Pickings From The Carnage

The sharp correction in small caps, weighed in by sagging oil prices, has now yielded some good pickup opportunities. In my view, there won't be a major correction, not with interest rates still at such low levels, even another hike up or two won't be sufficient to derail the liquidity, astute recovery in the US and pockets of EU. (Price charts courtesy of Murasaki ts).

NiHsin Resources - Substantial bulks of the shares have crossed over the last couple of weeks indicating new forces at the helm. Whispers of a good O&G outfit will be injected with new influential directors coming on board. Wheels in motion. Good opportunity now considering it was trying to break 56 sen a couple of weeks back.






Ideal Jacobs - Based on my previous postings, the deal has already be signed and submitted. Coupled with the 1 for 2 free, its a steal below 45 sen. Can buy to hold for exercise.


GBH - The Dynac RTO being called off is bad, at least there is over RM190m cash coming in. Coupled with existing cash balance of RM45m, we are looking at a company with NTA of almost RM1.50 with more than RM1.20 per share in cash. I can see no other "more attractive counter" for RTO with that amount of cash inside. Plus they have to do it with the next 12 months. Way oversold. I see fair value when you include the premium for a Main board listed counter at RM2.00 before any suggestion for an RTO, and the warrant convertible at RM1.00 by2020 is ridiculously over sold as well.






Ireka - A no brainer as their main asset will be unwound and delisted which will bring forth a likely cash dividend of almost RM1.00. Only issue is investors will have to hold for 6-12 months for value to be unlocked.







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). I may already have positions in the stock mentioned above. 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.

Comments

Unknown said…
Anyone claiming to inject Oil and Gas to Boost earnings is not doing the company a favour.

O&G activities will be slowing down in the near term. Those SPAC companies are heading towards rough waters and some may not even make it.
Kevin Wong said…
Every mart correction over the past 5 years, had been a buy opportunity. This of course can't go on forever. Even if a investor had been fully invested just before the dotcom crash of Feb 2000, he/she would still be making lots of money today despite many market pullbacks & another even bigger crash in 2008, if he/she have a well diversified portfolio of fundamentally sound counters.
solomon said…
My budget wish list is to have our education revamped and at par with international level. If the govt thinking to revamp the GLC corporate and dumped billions, please look at the root of all causes...education system.