Share Tip for November - 2

PMETAL 8864

Why PMETAL?

Share Issued ：509，351，877
Market Cap   : 1,202,070,429.72
Par Value: 0.50

FYE: 31/12/2012
Recorded net profit: 191.035million
Net Asset per Share: 2.57
Earning Per Share: 41.75 sens
P/E Ratio : 6.29

SUMMARY OF KEY FINANCIAL INFORMATION 30/06/2013

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30/06/2013	30/06/2012	30/06/2013	30/06/2012
		$$'000	$$'000	$$'000	$$'000
1	Revenue	795,343	522,385	1,519,586	1,047,446
2	Profit/(loss) before tax	26,848	23,978	62,168	56,744
3	Profit/(loss) for the period	22,821	20,915	49,899	47,082
4	Profit/(loss) attributable to ordinary equity holders of the parent	20,041	19,229	45,287	41,842
5	Basic earnings/(loss) per share (Subunit)	3.95	4.37	8.91	9.51
6	Proposed/Declared dividend per share (Subunit)	0.00	1.00	0.00	1.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	2.5800		2.4700

Reason to choose PMetal

1. PMetal had recorded a revenue and profit increment based on 30/6/2012. Therefore the Financial Year End forecast to be recorded grow of 10% in the revenue and profit.

2. As at FYE 2012, Pmetal consist of RM 261 million cash in the hand. Therefore the every share consist of net cash 51 cents. 

3. Low PE Ratio, High Cash in Hand and High Net Asset price had been the attractive point to invest in this share with the current share price is at RM 2.40.

4. The largest shareholder of the company continue acquire own share in the market.

5. Ability to announce Special Dividend

6. Proposal on Dispose 20% equity of Press Metal Bintulu Sdn Bhd worth in Cash 140.49 million USD.

Conclusion

Target Price: RM 3.20

Share Tips for November - 1

MASTEEL (5098)

Why MASTEEL??

Share Issued: 219,979,233
Market Cap: RM 252,976,117.95
Par Value: RM 0.50
52 Weeks High : RM 1.19
52 Week Low: RM 0.77

Look out from the financial report.

SUMMARY OF KEY FINANCIAL INFORMATION 30/06/2013

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30/06/2013	30/06/2012	30/06/2013	30/06/2012
		$$'000	$$'000	$$'000	$$'000
1	Revenue	342,259	344,127	672,299	684,047
2	Profit/(loss) before tax	10,857	18,883	14,633	14,002
3	Profit/(loss) for the period	10,127	18,991	13,677	14,110
4	Profit/(loss) attributable to ordinary equity holders of the parent	10,127	18,991	13,677	14,110
5	Basic earnings/(loss) per share (Subunit)	4.66	9.02	6.29	6.70
6	Proposed/Declared dividend per share (Subunit)	0.50	0.00	0.50	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	2.4700		2.4200

a) Revenue maintain at the level of 340 million ringgit malaysia.

b) Profit slightly decrease but overall still maintain at 13 million ringgit malaysia.

c) Net asset is fall around 2.42 per share.

Overall the statistics would be as below:

i) Net Tangible Asset (NTA) maintain at RM 2 and above per share

ii) P/E Ratio is maintain at  10 

Beside the share price as per today 5 November 2013 is RM 1.13 per share.

30 Days Charts

Look on the Chart, it clearly shown that the current share price is in Bull Side which is going up.

CONCLUSION

The share is seriously under value base on NTA, and Low P/E Ratio.

Target Price        :RM 1.80

Stop Loss Price : RM 0.93

Derivatives Malaysia- Futures

Gold Futures (FGLD)

FGLD is a small-sized Ringgit Malaysia (“RM”) denominated gold futures contract traded on Bursa Malaysia Derivatives, providing market participants exposure to international gold price movements at a lower entry cost.

The pricing of the FGLD contract in local currency removes the need for Malaysian participants to purchase foreign currency and therefore removing exposure arising from foreign currency fluctuations.

