Monday, May 17, 2010

Some Comments About Hot Stocks

So we now have the debacle on Sime Darby, causing the stock to lose 40 sen. Censuring the CEO is a good move by the board, but the Bakun thing has been around longer than his tenure. The board also has to shoulder some responsibility for not asking for better risk controls years earlier, this did not happen overnight. Are the losses capped? Do we have the full picture? I don't think the board has the full picture, but the moment they do, they should tell all to investors, otherwise the stock will keep falling.

All things being equal the division is only a small part of their revenue and profit base, hence it should be good pickings should it dip to RM7.60-7.80.

As for Transmile, even if Pos Malaysia decides to buy over, its not going to solve Transmile balance sheet. Its NTA is less than 10 sen, go figure. Avoid.

Ascot and Berjaya Group. The license was given and taken back 2 or 3 times already. Why is this time any different? Previously it was just an off course betting for horse racing. This is more for sports betting. One can claim that the deal looks good for B Group because Vincent Tan is already guaranteeing the bulk of its profits. It looks good on paper but the thing should deliver first. There will be plenty of time to buy then. What is the rush?

Tebrau and the Iskandar stocks look like gearing for a move. They did a huge conference in Singapore recently which was overbooked by 3x. News of more signups and project launches in the works. Caveat emptor though.

Amanda Strang

Unisem may have reached a peak above RM3.00 judging from the newsflow of quarterly earnings from similar industry players in the US. Take profits.

Though I hammer the need for Proton to exists, but as a stock, if it succeeds in a joint venture, will raise fortunes for Proton to above RM6.00. Looks likely to have a wave of positive newsflow.

NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.


kl said...

Sime Darby - Now managed like another unwieldy GLC since the absorption of the other plantation counters. Not impressed with it.

Berjaya Group/Ascot - Never liked its well deserved reputation. Have lots of beef with its management's integrity. Won't touch anything to do with it no matter how sound the fundamental business.

Unisem - Agree, appears the peak has been reached. Time to harvest profit.

wong said...

hi. how u think the chance of deal between Proton and VW will success? Technically, proton quite bullish. What is Proton values if having VW as partner? thx......

BBC said...

You should look at arbitrage opportunities in M3nergy

Melinda jon said...

Thank you for such a fantastic blog about Stocks.

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