Earnings dropped but price to earnings is still attractive. The main point that everyone has not seen is the asset value of the share. The latest quarterly Net Asset Per Share is around RM 1.70. So if the company liquidates now, the share is worth RM 1.70 to equity holders. No brainer to buy a share worth below its book value. My two cents.

Shit OPEC not cutting oil production. Crude Oil price down 3.80%. I think it is time to rethink oil any gas related counters as well as any possible subsidy structure. Better not hope too much. I was a supporter of Dsonic but because of the bearish oil market, I decided to TP, albeit at a much lower profit. Good luck guys. Look into industries that benefit from low crude oil prices i.e. logistics, transportation, airlines, etc

And I hope the bloom does happen but it will take a very strong political will to effect such changes on all fronts structurally. I hope that person or group of individuals will do everything that is right for our beautiful country. It is about time the nation gets the leaders it needs to take us forward. We all should have something to be proud of. I would love to see us stand and regain our status alongside South Korea and Singapore as equals. If the bureaucracy does everything in its power to right all the wrongs and finally fix everything, I am sure everyone will accept the doom and gloom in the short run for the light at the end of the tunnel. Sigh. Midnight rants from a corporate slave who has experienced an environment fit and proper for its citizens to call home. Anyway good night. I remain cautiously optimistic and hopeful.

In addition, the people can rid the subsidy mindset. But should we continue to subsidise the government's personal excesses overseas? The belt tightening should be adopted by all but sigh... looks like only the middle income group and the Foreign MNCs are footing the bill.

Agreed. But do you think based on our track record, that our Government is far sighted? Our poor cannot develop the skillsets based on the severely bastardised education system. The culture of slacking and being lazy has been so deeply ingrained in a lot of our population over the past 50 years that it is difficult to fix such problems in a day. We have made too many mistakes and have not attempted to fix them. What is the use of abolishing subsidies which creates a positive business environment but at the same time have high tariffs, protectionist auto policies, corruption and political commission based culture among the elites which offset such positive moves? We lost a lot of FDI to Indonesia and will continue to do so based on our NEP, poor education system, artificially low wage structure and large outflow of talent to other nations. It is like a never ending bad dream sucked into a perpetual black hole and personally, I do not see a positive outcome when our oil wells dry out.

and 5 years down the road when the medical database proposal and EEV initiative finally pays rewards on top of the fuel subsidy mechanism and finally Datasonic becomes a blue chip company, the long term investors will be the ones laughing all the way to the bank, becoming millionaires and what not. Rome wasn't built in a day. Dell and Coca Cola wasn't built in a day. When they first started out, the very same sentiment and BS that has been perpetuated in this forum probably was said about these companies. If a company is actively pursuing new initiatives with solid management and good track record, you trust they will be able to deliver. No one who starts a business would want it to fail and I believe that a former Big 4 managing partner and a former fund manager will not want to see the lifelong earnings wash down the drain. Please la. They both still hold approximately shy of 40% of the company. You think they wanna burn their own savings? I rest my case. Hope I provide more clarity and info than those unethical commenters.

And yes fuel price could be as low as without subsidy now. And yes government can abolish subsidy now. But if fuel price hits USD 130 per barrel in the future and you pump RM3 petrol price for RON 95, the vote bank of the present regime in the rural areas will complain like hell and possibly cost the government in the next GE? As a former economics student, yes subsidies are bad for the economy. But the wage structure in Malaysia is too low plus other inefficiencies such as exorbitant car duties are in a way offsetting the subsidies. So its two evils offsetting each other. The fuel subsidy mechanism is more like a targeted subsidy plan to ensure only the deserving benefits. Whether it is wrong or not, no one can deny that the wage structure that is too low is also another economic distortion hence the need for the 'evil' subsidy and BR1M transfer payments. Sigh... it is a never ending spiral of plugging one hole with a cheap and fast 'sealant' without long term solution.

Besides since the minister has confirmed it will be a MyKad system. What other obvious hints do you want? Who is the current sole supplier of MyKad to the government? Even if the LOA is pretty much drafted, the government also has to manage political mileage and hence the company is subject to the timing factor and can't make any announcements yet. Invest based on your own research and opinion. Speculating without the capital needed such as hedge funds, pension funds, etc will only get you burned in the long run. If you are afraid, go buy blue chips like BAT, Nestle, SapuraKencana and UMWOG, etc that gives good dividend yield plus good orderbooks. If you want excess returns, look at growth companies like Datasonic. And personally I hate people that shout nonsense such as calling for share to fall without sound basis just to create fear mongering. Do you know some less informed investors can actually panic and lose money from your noise? At least present your view and that makes you more informed and credible, that way it contributes to a proper discussion.

From experience the directors' intention to deal during closed market period usually involves the dealing of the shares among each other i.e. buying and selling to each another. There are no market participants being able to transact during closed periods. I would construe this as a change in shareholding reflecting perhaps a shift of power soon among the directors or possibly some directors are expecting to not be re-elected next AGM so am selling shares to the controlling members of the BOD?

