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POH HUAT - NEW NORMAL IN EARNINGS?

The trade war is still an issue that is dangling without resolve. While US and China are still trading barbs instead goods and Malaysia is still without an economic direction, where is the light at the end of the tunnel? Ringgit is weak, lack of economic activities, a hole in the budget with looming up trending petrol prices and exit of foreign funds. Expect the ringgit to weaken further with the current no development of PH, a party known now as a NATO party. Further internal in fighting will only make clear the aimless direction to no where. With ringgit envisioned to stay the same level or worse, expectations that the export stocks are going to well again. With that, lets look at Poh Huat an undervalue furniture company with presence in Vietnam. Exports from Malaysia to the USA is expected to increase by 20% as a result of the trade war, so one of the beneficiary is the furniture industry with further enhancements by factories in Vietnam. Last year 2018 Poh Huat achieved an eps
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WHAT BECOMES OF MALAYSIA BARU?

It has reached almost 2 years into the new Malaysia Baru and the rakyat is still kept in the dark on the economic improvements and reforms. Has the new government climbed down from their high horses and election win euphoria and faced realities? Apparently not, our Prime Minister is still acting like the greatest politician alive and insult other government leaders such as India, Myanmar and Hong Kong. Surely that's a quick disastrous step towards bad international relations. How pompous must the other governments think of Malaysia Baru? And yet we protect wanted fugitives like Zakir Naik, to what reason? In the meantime locally, the economy of Malaysia to put it plainly...suck Back to the economy, the prevalent lack of catalysts is seen in the KLCI Index as it raced to the bottom at 1500. It has seen rebounded to 1600 mainly towards a year end window dressing activities. Without much impetus for growth, the economy seems destined to drift aimlessly scraping the bottom now and th
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ECOBUILT - WHAT A DUD?

The results for the quarter was out yesterday. Boy, was it a shocker! It was a mere 560,000 based on a revenue of 23 million. The net profit margin was just 2 percent. Other expenditure which was not summarized was 3.1 million. We could only wait for the AGM to question this expenditure. Is it a loser stock? Lets examine it. From the annual reports it shows the combination of deposits, prepayment and cash amounts to prudently circa 42 mil. Based on an enlarged shared capital of 313.5 mil, that's cash backing of 13 cents. So, its fairly comfortable with loans of 2 million almost negligible. The PV project is outsourced to RCSB so the accrual earnings are seen when the conclusion of the multiple proposals comes to fruition at 14 October, so it will be included in the accounts ended 31 Nov. So the quarter earnings is largely affected by the amount in other expenditure which yet to be questioned. Lets look forward for the quarter ended November and beyond. Both the Shore and
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SECURITIES COMMISSION - NO MORE UMA?

Don't you miss the days when there was Unusual Market Activity, at least we know there is a watchdog looking after the investors interest. Take a look at the recent meteoric rises and falls of these 2 stocks, SM Track went from 5 cents to 27 cents then receded to 13 cents while Armada went from 20 cent to 50 cents and fell to 36 cents in one day! And where is the safeguard mechanism? Has our new SC Chief fallen to PH complacency? Don't you wish for the good old days where UMAs was common and at least it probes the company for reasons? Times has sure changed...but for the better?
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WHICH IS WORST...CORRUPTION OR INCOMPETENCE

Its coming to 2 years PH has come into power, businessmen and analysts are wondering what the future remaining 3 years has in stall for the future economy. Right now, the government seems to be dragging its feet in rejuvenating the economy after the elections. Some of the Ministers are still basking on their own glory and patting themselves on their backs on winning the elections. Some are even not attending meetings and hanging around the administration. In the corporate world, persons such as those would have been fired as soon as possible. Is our leader weak? Surely such action would make the other Ministers to wake up and perform? Right now, the catalysts to drive the economy is poor and weak. This is evident by the foreign funds leaving and the poor ringgit. The promise of a stronger fiscal policy remained subdue as major projects are continuously delayed and extended. The budget promised some socialistic aspects but I believe that this would be curtailed by the surge in inflati
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SM TRAK AND OPCOM - BIG HO HAA OVER NOTHING?

With the government commitment to expand Malaysias IT infrastructure, many IT companies surges forward on this expectation particularly the optic fiber segment. I met a friend from this industry and asked if this is a great opportunity for these companies. The answer is no. The number of companies that are able to produce 5G fiber optics which carries up to 100 times the 4G speed are only a handful in this world in the region of 4 companies. So, does these Ace (hic) companies have the technology to produce the needed optic fibres? Over exuberance or fact. You decide
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EKOVEST - LATEST STUMBLING BLOCK

It is sad that the latest news for Ekovest only serve to remind us of Pakatan Harapan government flip flop behaviour in making sound economic decisions, there is now no believe or trust that a go ahead from the government is as the word meant to be. Many have even started calling this administration the u turn government. It is no wonder foreign funds are running away from this country. This only give rise to lack of confidence and mistrust amongst business community. Not surprisingly we are one of worse stock market performers in South East Asia. I believe the patting themselves on the back should stop and re-examine themselves. Back to Ekovest. The delay is government is non decisive on weather to sell the entire piece of land or retain 40%. It is also link to 2 billion bond issue to facilitate the moving of the army base (so called). The conundrum is weather retention of the 40% JV would bring ROI to the government sufficient to service the bonds. Or alternatively sell the whole l
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