Have not heard of anything new. cch1975, I thought you have switched out to Myeg?

If it can be successfully implemented (and I dont see why not), then all the neighbouring countries are also likely to participate. Sort of logical really. Risk is dealing with govt is always tricky..

I dont think it is that chunky but it is first of many I hope...

cch1975 - haha, that is a good way of looking at it!. Being early at times can be really frustrating. But I believe that management can continue to deliver with their current business model. In addition, management continues to return cash (yield @ 4%) so interests with shareholders are pretty much aligned.

Some investors thrive on newsflow - unfortunately Scicom is not such a company. It just does it things on the quiet and enhance shareholders value eventually...

Thats my two sen anyway.

because long term shareholders like you are getting out?

cch1975, sound like you are about to give up..where to?

I meant did not really review some of their recent wins and tight lips about details of individual contract etc.

In any case, still a very good company with huge potentials going forward! From e-commerce, government outsourcing as well as BPO.

I heard no real revelation came out of AGM - still coy about new contract win etc. Results tonight should still be fairly decent (+20-30% yoy), I think dividend will be maintained and only see an increase in the 3Q and 4Q FY16.

stockist....research and knowing the right people? :)

I think that is probably a bit hard at the moment.

This is because they yet to be discovered by institutional fund managers esp the foreign ones.... MyEg is always in the news whereas Scicom is keeping fairly quiet due to the nature of their works. Their time will come - they need to secure some chunky contracts for the next stage of growth. Last year 50+%, this year at least 30+%...hoping they can still do another 30% the year after that seeing most of the biz are recurring. Their market cap is till RM750m as compared to Myeg at RM3bn+ - they are playing in different pond for now. Also liquidity is a bit of an issue for now...it will come with price...

The conference is organized by Daiwa Securities in HK

I believe the conference is going on this week so yeah they would have met a fair number of investors..

stretching a bit at this point..

should be in the region of 2-3sen per quarter...if everything goes according to plan

I seriously doubt there is another bonus issue coming so soon after the last one (1 for 5). In any case, that in itself does not change the valuation of the company. Good execution and growth of the business and eventually getting notice by institutional investors are crucial for consistent share price performance.

For anyone that is interested - Scicom has a feature in the Edge Weekly.

Realistically, target price should be in the region of RM2.80 to RM3.00. Blue sky scenario is looking at RM3.60 (but that is probably pricing to perfection, at least for now).

When has this stock ever been fast? I prefer slow and steady...

I heard that the company will be joining a conference in HK next month to meet with new fund managers..this should be good news as it is spreading its wonderful story to new group of investors! Hopefully more people see the fantastic value that the company offer and that pay up to the fair value of the company..(well, one can always hope)

But more importantly, the company is executing well and business is growing, so as shareholders we can sleep well.

Yes..manage to collect some @ 180. Not much update..as far as I know, business is running well. There could be a couple of new contracts coming but not sure of the size - not in Malaysia, I think IndoChina and Sri Lanka.

I dont have any new info on MAS training contract. In any case, there is just for one year and not the core business of the company. If the core business can grow at 30% p.a., I wont worry too much about the one off contract - pure icing on the cake!

As far as i know, nothing much has progress other than having 1-2 thousand MAS staffs 'registered' - this however does not mean the training has started or the earnings has starrting to come in. Sept/Oct will be crucial as new student intakes is starting....

Dont miss the forest from the tree! :)

Sorry for being away for a while - Things are looking good for Scicom still. Think Scicom can still grow at least 30% in FY16, which will translate into eps of around 13 sen. At CIMB's type of valuation which is 21.6x CY16 PER..we are looking toward TP of RM2.80++. At 4.5% yield, still a very good company to hold...

FY results should be announced today - strong. However, given the sentiment we may still see weakness in share price. Good time to accumulate.

Not that i heard off...

Another 1m crossed @ 165...around 455pm..should be good for a rebound tomorrow..

I have not sold - I gathered that they were multiple sellers out there (at least one institution). Panic? May be...Good time to collect slowly. It is hard to fight against sentiment at the moment and one should not do so either...

No change in opinion, weak sentiment will present opportunity but one must also be patient..not sure how strong the selling is in the short term...

general market is weak...hard to hold the share price as people will want to sell. Nothing one can do about it for now..

2m..could be off market it seems...more institutions buying?

2m shares crossed yesterday in the market..hmmm

cch1975 - good thing take time to develop. This is an investment, not a pump and dump operation. Warren Buffet has said and I quote - "You cant produce a baby in one month by getting nine women pregnant"...just a lighter note to cheer all you guys up!

I am not so sureof the full name, I think ESL or something

Not fresh news other than the fact that apparently the CEO is very active in Sri Lanka - go there nearly every week - hopefully something big is cooking there. As for who did the big cross in the market yesterday, I am not quite sure..but it is a good sign that some much volume has been absorbed with little price impact.

cch1975: Scicom is already in China market so to speak, they manage the call center for one of the fastest growing online gaming company!

Well said Shazza.:)

It could be due to the fact that they many smaller accounts..and split as such.

Foreign institutions are into myeg for a while now and as such you will be more trading. Scicom is still early day, most institutions are not willing to let go at this level. I know of at least one local institution owning more than 6% of the company....When foreign institutions finally participate into Scicom, expect to worth more than RM3....if all goes well of course..haha

I dont think Public is fully aware of it also - it does not really capture the attention of all the day traders..may be only after it reached RM3....haha

shazza - The dividend will be paid today (22/6). Yes, the MD bought shares on 16th June. So far his timing has been pretty good - he buy on pull back and just accumulate.

cch1975 - I heard they are in talks with several clients at the moment; some of which are pretty chunky (with job scope go beyond just providing seats for BPO but more for consultancy works etc)

Selling seems to be well adsorbed yesterday. 1.5m shares traded (vs normal day of 500k+) - which is quite decent for this stock. I think it will continue to recover towards the 2.2-2.3 level given increasing institutional involvement.

