Thursday, 8 April 2021

Nice to CU with myNEWS

If you ask me about myNEWS in year 2019. I'd say just forget it.

The only myNEWS store I've seen at that time was the one inside Aeon Bukit Mertajam Shopping Mall in Penang.

It's a small store and most of the time there are no customers inside.

The name is weird too. I thought it's selling newspaper.

To me, convenience store business is highly competitive and has low barrier of entry. That's why I was not interested in 7-11 (SEM) & myNEWS and did not bother to read their financial reports.

In Jan20, a blog reader who is a successful fundamental investor mentioned that he invested in myNEWS. He actually bought a lot of its shares.

That prompted me to study myNEWS's financial reports.

Friday, 2 April 2021

My Portfolio Mac21

Summary for March 2021

Portfolio @ End of Mac21

In general, March 2021 is not a good month in stock market. My portfolio lost 7.1%, mainly due to the decline of my major holdings SCIB & Jaks.

Taking some profit from SCIB earlier in the month helps to reduce the percentage of loss.

I still hold quite a lot of SCIB shares. I believe the company can continue to grow in 2021 and hope that it can achieve its RM2bil market cap target by the end of this year.

Jaks just released a bad quarter result with a shocking RM103mil loss after tax and minority interest in its FY20Q4. Its loss before tax for the quarter is RM183.5mil.

However, there are reversal of disposal gain (RM85.3mil), impairment loss of goodwill (RM52mil) & receivables (RM23.6mil), share grant plan expenses (RM17.1mil) and loss on disposal of investment properties (RM5mil) in this quarter alone.

After deducting all those bigger items above, its actual loss before tax is just RM0.5mil in the quarter which is not too bad.

Saturday, 20 March 2021

Tecfast: A Fishy Big Contract?

Recently there are quite a few of small companies getting big contracts worth hundreds of millions to billions of ringgit.

What I know are ARB, Ageson, Anzo, Bioalpha, Vivocom, Kanger, Techfast etc.

Are they for real? While it certainly smell a bit fishy but I'm not going to comment about them since I don't study them in detail.

Readers can check the share price charts and the latest financial results of those companies to decide whether to believe in those companies or not. 

On 15th Mac 2021, Techfast announced that it has entered into a marine fuel oil supply agreement with Wise Marine Pte Ltd.

The value of this 3-year contract is estimated to be a whopping RM2.22 billion, and Tecfast is an ACE-listed company with a market cap of only RM100mil.

Nevertheless, Tecfast is still a profit-making company with zero borrowings.

Friday, 12 March 2021

Low Interest Rate Environment: Buy Buy Buy?

The chart above shows Overnight Policy Rate (OPR) of Malaysia since it was set in year 2004.

Current OPR of 1.75% is at its historical low.

As Malaysia's economy is expected to recover from this year onwards, Bank Negara has decided against lowering the OPR further last week.

I'm not an economy expert but I think 1.75% will be the lowest we can get from this pandemic-induced global recession.

I'll be very happy if the OPR can drop to 1.5% though.

What happened when Malaysia's interest rate dropped in such fashion last time?