Before getting to the story, we would like to thanks our
readers as our blog had hit almost 10k readership in 3 days, really thanks a lot for
your support!
On the other hand, we would also like to congratulate our
readers as all the share we mentioned have got some movement, however, to those
traders, we don't encourage to trade because we are believer for buy and hold for 3 to 6 months strategy instead of trading but if u really have to trade then trade wisely ya as the aim of this blog is not for trading
but buy now and sell to the cash rich Valuecap later.
To those that haven’t
like us on our Facebook, appreciate if you could like us on our FB page and on
the notification from our page as this will help u to keep updated to the
latest stock pick that we believe Valuecap is interested.
The 2nd thing is, we would like to dedicate this article
and pay respect to one of the Director of this listed company that we will be
mentioning later where he had pass away not long ago. He is my ex Adun from Alur
Limbat, Terengganu Allahyarham Alias Bin Abdullah, it is sad to hear about his departure
as he is a very caring and sincere assembly man that really take cares about
the resident in his area without any bias. FYI, though there are only about
500++ qualified non Malay voters in his area which is insignificant, but he still spend his time and
effort setting up a committee that listen to our needs and concern and offer
help to us and he even find ways to help poor Chinese students in his area to
provide them study materials.
I would say he is a HERO that worth a lots of
respect and to those readers out there, I understand that Allahyarham
Alias Bin Abdullah is an UMNO assemblyman, but let’s put
political background aside as this is a great man and that’s the quality that
we need in every “wakil” and I hope you all can also respect this Hero of mine
and it’s a loss to the Rakyat especially me.
Tak Ziah to the family
Ok let’s not drag any longer and get down to the real business.
Time fram for Valuecap (Updated)
Yesterday we saw that there are news about Valuecap, which
is
“Government-owned
fund manager ValueCap Sdn Bhd will receive an injection of RM6bil - the first
tranche of the RM20bil fund to lift the market - by the end of this year, said
Retirement Fund Inc (KWAP) chief executive officer Wan Kamaruzaman Wan Ahmad.
“We are finalising the details with the other shareholders and
we hope to have the first tranche in hopefully by the end of November, if not
latest by early December,” he said after the signing ceremony to be the
official signatory to the Malaysian Code for Institutional Investors on
Monday.”
In short, we have 1
months’ time to look for and collect the Gem and past it back to Valuecap and
charging them “rental or interest”. Sounds like a good deal right?
After the 5 stocks being mentioned last week, we’ve found
another stock that could possibly be a target of Valuecap. We’ve found this
stock today after seeing lots of buying in for the past 2 days, looking at the
buying, we believe it might be the insider or the so call cronies that are accumulating, hence, we have decided
to write it once the market close today as we believe in providing our readers the latest news whenever we can. Hope you enjoy our writings.
A brief introduction
This stock is from a state that is rich with its
culture and also famous with its oil field and their football team’s fans club
has a name of “Peteh” as well as “Nasi Dagang”, "Ketupat sotong" and many more (Though we just had dinner but we
really miss our hometown food alot food a lot by the time we start writing this article). This
state is also famous with its “Penyu”! They are also in the limelight due to
1MDB news as 1MDB was previously TIA and some even said that they almost
collateralize their oil field and yes, u r right! Its from TERENGGANU our beloved hometown and "yes" we are talking about TDM.
Why TDM?
TDM is a company that we believe had fulfill the
qualification in terms of politically as well as undervalue of its assets and business. We’ve just noticed
this company today as the volume rushed in with a breakout and we believe these are those insiders that accumulate this counter and sell it to the cash rich Valuecap. We will now explain to u the logic behind these thing.
From the political
perspective
As we said before, we believe our PM will use Valuecap to prop
up the cronies counters to get support. As we look at the market recently, we
believe other than FGV, TDM might stand a big chance to get such privilege too.
The reason being is due to 1MDB was originate from
Terengganu that is Terengganu Investment Authority TIA and the previous MB YB Datuk Seri Ahmad Said had come
out to the media especially when things are heat where he mentioned lots of “classified
news” which the rakyat never even heard of. U may try the Utube link below.
Source: https://www.youtube.com/watch?v=C2Psptu1Psg
Source: http://www.mstar.com.my/berita/berita-semasa/2015/05/13/bekas-mb-terengganu-dedah/
These had causes a stir to the rakyat and also the grass root
as well the leaders of this state, so how to comfort this leaders and grass
root supporters? To make them happy again is the way but how? We can’t give
them directly as there are enough of scandal that are still overhang, so how? Yes,
we can get them to buy some share and push it higher and sell to Valuecap, make
sense?
So now to comfort the grass root from this state, then we
have to choose things that these cronies are mostly invested in and make them happy. So what is the most invested company by these crxnixs in this state?
Terengganu Development Management Bhd TDM (2054) is the answer, but how to justify
that this ?
By looking at the top shareholder list in 2015 annual
report, we saw that there 64.5% of the shareholding are tightly held by the
state government and 8.35% held by KWAP Kumpulan Wang Persaraan DiPerbadankan. On
the other hand, there are lots of fund house that bought the shares.