Najib gonna announce the new fuel subsidy mechanism in weeks. http://www.bernama.com.my/bernama/v7/bu/newsbusiness.php?id=1075575

Najib said 'Govenment will reform the petroleum subsidy regime soon, to adopt a system that benefits the lower income group.' - See more at: http://www.themalaysianinsider.com/malaysia/article/budget-2015-live-updates#sthash.cpxcyZH2.dpuf. read in the link. Key word is 'system'.

Govenment will reform the petroleum subsidy regime soon, to adopt a system that benefits the lower income group. - See more at: http://www.themalaysianinsider.com/malaysia/article/budget-2015-live-updates#sthash.cpxcyZH2.dpuf

Govt will cut subsidy but still need to cater to their voter base i.e. the rural folk so they will announce some targeted subsidy mechanism. Please la. Do more research pls. If the govt has no intention then why invite bids in the first place? Money wasted for tender process.

One Ebola case in USA. When there is a health epidemic, expect rubber gloves for medical supplies to increase in exports. My 2 cents

For example when Dell computers first started it was shit but it had a strategy. Efficient supply chain and customisable laptops via online ordering system. In 5 years after 1990 IPO. Dell stock price became a 200x++ the initial stock price. Many great millionaires and billionaires were created based on investment of tens/hundreds of thousands. same story with Apple computers, Disney, Our own DIGI, etc... so if u believe in a company's story go for it. Cronyism is not a bad thing if it is a good company. Look at US, most of the big blue chips have govt lobby groups. Also next watch out for Inari. Apple iphone 6 launch is a success. Manufacture components for the phone. What you think will happen next when they announce profit figures?

My strategy for dsonic is value investing and not just looking at 2.60 level. This counter has already been a ten bagger for me. I am looking for more than that. I believe in the company prospects, good management, invest in projects with great future potential and also well connected to our govt. I am looking forward to this company becoming a blue chip company in the next 5-10 years or so.

Well. I don't know what date and can't say anything cos i don't want to mislead. But from my research i think Dsonic pretty much will get it via fuel subs as i have mentioned before based on cronyism, mokhtar partner, and their implementation plan is the best. Dsonic is proposing a targeted mechanism to do with mykad or fuel card based on income. The other bidders i understand proposing system based on car engine capacity cc which is not feasible cos rich ppl can also buy low cc turbocharged BMWs etc. I think income based system is consistent with how the govt plans to stem the effects of rising fuel prices. My 2 cents

Maybank also expects fuel price subsidy mechanism to be announced in budget. I can smell LOA after budget as well. 10 october budget my bros. Wait for it.

Not only that. With govt subsidy rationalisation plan, more ppl will swotch to more energy efficient vehicles. And which counter just bought stake into EEV venture? Haha. It's like they have a crystal ball.

UOB:"Given its large share of the budget spending, we expect the government to focus on reforming its fuel subsidy scheme next and plans could be announced at the upcoming budget."

http://themalaysianreserve.com/main/news/corporate-malaysia/6723-uob-says-budget-2015-expected-to-focus-on-fiscal-consolidation

P.s. malaysian reserve owned by Tan Sri Mokhtar, also a party to the bid together with Fuelsubs with Dsonic.

To answer your question. I am doing some crude calculations based on 2009 failed fuel subsidy project by Iris-Maybank consortium. it was an amount of 200 Million then.

Assuming, an annual inflation of 3.5% and also 2.7 Million new vehicles registered since 2009 till 2013. No idea in 2014 so this is a prudent assumption:This is a 12% increase.

RM 200,000,000 x 1.035^6 = 245, 851,065.27

factoring in new vehicles registered (info from malaysia automotive association:

=245, 851,065.27*1.12
= RM 275,353,193.10

assuming Dsonic's 30% stake in fuelsubs:

= RM 82,605,957.93

This would be RM 82 Million in new proceeds for Datasonic. On top of IC, this is very good earnings potential from a new diversification. Imagine, if the contract amount is even greater than my noob estimates.

I guess some people artificially push prices down below technical and fundamental factors to buy. Who knows. Feel sorry for those who have realised their losses. As i have said, a healthy company will not simply go bust and see its share price go down artificially for no apparent reason. Unless there has been a material change in its fundamentals and prospects of it as a going concern entity. If the company is struggling, Bursa will suspend trading and later on delist the company. Has bursa done that the past week? Or has there been a material announcement?

Clearly speculators are at play once again at the expense of a lot of other investors. Well they are market participants too. The challenge of investing is to look at valuation and also fundamentals not lool at the graph price solely.

