Posted by steelheart > 2014-04-06 18:38 | Report Abuse

Institutional investors punya holding is negligible in Datasonic. Mostly held by the own management team. Obviously is crony company. Goreng counter definitely. Up or down? Take your bet. LoL...

Posted by steelheart > 2014-04-06 18:39 | Report Abuse

Another thing...viable business model? Depends on who is talking lo...

Posted by Qiii > 2014-04-06 20:15 | Report Abuse

Well sometimes it depends on perspective. I do not see anything wrong with Directors buying in shares themselves to own the company. Most companies do have starting roots as family businesses and it is not unusual to see family members in the board. Esp when Directors bought on Friday, it should signal that they are not aware of any negative / fundamental changes within the company.

Regarding institutional investors, we will see when the latest list of shareholders is out in the Annual Report for 2013.

Posted by SpeedyBoy > 2014-04-06 20:16 | Report Abuse

Tomorrow will be an exciting day for Datasonic !

Posted by kkteng70 > 2014-04-06 21:08 | Report Abuse

buy buy buy..

Posted by Bruce88 > 2014-04-06 21:42 | Report Abuse

Definately not a buy at current price but a hold if you had bot it cheap much earlier !!

Posted by kkteng70 > 2014-04-06 22:46 | Report Abuse

Bruce88 will fall some more ? last week it did RM 1 .. still going down ?

Posted by johnny cash > 2014-04-06 22:51 | Report Abuse

RHB TARGET PRICE IS 4.08...ANYTHING FROM 3.50 TO 4,,IS A BUY OPPORTUNITY...BUT CAN IT FALL MORE LOWER THEN 3.50?? TO ME I FEEL IF IT DROP MORE FURTHER DOWN OF 3.50, THEN DAMAGES HAD ALREADY BEEN DONE TO THIS STOCK..AND PEOPLE THAT SHOULD BE HELD RESPONSIBLE FOR THIS DAMAGE WILL BE TA SECURITIES,, SUNDAILY

Posted by johnny cash > 2014-04-06 23:03 | Report Abuse

kkteng70----IT WAS TRYING TO SEARCH FOR SUPPORT LEVELS ARROUND 4.08.. FOR ME IT S BEST TO BE ARROUND 3.50 TO 4 AT THE MOMENT, BECAUSE BURSA POLICE IS WATCHING...LATER WITH GOOD NEWS PLUS NEW TARGET PRICE, IT CAN SURGE AGAIN UP

Posted by chnggs > 2014-04-06 23:20 | Report Abuse

why local stock Price can not go up like US stock ? Good growing profit company like dsonic must be able give a chance. why so many people give negative comment on this stock to stop it price from go up futher? NEED to give a fair treatment or reward to the company which it always make it grows in term of profit.

Posted by bing > 2014-04-06 23:22 | Report Abuse

Yaloh! Like Dlady.

Posted by benson911 > 2014-04-06 23:29 | Report Abuse

Hi folks, suggest Padini as alternative to Dsonic.

Posted by johnny cash > 2014-04-07 00:15 | Report Abuse

it s a very healthy correction for datasonic, so this counter should calm down at the moment,, do not surge without any concrete news or target price.. be smart like CMSB,, it knows when to go forward and when to go behind, till today no warning from bursa police...CMSB is a very very smart counter, i like the ways it move forward n backwards..a beautifull tango dance.. DATASONIC also should learn this tango dance from CMSB

Posted by orangbiasa123 > 2014-04-07 02:58 | Report Abuse

I will buy more!!!

Posted by kltan > 2014-04-07 06:00 | Report Abuse

Game over!

Posted by richcares > 2014-04-07 06:03 | Report Abuse

Too many speculators and centre playets

Posted by Dakewlest > 2014-04-07 08:42 | Report Abuse

Good one!

Posted by ATOZ > 2014-04-07 10:40 | Report Abuse

A very good article, bravo. Well done, Qiii.

