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If we noticed the market nowadays, it has been much more on sentiments rather than being rational. There's a lot more trading activities today where even the large funds are taking part. The emergence of retail players a.k.a. the "Robin Hood"s investors is allowing much more purchases based on sentiments. There are possibly tonnes of Telegram and Youtube groups advising people where and how to invest. When I switched on youtube channels on investments, even Gurmit Singh (Phua Chu Kang) in partnership with a young investor advisor is involved. With this I would deem that there's opportunities t ..read more

While in the past, I was critical but unsure of the company, this time around I think it is grossly oversold. The company had not paid much dividend as yet and has been repurchasing a substantial amount of its stocks over the pandemic period. The company remains to be the largest gloves manufacturer and is probably the company that benefitted the most in terms of revenue and profits due to the pandemic. This is probably due to the aggressive nature of the management where they had increased capacities through organic and acquisition growth. The super abnormal profits have given opportunities I ..read more

I have decided to make some changes on my holdings by first selling all 17,500 units of Freight Management which happens to be a very well managed company. Even then, I felt that the recent rise of logistic companies provided a good enough price for me to sell. From that sale, I decided to buy 10,000 units of Three-A resources (3A - 0012) as I felt that it has not been much followed by many investors. Typically like the business as it is trading at below 13x PE. So who says that we cannot find value during the time when some sector's valuation have gone very high - technology sector mostly ..read more

Well, tis the season for speculation. I do not really advise on speculation. However, when I read some of the exercise regarding DNEX, there are some obvious reasons which somehow things may happen given the volatility. Purchase price and manner the payment is made to the 60% of owners of Ping Petroleum. DNEX is buying Ping and one portion is paid by cash, another via shares. The payment in shares as above is based on the share price 5-day VWAP of DNEX shares 2 business days before completion date. The exercise is yet to be completed, and the higher the share price, the lower the payment of ..read more

 I woke up this morning listening to the news that the world is in short supply of chips as there are just not enough supply to meet demand. At the same time, the largest chip maker, TSMC has cornered 70% of the MCU market - not by design but due to their technological dominance where the rest of the competitors could not catch up - except for probably Samsung. We have heard of there could be a delay in shipments of motor vehicles as when cars are fitted with more semiconductors when the demand has way outstripped supplies. Anyway, as in my previous article, I was critical of Malaysian co ..read more

We know that Silterra is a problem child for Khazanah and ultimately our country. It has been bleeding money since inception probably around 2000. Although the idea came noble, the execution was not. It probably has lost us money to the tune of more than RM10 billion (I do not think anyone keep track as it is already a sunk costs). While on the financial side it was never a win, on the technology acquisition side it did some justifications. Malaysia now has some knowledge of how to handle a foundry albeit a very old one. We also have now people working in several foreign owned foundries most o ..read more

By now almost every news either online, daily or weekly, they would have mentioned something about GameStop. Personally, I have never heard of this company before prior to this. The thing about this event is that it created a movement where seemingly for once the small guys have gotten ahead of so called the bad guys - which is the Wall Street guys.  If we look at the price chart below on GameStop - Never in my life I have seen stocks moving in this kind of trajectory over my 30 years of investing life. The thing about this story is that GameStop did not discover gold, oil or have gotten ..read more

When I wrote my earlier piece (around April to May 2020) on the gloves, I think few sees what's coming. It was huge profits and prices but not even today's gloves price. Even during the early days some of the founders of the gloves makers were taking profits by selling some shares. (I remember Hartalega's Kuan and Kossan's Lim were selling (see below) some shares, and I do not think it was to mislead the market. Why would they?) Some of them bought back the shares later on. Today, and until today the prices of the gloves (not stocks but actual gloves) have gone through the roofs - up to 5 ..read more

During this pandemic, the gloves makers have made so much cashflow that it has not seen such money in their business lives. As an example, Top Glove just made net cashflow of RM2.8 billion based on its latest quarter alone. As a comparison, a similar quarter ending 30 Nov 2019, it was generating negative free cashflows. Based on their own projections, prices or Average Selling Price (ASP) for gloves are still on the uptrend so much so that it is estimated that it will not be impossible for Top Glove to make as much as RM15 billion a year, possibly much of them would be net cashflow. Other gl ..read more