SHAREWALKER RANCH

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 ...

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...

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 ...

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?

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 inf...

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

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...

Jaks seems to be the flavour of the month as its meteoric rise from the 70s to 1.00 was fast and aggressive, but perhaps too aggressive? This company is not without its problems. Its has a litigation case where it has lost 50 million ringgit to the Star but now appealing. Surprisingly it has not been provided for in its books. That's just a time bomb waiting to happen. They are also stuck with a dead mall in Ara Damansara which will be constantly eating into their profits. The property division is also losing money to the tune of 34 million! So where is the earnings coming from? It is due from the JV to build the power plant, a recognition work in progress from construction. An accounting procedure. Take note that there is a cashflow deficit of 57 million in his latest books. I believe there could be a possible cash crunch in the near future. Better times to come? Remained to be seen......

Since the last article Inta has attracted some investors to move up to 28 cents but was sold down to 26.5 cents again. The question arises as who would sell a company that has a 41% growth rate plus a PE of 5. The operator. Results are usually at the end of November 2019, the move upwards towards fair value will begin soon.....The expected trend upward will start when it breaks 28 cents with volume. There is no looking back now as it is rock bottom now and the only way is UP.

There seems to be whispers in the corridor that Bandar Malaysia would be injected into a new listed company. The Joint Venture is between IWC CREC and the government at 60:40 ratio. How could the government partake in the JV if the project is injected into Ekovest or IWC? Surely in order for it to be equitable it must be a new company where they are rank parri passu equal. Hence, the press release on April 22? Remain whispers in the corridor until the truth is revealed.

E kovest has rebounded from a low of 73 cents to 81 cents since the budget announcement that the mammoth Bandar Malaysia project is to carry on. But one wonders why Ekovest has not move up with the official announcement. Surely it provides a strong clue that Ekovest would be a beneficiary, and provide tremendous opportunities for this construction company. Maybe the investors are not confident of our current government flip flop techniques. But look at this article on April 22 2019; KUALA LUMPUR: Iskandar Waterfront City Bhd and Ekovest Bhd, which are controlled by Tan Sri Lim Kang Hoo, have issued separate statements to Bursa Malaysia clarifying they are not involved in the revived Bandar Malaysia project. The statements came after shares in the two companies jumped to their maximum allowable daily limit, today. Shares in Ekovest surged 30 sen, or 45 per cent to close at 97 sen while IWCity rose 30 sen or 29 per cent to close at RM1.32. Both companies told Bursa Malaysia...

Recently,  the National Fiberisation and Connectivity Plan (NFCP) was proposed by the Ministry of Communications and Multimedia, with the Cabinet approving the plan to improve nationwide connectivity. T he NFCP will require an investment of RM21.6 billion over 5 years (2019-2023). Between RM10 billion to RM11 billion will be provisioned from the Universal Service Provision (USP) Fund, and the rest will be funded commercially .   This lead to speculation that certain IT companies would be involved and benefit from this massive project. One of them is Opcom, an ace market stock controlled by Mukhriz Mahatir, the son of our Prime Minister. This adds to the excitement of the counter.   Opcom Holdings Bhd is a Malaysian based investment holding company engaged in the manufacturing of fiber optic cables and cable-related products. The business activity of the group is functioned through Manufacturing, Trading and Engineering Services, and Other Operations segment s. It...

When Bandar Malaysia was announced that it will be continued in April 2019, the construction industry heaved a sign of relief as this will keep up the construction activities in the country and provide the necessary jobs and multiplier effect in the sector.   Retailers chased the related stocks such as Ekovest and IWC amidst this excitement but alas there wasno follow up to the deposit placed by the IWC-CREC JV. The follow up was supposed to be executed in the next 60 days. Months later, the remaining payment was not paid. Worse of all, to date there is news coming from the Ministry of Finance on this matter.   The Ministry seems nonchalant about keepiing the rakyat updated on this Project.   The newspapers were also not inquisitive enough to probed into the matter. Except for a few chinese newspapers which are highly unreliable, there absolutely silent on the massive project.   Is the project going to go through?   The share price has been...

The favourite oil and gas stock these days seems to be Bumi Armada. As it spring to life from the ashes of corporate debt disease, retailers rejoiced over the good news upon good news from the price of 19 cents to 35.5 cents. From the better quarter results to the sale of FSPO Perdana and heightened by Arab Oil Facilities attack, the goods news have been forthcoming.   From the technical analysis point of view, the price next resting point is at 50 cents but the question is when will it reached there?   The balance sheet has not changed drastically but it sure seems the rock bottom days are gone. The next catalyst would the reclassification of RM1.5 billion short term debt to long term and the FSPO Claire lawsuit with the results realistically expected in 1 st  half 2020.   But let examine the 3 rd  Quarter results, a rough guestimate of the results to be released in November 2019.   3 rd  quarter profit estimated as per 2 nd  qua...

The lack of catalyst in the construction Industry has resulted in the sell down of construction stocks which has hit rock bottom bringing about attractive valuations. The main catalyst the revival of Bandar Malaysia has failed to materialized so far with no news of an extension or a cancellation. The announcement of the revival in April 2019 has brought temporary euphoria to the construction sector as the mammoth project is expected to produce economic multiplier effect to the industry and indirectly the overall economy. It has exceeded the 3 months deadline for the payment of the remainder sum and signing of an actual agreement. We wait patiently for the further development from the Ministry of Finance.   In the meantime, there is value to be found in certain construction stocks. One of them is Inta Bina Group Bhd.   Inta Bina Group Bhd is a construction company  on the main board . It builds various types of buildings including residential, commercial, industri...

There has been a lot of controversy about this counter Ecobuilt previously known as Mmode mainly because this counter bought over another construction company namely Rexallent Assets (RCSB) for a whopping 45 million ringgit. Understandably this company only has net assets worth 4.5 million! This corporate exercise is expected to complete by 30 September 2019 The question arises why the huge amount of premium paid for the RCSB and the end results entails a takeover by the owners of RCSB being the majority shareholders. Who are the future shareholders? The two future major shareholders are Chan Moy and Tan Chuan Cheong. Chan Moy is the mother of Chan Peng Kooh. These two individuals are personalities has been linked with selling of land to Titijaya for development namely the Shore in Kota Kinabalu and 3rd Avenue in Kuala Lumpur. Note that Chan Peng Koh sold the 3rd Avenue land to JV partners Titijaya - CREC hence a possible CREC connection for future business ventures especially when ...