Posted by Alexi > 2013-04-04 21:35 | Report Abuse

It has standing around 71 to 75 quilt sometime, its time to up!

Posted by bbull > 2013-04-06 09:37 | Report Abuse

pantech...cheapest ONG stock...pay dividend 3x a year
easily 0.90 tp

Posted by danchong > 2013-04-06 11:16 | Report Abuse

4x the chart looking bullish as well

Posted by kcchongnz > 2013-04-06 12:10 | Report Abuse

Cold Eye’s 5 yardsticks for Pantech

Yardstick 1: ROE
Pantech’s 2013 ttm ending 30/11/2012 net income is of 53.1m, or EPS 10.7 sen. With its net asset backing per share of 74.3 sen, ROE is 14.4% which is about the benchmark of 15%. This is ok as it was achieved with a total debts of 44% of total capital (<60%).

Yardstick 2: Cash flow and free cash flow
The cash flow from operations (CFFO) for the three quarters ending 30/11/2012 is 47.1m. This is 111% of its earnings of 42.4m. This shows the quality of the earnings is good. After spending 36.3m in capital expenses, there is a free cash flow (FCF) of 10.8m. This FCF is at 2.2% (<5%) of its revenue which is a little on the low side. As Pantech is growing very fast in revenue and earnings, these little low free cash flows are considered tolerable.

Yardstick 3: PER
Pantech is trading at 76 sen at yesterday close. With EPS of 10.7 sen, the PE ratio is only 7.1 (<10). This is a reasonably low PE and considering that it is a fast growing company.

Yardstick 4: Dividend yield
Pantech is expected to pay about 5 sen in dividend, or a dividend yield of 6.6%. this is very good as it is twice the fixed deposit rate.

Yardstick 5: NTA
The net asset backing per share of Pantech is 74.3 sen. Hence at a share price of 76 sen, the price-to-book value is 1.0 (<1.5) which is reasonable low.

Yardstick 6 (Non Cold Eye yardstick): Growth
The CAGR of Pantech’s revenue and net profit for the last five years was 37% and 5% respectively. Last year’s growth was 30% and 17% respectively. The revenue growth of Pantech has been very high. Its net profit, especially initially just after the sublime crisis was not encouraging. However there is clear sign that the profit growth has resumed last years.

Pantech meets most of the criteria of Cold Eye as an investment grade stock except for its free cash flow. However, for a very high growth company, the mediocre free cash flow is tolerable as it requires cash for its growth. Yes the most attractive attribute of Pantech is its expected high growth for the next few years due to the growth in the oil and gas industry worldwide. Yet it is selling at a reasonable valuation.

Posted by gark > 2013-04-06 12:22 | Report Abuse

Buying pantech now eh...

Posted by danchong > 2013-04-06 12:27 | Report Abuse

kcchongnz, GOOD JOB!

Posted by gark > 2013-04-06 12:39 | Report Abuse

kcchongnz.. might want to look into the LA.. guaranteed interest + leverage..

Posted by tonylim > 2013-04-06 13:03 | Report Abuse

Kcchong, good die.
As usual thks for the notes.

Gark, whats the conversion rates n coupon rate.. 2%

Posted by gark > 2013-04-06 13:10 | Report Abuse

coupon is 7%, conversion 6 ICUL = 1 share

Posted by gark > 2013-04-06 13:12 | Report Abuse

Expiry 2017

Posted by kcchongnz > 2013-04-06 13:13 | Report Abuse

gark, i bought Pantech long ago already oh. I also got LA. Lets discuss which is better here.

You need 6 LA to convert to one Pantech share. Hence the equivalent cost is 75 sen (6*12.5 sen), compared to the share price of Pantech at 76 sen. LA gives an interest of 7% a year, which is quite the same as the dividend yield of Pantech. So both the mother share and LA appear to be of the same value. But I think there is an additional value for LA, ie the option value to convert to the mother share from now to 31/12/2017.

I made an estimate of the value of LA, dividing it into an investment value for the interest it is giving; and the option value with some assumptions (I know, i know, assumptions again and of course bullshit a bit again).

Required return for LA 5.5% (3.5%+2% risk premium)
Implied volatility of Pantech 28%

The value of LA is estimated to be 14 sen which is made up of 10.8 sen of investment value, and 3.2 sen of option value. So LA appears to be about 11% undervalued in relation to the mother share.

