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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 :

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.