Disclaimer: This is my personal logic trading analysis blog that show my own personal analysis. All information provided here are for sharing purposes only. The author should not be held liable for any informational errors, incompleteness or for any actions taken in reliance on information contained herein. Buy at your own risk.

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Monday, September 22, 2014

IRIS - Ace Market Super Star Rising


Good day everyone, if you missed my previous post, I hope you not missed this again. IRIS Berhad will definitely a hot ace market super star in coming weeks. Everyone in stock market should know about IRIS or at least see IRIS appear in most active trading page right? 



First of all, before I share some of my logic trading analysis on IRIS, at least you should know what is IRIS Berhad doing. I believe most of the people have a bad perception on IRIS or think IRIS is a penny stock, and fried stock. Many people trap in IRIS many years ago, but today, I want to tell you, my logic tells IRIS have changes to a strong and a potential Ace Market Super Star in coming days. Why? 

Many years back, IRIS was a small IT company but recently years they have expand to a diversify company which brings IRIS back into Profitable company and getting stronger in the diversify business field. You can see they are doing green technology, and building house with KOTO technology (cheap and super fast building method, some at Malaysia) at Papua New Guinea, even education recently. I may not want to get into too detail of their business, you can look at their 2014 annual report here for more details. CLICK HERE <--- 



Lets look at how IRIS stock price movement first. If you look at the chart, IRIS begin rally on January 2014, why? Logic say its all because The Ministry of Finance have open tender for Tourist Tax Refund Scheme to 4 Company in Malaysia, and IRIS is one of the bidder. Refer Here <-- 

With this news announced,  IRIS and rival competitor(Mpay) share price raise pretty much from 0.2 to 0.615 highest. And of course due to a long long waiting, investor have forgot and start worry whether IRIS secure the project or not, which we see the price start fall down. Just until recently share price start picking up with volume ! Logic tells, its a pre-plan shares collection for big players and insider because TRS project is a huge potential for company future growth !!

(you can see how MPAY thirsty for it, they have immediately gain investor become a huge stake holder just for bid this project, but sorry to say, its belong to IRIS now !)



Another factor cause IRIS share price to fall is their profit suddenly turn red for last quarter. Well, for me its a very small issue because We can see that the revenue is still maintain well, and most probably some of their investment and business not yet ready for profit. I don't like to comment in details because those information you can find from other places. I focus on my logic trading analysis. Its probably to put a red quarter result to make investor cut loss and sell. But its seems the share price not falling way back to 0.20 since rally, its mean that is just a trick from the company !
 

If you are so much worry about the other business of IRIS Berhad can sustain or not, its much more easy to read their last quarter result and you will see how positive they think on their coming business year !!


Lets back focus on the why its time for IRIS to be a hot super star. Its because they get the Tourist Tax Refund Scheme tender !! Look at the details of letter of awards from Kastam Diraja Malaysia. When you look at the LOA, you might be a bit blur and not sure what it mean. 

Refer what the boss say here: (latest) <--

Iris and foreign partner (Global Blue) will invest RM 155,09200.00 for this TRS project and get 15% commission from GST REFUND SERVICES (its 6% refund) and IRIS get 15% from it <-- 
It could be total GST refund from foreigner and IRIS get 15% !!

Small investment and big return !! WHY ? Read below



Just look at how big is the tourism contribution pass few years. I am very sure this TRS project owned by IRIS Berhad is something very very super good news to them.  

Have a simple estimate calculation based on year 2013: 

                                        65.44 Bil (65,440,000,000) x 6% = 3,926,400,000. Its 3.9 Bil !
                                        3.9 Bil (3,926,400,000) x 15% = 588,960,000. Its 588 Million !

IRIS 51% and Global Blue Company 41% = IRIS get RM 299.88 Mil a year !! 

Which is 10 time more than their current annual income !!!



