nordimohd,
Thanks but I have a question. What is the incremental Earnings per share contribution from the Langat project? How long will this project last? Thanks.

AhMoi, Does AZRB earn above market gross margins for all these construction jobs? What are the contractual cum execution risks that impact on its EPS?

Kingkong73, If I can buy PETRONAS I will definitely buy PETRONAS as it has good management, high quality assets that delivers high gross margins. Much as I would like to, unfortunately the margins earned and EPS of AZRB for FY 2013 pales in comparison with PETRONAS. Why are u so bullish on AZRB? What are the additional competent skillsets that you know and is confident that AZRB will deliver above market expected EPS and market expected gross margins in 12 months time?

Kingkong73, If I can buy PETRONAS I will definitely buy PETRONAS as it has good management, high quality assets that delivers high gross margins. Much as I would like to, unfortunately the margins earned and EPS of AZRB for FY 2013 pales in comparison with PETRONAS. Why are u so bullish on AZRB? What are the additional competent skillsets that you know about AZRB that will deliver better market expected EPS and h gross margins in the future for AZRB?

Kingkong73, AhMoi, Nordimohd,
I assume all of you are investors in AZRB and knows AZRB biz very well. Would appreciate if any one of you could advise or shed some light on the questions pertaining to incremental contribution of EPS to existing EPS that I had posed in questions 1 to 8 above as it appears that the current market price had run ahead of its fundamental. Thanks.

wonnksa, Yes , its classic pennant being formed. Price will shoot up after pennant had been fully formed.

There are BIG POTENTIAL that can contribute to its future intrinsic value but there seem to be more questions than answers. Would appreciate if fellow forumers can throw some light.
1) Construction & Engineering: AZRB Already secured Putrajaya & Langat 2 for RM483 Mil project.
Question: How much net margins will AZRB earn in this projects? What are the execution risks that can impact on its cashflow and future earnings? How much will these projects contribute incrementally to its EPS?
2) OIL & GAS CONTRACTS WITH PETRONAS in supplying diesel oil to offshore platforms is already in the price. What and where will be the FUTURE additional earnings kicker. How much will be the additional incremental EPS?
3) OIL PALM CULTIVATION: AZRB has 18,500 acres of Oil Palm lands in Indonesia and todate it had made losses. How long will this continue to drain its cashflow and when will AZRB turn this biz around to generate profits and good cash flow? What will be the loss in EPS and how soon can AZRB stop the bleeding? What will be the incremental EPS?
4) RECESSION PROOF TOLL ROAD FOR 50 YEARS: AZRB has been awarded a RM1.55 Billion EKVE contract to build highway from Gombak to Kajang. And followed by a 50 years concession. (SILK Has only 33 years for Kajang Toll.)
Question: Can AZRB really make good profit and generate good cash flow the moment this highway is completed and commissioned or will AZRB have the same experience as SILK in making losses which impact on its future cashflow. How much will be the incremental EPS?
5) QUARRY IN TRENGGANU is already in the price. What and where will be the additional earnings kicker from the quarry biz? How much will be the incremental EPS?
6) LAND BANKING in Kuantan, Bentong: How will these contribute to additional earnings kicker to AZRB future profits
7) GREATER KL MRT": AZRB with IJM has been awarded the Sungai Buloh - Kajang MRT for a RM1.7 billion project. How much will be the incremental EPS?
8)UNDERVALUED ASSETS NEVER BEEN REVALUED: What is AZRB plans to turn these assets into future earnings drivers?

Moreover can any former here advise whether AZRB had received the RM 80 million compensation money from the Saudi company?

Sometimes I do wonder on "What are AZRB ADDITIONAL COMPETENCY SKILLSETS besides being a class A Bumi-contractor having good political connections?

MBSB will continue to deliver with good earnings. Once the restructuring is done, its PE multiple will be rerated upward.

Just initiated position @ RM 2.49 in IOIPG as downside is very limited. Possibility of trend reversal is good at current price levels and entry at current price level will give an investor a very good margin of safety!

The CEO of Instacom is very capable, biz savvy, very competent in biz strategy, very knowledgeable in legal and financial matters and the coy has very competent technical capability and is on the forefront of biz and technological prowess for the industry that it is in.

I invest in coys with good biz strategy, good management team that delivers the bigger and more $$$$$$$$$$$$$$$$ to the shareholders!!!

