^V^
Hi guys n all, mkt moved within my expectation,buy orders already given to chua since sday one I left, D order given as below :-
Mahsing 1.75 5 lots 1.70 5 lots 1.65 10 lots
Liondiv 1.82 5 lots 1.78 5 lots 1.72 10 lots
Masteel 1.52 5 lots 1.48 5 lots 1.43 10 lots
Engtexwa 0.15 50 lots
Unfortunately , nothing done till to date, i will stick to d above orders till 26 Dec 07, if there r still nothing done, I will revise my buy orders once again,will update u guys thru my blog moderator if I am not free.
To bro Tinglek, if u hv any comments n views, pls post it up here (no need to sign up as blog member lah ),, I hope u can create yr own blog for me to link it up. Alternatively,u can take over my blog after 28 Feb 08, u decide ^V^
Happy Dong Ji to all of u ^V^
18 comments:
Is tough selling pork at Petaling Street for the past 5 years, and that's why I decided to hang my 'chopping knife ' and jump into Sifu Sam wagon for angpow $.
Long story cut short - Lion D is a must stock for all FA players. Strong future earnings and if the man who created a fortune from Microsoft have a few toes in Lion Div ( largest 20 shareholders ), I don't see how far we can go wrong.
For Engtex-wa, why the high premium attract Sifu eye ? Shed us some light, please.
Amitabha
Is tough selling pork at Petaling Street for 5 years. Business is getting slow as more and more people opted for vegan diet. So got to hang my ' chopping knife ' and jump in Sifu Sam wagon for some angpow $.
Long story cut short - Lion D is a must have stock for all pure FA players. If the man who created a fortune from Microsoft put a few toes of his into this stock, i don't see how far we can go wrong from here.
For Engtex-wa, can Sifu shed some light. the premium is on the high side now.
Amitabha
冬至快乐 everyone!!
Sam, on the orders you put, can see you are so pessimistic on KLSE. ^_^
I'm thinking of re-entering Liondiv at 1.90. Other than RCECap, I see another good opportunity to enter ECM (common shareholder with RCEcap) currently trading at 85cents, a cash rich company with RM400mil cash/FD in hand. NTA 1.11 PER around 8times (85cents/10cents)
Amcorp group of companies normally move together one, so it is not a bad choice on ECM. Any comment sam? ^_^
Hi Sam,
Can I add you in messenger?
please give me your id, thanks a lot!!!
Hi fang siah, who is man created a fortune in Microsoft you are talking about ar? Mind to tell? ^_^
Sifu Sam
You give me a hat which is bigger than my head ! Take over your blog ?
Is my pleasure to shall the FA sentiment with brothers and sisters and this is my ultimate aim of coming back after lapse of 5years ago.
Too bad you are leaving us.
Sincerely speaking, I am honor to have such great invitation, but I know my own backyard better than yours. My success is nothing great in stock market and now still swim under the water....sometime float and sometime sink.
Why not you decide to extend the date for ' wash hand with golden bowl ' to further date ? Thus will enable me to share and exchange with you ( our greatest Stock Master )
Long story cut short : YOU IN, I AM IN. YOU OUT, I AM GONE !
Amitabha
Sifu Sam
You give me a hat which is bigger than my head ! Take over your blog ?
Is my pleasure to shall the FA sentiment with brothers and sisters and this is my ultimate aim of coming back after lapse of 5years ago.
Too bad you are leaving us.
Sincerely speaking, I am honor to have such great invitation, but I know my own backyard better than yours. My success is nothing great in stock market and now still swim under the water....sometime float and sometime sink.
Why not you decide to extend the date for ' wash hand with golden bowl ' to further date ? Thus will enable me to share and exchange with you ( our greatest Stock Master )
Long story cut short : YOU IN, I AM IN. YOU OUT, I AM GONE !
Amitabha
Hi, Sifu Sam,
Really Lion D is must have for FA players?
What do you think on Haio?
HI Sam and other sam gang's members,
Happy Dong Ji too..
Wey
To all,
Sam bought in some liondiv & Mahsing yesterday, pls refer to what I have posted yesterday under 'on holiday & protect yr profit '.
From sam blog moderator.
Bill Gates and Melissa Foundation is having 2,589,800 shares in Lion Div based on Annual Report 2006. For Annual Report 2007 is not rank nor reflected as largest 30 shareholders.
