Getting stronger and if posibly can hit above 4.50 b4 climbing higher . Frequent up down and many contra players love to play this stock and yet many make money out of it .
Pan Borneo highway needs so much cement that Cmsb factories must operate day and night 24 hours daily for at least 5 long years. Imagine the astronomical profits
CMSB - ITS DEFENSIVE NATURE & ITS PROSPECTS IN EAST MALAYSIA
1) CMSB - A CEMENT MONOPOLY
In West Malaysia Cement Players are CIMA (Taken private by UEM Group), TASEK CEMENT, LAFARGE CEMENT & YTL CEMENT (Taken private by YTL)
But in Sarawak Only One Major Player - CMSB. So CMSB Has A Defensive Moat
2) CEMENT Cannot Be Imported from China - Unlike Steel. While China has dumped steel into Malaysia the same cannot be done for cement. Why? Because Cement has a very short shelf life. Cement is bulky & cannot last more than 1 to 2 months. So the quality of cement will deteriorate by the time it arrives from China.
And For Cement aggregates (those transported by cement trucks with rotating drums) the shelf life is only 1 hour.
One hour?
Yes! One hour only. My friend who has a cement batching plant in Kota Tinggi cannot deliver his Aggregate cement to JB CBD. Because it might take more than one hour to reach JB Down Town. And if it exceeds 1 hour the cement aggregate will be rejected. More than that. The dump truck must also find a place to discharge the cement. Or else there will be more problem when the cement hardens.
This is the 2nd potent reason why CMSB is like a fortress against competition.
3) SABAH & SARAWAK STILL HAVE VAST ROOM FOR DEVELOPMENT
Since East Malaysia is only less than 10% developed there is Bright Future for CMSB. CMSB will be around for the next 30 years as a dominant cement player.
4) BN Will PUMP IN MONEY FOR 2016 EAST MALAYSIA ELECTIONS
PM Najib has already promised a Whopping RM27 Billions for a New Pan Borneo Highway - About Twice the Length of PLUS North South Highway.
With Consumer Stocks reeling from GST & With Govt coffers full BN Will Have Enough Money to Strengthen Its Strongholds of Sabah and Sarawak. The next Election might be a Do or Die Battle for BN - And So The Urgency For BN Sponsored Projects accelerate!
Strong resistance at RM4.80 and above. Now the main theme play is the aquisation of SACOFA. Don't know what can be the next catalyst regarding SACOFA? If it can surpass RM5, then it can go up very fast just like before bonus/split issues.
EPF is in accumulation mode. The strong resistance could be due to purposeful sell down by EPF to prevent CMSB share price from sudden spike upward.
Anything below RM4.80 is a bargain.
These are the figures for 9MP & 10MP
For 9th Malaysia Plan PM Badawi initially awarded RM200 Billions. Later he added another RM30 Billions. Total was RM230 Billions.
For 10th Malaysia Plan PM Najib matched PM Bawadi at exactly RM230 Billions.
What about the coming 11th Malaysia Plan for Year 2016 to 2021
Among the 10MP purported projects were
"PUTTING IN PLACE WORLD CLASS INFRASTRUCTURE FOR GROWTH"
Iskandar is already Criss-Crossed by World Class Highways (Iskandar is BN Stronghold)
Since Both Sabah & Sarawak are both BN "Fixed Deposits"
Expect BN To Pump in more than RM27 Billions in the Mother of All ETP.
Check again. Google Miri - Bintulu Highway on youtube. The current Pan Borneo Highway is only a 2 lane track. To make it "WORLD CLASS INFRASTRUCTURE FOR GROWTH" BN GOVT MUST EITHER WIDEN IT TO 4 OR 6 LANES HIGHWAY OR BUILD AN ENTIRELY NEW ONE LIKE PLUS NORTH SOUTH HIGHWAY.
AND THIS IS THE FINAL 5 YEAR PLAN BEFORE YEAR 2020. NO MORE TIME LEFT FOR INDECISION. EITHER NOW OR NEVER!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
michaelwong
3,072 posts
Posted by michaelwong > 2015-03-24 18:39 | Report Abuse
Getting stronger and if posibly can hit above 4.50 b4 climbing higher . Frequent up down and many contra players love to play this stock and yet many make money out of it .