Wednesday, 18 November 2020

POS Turnaround? Sure or Not?



A few years back, courier business especially last-mile delivery was identified as a sunrise business with explosive growth potential due to e-commerce boom.

Now, we realize that the competition in courier business is ferocious and bloody, and its earning growth potential seems to be not that attractive anymore.

Like many other investors, I did consider to invest in courier stocks before. 

GDex is perhaps the best listed courier company but its PE ratio was, and is still extremely high.

POS is the largest courier company in the country but it has a sunset mail business which will drag down its courier profit. 

Nationwide looks hopeless and I have nothing much to say about it.

CJ Century was my only hope as it just started its courier service business in early 2018. However, after 3 years it's still suffering in loss and seems difficult to turnaround anytime soon.

Saturday, 14 November 2020

What Are Holding Back The Gloves?


Can I still buy Supermax? Should I hold Harta? Careplus has dropped a lot, is it a chance to accumulate? Should I average down on Rubberex? Should I sell Topglove now? Is it a good time to take profit on Kossan? Can I average up on Comfort? How about AT?

There is no doubt that gloves stocks are the hottest stocks in Malaysia stock market since Covid-19 pandemic.

Certain investors will tell you that it's stupid not to buy gloves stocks now, as gloves companies are the only companies that are guaranteed to make gigantic and increasing profits in the near future. 

The advice given is that you must ONLY have gloves stocks in your portfolio.

In early part of Covid-19 pandemic, I think no one would expect Supermax who usually earns around RM30mil net profit a quarter to be able to raise it substantially to RM800mil a quarter.

At this point of time, it's no secret anymore regarding how much glove companies can earn in this pandemic, everybody knows it from their excellent financial reports & forecasts. 

There is also no doubt that gloves companies will continue to make huge profit in the coming few years.

However, it is a different story how the market will value them in term of share price.

Thursday, 5 November 2020

How To Subscribe To Rights Issues Online



I used to subscribe to Inari rights issues before in 2015. At that time I used a nominee account. So my broker helped me to do everything and I just needed to ensure that I had enough money in my account to pay for the rights shares.

Now I mostly use direct trading account. That means there is no one to help me and I have to do it all by myself.

As it's my first time subscribing for rights shares on my own (current Jaks rights issue), I contacted the investment bank and they were kind enough to give me the instruction on what I should do.

First, I have to wait for the rights shares subscription form which will be sent to my house's mail box. I have to fill up the form and then go to bank to get a banker cheque as payment. 

After that I have to go to post office to buy a RM10 setem hasil and paste it on the form. Finally I have to mail the form and banker cheque back via pos laju or other courier service. 

Travelling to 2 places (bank & post office) and queuing up during this very moment is both time-wasting and risky.

Monday, 2 November 2020

My Portfolio Oct20


 Summary for October 2020













Portfolio @ End of Oct20













This October was not a good month for stock market as KLCI retreated 2.5%. Overall my portfolio registers a small gain of 1.2%, thanks to Prolexus, Scientex & Supermax.

I did not have any intention to buy stocks in October as I planned to wait until after the US election to have a clearer picture. 

However, I added my position in Jaks a trading day before the ex-date of its rights issue. I didn't sell any shares since none reaches my target price.

I always have a plan in mind to top up Jaks either before or after the rights issue. I regretted that I missed the chance to do so when its share price was below 80sen not too long ago.