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Thursday, March 24, 2016

MINETEC - Blasting and Meletup the Bursa Market

MINETEC started as a drilling and blasting service in 1977 by the founder, Mr. Michael K S Chin, has since developed into one of the largest aggregate mining business in Malaysia. To date, Minetech Resources Berhad (MRB) operates an expanding network of 9 quarries around Malaysia and overseas. With over 30 years of industry experience, MRB has also positioned itself to provide quality and specialised civil engineering works including drill and blast services, earthworks, road pavement projects and building construction.

Why this company caught my attention? It's again very much related to construction theme and when I zoom detail onto this company, it's seems very interesting and I decided to invest onto it.

Although the company making a few quarter of losses, to me it's very normal because construction company always have their bad times and I hope it's good time coming soon. However look at their latest balance sheet, it's nett cash company !! RM 30.512 million cash while debt total around RM 19.33 million. 

30.512mil-19.33mil = RM 11.182 nett cash / total share issued 665.094mil = net cash per share RM 0.0168

Not much PENNY STOCK are net cash plus their business prospect are looking healthy and potential to growth when all the big projects roll out !

Imagine with so many quarry and premix at Most important Selangor state, MRT projects, highway will for sure need those product in futures.

We all know that MRT2 projects will be awarding soon, and the Tunneling job worth a big value of RM 12 billions. souce: http://www.thestar.com.my/business/business-news/2016/02/11/bidding-starts-for-mrt-2/

*Apart from having a more expensive tunnel, MRT 2, also known as the Sungai Buloh-Serdang-Putrajaya line, will offer more main civil engineering and construction packages from the first line.

Is this all really going to benefit MINETEC? Looking at MINETEC, they are specialize in drilling, blasting, infrastructure works, rock drilling ! What else company can do all this? Yes it's MINETEC.

According to many professional in construction field, before starting this tunneling projects, soil stabilizing job needed to be done and who can do? MINETEC again !!

I can't explain too much on how much MINETEC will indirectly benefit from those big projects, it's all on future outlook and own views.

Lets looking some other reason that Buaya maybe interested to goreng this stock. A few good result here:

1. Share issed only 665 mil, 58% 385 mil floating on market only (easy to move)
2. Got warrant at price only RM 0.025 !! Exercise price RM 0.15 and expired Nov 2019 (still many years)

Buaya will definitely take the opportunity to collect the warrant because it's so damn cheap. And once they push the mother to above RM 0.10, it's easily turn double or triple for the warrant. (wild guess) I saw this happen to MPAY few year backs.

Looking at technical chart part, some collection and volume appear lately. I strongly believe this stock going to Meletup very soon. And it's very lucky we caught it before it Meletup. 

First time closing at RM 0.08 cent strongly after almost one year (about 9 month price below RM 0.08) , is it indicating a strong will of going higher? Why those buyer at below 0.08 don't want to take profit immediately?

DID YOU SEE WHAT I SEE or YOU still can't see ??

Something is going to Blast and Meletup kuat soon !! 

Monday, March 21, 2016


Hock Seng Lee Berhad (HSL)'s origins date back to the mid-1960s when the three eldest brothers of the Yii family established what was principally a sand dredging and land fill operation.
The company was named after the first timber dredging vessel, Hock Seng Lee which the brothers purchased to start their partnership. Hock Seng Lee sounds like "good business" in the local Hokkien dialect and indeed it was.
Hock Seng Lee Development Company Sendirian Berhad, as the company was first known, grew rapidly and was incorporated in January 1979.
For more than thirty years, HSL has taken on land reclamation projects of increasing size and complexity acquiring complementary expertise in soil improvement works, shore protection, drainage and water reticulation activities.
On 10 June 1996, HSL was listed on the Main Market of Bursa Malaysia on the construction counter and it has been profitable every year since its listing.
It has diversified into a wide range of civil engineering and construction works, including prestigious road works and new township developments, tunnel boring and complex infrastructure projects.
Today, HSL some over 800 full time staff, thirty per cent of whom hold tertiary or technical qualifications. Its headquarters is in Kuching and its operations extend throughout the state of Sarawak.