3 Sept 2007: Corporate: Is Lion Diversified worth holding
By Siow Chen Ming
Email us your feedback at fd@bizedge.com
Is Lion Diversified Holdings Bhd (LionDiv) worth holding on to without the Parkson business? This is what LionDiv shareholders will have to ask themselves in the coming weeks as the company implements a restructuring exercise.
"It depends on shareholders' preference. If they want pure exposure in the retail business, then they may want to sell LionDiv and switch to Amalgamated Containers Bhd (ACB). But if they like the potential of LionDiv's upcoming steel-making business, they would want to hang on to it. Having said that, there is a lot of potential in LionDiv's steel business that is worth holding on to," says an analyst from a foreign research house who covers LionDiv.
The restructuring, expected to be completed this month, will see LionDiv hiving off Parkson to ACB in return for shares and loan stocks. Subsequently, LionDiv will distribute to shareholders all its shares in ACB. LionDiv will then focus on steel manufacturing or direct-reduction iron (DRI).
The Parkson business, both domestic and abroad — including LionDiv's entire 55.4% stake in Hong Kong-listed Parkson Retail Group Ltd (PRG) — will be injected into ACB for RM4.3 billion. In return, LionDiv will receive 3.8 billion new shares in ACB and RM500 million nominal value three-year 3.5% coupon redeemable convertible secured loan stocks (RCSLS). LionDiv will also acquire from ultimate parent Lion Corp Bhd another 42.32 million shares in ACB for RM35.1 million cash. In total, LionDiv will end up with 99.16% in ACB or 3.84 billion shares of RM1 each. An ensuing capital reduction and reconstruction exercise in ACB will merge four shares into one. As a result, LionDiv's shareholdings in ACB will become 960.51 million shares of RM1 each, while still retaining 99.16% stake.
LionDiv will distribute its entire interest in ACB to shareholders, on the basis of 1.3 ACB shares for one LionDiv share. The company will, however, keep the RM500 million RCSLS, which are convertible into ACB shares by surrendering RM4 nominal value RCSLS for one new ACB share.
Essentially, the value of the business that goes into ACB is RM4.3 billion, which is the valuation of Parkson in this deal. Thus, for each LionDiv share, shareholders will get 1.3 ACB shares with an implied value of about RM5.77 or RM4.44 per share. This is based on ACB's implied value of RM4.3 billion against the company's enlarged shares base of 968.61 million shares post the entire exercise, according to MIMB Investment Bank, the independent adviser to the deal. At present, ACB has no significant businesses or assets.
Nonetheless, based on ACB's current market price, the shares to be received by LionDiv shareholders are already higher than the implied value. Based on ACB's share price of RM1.71 as at Wednesday, the implied market price translates into RM6.84 per share, after accounting for the merger of the existing four shares into one. This shows that investors are prepared to pay a higher price for ACB due to the undemanding valuation of Parkson under the deal. Under the exercise, Parkson is only valued at RM4.3 billion, which is only half of what the 55.4% stake in PRG is worth. Based on current prices, the market capitalisation of PRG is about RM15.3 billion.
In essence, upon relisting after the exercise, LionDiv's current share price of RM9.50 may be adjusted by RM5.77 (the implied value of the 1.3 ACB shares distributed to shareholders), to a theoretical ex-all price of RM3.73. Based on LionDiv's 737.2 million share capital, it will give the company a theoretical ex-all market value of RM2.75 billion. This represents a 34.7% premium to LionDiv's adjusted net asset of RM2.04 billion or RM2.77 per share.
The major residual assets in LionDiv, post distribution of its ACB stakes to shareholders, will be the RM500 million RCSLS in ACB as well as its investments in the DRI plant (under construction) costing over RM1 billion. LionDiv has also proposed to invest RM338 million in Megasteel Sdn Bhd, the hot-rolled coil maker 90% owned by ultimate parent Lion Corp Bhd. LionDiv will invest RM200 million in the five-year redeemable cumulative convertible preference shares to be issued by Megasteel. LionDiv will also acquire a 10% stake in Megasteel from Khazanah Nasional Bhd for RM138 million.
"Our fair value for LionDiv, post the distribution of ACB shares, is RM5.85 per share, which gives the company a market value of RM4.3 billion. The valuation is based on the potential strong earnings from the DRI business, which has a 100% uptake from Megasteel," says an analyst.