And IRIS partner for TRS project is a powerful company as well !! Because they dealing with the recently world largest IPO ALIBABA GROUP !! You can research more what this group doing with Alibaba. And once this groups success enter into Malaysia, for sure its mean its have high potential Alibaba business will be related to them soon ! You should know all company got a mini relationship with ALIBABA is fly sky rocket - EFFICIENT, GDEX, GHLSYS.


After so much quick info, my logic analysis tell me, IRIS Berhad is a must buy counter.
Price still cheap, not yet reach previous high at 0.615.

1. IRIS after get TRS project, they are a super star now.
2. In coming years they are high potential switch to mainboard, usually will fried much higher when can go to mainboard, refer OCK, SMRT, REDTONE, MMODE, GDEX many more.
3. Its very cheap counter.
4. Its super growth mode counter.
5. Its have no reason to ignore this counter.
6. They might got chance to deal with ALIBABA
7. TA investment give a TP of 0.675 before they get TRS project ! Refer here: <---

My first TP 0.455 , second TP 0.50, third TP 0.615. After reach all the TP, it will become RM 1 and above!

Wednesday, September 3, 2014

RGB - The Sure Win Money Making Machine

RGB (RGB International Berhad) 0037

This company recently getting interesting and come into my radar. As you know, market is still uncertain and the heat is still over "penny stock" which mean that quality penny stock can be fried easily. But why big player will choose RGB compare to other penny stocks? My logic analysis as below:

Before I start, I shall introduce why I call this company the SURE win money making machine. This of course very much related to their business: "gamble slot machines" 10 time u play maybe 1 time u win money. Still not sure win?



RGB has grown from strength to strength since its inception in 1986. It all started from a humble operation in Penang, Malaysia, offering sale of electronic gaming and amusement machines to the now, public company listed on the Main Market of Bursa Malaysia Securities Berhad under Stock Code : 0037. Today, they have a workforce of more than 300 employees under RGB business operations in Malaysia, Kingdom of Cambodia, the Philippines, Macau SAR, Singapore, Lao PDR and Vietnam.



Recently this company have shine up in the stock market because the price movement have a small spike in recent day.
 
Is it the end of the story? No, this company should have more upside potential. We should know that this company recently have showing a very beautiful quarterly result: 
 


After review on their quarterly result, its tell you that they expecting to sell more machines and doing better in coming years. Its seems like Group managing director Datuk Chuah Kim Seah have materialize what he have said before.

Refer to :
http://klse.i3investor.com/blogs/valueinvestorresearchklse/53264.jsp


The important key point is their TSM division in this RGB company. Which if they sell more machine, they will have more recurring fees, higher profit sharing as well as more management fees to collect. This can ensure they can sure win more money in futures.

 
So is this company potential to be fried further up? Yes definately ! Now we should study what kind of company are in big player fried radar.  You should know recently hot penny such as PDZ, MARCO have all similar criteria. Which is share issued not too much or little. 1 bil share is just so right to be fried because its not too many and yet too little. 


 Market float cannot too little, if too little the share most probably controlled by the boss.

Plus today they just announced first interim dividend !! Its second time this year ! This company is actually quite generous in giving dividend in previous year from 2004-2007 until they got into down trend when world economic burst. Recent year they manage to make a come back, proved that they are really tough company. 



Many investor have already brought this share at earlier stage, around 0.09-0.12. If you ask me can this company price still go up? My logic analysis tell me definitely. 

1. Those who have brought the share at lower price, will not let go this company easily due to dividend and a big potential to hold for long term investment. 

2. Big player just start push up price from 0.12 to recent 0.165. Will they use few million/billion to just make 4 cent? Not likely. (refer to MARCO and PDZ and MPAY) All fried above 0.20.

3. This stock already come into many investor radar, buy call from many expert research team.

4. Asia gaming business will doing better especially CHINA recent year getting strong, many people make money and many people like to play gambles.



From Homily chart, show big players already come into the game just recently. What are you waiting for?

RGB should be coming day hot stock picks as dividend just announced and its safe to buy and hold for dividend.

There is a saying, when a stock break new high, it will go further at least 15-20%.



My target first Target Price 0.20, second TP 0.23 third TP 0.30.