Posted by tonylim > 2013-04-06 13:38 | Report Abuse

Is it cumulative n redeemable.
Sorry to ask sir

Posted by tonylim > 2013-04-06 13:39 | Report Abuse

Darn i sailang on warrants. Gettin impatient.

Posted by tonylim > 2013-04-06 13:42 | Report Abuse

Kcchong honestly i dont quite like their high inventory level but i was told they are like a o n g hyper mart

Posted by kcchongnz > 2013-04-06 14:28 | Report Abuse

Pantech LA is an ICUL, irredeemable convertible unsecured loan stock.
Yes Pantech's inventories is high. Inventories turnover is 5-6 months. But its inventories has always been in that magnitude. So is there a concern as it is not increasing? An O&G hypermart needs high stocks, don't they?

tonylim, why you don't buy Pantech or its LA? Its warrant at 30.5 sen is overvalued at an implied volatility of 49% when the mother share is 76 sen. Always remember, if the company pays high dividend, it is a disadvantage for the warrant holders because they don't enjoy it. But again this may be basing on some bullshit option pricing.

Posted by iafx > 2013-04-06 14:30 | Report Abuse

hahahaa...

Posted by kcchongnz > 2013-04-06 14:35 | Report Abuse

Posted by iafx > Apr 6, 2013 12:21 PM | Report Abuse
hahahaa...

Posted by iafx > Apr 6, 2013 02:30 PM | Report Abuse
hahahaa...

This fellow "shot" already ah?

Posted by tonylim > 2013-04-06 14:48 | Report Abuse

Kcchong no worries la. We are on the same page.It can become bs pricing if the outstanding warr n LA is small in a bull bear situation. IV works under normal circumstances. No bs.

Dude u bght some daiman, didnt you?

Posted by tonylim > 2013-04-06 14:49 | Report Abuse

Iafx. ... Hahaha

Posted by kcchongnz > 2013-04-06 14:59 | Report Abuse

Posted by kcchongnz > Mar 14, 2013 06:32 PM | Report Abuse X

Tonylim as promised. But you must understand this is the opinion of a novice armchair investor.

I look at Daiman as a company don’t bother much about developing its land bank at all although it seems to have a lot of good land in Johore, over 400m in book value. It has too much assets, hard cash of over 200m, or 1.00 per share, 257m in investment properties (hotels?). Past records have shown that it is a no growth company. Its average net income has been bouncing around 40m since the last 7 years. Daiman’s management “eat full already and sell pau” (meaning they are not interested in developing its land) only. It is clear if you look at its pathetic ROE of just 4% all these years, achieved with a very low asset turnover of 0.2, although the net profit margin is high at 23%.

However, if you look at Daiman as an asset play, then it is another story. Its hard cash plus its land bank, investment properties, property development costs and other investment are worth 930m. After taking away its total liabilities of 216m, Daiman’s valuable assets is worth at least 714m, or 3.37 per share. This excludes its PPL, receivables, inventories etc of about 280m.

So what is the true value of Daiman depends on how you look at it. Is Daiman going to liquidate its assets and return the cash (4.61 net asset backing per share) to its shareholders? Highly unlikely in my opinion. Are they going to be more aggressive now in their development? How the hell I know?

This is why scuttle-butting is required to be done by tonylim and iska.


See, I like Daiman's assets but not its operating efficiencies and its management. Its ROE has been very low at 4%! So I didn't buy. So miss the boat loh! But my investment philosophy won't change.

Posted by iafx > 2013-04-06 16:00 | Report Abuse

eh?? hahahaa... see: http://klse.i3investor.com/servlets/forum/900197303.jsp?ftp=1

Posted by kcchongnz > 2013-04-06 16:29 | Report Abuse

Posted by iafx > Apr 6, 2013 04:00 PM | Report Abuse
eh?? hahahaa... see: http://klse.i3investor.com/servlets/forum/900197303.jsp?ftp=1

What the hell is this? One head full of dew water. You "short" already ah?

Posted by iafx > 2013-04-06 17:47 | Report Abuse

Posted by kcchongnz > Apr 6, 2013 04:13 PM | Report Abuse

Oh I am extremely glad you re-post my post here.

as u wish:

Posted by kcchongnz > Apr 6, 2013 09:24 AM | Report Abuse

Posted by 66300 > Apr 5, 2013 07:34 PM | Report Abuse Kcchongnz, you not only have substance but can also play with court jesters. You have my full respect.

