Dark Horses Gallop

Last Friday there was an article in Sin Chew Finance regarding stock pick in the Year of Horse.

The author listed 4 heavyweight Champion horses & 4 dark horses for Year 2014.

The 4 heavyweight horses, Tenaga, SKPetro, Armada & Gamuda are perhaps all too "heavy". They only advance about 0.5% yesterday.

Whereas the 4 dark horses which are N2N, Xinquan, Frontken & Keladi, gallop to the sky.

N2N rises 14%, Xinquan 14.6%, Frontken 17.6%, and Keladi jumps 28%.

It is no coincidence right?

This is the power of newspaper.

The author should have made a handsome profit.

Among all 4 dark horses, after a brief look into their historical revenue and profit, only N2N appears more appealing to me. However, current price at 65sen seems too inflated.

       N2N

Xinquan is cash rich, with net cash per share of RM1.64, much higher than its share price of 90sen last week. However, it is a China-based a.k.a. risky stock. Furthermore, sales are dropping at the moment, which is not a good sign at all.

       Xinquan

Frontken looks like a "quality" company traded below 10sen. However, its founder who is also top executive left the company and sold all his shares to a German in Jan 2012. Recent financial results show that it may take quite some time to post consistent profit. Persistent growth is not easy.

       Frontken

Keladi is cash rich and has huge land (515 + 667 acres ++) in Kulim not re-evaluated since 1996. This is more or less similar to Asas Dunia and many other high NTA developers. However, Kulim is not a hot spot for property. Though it can make continuous profit but it might not have good growth. It might be slow in turning the empty plantation land into property and profit. I can't even find its website.

       Keladi

So, how far can these dark horses go?