Each FGLD contract is equivalent to 100 grams of gold bullion. The small size has been designed to provide accessibility to all, but also flexibility for those wanting greater exposure. For the retail player wanting smaller exposure, the small size provides affordability. For the industrial user requiring larger exposure, the contract can be traded in multiple lots at a time (e.g. 5 lots, 10 lots etc).

As a cash-settled contract, no delivery of physical gold is required. Instead, the FGLD contract will be settled on expiry using the cash equivalent of the amount of gold purchased (e.g. 100 grams), calculated using the London AM Fix price (in USD) on the final trading day converted into RM.

For example: 

On the Final Trading Day, if the London Gold AM Fix price is USD1,200 per troy ounce and the exchange rate is USD1 = RM3.0800:

1. Conversion of the gold price from USD to RM will be: 1,300 x 3.0800 = RM3,696 per troy ounce.
2. Conversion from troy ounce into grams: RM3,696/31.1034768 = RM 118.82916 per gram (1 troy once = 31.1034768 grams)
3. Final Settlement Value will be RM118.85 per gram (rounded to the nearest RM0.05),
4. Contract Value will be RM118.85 per gram x 100 grams = RM11,885.

The London AM Fix price is the global benchmark for spot gold prices, and the settlement of the FGLD contract in accordance with this price characterizes the FGLD contract as an instrument that tracks the international gold market closely.

Crude Palm Oil Futures (FCPO)

Bursa Malaysia’s Crude Palm Oil Futures contract, or better known as FCPO, has been the global price benchmark for the Crude Palm Oil market since October 1980. The FCPO is a deliverable contract which is a traded electronically on Bursa Malaysia’s trading platform. With

FTSE Bursa Malaysia KLCI Futures (FKLI)

FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) Futures contract or known as FKLI given an equivalent exposure to the underlying FBM KLCI constituents. FKLI is a cash settled contract and is actively used by both institutional and retail investors in their trading portfolios. 

Equity Malaysia - Real Estate Investment Trust

Real Estate Investment Trusts (REITs)

Real estate or property is a key asset class in an investment portfolio. Typically, before REITs were introduced, an investor may invest in property stocks and/or physical (landed) property to get exposure in the real estate sector.

Investors now have an option to invest in REITs by paying only a fraction of the real estate prices. In other words, REITs provide a way to invest in quality large-scale commercial real estate indirectly which do not need to purchase the property. REITs typically able offer you a stable income stream and attractive distribution yields.

What are the benefits of investing in listed REITs?

• Affordability:

  Investments in REITs cost a fraction of the cost of direct investment in real estate. You can start off with minimal investment outlay.

• Liquidity:

  REITs are more liquid compared to physical properties. Units of listed REITs are readily converted to cash as they are traded on the stock exchange.

• Stable income stream:

  REITs tend to pay out steady incomes (similar to dividends), which are come from existing rents paid by tenants who occupy the REITs’ properties.

• Exposure to large-scale real estate:

  You can derive the benefits of the real estate on a pro-rated basis through a REIT, a quality investment which is affordable

• Professional management:

  You benefit from having the REIT and its underlying assets managed by professionals who will add value for a higher yield.

Equity Malaysia- Exchange Traded Funds

Exchange Traded Funds (ETFs)

ETF is the acronym for an innovative financial product known as Exchange Traded Fund. It is an open-ended investment fund which listed and traded on a stock exchange. ETF combines the features of an Index fund and a stock. The liquidity of an ETF reflects the liquidity of the underlying basket of shares within the ETF.

Basically, there are three types of ETFs: equity ETFs, fixed income ETFs and commodity ETFs. These ETFs consists of baskets of stocks, bonds or commodities based on an index which instantly offers broad diversification and avert the risk involved in owning stock of a single company.

