therefore, while it is a 50:50 JV, I'm pretty sure KNM profit margin from the project is higher than Ho Hup's. Secondly, don't be surprise of NEW and BIGGER VALUE project to be announced soon. I'm sure their aim is not RM58mil RAPID project. The recent price movement may reflect what's coming.

Happy Investing. If RM0.65 is breach, then RM1.00 is coming only if there is financial closure for Peterborough and visibility of earnings coming from Thailand.

yingkang86:- it is also worth to note the RM0.67 is excluding the value in Peterborough and also contribution coming from renewable energy in Thailand. Not too sure why the analyst doesn't want to include those contribution. Therefore, I'm pretty confident this year hitting RM0.65 shouldn't be a problem.

That is just the start of new contract flow for this JV. What all should be looking forward is the potential award of contract that involve Engineering, Procurement, Construction and Commissioning Project (EPCC). That is the goal of the JV when they announced in Bursa and I highlighted that KNM won't form a JV without visibility of securing contract. What you have seen from Sinopec is just the tip of the iceberg.

Because people are worried of the volatility of the oil price. At the end of the day, if oil price stays above RM35-40 per barrel.. everyone will start to ignore the worry. It is just a matter of time before, investors start to show interest in O&G counter.

Pensel Rotan:- yeah, you are right. The result is skewed by deferred tax but if you notice from the latest financial statement, they already started to guide investors what's the core earning excluding deferred tax. That's good.

Another good thing despite the skewed result is, they will have very strong cash flow coming from higher profitability. Many people don't realized it.

Watch up for more favorable announcement soon. I'm looking at > RM0.65 this year.

Ho Hup used to have experience in building O&G pipeline throughout Malaysia. And KNM forte is really process engineering and their heat exchanger by Bosig is the top in the world. There is no reason to announce JV without having any potential or possibly close to secure a project. Bear in mind, they are targeting EPCC contract. The sum of the contract could be major. Something everyone should be aware of.

There is no reason to be sad. You should be glad during the time of consolidation, the trading price is above RM0.475. Whenever the is a seller, always remember there is a buyer. If the buyer is buying above RM0.475 VWAP. Then chances are, these buyer is the seller of higher price in the future price. Chill...

KNM has been a dog for so long since beginning of this year. Many have bought in at low price. There is no surprise it is very hard to go up. What's we are seeing is consolidation. When it is done consolidation, let's hope it is heading to at least RM0.55. More good thing coming from this counter.

strategisst is correct. KNM is due to announce its result on Feb 25. 4Q15 core profit result is expected to be RM35-40mil. Entering the end of 1Q, I'm not surprise there may be good news too.

1. CanOne - 12.5%
2. ChinWell - 12.5%
3. Thong Guan - 12.5%
4. EG Industries - 12.5%
5. VS Industry - 12.5%
6. Focus Lumber - 12.5%
7. Ge Shen - 12.5%
8. KNM - 12.5%

Thank you.

I see a lot of consolidation going on with KNM. Not surprising since a lot of people churn KNM for small profit. But there have been interest in mopping the shares couple of days ago. The reason slight weakness is because of weakness in crude oil. Even that, this share is supporting pretty well. I won't be surprise, there will be material announcement coming looking at the trend.

All things being equal, the intrinsic value for Cliq is RM0.73. If you are to consider they need to secure majority shareholders' approval for the QA, share price should be higher than RM0.73. It is only at RM0.69, with heavy buying yesterday. It's a good sign...

Why are you guys so upset?

bcllct:- I will answer you in 3 parts basically. Thank you for your time to give constructive argument.

Point 3: What I'm trying to say is the rights issue will overcome the shortfall of cash coming from dissenting share holders. This is on top of short fall coming from our currency weakness. The exercise is not to entice dissenting shareholders. It's called dissenting shareholders for a reason.

Point 4,5,6: I think you get the concept wrong when come to discount. The discount of not less than 30% is not on CURRENT PRICE. The discount is after ex-price. So on ex-date the share price will be adjusted based on numbers right shares which will be issue. Then the to subscribe to the right share, you are paying 30% discount of the EX-PRICE. How can you confidently say that, "there is absolutely no reward to shareholders no matter how large is the discount?" Too make it obvious, if price shoot up to 80sen (let say only) and the exercise is 1 for 4 plus one free warrant. So theoretical ex price is 54sen. Then, the subscription price for the right share is 30% discount is 38sen. Would you pay 38sen to get for 54sen PLUS come with ONE WARRANT which is already IN THE MONEY?