Posted by fortunebullz > Aug 7, 2014 07:31 PM | Report Abuse

Jay! I already explain! Read my previous post here! One look at its financial statement already send me to shock! Its completely undervalue! Looking at its growth potential is extraordinary! This is much better than MMSV! You talking every single data users in Malaysia depending on Instacom! Now, tell me, what other stock can replace Instacom as tele data provider! OCK already sank billions on outdated 3G! And Instacom start fresh with 4G LTE! Unknowingly 90% data users are on 3G! Only Maxis users in KL and Petaling Jaya fully benefit from 4G LTE! And some cities in Malaysia! Imagine how many more towers and fibre optics need to be lay down! Some say Weida can build the towers but you need fibre optics connected to such towers! And Instacom has been laying such 4G LTE infra already!

Fortunebullz, You had missed out on Instacom strategic biz focus on TOWER REITS which means $$$$$$$$$$$$$$ to Instacom!!!

AZRB just moved into hazy clouds for the second day running. Uncertainty seems to be growing and downward price momentum may possibly accelerate.

Stockraider,
What gibberish recommendation are you recommending?
You initially promoted AZRB but you end up recommending PIE as follows:

h)PIE AT RM 5.00 A STRONG GROWTH BUY LOH

For your info, PIE closed at RM 7.04 today. It was below RM 5 in mid December 2013.

Why do u promote AZRB but end up recommending buying PIE at RM 5.00??

Horsefield,
Are you heavily invested in BIMB-WA and has the intention to influence particularly those i3 investors with perceptions of "higher implied volatility" to buy the warrants off you at much higher prices from your buy in price?

The total no of BIMB WA issued is 426,815,728 units. Total no of issued shares is 1,493,505,934 units. Ratio of warrants to issued shares is 1 warrant to every 3.5 mother shares. So the EPS of BIMB will be
- 0.77 EPS if 100% warrants are converted.
- 0.875 EPS if 50% warrants are converted
- 1.0 EPS if no warrants are converted.

Warrant strike price is RM 4.72.

Please advise what is your forecast EPS for BIMB for year financial year ending 2014, 2015 and 2016 and do advise whether the warrants are in or out of money based on your forecast EPS assuming 100%, 50% or zero percent warrants conversion in 2014, 2015, 2016? Of course the implicit understanding is that the market price will be reasonably attractive for warrants conversion to mother share. I leave it to you to assume the PE multiple.

Stockraider, It is up to AZRB management to convert the big potential into EPS that fully reflects its market share price. Did the chairman mention any specific time frame in the chairman message in 2013 AR? Did the Saudi courts enforce the ruling of RM 80 million in favour of AZRB by the arbitrator? Has AZRB todate received the 80 million Ringgit compensation?

Yes there is big potential but it takes some time for the management to convert the potential into EPS that fully reflect its market price.

AZRB is worth a trade at this juncture as its current price is way beyond its fundamentals. It will take some time for its improving fundamentals to catch up with its price..

What had gone up will consolidate downward for a while

assam fish curry with daun ketum sedap!!

Got out at 25.5 cents. Price now at 24.5 cents Hahahahaha

Immediate resistance of RM 1.41 had been breached. Price now RM1.42.

Window of opportunity to collect instacom at good price is narrowing with the passing of time...

Second attempt to breach above resistance of RM 1.41 with high volume. Looks like RM 1.41 will most likely be breached in due time.

Current correction is a buying opportunity.

This is rubbish stock, good for a trade if one buys below 22 cents. Big Condolences to leno who cannot comprehend the distinction between tok shit and trading rubbish stock.

There is a big difference between realized profit and virtual profit. realized profit is real cash money in pocket. virtual profit is mirage.

just focus your attention to push this stock price higher...don't forever pangpui and procrastinate.

don't talk too much lah..just focus to push stock price higher lah...this is rubbish stock..good only for a trade. why u no push price up higher?

Leno, sold the first tranche at 25.5 cents..hahahaha. This is rubbish stock, only good for a trade. Waiting for u to push up to higher prices as I wanna to clear this rubbish stock.

