Monday, 14 June 2021

Dato Abdul Karim's Stocks: Opportunity or Trap?

It's been three weeks since Serba Dinamik first announced its intention to appoint an independent film to commence a special independent review on its account on 25th May 2021.

Today, finally it has announced the appointment of Ernest & Young as the independent reviewer, together with 3 new independent and non-executive directors.

In the past 3 weeks, Serbadk share price suffered drastic drop from RM1.61 to a low of RM0.54 before rebounded today to close at RM0.745. 

It's a huge 66% drop in just 10 trading days.

SCIB and KPower which are Dato Abdul Karim related stocks are also negatively affected as expected.

SCIB's share price fell 40% from RM1.49 to RM0.88, while KPower dropped 30% from RM1.69 to RM1.18 in 12 trading days.

Are these the lowest share price for those 3 companies before the result of independent review, or will they drop further?

Thursday, 3 June 2021

My Portfolio May21

Summary For May 2021

Portfolio @ End of May21

Due to the slump in SCIB share price, my portfolio suffers its heaviest loss in one month at -19% since losing 21.7% in Mac20. 

SCIB was my major holding and made up ~40% of my portfolio. It has contributed massively to my portfolio gain this year but now I have to vomit out those gain.

The big news in the stock market in May should be none other than Serba Dinamik's audit issue.

Serbadk first announced its intention to appoint an independent firm to commence a special independent review on its accounting matters raised by external auditor KPMG on 25th May 2021.

It's then followed by a public holiday, 2 days of trading suspension and 2 days of weekend. 

When trading resumed on the 31 May, its share price straight away limited down.

Friday, 28 May 2021

Krono: Eyes On China

Krono is involved in Enterprise Data Management (EDM) business providing hardware & software solutions to enterprises for data storage & protection as well as EDM managed services.

Before this, Krono has a small presence in China through a 16.67%-owned Quantum China Ltd (QCL). Now it has proposed to acquire the remaining 83.33% of QCL for RM150mil.

Half of the amount will be paid by cash (RM75mil) and the other half will be paid by issuing 110.3mil new Krono shares at 68sen each.

This is the main reason Krono carried out private placement recently by issuing 104.67mil new shares at 66.23sen each to raise RM69.3mil.

So, a total of 215mil new Krono shares are to be issued to fund this acquisition. 

Should existing shareholders of Krono be happy or worry?

Saturday, 15 May 2021

Commodity Super Bull Run: Part 2/2

Global commodity price has risen since the middle of 2020, and the rise is getting more pace in year 2021. Here in part 2, I'm making notes on recent commodity price surge on metals. You can refer to part 1 for commodity price on energy and agricultural products.


Reduction in supply and increase in demand especially from China have pushed steel and iron ore price to multiple year's high in 2021.

       Steel Rebar (CNY/T) 5-years chart

                     Iron ore (USD/T) 10-years chart

China's steel rebar price has reached CNY5500/T (~USD850/T) recently, up more than 60% in one year.

Listed upstream steel companies such as Ann Joo, Lion Ind, Southern Steel & Masteel should benefit from higher selling price of their end products.

Midstream & downstream steel players have to endure higher cost due to high steel price. However, they can increase the price of their products since steel price has gone up. 

For a period of time, they can enjoy super profit margin by utilizing raw material bought earlier at low price and sell at current high market price.

There are a lot of midstream & downstream steel companies listed in Bursa Malaysia, the long list includes Astino, Atta, AYS, Chinwell, Choobee, Chuan, CSCSteel, Dynacia, Emetall, Engtex, Hiaptek, KSSC, LeonFB, LSteel, Lysaght, Melewar, Mycron, Pantech, Prestar, SKBShut, Tashin, Tongher, WZSatu, YKGI, YLI etc.