66300, thanks for the compliment (I hope it is and that nobody accuses you as my double identity). Actually I have no intention to “play” with court jesters. Like what passerby accuses me of being so free 24/7; gark told me not to waste time on troll; Melvin asked me not to argue with idiot; FCTB asked me to ignore retard etc but that is not the point. I am just acting as a socially responsible citizen of Malaysia. Let me explain. Now you read the statement below:

Posted by iafx > Apr 5, 2013 11:17 AM | Report Abuse hahahahaaa... sorry lah, there is no roe, car, yard sticks lah, wonderwoman table lah, undervalue lah, great growth lah, cold-eye lah, w.buffet lah, graham lah, biz prediction/assumption lah, if here if there, this lah that lah... :D :D :D :D u can easily verified the comment via thestar.com.my, nothing personal, nothing complex, no "home made" report... afterall, market speak for itself -kopitiam view :D

I know lah this statement is aimed at who else but don’t you think it is dangerous especially for newbie trying to get some advice in i3 to invest in the stock market? This is telling others to tikam in the stock market. Seriously for small time retail investors, you can’t beat the insiders and manipulators. So I offer a different view which I think is important, that if one wants to put his hard-earned money at risk, he has to know something about the business of the company, some numbers like ROE, cash flows etc. But see how this fellow tells others when someone asked me to explain ROE that ROE=Net income/Equity:

Posted by iafx > Mar 25, 2013 11:01 AM | Report Abuse shareholder equity is not assets - liabilities, don't mix up ROE to ROTA

Posted by iafx > Mar 25, 2013 01:30 PM | Report Abuse sigh, don't mix up owner equity to shareholder equity, wrong roe calculation can lead to Holland... of cos, not for those with "agenda"

I was trying to explain a very basic concept of accounting important for investment when someone asked me. But why did he said I have “agenda”, and lead others to Holland? By guessing what he has posted above, he is telling others that equity=total assets, and ROE=NI/Total assets. Shouldn’t I correct this as a responsible person so that others not well versed of basic accounting are not misled? People like Desmond Liew laughed and think it is an amusing entertainment, but this to me is a serious matter, you are risking your money and you must know the basic concept.

Each time I try to convey some investment ideas and that fellow said I si-tipu ah, si-roti-canai ah, bullshit ah, trying to promote and sell high to you all ah, cheating ah, terms like taufu lah, stupid lah, “she” lah, “her” lah, “wonderwoman” lah (Hey I got kokotiaw one you know, you got or not?). If I keep quiet all the time, eventually with this brain washing by this guy, everybody would think that I am such a person.

I also need to offer what I think is prudent investing because this fellow’s have been telling others that one absolutely must invest in liquid stocks, stocks covered by many investment houses, Kenanga and Equity Tracker a must. Academic research has shown that extra-ordinary returns are not from those stocks mentioned by him. Investors should understand that what is good for the croupier is not good for the customer.

Well anbz, thanks for the advice but each time this so-called quarrel came up, it was not me who started it off first. I could have stfu and not arguing with this fellow. But I have a bigger picture to look at; i.e. for the greater good of the investing community here, hehehe.

Posted by Josh Ong > 2013-04-08 13:15 | Report Abuse

Hi Kcchong, I found that your comment quit valuable. Thanks. Anyhow, I still thinking whether to in or not in this price. I'm struggling and I still have 50% to decide buy or not buy in Pantech. I started accumulating pantech since 2 years ago and the latest transaction was in mid of march. Please do advice is it good to leverage my capital into Pantech. Im clear on my direction previously but now i totally lost because of election concern that will happen recently....

Posted by kcchongnz > 2013-04-08 13:32 | Report Abuse

Josh, I got no idea at all if the GE will affect the market or not. this type of thing to me is very hard to predict. Whether to buy more Pantech or not, it is also your call. I have given my opinion about the company, its loan stock and its warrant. You have to make your own judgement.

As far as "to leverage your capital", does it mean use some borrow money to buy? For me I don't think it is a good idea. But to tell you the truth, 4 years ago I did exactly the same thing, ie to leverage my capital to invest. This was because I thought the valuation is too low at that time. Thank God I was lucky to make that decision. If it is the situation of the market now, I wouldn't have done it.