Posted by JT Yeo > 2014-04-07 11:09 | Report Abuse

1. Amazon, Linkedin & Facebook have astronomical PE is not a justification that any company with lower PE is worth investing. Yahoo has a PE of 1000 before dotcom bust.

2. It is correct that a trend can persist for longer than expected, i.e. Over-optimisim or over-pessimism. Dsonic PE may likely to continue uptrend due to the buzz and excitement built by the market. It may also noted that you might able to make a quick profit, just don't get caught naked.

3. At the current price and PE, all the future contacts, rumors, speculative deals have already or most likely been priced in, although, as mention above, more contracts and speculation may continue to drive the price upward. Indirectly that also means Dsonic has no margin of safety but to deliver the expected numbers or risk become another Zhulian

4. In reference to PE, PE itself is a quantitative factor. Quantitative factor is only useful if it is supported by a qualitative survey of the company. Dsonic main business comes from 2 areas. 1) Supply smart card i.e. Mykad & Passport 2) ICT solution support. To me selling Mykad/Passport is quite a finite source of income, unless I am required to change my Mykad/Passport for something more high tech every single year. This leave them only one possible lucrative business which is providing ICT solution and maintenance to their customers. I would not have any idea how big is the market but their business totally relies on government sector. Add in they are a newly listed company, insufficient track record to show sustainability of earning power, negative free cash flow, high debts, total liabilities is over total equity. The probabilities for something to go wrong is high.

5. And Dsonic has an ongoing 30m litigation with Huawei.

Posted by Qiii > 2014-04-07 12:02 | Report Abuse

@JT Yeo:
Thanks for your opinions. Appreciate it. Based on your comments, there are only 3 areas which I'd like to highlight so as not to mislead other readers of the message in my article.

(1) According to the latest 2013 annual audited accounts, the company enjoys a free cash flow of RM64mil so it is not in negative cash flow.

(2) The message in my little write up is to point out that PE ratio is NOT a good measure to determine whether a company is overvalued or not so to say that a company is overpriced at PE of 39 or undervalued at PE of 5 is not ideal. It is like saying Old Town coffee is overpriced vs kopi @ kedai mamak but people find value in it. As you mentioned, the market will price in / discount any developments with the company. Well maybe sometimes it can be manipulated which is probably a good thing that Bursa raised caution so people avoid getting trapped by unscrupulous quarters.

(3) Currently Datasonic enjoys an economic moat in its core business area and up to this point, we have not heard of any negative development to this effect. This includes the supply of perishables and maintenance of solutions. Based on existing order book, the recurring income for the next 2 years should be intact. Buy Call from RHB research published when the price was RM3.63 with a FV of RM4.08 holds water.

Posted by tewnama > 2014-04-07 12:07 | Report Abuse

Qiii, terima kasih. macam mana pun, kaki kontra aka semut semut tak peduli cerita macam ini. semut semut suka harga gerak cepat dlm masa tersingkat dan mahu untung cepat. majoriti sini ialah semut semut dan banyak dah lari berkeliaran.

Posted by tewnama > 2014-04-07 12:12 | Report Abuse

sebenarnya, pasaran ada banyak saham bagus. bukan hanya dsonic. tapi sebab apa tak ada orang peduli tapi hanya mahu dsonic. sebab harga dsonic panas. Semut semut dapat untung besar keluar masuk keluar masuk banyak kali. Tapi last kali ialah jumaat lepas. satu kali habis kasi balik semua untung.

Posted by Qiii > 2014-04-07 12:28 | Report Abuse

@tewnama: Terima kasih. Saya suka membaca komen abang tewnama kat forum DSONIC - Best. Bila I tengok transaksi hari Jumaat, pedih jugak sebab kelihatan macam ada orang besar balun stok ni. Ramai semut2 yang kena kau-kau.