Yes agreed. Don't be so trusting of what people say. Look at the facts i.e. publicly available information and form your judgement based on the financials, management strength and prospects of the company. Remember there is still a 220 million ringgit contract for IC for the next two years and penang cctv contract. My view is that the fuel subsidy LOA may be awarded after the budget announcement by PM. Picked up more shares today. In my opinion it is good value now

Disclaimer, Please invest wisely based on your own decisions and do not be swayed by anyone. Make informed judgements, do some research and equip yourself with some skills. I suggest Warren Buffet's books, Ben Graham and One up on wall street by Peter Lynch as books that helps. Note this is just my take based on some research and educated guess. I have cut my profits once the last round of retail and syndicate selling and have regretted my overreaction. I guess investing is all about learning. Don't worry, keep calm and carry on and diversify please.

Hey everyone, please calm down and stop panicking. From analysing the trade volume done, one can deduce that it is all retail selling. No offense to anyone, but it seems that a lot of i3 investors have started panicking for no apparent reason. Look at the trades on your e-trading platform and you can see what I mean. You see people selling 1 lot, 10 lots, 20 lots, 200 lots (100 lot size), etc. Overreaction. Let's look at some facts:

1) No director or substantial shareholder has disposed of any shares since last week when the freefall started. Why do I know? Because as a public listed company pursuant to Bursa listing requirements and CMSA, all shares of interested persons (directors and substantial shareholders) must announce any sale or acquisition of shares whether in the open market or via related party transactions. Why have there been no announcement on Bursa?

2) P/E ratio is currently 23x. Note that this is historical P/E ratio based on latest YOY earnings. Tech companies tend to have higher P/E. Look at peers such as MyEG. at 37x P/E. Look at some US tech companies commanding huge P/E ratios at IPOs though they are loss making.

3) Datasonic's revenue has grown YOY of 25%. QOQ earnings have increased 41.18%. They have just declared a second interim dividend this year. Dividend payment means the availability of excess cash. And this excess cash is after making CAPEX, OPEX and investments in Fuelsubs as well as spending on new projects in the pipeline. Is this the sign of a struggling company?

Let's look at some history this year, not too long ago:
Remember when the share price plunged before due to some CA nonsense again. From a high of 2.60 to as low as 1.40 or lower. In less than 3 weeks, the price rebounded to 2.00. Clearly some people are intentionally lowering the prices to re-invest.

Let's look at some future crystal ball predictions (based on public info)
1) Datasonic has bought into Fuelsub (crony company) which is bidding for the subsidy rationalisation project. It's other partner is Tan Sri Mokhtar's Pos Malaysia. Honestly, this is the best trio to win a project from the govt. Has Mokhtar ever failed in getting anything good? Bernas, Tradewinds, DRB Hicom defence contracts, Oil Palm, Sugar, Tanjung Pelepas Port, etc etc.

2) RHB research has earmarked Datasonic and Inari as top picks in the tech sector last week. Research analysts have said I quote,

"Upgrade to BUY. Overall, we are positive on the announcement and upgrade our call to BUY. Our FV now stands at MYR2.50, at an unchanged FY16F P/E of 25.0x, following our earnings revision. As we believe the announcement will fuel positive sentiment, we foresee a potential re-rating in its share price over the near term."

Also as recent as 19 Sept, RHB said top picks are Dsonic and Inari for buy in the tech sector.

Let me divulge how Research Analysts work. The better their recommendation post the share price performance, the more recognition and bonus they get. Therefore, as Analysts, they work hard, visiting companies' premises, talk to management of the company and analyse fundamentals as well as technicals to work out a recommendation. After so many good successful picks in the tech sector, I think the RHB analyst covering Datasonic is not an idiot nor a clueless banker.

What about some rumours and track record:
1) Fuelsubs subsidy rationalisation project (rumour);
2) Hospital patient medical database national integration project (rumour);
3) National IC and Passport projects (real);
4) Penang CCTV project. Do you honestly think Lim Guan Eng will give projects to a lousy inefficient company who has no ability to produce and keep costs at a minimum?

It helps that Mahathir's brother in law is the chairman but I prefer to look at management credentials. The two senior founders and largest shareholders are:

Datuk Hanifah: This guy was former managing partner of Ernst & Young for 9 years. Clearly somebody smart and capable as a professionally trained accountant. Mind you, for a managing partner to quit a firm and give up his probably significant stake and start up a public listed company that fail is just something that belongs to the fantasy world. Mind you managing partners of Big 4s can earn up to tens of millions a year or more.

Chew Ben Ben: This guy was an investment professional working in mutual funds. Therefore, strategic investment in new associate companies and Corp Strategy probably fall under his purview and expertise. I presume the decision to invest in Fuelsubs and the new EEV venture could be his ideas and this are very good ventures to suit the needs of the Malaysian government as fiscal consolidation and measures to strengthen our financials to achieve the status of a developed nation reaches full gear.

News of the Day

MSM’s long-term contract to import raw sugar to be abolished by year-end
Malaysia could extend duty free exports until the end of this year
Coastal Contract’s order-book reaches RM2.6bn
Datasonic Group is venturing into the electric vehicle business
Ekovest plans to launch five projects with a combined GDV of over RM4bn
US GDP grew at a revised 4.6% qoq saar in 2Q14

Source: CIMB Investment Bank