Tuesday, June 21, 2011

Market Commentary On Selected Stocks

Its a tough market this month, many combustions, IPOs and then Muhibbah, followed by MAA and out of the blue TimedotCom. Sigh, if listen to the mantra to stay away from May onwards, many of us would have lost a lot less if we went to play golf everyday.

Shares slumped after its major shareholder fixed the offer for sale of the shares at a sharp discount. Time fixed the renounceable offer for sale of up 626.18 million shares of Time dotCom at 53 sen. The offer price of 53 sen was 33.75% below the five-day volume weighted average market price up to June 17. The offer for sale is on the basis of eight offer shares for every 10 shares held in Time Engineering held as at 5pm on July 5. Time dotCom’s net asset per share was 55 sen as at March 31, 2011. It reported net profit of RM22.88 million on the back of RM70.60 million in revenue in the first quarter ended March 31, 2011.

This one was overdone a bit, yes the price was a lot lower, and certainly shouldn't it be 10% discount to the 5 day weighted average and not 33.75%? Big picture, its a good company now with its new assets. Expect a ginger climb back to sanity.

Read my posting yesterday.

Muhibbah made an announcement:

With reference to the articles in the Singapore Business Times on 15 June 2011 regarding the appointment by CIMB (the financier of APH project) of receivers and managers for APH, the Company wishes to inform that according to APH, they have identified an investor, and are in negotiations with the investor to fully finance the completion of the APH Project, including making due payments to contractors.

As this is a oil and gas project with a secured business and the said investor due to finalise its financing transaction with APH, there are reasonable grounds to hold that the receivables are recoverable in due course.
Selling is overdone. For such a big project with decent prospects, it should not be difficult to offload to another investor. Will be volatile though. Won't climb back to RM1.80 anytime soon, may find fair value around RM1.55. But do you want to hold onto a stock with so much uncertainty, what if the new investor does not eventuate. Should exit when gets closer to fair value.

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.


clearwater said...

Advisor HDBS provided further information on impact of insurance arm sale on MAA. Looks better. May alleviate some minority shareholder anxiety. Wonder why they did not provide it in the earlier announcement or did they not realize TY's market reputation and the heavy speculative interest in the counter?

CK said...

Could it be the case of Time engineering knows better about TimeDotcom than everyone else?

Wait for the fiasco of that undersea cable business to surface would be too late.

Still tune....

walla said...

for Dali and Martin:


soonyeah said...

Dali, I know your investment horizon is short term. As some of your reader don't have a lot of team to monitor the market, can you help write write up a post on "What you like for long term" ? What stocks can we contribute as a fund to buy every months to fight inflation ? Kindly advise.

KC said...

TY did it again.........selling MAAB on the cheap. How to trust him. Yes done deal which is a good thing but price is shitty comparing with other similar without life insurance.

Btw, I Have jumped in after u called to buy MAA 1.10 on 6 June , almost 50% dip since yr call , should I hold or chop off ?