Posted by passerby > 2013-03-11 19:51 | Report Abuse

kchongnz: you are holding any of this ?

Posted by kcchongnz > 2013-03-12 03:54 | Report Abuse

Just sold off a couple of days ago at 1.09, itchy fingers again. Seriously this company has good growth in revenue and earnings, good cash flow from operations, excellent management, Sterling operating performance, low solvency risk; and yet trading at undemanding valuation. What else do you want? Yeah I know i know, nobody goreng one! Yeah I know i know, no analyst reports. Yeah i know i know, the management not telling you they are going to have this and that corporate exercise, going to grow by 25%, 30%, 50% etc.

Posted by kcchongnz > 2013-03-12 04:14 | Report Abuse

Oh, passerby, I was talking about the underlying share, not the warrants.

For the warrant, at 21 sen, it is trading at a premium of 36% and an implied volatility of 25%. I have taken into consideration of its dividend yield of 4.8%. My opinion is the warrant is fully valued. A good punt if you are bullish about Freight as the gearing is 5.3 times.

May be I should buy the warrant instead.

Posted by passerby > 2013-03-12 09:44 | Report Abuse

kikikiki, you forgot the most important thing le, no volume :)

Posted by kcchongnz > 2013-03-12 13:42 | Report Abuse

Oh yeah man, passerby. Thanks for pointing out. Freight has no liquidity. That makes it a rotten lemon. But I can't understand your concern about freight of this "poor liquidity" as I have tabulated your return, short-term as well as long-term as below.

12/03/2013 1.11
Period 2-week 6-month 1-year 2-year 5-year
Price 1.010 0.900 0.900 0.740 0.610
Return 9.9% 23.3% 23.3% 50.0% 82.0%

Those returns exclude dividends, and also your free warrants you get last year. Can you tell me why are you so disgruntled about this "no liquidity" of Freight? Are you so greedy one?

Posted by tonylim > 2013-03-12 14:13 | Report Abuse

Kcchong, good one as usual

Posted by passerby > 2013-04-24 15:00 | Report Abuse

you guys notice they are sending the WA for conversion ? :)

Posted by kcchongnz > 2013-04-24 15:44 | Report Abuse

At the price of Freight now at 1.29 and warrant at 30.5 sen, the warrant is trading at a small discount of about 1%. That may be why somebody sent for conversion just to get that small gain. But this is an unwise decision as the warrant has 4 more years before expiry and there is some good time value there. Unless of course if there is a big dividend pending.

Posted by passerby > 2013-04-24 15:50 | Report Abuse

so you are in WA play for this now?

Posted by passerby > 2013-04-24 15:56 | Report Abuse

there a some short period when WA in discount to mother share

Posted by kcchongnz > 2013-04-24 15:56 | Report Abuse

Not yet, just missed that 30.5 sen sell quote, because I was writing to respond to your post. Your fault.

Posted by houseofordos > 2013-04-24 15:59 | Report Abuse

how does this counter compare to TASCO

Posted by passerby > 2013-04-24 16:01 | Report Abuse

what la, you can place your order 1st before replying ma. looking for excuse

matter related to $$$ always contractor top priority , other can wait. i thought it always work this way what ? no :)

Posted by kcchongnz > 2013-04-24 16:05 | Report Abuse

Actually I made the mistake again. I should have grabbed it when there was a sell quote at 30.5 sen. Instead I put a buy quote at 30 sen. Stupid!

Posted by kcchongnz > 2013-04-24 16:09 | Report Abuse

house, this was what I wrote some time ago.

Posted by kcchongnz > Jan 29, 2013 09:22 PM | Report Abuse X

Freight's 2012 ROE of 16.35% is good (>15%). The profit margin of Freight of 6.4% is slightly lower than Tasco and Century. But its way of doing business requires less assets as its basic earnings power (ebit/total assets)is much higher at 15% compared to those of Tasco and Century which is about 9.3%. It has higher asset turnover of 1.5 too and a good use of its financial leverage at 1.74 which both boost up its ROE. D/E ratio of 0.23 is still manageable with ebit of 18 times interest payment.

Using a discount cash flows analysis of owners' earnings, and included the deduction of the value of its warrants estimated by Black-Scholes Option Pricing Model, the intrinsic value of Freight is RM1.62. The followings are data and assumptions:

Current revenue: 327m
Net income 2012: 20.9m
Growth for next 5 years 8%, and 3% subsequently
Required return: 10%, ie 6% risk premium over MGS long-term rate of 4%

Hence at RM1.00 at today's close, the margin of safety is 38%, larger than my requirement of 30%. Good buy.

Posted by houseofordos > 2013-04-24 16:44 | Report Abuse

kc, as usual thanks for the great info... wished i had looked at it earlier !

Posted by arv18 > 2013-04-24 16:46 | Report Abuse

this is a great stock. really taken care of its shareholders too. kudos!

Posted by arv18 > 2013-04-24 16:47 | Report Abuse

the actual freight management, not the warrants. i personally don't bother with warrants.

Posted by passerby > 2013-05-15 15:24 | Report Abuse

lol, so now people put more money into the WA than mother share :).

if you are contra kaki, you better watch up :)

Posted by reachabbler > 2013-05-15 15:26 | Report Abuse

Warrant price too low compared to mother.