ETFs are listed and traded on a stock exchange. With units in an ETF, investors can gain exposure to a geographical region, market, industry or sector, commodity such as gold or oil or even a specific investment style such as growth or value. To determine the exposure, investors will need to look into the underlying benchmark or the assets held in the ETF. For example, Asia’s first Syariah-compliant ETF, MyETF- Dow Jones Islamic Market Malaysia Titans 25 (myETF-DJIM25) trades on Bursa Malaysia and tracks the Dow Jones Islamic Market Malaysia Titans 25 Index. This indicates that MyETF-DJIM25 holds shares of the 25 leading syariah-compliant listed companies in the country.

Why do investors choose ETFs?

Diversified Exposure

Unlike individual shares, ETFs consist a basket of securities with the objective of mimicking the performance of an index. This basket can be made up of shares, bonds or commodities, depending on the index that the ETF is based on.

Instead of holding a few stocks or bonds, investors can use ETFs for exposure to a diversified basket of investment products.

Cost Effectiveness

Lower annual management fees for ETFs compared to unit trusts makes ETFs economical to buy and to maintain in the long run.

Simplicity

ETFs are listed on the Main Market of Bursa Malaysia. Similar to stocks, the buying and selling of ETF units are done based on its current market price in a single transaction. Trades can be done online or through stock brokers.

Transparency

Investors know exactly which stocks or underlying assets is held in the ETF by visiting the ETF’s website, provided by its manager. Here, the list of ETF constituents is updated on a daily basis.

Equity Malaysia-Company Warrants

Company Warrants

Company warrants are issued by the company and give the holders the right, but not an obligation, to subscribe for new ordinary shares at a specified price during a specified period of time and yet it can be traded in the stock exchange. Warrants have a maturity date (it can be up to 10 years) after which they expire are worthless unless the holder had exercised to subscribe for the new shares before the maturity date

Structured Warrants

Structured warrants are proprietary instruments issued by a third-party issuer, usually will be an eligible broker or financial institution that give holders the right, but not the obligation, to buy or sell the underlying instrument in the future at a fixed price. Essentially, you are making a 'reservation' to buy or sell a pre-determined number of the underlying instrument at a certain price in the future when you invest in a structured warrant.

Types of Structured Warrants

Call Warrants

Holder have the right to buy the underlying share at a specified price within a limited period of time.

Put Warrants

Holder have the right to sell the underlying share at a specified price within a limited period of time.

Callable Bull/Bear Certificates (CBBC)

CBBC is for tracks the performance of an underlying stock without requiring investors to pay the full amount required to own the actual stock. They are issued either as Bull or Bear certificates with a fixed expiry date, allowing investors to take bullish or bearish positions on the underlying stock with the possibility of an early termination before the expiry date when the underlying moves in contrary direction to investors' expectations.

Equity Malaysia- Shares

Shares

Share mean security which represents a portion of the owner's capital in a business. Shareholders are the owners of the company's business and share the success or failure of the business. The performance of the business can be measured by the amount of dividends shareholders receive and by the price of the share, quoted on the stock market. (Shares are also commonly referred to as stock).

The different types of shares which are traded on Malaysia Shares Market include:

1. Ordinary Shares

   Known as equity shares, this is the risk capital of a company. Ordinary shares give owners the rights of ownership in the company, such as the right to share in the profits, the right to vote in general meetings and to elect and dismiss directors. Obligations of ownership are also conferred and this may result in the loss of an investor's money if the company business is unsuccessful. Ordinary shares usually form the bulk of a company's capital and have no special rights over other shares. In the event of liquidation, ordinary shares rank after all other liabilities of the company.

2. Preference Shares

   These are shares which carry the right to entitle dividend (usually fixed) which ranks for payment before that of ordinary shareholders. Preference shares may be preferred too as regards to distribution of assets upon dissolution of the company.
   
   Preference shares carry no voting rights, but voting rights may be made contingent upon failure to pay dividends on preference shares for a certain period of time.