Wednesday, 2 April 2014

Updates: Inari, Gtronic, Trop & Tambun

Even though KLCI declines by almost 1% since the start of 2014, most small & mid caps stocks gain handsomely.

That's why personally I don't like blue chips stocks especially during bull market, unless it has great potential of growth.


YearToDate, Inari has appreciated about 65%, though it is still way behind the crazy Dsonic which has already gained 120% YTD.

The recent rally in Inari's share price might be due to its pending transfer to main board and bonus issue rumour. 

Though there is still no update regarding the main board transfer which was expected in the first quarter, it does not worry me as it is just a matter of time.

Today, HLIB has come out with its analyst report giving Inari a target price of RM3.09. The report provides lots of good info regarding Inari's prospect.

As a layman I only know that smartphones and tablets will only become more and more popular. You can even see students, golden age folks and people in lower income groups playing with their smartphones now. 

With growing popularity in social network stuff like facebook, twitter, whatsapp etc, smartphones & tablets seem to be a must-have for most people.

Soon those less developed countries might see a boom in smartphones sales.

Samsung has just launched Galaxy S5, and Apple is expected to launch its iPhone 6 in Sep/Oct this year. It is a new model every year.

Inari will certainly benefit from this trend with its link to Avago which is the global leader in wireless technology, a must have feature in smartphones & tablets.

         Actual smartphones shipment in 2013 is more than 1 billion.


Besides Inari, Globetronics is another company that should benefit from this similar trend.

That's why I'm still keeping some Gtronic shares even though I'm only expecting so-so financial results in the first half of 2014, and it is currently trading way above my own target price.

Gtronic's share price has made a big leap for the past 2 days and broke out from its resistance. I'm not sure why but it is a positive sign. 

Its sensors and LED products are definitely at the top of market trend so I think it should have a bright mid term future.

I hope it can make some good acquisition in the near future besides growing organically.


Recently Tropicana is like "salted fish turns alive" where its share price recovers well from its previous 8-months-long downtrend.

Its recent surge in share price might be related to CIMB's report that gives Tropicana a fair value of RM3.07-3.58 base on 30-40% discount on its fully diluted RNAV which stands at RM5.11.

Besides, at RM1.39, it is trading at a discount from its NTA of RM2.32 and a historical PE of only around 4x. Its GDV/market cap ratio of 41x is also much higher than all other established property developers in the country.

Personally I have confidence in Tropicana's re-branding exercise and its working direction towards a successful big cap property developer. I'll just keep my current investment in Tropicana and see what happen in the next 1-2 years.


Tambun Indah's share price touches RM2 today. It has gained nearly 40% for the last 2 months.

In my view, I think Tambun's earning can still continue its uptrend momentum. Its Pearl City projects are running fast and smoothly, while recent new launches also achieve encouraging sales.

Its Straits Garden condominium with an estimated GDV of RM238mil launched 1.5 years ago, should have a big portion of its unbilled sales billed from the 2nd half of year 2014.

Tambun should be able to surpass its FY13 financial performance with ease in FY14. After that, it remains to be seen.


  1. sadly, i don't own any of these excellent companies.

  2. BD,

    Good returns for your portfolio. Congrats.

    Bw, Matrix just broken past RM4 .With some corporate exercises, should head towards RM 5 soon.


  3. Thanks :)

    James, there are still many good ones around. It shouldn't be sad if you own things like Dsonic, MKH, Protasco, Prestariang etc.

    Fonzie, what kind of corporate exercise you expect for Matrix?

  4. Bursa D,

    I wouldn't suggest any significant cash calls at the moment. Market seems to re-act negatively for some reason, ala MAICA and Ahmad Zaki. If they really need to top up on their cash position, maybe a placement would be better. Though dilutive to existing shareholders and often issued at generous discount to market price, at least you know whoever takes that placement block "wants" a reasonable return for their cash. So, win-win for shareholders as well when share price gets nudged up.

    Flavour of the moment is sure a share split. Cheap and easy exercise. Some free warrants would be nice ,too.

    Asking too much?


  5. Haha, anything "free" or "bonus" will surely do the share price a favour!