Lets look back on the company price performance, ever since after the shoot up on 5 May 2013, it has been super huge sideways consolidate until last week 18 March finally super "strong breakout" with super volume. There are few things to highlight why this strong breakout happens:

1. Manage to increase order book to triple ! Worth Roughly RM 1.82 Billions Order Book
RM 58 Mil + RM 563 Mil + RM 1.2 Billions = RM 1.82 Billions
Add existing order book RM 621 Mil = RM 2.44 Billions Order Book

2. Bank Research upgrade to BUY  from HONG LEONG Research (RM 2.53) and MAYBANK Research (RM 2.40) - Both calculation seems not yet factor in the latest RM 1.7 Billions Pan Borneo Projects. 

After getting latest awards PAN BORNEO for RM 1.70 Billions, I am expecting more BANK research house will upgrade to BUY due to high order book and high potential to get more awards again.

3. SARAWAK ELECTION is almost around the corner ! Expecting APRIL - MAY

Why is this important? Although everybody think the same party will win, nothing to be surprise, but it can be a extra vitamin to kick this stock move higher. Trader likes story and theme related. Not just HSL, other Sarawak counter will possible goreng up before ELECTION or After election. This can obviously see from 3 years back, after 5 May 2013 Election, price shoot up immediately !

That's is jut not convinces enough for a real investor because construction company usually very high in debt, therefore many earning usually gone into bank interest payment. However extra bonus given investor to consider HSL is because its 100% Debt free company, and Cash Rich ! 

Besides construction, HSL also developing housing project, latest project seems doing pretty well:

High end housing selling each roughly RM 1 Mil, 44 units = RM 44 Millions revenue. (80% sold)

Still have other mid range housing if you check their website.

Lets us sneak peak some on going project: 

I think, with their current order book, and new order book, HSL seems going to continue GOOD BUSINESS until Years 2020 !!

With such, as a conclusion: 

1. Very strong History Construction Company In Sarawak
2. Financially sound and it's a Nett Cash company, Debt free

2. Dividend payout ratio about 20%

3. Latest Value of projects in hand roughtly stands at RM 2.44 billion 

4. Expecting to continue to be benefit from Pan-Borneo Highway Project (RM 16 Billions Total) 

5. Expecting to continue benefit from Kuching sewerage project worth RM 4 Billions that would be implemented in 8 phases. (1 & 2 phases awarded to HSL) 

6. After listing of 20 years, every quarter make handsome profit

7. Very strong relationship with Sarawak Government

8. Best Sarawak Election Theme Counter, latest April-May

9. Finally breakout with strong volume closing high at RM 2.10

10. Major Bank upgrade BUY with high TP RM 2.53, RM 2.40, may more will upgrade. 

My personal target for short term RM 2.20, mid term RM 2.50, long term to be re review RM 2.80.

Sunday, March 13, 2016

Logic Trading Analysis(LTA) - Watchlist for March 2016

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After the big fall of January till Early March, it's time we shall come back to pay attention to our stock market after DJIA posting strong gain pointing upwards, which will definitely kick all other country market to be more positive, and of course to FBMKLCI as well.

Refer to here:

I not here to explain how overall market outlook will be, just take note if DJIA suddenly close below 17000 again this week then we may need to revise our plan. Or else you may pay attention to some of the stock pick below.

Since RM getting stronger, export theme about USD over, market struggle to find new theme or stock worth to collect or goreng stock, obviously market shy away for almost 3 month. BUT I here to tell you, take note on some of the stock below which might have potential to go higher. (I am not SIFU, if I wrong, I not take any responsibility, scolding are not welcome)

One of the theme may come next shall be Construction related (may just last a short time). As we already spotted some of the construction counter begin action.

Refer here: http://www.thestar.com.my/business/business-news/2015/10/26/construction-sector-main-beneficiary-of-budget-2016/

I am expecting more projects such as the Refinery and Petrochemicals Integrated Development (Rapid) in Pengerang, Johor, the Pan Borneo Highway, mass rapid transit 2 (MRT2), light rail transit 3 (LRT3) and PRIMA housing, flood mitigation will be awards and start soon. (many area kick start selling PR1MA housing project)

Construction index have been long depressed and sideways consolidated for half year, and it's getting closer to 200days moving average.

Stock below are some consider good construction counter we may look see for short term.

KIMLUN - (one of my Meletup stock picks on last year) ALL major bank upgraded to further buy and higher target price after getting PAN BORNEO PROJECTS. I believe KIMLUN will bagged few more projects soon ! Upgrade to BUY, TP: RM2.23 !!