Instacom had been on downtrend since it went ex-bonus cum warrants on 28 Aug 2013..It bottomed out on 10th June 2014 and had been consolidating since then. Today it surged past its 150 days MA with very strong volume which indicates that the downtrend and consolidation period is over. After more than a year, the FA and TA for Instacom are now in synch. This stock with good fundamentals has now turned bullish !!

Further price downside for SENDAI is very limited. Future price upside is very much dependent on how well and how fast it executes its new business in Lift boats and jack up rigs. Good time to accumulate at current price level.

WTK's improving fundamentals will cap any price downside. Current period of uncertainty offers good opportunity to accumulate on price weakness.

SamT, stkoay and Calvin,
Come on guys...Please refrain from going after each other in a very negative manner and I urge you guys to rise above your own differences of opinions and go beyond hurdles as a result of prejudices and differences of investment opinions.

All of you have expressed your investment ideas and the merits or demerits of these investment ideas is up to the investors in i3 forum.

Let us focus on the sole purpose of making money through a healthy exchange of investment ideas and if you guys willingly allow yourselves to degenerate into negative actions then the larger purpose of making money in this forum may be impaired.

Please do think it over and please refrain from negative actions which may possibly have unintended consequences arising thereof.

Better chat up your bikini girl and perform an objective evaluation vide warren's methodology assessment on determining her "undervalued assets" before deciding to be very patient long term investor. Perhaps you may consider the option of a "fundamental trade whilst u r swimming in the deep blue ocean." HAHAHAHAHAHA

Better focus on palm oil companies with fast maturing acreages rather than be a VERY PATIENT VERY LONG TERM Investor!!

EPF and major shareholders are buying and this clearly demonstrate their confidence in this stock. As an investor, you have a choice. Either you follow or you opt out and look for better investment.

This stock is for medium to longer term holders. Congrats to those who had got in recently. For those who had not invested, there is still opportunity to do so. Whatever the case maybe, one must adopt a medium term view to this stock. I am looking at post 2014.

Not all newbies will want to be accountants, engineers, doctors, lawyers etc. It is very relevant for any person to ask around, read and try to understand the economic trends coming up in Malaysia if one chooses to work in Malaysia.

A more realistic advise is to advise the newbies to know their own skillsets, be honest with their own strengths and weaknesses, find something they really want to excel in and in that process develop the passion to be very competent and successful in their chosen fields.

Raider, How much do you value intrinsic value of INTEGRA and NCB? Which of the two has the highest margin of safety?

Crutches for the elites but not for the ordinary Malay folks.

Ayam Tua, Be patient ,it will move up, just a matter of time.

How can NEP be effective and instill greater competition in Malaysia's economy if the end result is to create a dependency mindset amongst the Malays? Malays now think that they cannot succeed WITHOUT THE NEP? Why must this be so?

In the early 80s Malaysia was relatively more attractive due to the lack of competition from China,India, Thailand, Indonesia, Vietnam, Burma, Laos, Cambodia, Philippine. It is akin to a economic boxer who looked relatively good because there was hardly any opponents who were relatively as good or better than the Malaysian economic fighter. So over the ensuing years the NEP weakened the Malaysian economic fighter. During the same period newer and younger economic fighters had emerged with better economic strategies, fighting skills, better skillsets compared to the Malaysian economic fighter. The Malaysian economic fighter realizes now that it cannot fight to win now without much effort now as it had wasted so many years of opportunity to strengthen its economic fighting capacity and capability. However the elites who had promoted NEP had benefitted enormously from this powerful money making machine.

Unfortunately the stark reality as evidenced by Peseks's article is that the NEP policy over the years had weakened Malaysia's economic fundamentals and its economic competitiveness. Malaysian Talents over the ensuing years had left Malaysia to contribute to other nation's economic growth for better paying careers and for better economic opportunities for themselves. The question in everyone's mind is

"Why can't Malaysia create the opportunities for these talents to stay, work and thereby contribute to Malaysia's economic achievement in research and development field which requires talented skills and state of the art professional knowledge?"

" What had been the opportunity cost forgone by Malaysia as a result of its NEP policies?"

" How much could Malaysia economy develop in scope , width and depth if these talents work and contribute to Malaysia's economic growth?"

"Would Malaysia be ahead of achieving its VISION 2020 target before 2020?"

Now the global economic war is waged on the WAR TO HIRE TALENTS AND RETAIN TALENTS. Malaysia all these years had been nurturing and exporting talents. How can Malaysia ever fight in the new global economic war if it continue to export talents?