While the DRI plant is yet to commence operation, the earnings benchmark could be similar to Lion Industries Corp Bhd's hot-briquetted-iron (HBI) operations in Labuan, Sabah. This is because HBI uses iron-ore as key raw materials, which is the same as DRI. Meanwhile, HBI also fetches about the same market price as with DRI. It is worth noting that the steel division of Lion Ind reported an operating profit of RM345.9 million for the financial year ended June 30, 2007. A bulk of the profits was contributed by the HBI business, other than steel bars.
Thursday August 9, 2007
Lion Diversified remains undervalued
LION Diversified Bhd (LionD) has been long recommended as a long-term buy by i Capital. In fact, it would be no exaggeration to say that when i Capital discovered LionD, many thought that it was crazy to recommend such a stock.
Since then, the share price of LionD has appreciated substantially. Given the substantial gains, one would have imagined that LionD would be more than fully valued by now. But is it?
One quick way of answering this would be to base it on anecdotal evidence. Judging from the feedback we have received, every single person had asked us to take profit and sell LionD a long time ago. Their reason is simple: its share price has risen so much and they are scared that their profits would disappear.
Since our investment approach is not the same, i Capital will update on LionD.
LionD's proposal last year to split its main businesses into two separate companies has been delayed, and this has left many investors wondering whether this value-enhancing proposal has been aborted. Post-restructuring, LionD will become a steel company with a 23% interest in Lion Corp Bhd.
Lion Corp presently owns 10% of Megasteel Sdn Bhd. At the beginning of this year, there was a proposal for LionD to buy Khazanah Holdings' 10% stake in Megasteel for RM138mil cash and to subscribe to 200 million redeemable cumulative convertible preference shares for RM200mil. Upon the conversion of these preference shares, LionD will have a direct 24.1% stake in Megasteel.
LionD has also invested in a RM760mil direct reduction iron (DRI) plant in Banting. After some delays, the 1.54 million tonnes capacity plant is expected to start operation by year-end.
The main advantages of the plant to Megasteel are that it reduces the dependence on scrap to make hot roll coils and cold roll coils and also help to improve the quality of these products.
As all the DRI and hot briquetted iron (HBI) produced will be consumed by Megasteel and since there is an offtake agreement with Megasteel, the plant is expected to ramp up its utilisation pretty fast (the larger Lion group has been running a HBI plant in Labuan for many years now). What this means is that the DRI plant will be profitable from year one.
LionD, post-split, will essentially be a steel company with minor distractions like computer casing assembly, property development, and investment.
As part of the proposal, shareholders of LionD will also be getting the shares of Amalgamated Containers Bhd (ACB) on a 1.3-for-1 basis. ACB will be turned into a pure Asian retailing group based on the Parkson brand.
Parkson has 30 stores in Malaysia, 39 in China and three in Vietnam. Parkson Malaysia will see a new 240,000-sq-ft flagship store in Pavilion Kuala Lumpur. Presently, Parkson Malaysia has a total floor space of 250,000 sq m.
Meanwhile, Parkson Vietnam has been expanding rapidly. The first store opened in 2005 and it has just opened its third. There are plans to open five to six more stores in the next two years. Like its foray into China in 1994, its Vietnam expansion promises to be equally exciting.
Without doubt, the jewel in the crown is Parkson China. LionD's exposure is held through its 55.4%-owned Parkson Retail Group listed on the Hong Kong Stock Exchange.
The table highlights the impressive financial performance of Parkson China's business. Impressive as they are, yet the figures do not do full justice to China's massive potential for Parkson. After 29 years of reforms and rapid economic growth, China's consumer spending has not taken off yet.
Parkson China's expansion strategy is based on acquiring the minority shareholders of its existing Parkson stores, buying third party stores and opening its own new stores.
Four to five years ago, rating LionD was an easy task. Now, many years later, rating LionD remains equally easy. While the share price of LionD has climbed substantially, so has its long-term underlying value.
One, the DRI plant expansion makes business sense. In fact, the larger Lion group should have undertaken this project earlier. Supply of scrap, an important raw material for making steel, is getting tight.
Two, LionD post-split will be solidly profitable. With net earnings per share expected to be over 30 sen, a price-earnings multiple of 10 to 15 times would imply that the share price of LionD, after the hiving off of the Parkson retailing business, will be worth RM3 to RM4.50 per share. Based on the current share price of LionD, this leaves only about RM5 for the Parkson retailing business, or about RM3.6bil.