Posted by passerby > 2013-05-15 15:31 | Report Abuse

my worry come true...peoples start thinking WA cheap compare to mother,lol. i'm good in reading people mind nowadays

just hope got more people like arv18 who don't play any WA now

Posted by reachabbler > 2013-05-15 17:00 | Report Abuse

no worry. I don't like warrant.

Posted by tonylim > 2013-06-04 13:11 | Report Abuse

.

Posted by passerby > 2013-06-04 17:34 | Report Abuse

are you the one who cut my queue this morning? .....

Posted by KAHFIEHLAI > 2013-06-04 17:38 | Report Abuse

Cut the Q! How???

Posted by passerby > 2013-06-04 17:40 | Report Abuse

sorry, jump queue, wei, don't la like this :)

Posted by tonylim > 2013-06-04 17:41 | Report Abuse

Hey .. who me ?

Posted by passerby > 2013-06-04 17:41 | Report Abuse

yup, you got it at 0.41?

Posted by tonylim > 2013-06-04 17:44 | Report Abuse

Passerby it must somebody from the desert of timbuktu

Posted by KAHFIEHLAI > 2013-06-04 17:54 | Report Abuse

Passerby
Nevermind...go for Marco Wa ....

Posted by tonylim > 2013-08-13 17:42 | Report Abuse

very strange announcements.

PUBLIC SHAREHOLDINGS SPREAD

FREIGHT MANAGEMENT HOLDINGS BERHAD

Type Announcement
Subject PUBLIC SHAREHOLDINGS SPREAD
Description FREIGHT MANAGEMENT HOLDINGS BHD - NOTIFICATION OF NON-COMPLIANCE WITH PUBLIC SHAREHOLDINGS SPREAD REQUIREMENT PURSUANT TO PARAGRAPH 8.02(1) OF THE MAIN MARKET LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD

The Board of Directors of Freight Management Holdings Bhd (“FMHB” or “the Company”) wishes to inform that the Company is not in compliance with the public shareholdings spread requirement pursuant to paragraph 8.02(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”) (“Public Shareholdings Spread Requirement”). Based on the Record of Depositors as at 28 June 2013, the public shareholdings spread is 22.27% i.e. a shortfall of 2.73% from the minimum requirement.

As at the date of this announcement, the Company has yet to formulate any rectification plan but will explore various options available to increase 2.73% of its public shareholdings spread. The Company will meanwhile promote its shares to its employees by encouraging the employees (including Senior Management Staff) to purchase Company’s shares from the open market and to hold these shares for long term investment purposes.

The Company also encourages potential investors and other stakeholders to invest in the shares of the Company via periodic investors relation activities and analyst briefings.

FMHB will apply to Bursa Malaysia for an extension of 6 months to rectify the shortfall in the public shareholding spread.

This announcement is dated 13 August 2013.

Posted by penunggu > 2013-08-13 17:48 | Report Abuse

I also find it weird.......so many moons nothing on the shortfall of public shareholding spread, out of sudden today they announced this issue....

which major shareholder have increased their stakes but yet to make announcement ?

Posted by luzeeker > 2013-08-17 00:40 | Report Abuse

Shouldn't be surprise, saw some huge warrants conversions. If the big boys convert their warrants, their holdings would have increased as others have yet to convert

Posted by penunggu > 2013-08-17 16:55 | Report Abuse

making sense...gracious luzeeker

Posted by kcchongnz > 2013-10-08 13:01 | Report Abuse

I was wrong on Freight Wa when I used Black-Scholes Option Pricing to value it.

Posted by kcchongnz > Mar 12, 2013 04:14 AM | Report Abuse X
Oh, passerby, I was talking about the underlying share, not the warrants.
For the warrant, at 21 sen, it is trading at a premium of 36% and an implied volatility of 25%. I have taken into consideration of its dividend yield of 4.8%. My opinion is the warrant is fully valued. A good punt if you are bullish about Freight as the gearing is 5.3 times.
May be I should buy the warrant instead.


Warrant price depend very much on the underlying company's future prospect, not merely its share price according to the BS OPM, nor the liquidity or non-liquidity of its underlying shares. As the company business gets better, its share price increases in tandem, and the warrant price increases by a much higher rate in accordance to its gearing.

Freight warrant is trading at a 7.4% discount now at 54 sen when the underlying share price is 1.63, with a gearing of 3 times. This appears to me to be a very low risk investment, with good potential of upside.

This is because Freight has been doing well in very steady manner year-on-year in term of growth in revenue and profit. I first got to know about this company through a forumer here named luzeeker. He has written some very good articles about Freight in his blog. Hope he can update us his view on Freight.

Posted by passerby > 2013-11-22 11:21 | Report Abuse

anyone complaining? low volume doesn't matter mah....so long....it goes up :)

Posted by nightshade > 2013-11-22 15:15 | Report Abuse

i also don't know why they keep complaining.....memang tak paham

mau invest like pussy complain....wanna fight like gladiator complain...

Posted by tonylim > 2013-11-22 15:42 | Report Abuse

kcchong, *wink wink*
Got buyer wor

Posted by RonnieKimLondon > 2013-12-03 00:32 | Report Abuse

Freight Management has been reporting a profit every year since it was listed.

It is one of the best managed logistic companies in the Asean region. It has this asset light model, initially pointed out by investment guru Mr KC Chong.

Posted by trader8899 > 2014-07-11 08:54 | Report Abuse

for a growth stock and the pricing of warrants close to its mother share it is a no brainer investment.