Malaysia endowed with the richness of its natural resources and home grown diverse human talents could have been the shining beacon of economic prowess now if it had retained and attracted more talents to contribute towards its economic growth and to push its economic potential to a much higher sophisticated level. Unfortunately due to the shortsightedness of its NEP policies where the elites see this as a powerful money making machine for themselves, it had squandered the golden years during the early 80s whilst the economic giants today were still sleeping blissfully in slumber land.

NEP is a powerful money making machine for the elites. The long term impact of NEP is to FURTHER ERODE Malaysia's economic competitiveness and it had already done so ever since the NEP was introduced in the 80s.In the early 80s the neighbors such as China, India, Indonesia, Philippines, Vietnam were still sleeping. Now these countries had embarked on economic reforms to make them even more attractive to investors and consequently the regional/global competitive economic scenario is much more intense now with the entry of newer players. Somehow the Malay majority are still behaving sebagai "Katak di-bawah Tempurung and they still need tempurung for protection!"

New Business investment capital destined for ASEAN will go towards neighboring countries that will yield relatively highest return on their invested capital.

The ultimate losers are all Malaysians including the ordinary Malay folks. The gainers will still be the elites as they continue to earn very good profits and they cannot be questioned by the lawmakers in Parliament.

Dtk Shamsul said ..."I am a Malay too. I am proud to be one. You think I don't want to help my own people. Of course, I want to help them but in the proper way. Not through handouts and spoon-feeding."

izoklse, Dtk Samsul wants to help Malays in the proper way and that is "NO HANDOUTS & NO SPOON FEEDING". Why do you want someone like Tan Sri Hassan Merican and Tan Sri Azizan? What is the difference in management policy between Dtk Samsul and Tan Sri Hassan Merican?

Do you agree with Dtk Samsul policy to help the Malays? Assuming that a Malay is helped by Dtk Samsul policy without handouts and without spoonfeeding and became very competent and successful, don't you think that Malays who had helped themselves to succeed on their own merits will be a shining example of success to the Malays and a long term confidence builder to the Malay psyche in general. Would a Malay who had been helped by handouts and spoon feeding have the self confident mindset? What do you think personally of the Malay tycoons who had been helped through the system of handouts and spoonfeeding?

What price will you attach to achieving success through own merit for a Malay? Why do the Malays always think they need to be protected and helped? Who is responsible for developing this dependency mindset amongst the Malays? Is this dependency mindset amongst the Malays created by their leaders or a natural mindset developed through birth?

NCB stock price had already bottomed out. Entry price around this level will give one a good margin of safety. Downside risk is very limited. Further price upside and rate of price ascendency is dependent on improving fundamentals in the coming quarters.

Your greatest margin of safety in FA or TA stocks is your entry price. Your entry price will give you the margin of safety. Always remember this. You can buy a fundamental stock at high price(overvalued price) which gives no margin of safety or wait to buy the same stock at lower price which gives you good margin of safety

For the past 2 years, EAH HI Price=22 cents and LOW Price=11 cents. EAH price around 12 cents had already bottomed. Downside risk is very muted now and is now waiting for a Fundamental catalyst for any price upside.

NEP is a powerful political concept to win acceptance and continued support from the masses but a powerful money making machine for the elites that planned and practiced economic incompetence.

The choice is very clear:
Either you the Malaysian voters vote for economic competence or continue to vote for economic incompetence. The choice is yours to make.

The current NEP with its corruption must be dismantled and replaced by a Government which attracts and nurtures talents, upholds the constitution, ensure exemplary good governance and fair practice of the rule of law and " ACTIVELY PLANNED & PRACTISE ECONOMIC COMPETENCE" with an affirmative action plan for the underprivileged and poor irrespective of race, religion, color or creed.

Once this fundamental flaw of NEP and its corruption in Malaysia had been taken out, the Malaysian economy will ascend beyond one's wildest dreams!

The current NEP with its corruption must be dismantled and replaced by a Government which attracts and nurtures talents, upholds the constitution, ensure exemplary good governance and fair practice of the rule of law and " ACTIVELY PLANNED & PRACTISE ECONOMIC COMPETENCE" with an affirmative action plan for the underprivileged and poor irrespective of race, religion, color or creed.