ACB will offer investors a rare exposure to a fast expanding and highly profitable Asia-focused retailing group. A valuation of RM3.6bil for a group that is proven, highly profitable and with huge growth potential is far too cheap.
Parkson Retailing is presently capitalised at HK$29bil to HK$30bil. With a 55.4% stake in Parkson, LionD's share is worth HK$16bil to HK$16.6bil. This is equivalent to around RM10 per share, which is much higher than the RM3.6bil value presently imputed by Bursa Malaysia.
Obviously, at the current price of about RM9, the pre-split LionD remains undervalued. For this, investors are getting a group with exciting growth potential at a reasonable price
I also bought in Liondiv @1.89 and ECM @0.84
Sam Gor,
I agreed with Mr Fang Siah's suggestion that if you can have a re-consideration for leaving..
We all know that the stock market have been argued in between TA vs FA for many years and indeed they have their own supporters and is hard to say which one is higher in a scale, frankly speaking.
The stock market have full of rumours and wrong information which may stop the individual investor not to enter this market once hurt. We really need a wiser like you who have deep knowledge, proven record and most important is willing to share to enlight those, including me to encourage more and more investor enter into the market to boost the volumn. Just for your info, I will not enter stock market buying RCECAP and Keladi without reading your blog..
It might easily getting attack by those in different opinoin (esp when you earn $ and they loss..) and sometimes, get frustracted with baseless accuse. But, like you said for your good karma, plus with our supports, hope you can continue with this blog. Just like the Digi slogan: I'll follow u...
Thanks. 67 days left...
Sifu Sam : Tinglek deeply apologised for using this channel to promote donation drive. I hope that you do not mind I doing so. Amitabha & May your wisdom shed light on all sentients being.
The message is not intended to solicit donation or any charity drive to collect money. All kind hearted people, if you wish to help this baby, please do donate on your own by following the channel below.
Amitabha & Merry Christmas !
Nation
Monday December 24, 2007
Toddler needs aid for kidney transplant
KUALA LUMPUR: Baby Sanjeev Roa is a bubbly character, always ready to pose for the cameras – an attitude that belies the problem he faces.
The toddler has been in and out of hospital since he was five months old, when one of his kidneys failed.
Now 18 months old, the boy's other kidney has begun to swell as well and specialists say he needs a kidney transplant to survive.
His father A. Saravanan, 38, is a lorry driver who earns just RM1,300 a month and cannot afford to send the child for the operations in India.
His earnings are barely enough to feed the family and pay the rental for their house in Senawang, Seremban.
Saravanan said his wife and Sanjeev also needed to take a taxi to the Tuanku Jaafar Hospital in Seremban for treatment whenever he was working.
Sanjeev, who was born on June 7 last year, underwent an RM8,000 operation to correct his urethra after he had difficulty urinating. He is also taking medications, which cost RM500 a month.
Saravanan has sought the help of MIC Youth social and welfare committee chairman T. Mohan for assistance to raise RM70,000 for Sanjeev to undergo a transplant in Tamil Nadu.
Donors can send cheques made out to Sanjeev Roa Fund, c/o MIC Youth, 12, Jalan PBP 5, Taman Industri Pusat Bandar Puchong, 47100 Puchong, Selangor, or deposit their donation at Alliance Bank (account number 62083-0-02-0043847).
For enquiries, call 03-5882 3060, 019-222 3000 (Mohan) or 019-351 7474 (S. Subramaniam).
Sam,
have a good holiday. i'm new to your blog, hope you will keep blogging next year and be nice to see your calls, (since not expecting so good next year.). Take care, man!
hi Sam,
as you recommended, me just bought ECM 4lots... hehehe... me not much modal la.. can only afford this much..
hope can see snow like you soon :)
thanks for yr sharing
Vincent bought in another 42.5mil Bjcorp shares, this resulted his shareholding increase to 53.2%. Wondering what is he planning to do with such a significant stake. Could it be special dividend? ^_^
By the way, GS also bought in 8mil shares, resulted total shareholding almost 7%. UBG shareholding remain at appx 13%.
Total shareholding of these 3 active shareholders already equal to 73.2%.
I think I need to clarify that Sam did not make call on ECM but in fact RCEcap. I was asking Sam to comment on ECM only although I did buy some on ECM.
Sorry for any trouble, Sam. ^_^
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