The other thing is while many good investors say not to hold many stocks, or what Peter Lynch called "diworsification", I think having at least about 10 stocks as a diversification is a good practice.

Posted by freonsf > 2013-04-09 10:04 | Report Abuse

is it still good to buy in?

Posted by Josh Ong > 2013-04-09 14:13 | Report Abuse

I just bought in this morning in lower price... :)

Posted by Andrew Law > 2013-04-09 14:24 | Report Abuse

i got PANTECH at it lowest. 0.46 about 6 to 9 month back

Posted by tonylim > 2013-04-09 14:28 | Report Abuse

Ah chong your holdings dates back to 2008?
Wa lau index more than double

Posted by bbull > 2013-04-10 06:39 | Report Abuse

Pantech - A Glowing Outlook
Date: 04/02/2013

Source : OSK
Stock : PANTECH Price Target : 1.00 | Price Call : BUY
Last Price : 0.765 | Upside/Downside : +0.235 (30.72%)

Back


We came away from Pantech's analysts briefing last week feeling upbeat on the group's future outlook, buoyed by: i) its RM298m order book, which will keep it busy until July 2013, ii) its stainless steel division has reached breakeven, iii) Nautic Steel's expansion will boost earnings significantly, and iv) the O&G sector's operating environment is favourable for the group as a whole. Maintain BUY, with our RM1.00 FV based on 9x its FY14F PE.




Source: OSK

Posted by kcfan > 2013-04-10 07:48 | Report Abuse

Slow and steady counter.Support 1st target price at RM1.

Posted by kcfan > 2013-04-10 20:04 | Report Abuse

Awaiting year end financial and dividend announcement by end of April soon.Nice in $$ words coming by insider news.

Posted by bbull > 2013-04-11 07:34 | Report Abuse

really slow
need CIMB promoter to kick start it

Posted by Josh Ong > 2013-04-11 16:16 | Report Abuse

KCfan, share share a bit what is the good news!

Posted by kcfan > 2013-04-13 10:29 | Report Abuse

Based on good financial performance quarterly, inexpensive valuation & potentially technical and business outlook, Pantech could be a good stock for investment. However, the company's financial position is mixed and the company needs to address its high gearing as well as its high inventory.
For me, Pantech is deemed inexpensive.

Posted by Ng MC Angie > 2013-04-13 13:57 | Report Abuse

Is it value to buy now

Posted by Ng MC Angie > 2013-04-15 12:11 | Report Abuse

When d price can go up

Posted by hyq1121 > 2013-04-15 19:50 | Report Abuse

guys, have u all received interim dividen ex-date 18/3/13?

Posted by Ng MC Angie > 2013-04-15 22:27 | Report Abuse

just go in , immedialy drop. How??....

Posted by Josh Ong > 2013-04-16 09:53 | Report Abuse

Sell it :)

Posted by freonsf > 2013-04-16 09:59 | Report Abuse

why sell? hold la, good prospect in future.

Posted by Josh Ong > 2013-04-16 10:16 | Report Abuse

Miss Ng worry about her money....

Posted by Josh Ong > 2013-04-16 10:26 | Report Abuse

And she hope her share that she bought will raise immediately after she bought and will never drop....

Posted by lmf_hau > 2013-04-16 10:43 | Report Abuse

Angie Ng,

R u really know what r u doing ???

R u hoping all stock u bought will immediate rise madly until limit up everytime ???

Do u understand the nature of stock mkt operation ???

Please clarify the above b4 u further involve into Stock Mkt.

Posted by Ng MC Angie > 2013-04-16 16:08 | Report Abuse

Of course. Everyone have to wait for opportunity .but refer to d financial ac d company is better n better. Am I right.

Posted by ctw101 > 2013-04-19 13:29 | Report Abuse

h, can anyone advise how to convert Pantech-LA to mothershare? at what price? can be converted before expiry? there dont seem to have any movement on LA lately....

Posted by Josh Ong > 2013-04-23 14:45 | Report Abuse

I jumped out from boat. See you again after election, pantech!

Posted by Greenpower > 2013-04-23 20:18 | Report Abuse

Hello pantech, do something to be more exciteting.

Posted by kcfan > 2013-04-24 07:49 | Report Abuse

Coming financial announcement on 31st Apr.Foresee better financial results plus dividend giving.

Posted by freonsf > 2013-04-24 08:08 | Report Abuse

kcfan...31st April???