Skip to main content
Lion Forest Industries
Attractive Trading Patterns

Lion Forest Industries, which was featured in my blog on Mega M&A Deals In Malaysia on 22 May, has been trading attractively for the past 3 days. Its stock code on KLSE is 8486. While every single market in Asia dwindled and dawdled on Monday and today, the buying pattern has been very solid in Lion FIB for the past 3 days (you can check out the buying which looks like strategic accumulation, but not very subtle, which leads me to believe the buying is largely genuine rather than syndicate based). As mentioned, the NTA is RM8.21, hence any deal to sell should be struck around RM6.50-RM7.00 at the bare minimum.

LFI through its 97.78% owned subsidiary, Sabah Forest Industries Sdn Bhd is Malaysia's largest producer of printing and writing papers. SFI's main products are paper, pulp, sawn timber, plywood and commercial logs. The subsidiary also produces other products like building materials, lubricants, spark plugs, industrial equipment and automotive components. The respective annual production capacities of SFI for its various products are 150,000 MT for paper, 120,000 MT for pulp, 100,000 m3 for sawn timber, 120,000m3 for plywood and 500,000m3 for commercial logs. In addition, approximately 30% of its wood-based products are exported to countries in the Middle East and the Far East. LFI has a NTA of RM8.21 a share, and even if it is not offered up to its NTA value, market expectations are that its assets could easily fetch around RM6.50-RM7.00 a share. That may be below NTA but it's still a rich price relative to its current share price of below RM4.00.


boyplunger said…

I noted LionInd and LionFib moves in tandem. So would buying into LionInd be better? Appreciate your views. Cheers.
Salvatore_Dali said…
Lion Ind for trading purposes, Lion FIB for medium term hold as you don't really know when the deal will be struck.

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.

My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.

I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.

My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.

Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:

p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far

I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…