I think stick to fundamentals is still the best strategy. The current weakness presents good opportunities for investors that can see the longer term value to buy....

Generally speaking, P/B is not a good measure for this type of service orientated and asset light company - they dont own building or heavy machinery or air planes! Look at all the tech company to a certain extend. What you are paying for is the management's skill set to grow the revenue stream. As you also rightly point out, ROE of 40% and cash rich - and more importantly willingness to pay out dividend to investors.

You are right that the gap is still quite large: Myeg's market cap is RM3.0bn vs Scicom is RM750m. However, dont forget MYEG's market cap was only around RM500m in 2013 (nobody looks at it then) and it has increased six-fold since. Similarly, Scicom's market cap has gone from RM200m to now RM750m in the last eighteen months.

What I am saying is that if Scicom can execute is growth plan well over the next two years (growing @ 40-50% p.a.), with a bit of luck, it can get rerate one more time by the investment community.

Dont get my wrong, I liked MYEG but has since sold my position (after the multi-baggers gain). Personally, I feel MYEG has seen increasing risk given current political situation and the risk reward ratio is no longer in my favour. Scicom is more diversify given the list of international clients and can thus expand regionally with relatively ease.

So at this juncture - I like Scicom better, risk reward wise...

Not that I know of.

The results are actually decent - not quite 'out of the park' so to speak.

So what is to come going forward? With MAS reorganization in full swing, we could potentially see the training contract kicking in by 3Q2015, so that should provide a good booster to the earnings at least for a year. Other biz is expected to show good growth as well as they are bidding for many contracts...

The 2c interim is very good - considering that it has a 1 for 5 bonus issue back in Nov 2014, consistently growing.

Long term investors should continue to hold on to the stock and buy on any pull back!

good morning - it is very hard to know how the stock will move on a day to day basis, sometimes some institutions need to sell for their own reasons and is not fully base on fundamentals. I think interest is still there but Scicom need a catalyst and hopefully the 3Q results will provide that.

International college? Is this not the training school? I believe it is not the main driver of their earnings growth.

cch1975: That is really a tough question to answer - much depends on what the company can deliver consistently and what people are willing to pay for it (i..e market is still healthy) from a PER angle.

Assuming it can delivers an EPS of RM0.13-RM0.14 for FYJune16 (hoping this year - FY15 to come in at around RM0.10-RM0.11 per share), then we should see RM2.80 - RM3.00 (based on similar matrix to CIMB's valuation of Myeg FYDec16 PER of 21.6x)

Is it possible? Well yes! Is it probable? Sure! But this is of course provided all stars are aligned :). Then again people are paying up for very much less in some of the names.....

anyway, stock price looks pretty bottom out for now. Likely to trade to the upside as we approach results by end of the month...

I always think that is just complimentary biz - to train people for their own Call Center business etc. Never a real profit contributor per se. Having said that, assuming the MAS contract comes through in 2H (or FY16), it should give it a big boost, for one to two years at least (and you should thus get some extra dividend! haha)

cch1975 - Sri Lanka and Indonesia are not major contributors at the moment. Sri Lanka is home ground to the MD but changing political situation make it inherently more tricky to land projects. Indonesia, again is more of a call center for now but potentials are great.

Scicom is in a BPO + services business. Major clients are mostly MNC. While people never think of them an e commerce company - they are very much the backend enabler (from a software stand point) i.e. to the tune of tracking the delivery of pizza and the location of the delivery boy etc.

Even as a call center, they are not the cheapest in the region (Phil is much cheaper) but they delivered quality and add on services - which is really the lucrative part. Thats why they keep adding new clients

cch1975, you need to think further about education - With ringgit depreciating, Malaysia has been able to attract more foreign students from around the region (not necessary the best quality..). This will augur well for education providers like SEGI, HELP and INTI etc, except the HELP and INTI have been privatized so no play for you there! With more foreign students, EMGS will likely able to process more foreign student visa applications and thus more profitable. That's why you need to infer from SEGI recent results which grew 50+% in 1Q2015.

I did not quite understand pumag's statement about expand student pass processing for the whole country? They have been doing for all the private universities and will expand into public universities (UM and UKM etc) and language schools (prob by 2HCY2015). Also, I believe this is substantially less political than say MYEG or Prestariang (esp Prestariang, which depends on Msia govt as a pay master) , the project with EMGS has enabled the turn around time of visa processing and approval to shortened substantially and improved the attractiveness of Msia as a study destination.

cch1975 - for you interest, you should take a look at SEGI's strong results (+50% yoy) as a read through to Scicom's upcoming 3Q results by end of May. Stronger students no will mean better business for Scicom!

No, they rent from TA in Menara TA. Maintain the asset light strategy!

cch1975 - Blue chip is a vague definition. I would like to put it like this - if it all stars are aligned, Scicom will do very well over the next few years and can increases its market cap multiple times over. But if you ask me if it can be large then MYEG (in terms of market cap) in the future...my answer is YES. - more so that it is now buying building...always a bad sign in my book.

As a stock, Scicom is still largely undiscovered by the investment community (especially the foreign one), so potential for upside is there.