Refer more about KIMLUN here: 

This stock picks was shared in premium group during 3/12/2015. Already more than 20% profit.

GAMUDA & GAMUDA-WE -GAMUDA have passed 200 days moving average after 9 month of consolidate. It's very high possible to goreng towards RM 5.0 soon looking at latest list GAMUDA-WE demand. GAMUDA-WE (closed RM 0.965) exercise price RM 4.05, equal to RM 5.015.

Due to long expiry date till year 2021, high premium of GAMUDA-WE are expected to make it move above RM 1.0 very very soon (maybe Monday). Note that if market did not crash or fully recover on year 2018 onwards, GAMUDA will confirm go above RM 6.0 due to heavy construction works towards national goal of WAWASAN 2020, another things is before 2018, Malaysia must ready for better infrastructure, greater Kuala Lumpur to cope with TPPA.

(If GAMUDA reach RM 5.0, warrant without premium should trade at RM 0.95, but due to long expiry date, normally 10-30% higher premium will be given. Therefore Gamuda-WE will be roughly between RM RM 1.045 - RM 1.235) Remember this is based on market stable and mini bull scenario, if bear come attack again all will diminish, don't ever act like crying baby and complaining the tips doesn't work ! Do your own homework !


SUNCON - After the big spike last Friday, it has move into uncharted territory. This new IPO never move much since last year IPO. However something important to note that which is During the big fall of January-March 2016, it continue moving sideways and totally did not fall. This is obvious and strong signal that something good is coming. I assume it can go further. Maybank TP RM 1.65. Whether it will have some correction before Meletup further or straight Meletup all the way are up to the market decide.

GKENT - Another construction that still doing well in year 2016. This month will post its result, if good then will first challenge RM 1.70, then next RM 2.0 should not be any problem. And of course if bad then will slowdown its uptrend movement. But with its high order book in hand, this counter remain strong in outlook.

Refer some here:

MITRA & MRCB & GADANG - All seems potential to move higher. Remember to put in watch list !

After sharing Construction stock picks, some other stock picks that in my watch list are such as: 

TAANN - I been telling about this stock in groups when it's below RM 4.65.  I am expecting it to hit back RM 5.0 soon due to free bonus of 1 : 5 coming soon.

HSI-C17 - This is highly speculative and super high risk call warrant betting Hang Seng Index up in near term. An overnight of super DJIA +218.18, HSI FUTURES +331.0, I guess Monday gonna gap up at least RM 0.38 - RM0.40 (and I already brought it :)). If DJIA wanna big show one more day up, then this HSI-C17 and other HSI call warrant gonna Meletup so damn kuat. But please, it may not work out right totally and if you don't know how to trade, stay away and don't touch and lose and cry baby. Monitor DJIA futures often. 

AAX, AIRASIA, TUNEPRO - This 3 company are best performer after February result release. You cannot ignore this company because some people

You can find people are almost want to 

 Sell Your Car, Sell Your House. Time To Sai Lang for AIRASIA (JOKE)
Refer here: http://klse.i3investor.com/blogs/icon8888/92726.jsp 

I did not give a very high target price but RM 1.80 and RM 2.0 are achievable. This is simply because turnaround from previous quarter with lower oil cost and next quarter will be reporting on Feb, March and April result, which is also peak season for travelling especially during Chinese New Year. During this 3 month oil price remain low and I can notice many friends start travelling to Japan and other country already !

AAX - This would be much more exiting compare to AIRASIA because of cheap price and finally turnaround to profit after so many quarter since IPO at RM 1.20. Looking at the volume never been so huge already know that the demand are extreme and expectation towards higher price are very high. I looking at a target of RM 0.40.

TUNEPRO - Riding the wind of AIRASIA and AAX, start to see big volume and very low price too. Latest result show very stable improving income which are consider a very safe entry. My first target at RM 1.50 which is also very conservative.

RSENA - The strong volume spike on Thursday hint something good is coming, guess they have finally find the right company to be acquire. Even they cant find any within 3 years time, there are still cash RM 0.46 per shares in account. If they able to find, then definitely will unlock this company value and further higher to go !

(from RSENA Annual Report year 2015, it's not hard to find, it's whether you put effort to read and understand it or not.)

GENTING, GENTING-WA & ASTRO and some other INDEX stock shall move higher due to FBMKLCI gonna break 1700 level once again.

Are you ready to GORENG?


Logic Trading Analysis