Posted by sosfinance > 2014-04-07 12:36 | Report Abuse

1. @Qii, lets put this to a test hypothetically.

2. Dsonic profit is as actual and projected, 2013-2015 = 82m, 92m and 110m (MCap = 2400m)

3. IOIPG profit of actual and projected, 2013-2015 = 560m, 740m and 1010m (MCap = 8400m)

4. Assumed both analysts are accurate, currently projected the profit up to 2015, but unable project further, 'lack of solid data to do any projections'

5. Assuming you have net worth of RM10m today and only allow to put your money in one stock to choose for above, which would you choose?

6. We know that before last Friday, the stock is about say RM24.00 (without spit or bonus), at PE of 39x like you share, do you think the retailers will buy and keep? Similarly IOIPG can split or give bonus, say, after split and bonus it is price at RM0.28, so you think it would also attract more retailers?

Posted by tonylim > 2014-04-07 12:40 | Report Abuse

Qiii thks for the balanced write up

Posted by Qiii > 2014-04-07 12:52 | Report Abuse

@sosfinance: Very good question. Actually I won't put my money in just from that info. We make money from price movements. It is a matter of time frame. By my calculation DSONIC has an annualized historical volatility of 56% and win rate over 3 months has been consistently 100%. I will put a big chunk of money there but not all.

I do not know enough about IOIPG to comment but if the original intention of including it as part of KLCI index goes through, maybe won't park my money in it too long.

Posted by johnny cash > 2014-04-07 14:16 | Report Abuse

now datasonic very stable at 3.60,,,i think already stablize, everything priced in, most vital it is trading below rhb target price of 4.08,,, so bursa police cannot kacau lagi...now datasonic should calm down.. do not surge without any concrete news...be smarter like CMSB

Posted by Qiii > 2014-04-07 17:37 | Report Abuse

@Dakewlest, ATOZ, tonylim: Thanks.

@johnny cash: We will have to see what happens over the next two days. Still early to be too eager. Patience is key these few days.

Posted by Qiii > 2014-04-07 18:58 | Report Abuse

Wow, strike 1. That was fast. New project to manage Tenaga Kerja Indonesia (TKI) or Indonesian Foreign Workers.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1588205

We may see a confirmation of Morning Star on the daily chart tomorrow.

Posted by TheOptimus > 2014-04-07 19:02 |

Post removed.Why?

Posted by Cweed > 2014-04-07 19:05 | Report Abuse

How much is the contract amount? Also, the profit margin.

Posted by lotusf1 > 2014-04-07 19:16 | Report Abuse

The optimus is a great dud who has a heart built to be ANTIdsonic for no reason at all...he belong t d zombie world , once a while appears to harras people n then dissapears...

Posted by TheOptimus > 2014-04-07 19:29 |

Post removed.Why?

Posted by johnny cash > 2014-04-08 13:25 | Report Abuse

http://klse.i3investor.com/blogs/rhb/49771.jsp

Posted by Qiii > 2014-04-08 17:00 | Report Abuse

@johnny cash: Great. Thanks for sharing. Seems like RHB answered the question in the title of this article "Buying Opportunity".

Closing today is beautiful. The daily chart now shows a confirmed bullish reversal pattern although some might argue that the candle today is not a full "Morning Star" as it did not pierce through mid point of the bearish candle on Friday. Either way it was a convincing reversal pattern.

Posted by Bruce88 > 2014-04-08 21:04 | Report Abuse

Rebound or reversal ? Time will tell... for me still waiting.

Posted by johnny cash > 2014-04-08 21:05 | Report Abuse

@ Qiii; yes now everything is in the hand of RHB...as positive news comes in new tp will be given.. for retalers it s better not to be to speculative, cause bursa police is watching.. lucky they just gave a cautious warning only.. thanks to them

Posted by Qiii > 2014-04-09 09:54 | Report Abuse

Yeah lets see what happens today & tomorrow.