As a result, we believe this company not just only have lots
of cronies in it but also lots of local investment house that is already in. Hence,
its obvious that it has value in the company as well as having good cable in
the company.
On the other hand, my respected Allahyarham Alias Bin Abdullah is also in the board of director, isn’t that also
showing this is a company of crxnxes? If this is not convince enough, we may
look at the next one.
On page 49
of the annual report, we found something even more interesting and it is about the registered address
of the company.
Did u see what we saw? I believe there are not much company
have their registered address in UMNO’s building. Only cronies are able to do
that, do u agree?
Btw, pls don’t politicise this issue, bear in mind clearly that we are here to make some money and get ang pow from our PM’s Valuecap,
hence the more u unhappy then the more u try to take from Valuecap.
We have saw lots of volume pour in to
these counter especially after our PM announced reactivation of Valuecap on 14th
September. Don’t u feel weird?
Look at the timeframe that the stock price moved
and the reason volume, I believe it’s the insider which is the crxnixs who
are accumulating this stock as they knew Valuecap will surely buy this stock and that’s
y u see the stock moved up with volume 1 week after the Valuecap announcement.
So that’s for the Political part, I believe most of u might
agree that this is really a well-connected political companies that have lots
of cronies in it.
On the corporate perspective
If you were to look at the announcement of this company, u can see that KWAP Kumpulan Wang Persaraan DiPerbadankan has been buying this stock since April and have been buying since then where we have made it easier by showing u the chart below.
The thick line is the date KWAP buying the shares of TDM, you can see that their buying cost are mostly above RM0.70 and the only cheapest was on 30th September where they purchase at RM0.665.
Source: http://www.bursamalaysia.com/market/listed-companies/company-announcements#/?category=all&sub_category=all&alphabetical=All&company=2054&page=1
On the other hand, U can see the volume spike whenever KWAP buys in, so is the spike today was due to KWAP also? We will know the answer after 2 weeks time.
The point that I would like to point out here is : The cost of KWAP recent buying is around RM0.70, hence, to get benefit from Valuecap, do u think KWAP will sell at RM0.70? I believe they might sell much more higher at least 10% above their cost, hence RM0.80 as my tp should be reasonable.
So Valuecap buying TDM is not only helping their cronies, but also helping their own shareholder KWAP... So....
This is the way that we meant... The way for crxnxes to make and the boss to show result...
and we TUMPANG!
*Pls like our FB page and turn on the notification from our page as we will keep u updated on the latest Crxnixs stock that will be on target once we found it.
A brief introduction of the company
The core business of the company is Plantation and
Healthcare, where the business of their Healthcare is a fast growing industry
that almost everyone needs it.
Healthcare
TDM is very smart and business savvy where they set up their
hospital at places that is lack of private hospital such as Kuantan and
Terengganu where they have monopolise the specialist industry in these 2 places.
From the annual report, we can also see the healthcare arm is growing fast
where it is now contributing almost 45% of the company’s profit and this had diversified
the risk of the company as they were previously relying on Plantation only.
The health arm is not the smallest in Malaysia as TDM now
have 270 beds and will have 450 by the 1st Q of 2016 while the peers
such as TMCLife is now only have about 200 beds only. The best part of it is
they have also mentioned that they plan to list its healthcare business in near
term. This is can easily generate few
hundred million to the company if we compare with its peers valuation.
Plantation Arm
Plantation is the core business which contribute 55% of the
profit for the company, the profit of this segment had come down due to the low
palm oil price, and this company is a very good play for palm oil price rise.
The palm oil price had started to perform recently due to the El Nino and haze
hence the price will continue to perform once the palm oil hit above RM2400.
On the other hand, TDM is a responsible palm oil player
where they only produce Sustainable Palm Oil CSPO which give them higher price
compare to the others player. TDM had also expanded to Indonesia where the palm
oil plantation is going to start production in 2016, this will boost the profit
of the company by more than 30% for that year itself.
Source: http://www.tdmberhad.com.my/#1
To those that interested about the fundamental, u can read
the latest report from PB invest : http://www.bursamarketplace.com/index.php?ch=31&pg=108&ac=19532&bb=research_article_pdf
This company is invested by lots of funds had shown its
value and since it is a company own by cronies that someone has to please hence
it’s definitely in the cart of Valuecap.
Before ending this post, let us remind our readers about our strategy again.
1st We look for the shares that being perceived as the cronies counter.
2nd Make sure when can Valuecap start to buy.
3rd After making sure of the date, buy before Valuecap especially when the share retraced.
4th Sell the shares to Valuecap together with the cronies with handsome profit
5th Wait for the market to fall and REPEAT!
Once again, we would like to reiterate we prefer buy and
hold for a few month strategy and sell back to our “God of Fortune”. To those
who really wanted to trade, please trade wisely and we couldn’t really advice
on that as we are not good in that.
May all the Huat be with us. Huat ah!
*Pls like our FB page and turn on the notification from our page as we will keep u updated on the latest Cronies stock that will be on target once we found it.
2 comments:
Together we huat!!! huat!!!
Thank you for your info.
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