And you won't BUY? That statement of "there is absolutely no reward to shareholders no matter how large is the discount" is a blanket misleading statement. And you are again wrong to say, " no rights issue ever design to reward shareholders".

If I'm the shareholders that also management role and I know the company is doing something big. I will do rights issue come with attractive priced warrants, if you know where I'm coming from. Think about it how shareholders can make money by paying small price on rights issue but to be compensated back through share price appreciation on mother and warrants. So don't be too confident to say "ever".

Point 5: If what you say is true, when the share price traded above cash value and all dissent shareholders sold instead of waiting money back from the trust, then let me ask you ask one question. The shareholders that came in later at higher price would they reject the deal? That's is one. Secondly, who do you think are the one that came in at higher price and bought the share from the supposed dissent shareholders?

If you can answer these two questions, you will know why the share price will be above cash value. A strategist would want to eliminate the dissent one before EGM (who want to wait for money to return from the trustee. Damn long). Those that buy from higher price could be the nominees from the related party. And they won't likely exit at minimal or no gain right? So the deal is most likely will go through in EGM.

Whether it is worth it to do it, let me lose this question. I will ask you what is the cost for the management per share? It's only RM0.01. What is the realized value for them if the deal is passed? It's potentially 50-60x gain on top of their cost. So do you think it is worth it for them to make it go through?

How about if I tell you it may not cost them anything (at least for now) for the invisible hand to act? That's a trade secret...

That's my 2sen.

BenBlurBlur: Not a qualified O&G person to comment or like the QA. I only want to make money just like everyone here in this forum.

What I'm interested to write is response to bcllct, which will follow below...

BenBlurBlur: First of all, please don't call me Sifu. I'm learning myself. The answer to your question is all depend. If the share price is only up equal or slightly more than cash value.. Most likely I will keep. Why? Because I wanna hold till ex-date and I will entitle my right. Whether to subscribe or not is different issue. If I don't want to subscribe, I still can sell my right.

But if the share price gone up so high, I will sell and talk later. Probably I can participate it again when the rights is traded and probably I can enter the counter at a cheaper cost through the right.

This is my 2 cents:-

1. The whole proposal to issue rights issue means there are no issues with the approval of the QA, from Securities Commission, points of view.

2. The proposed rights issue is one way to address the shortfall of cash plus concern from Securities Commission. I am pretty sure while submitting to SC, they would have consulted with SC, the option to overcome the shortfall.

3. The proposed rights issue is also a ingenious way to overcome some dissent shareholders (expected 25%) who may rejects the deals and block the whole deals.

4. The rights issue is a "reward" to the shareholders. Think about it, you will be getting not less than 30% discount for the rights share plus free warrant.

5. As I mentioned before, there share price cannot be traded less than the cash value simply because if that happens, then majority of the shareholders will vote against the deal, even the proceed from the rights issue will not be able to cover the shortfall as I pointed in point 3).

6. Why would one do rights issue at the low price, resulting is maximum dilution. In addition to that, still give discount not less than 30%.

7. Secondly, if you think point 4), 5) and 6) make sense, then the share price will go up from current price. The proposed rights issue not only address the funding shortfall but also a way to reward current shareholders.

callme77: What is your justification of RM0.675? If it is supported at that price until EGM, I am pretty sure majority, not just 25% of the shareholders, will reject the whole deal. So even doing right issues, does not make sense.

I believe, it will be traded above or no less than RM0.73.

EGM may be announced very soon. You know what it means. The price action speaks a lot.

I think 30% return is excessive. I think a 20% annualized make more sense. The way to do it, is to calculate the return of the cash value over current price. Then square root to the number of months before maturity. Then take the figure root to the power of 12. Then you will get answer 19.78%,

That is why SPAC is that attractive for those that understand and most importantly patient enough.

On behalf of the Board, Maybank IB wishes to announce that the application in relation to the Proposed Acquisition had been submitted to the Securities Commission Malaysia today.

- No surprise why the share price is well supported.

Jeannie: Expected.

Watch this space. Either there is insider accumulating or effort is done to push up the share price.