07 May 2015

MALAYSIA STEEL WORKS (KL) BHD [S] (Masteel, 5098) – Delay Audited Financial Statement (AFS) - Case Study

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Latest Quarterly Summary: Future is going to be better.

From its latest quarterly report (2014 Q4), MALAYSIA STEEL WORKS (KL) BHD [S] (Masteel, 5098)appears to be very optimistic about the future as follows:
Prospects
The Company is expected to increase its bar sales volume by 10% for the first half of the year and upon the commissioning of its new rolling mill during the second quarter, for the second half the year, it is anticipated to sell an additional 100,000 mt of high tensile steel bars.
The margin is expected to improve due to the following factors:
1) the continued decline in scrap prices.
2) the reduction in electricity tariff of 5.8% from March till June 2015.
3) higher levels of economies of scale due to higher volume of production .
4) the suspension of natural gas price revision by the Government.
5) due to the stabilizing international iron ore prices, the prices of Chinese steel imports are expected to bottom out.
The Company is expected to perform well in the following quarters based on prevailing business conditions.
The impending impositions of goods services tax (GST) on the Company’s products are not expected to have any material impact on the sales volume of the Company.
 

Shareholding Analysis: Something opposite

According to 2013 Annual Report, Dato’ Sri Tai Hean Leng, Managing Director and CEO of Malaysia Steel Works (KL) Bhd had around 4million Masteel shares.
However, the Managing Director disposed 4.1 Million shares on 30 Dec 2014 as that stated in Bursa Malaysia at a price of RM0.80 only. In other words, the Managing Director already disposed all the shares that directly held by him and obtained around RM3.28million cash.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/3491377

Question: Why the Managing Director who was so confident with Masteel’s future sold 4million shares?



04 May 2015

Investment Lesson from Misjudgment on Market Trend in 2014~2015: Review – MALAYSIAN BULK CARRIERS BERHAD (5077)

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By forecasting Market Trend, investors can position their portfolio accordingly to embrace the coming profits from the coming Market Trend. Again, everything is always easier said than done. After the sharing of Investment Lessons from Unpredictable Events in 2014~2015: PJ DEVELOPMENT HOLDINGS BERHAD(1945), in this post, I am going to share with you about my misjudgment on Market Trend in 2014~2015 - MALAYSIAN BULK CARRIERS BERHAD (5077).


  
Summary: MALAYSIAN BULK CARRIERS BERHAD (5077) – Bought Average RM1.55, SOLD Average RM1.38, Average Loss ~12%

 



03 May 2015

Investment Lessons from Unpredictable Events in 2014~2015: PJ DEVELOPMENT HOLDINGS BERHAD (1945)

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As an investor, even though my portfolio of around 15 companies has achieved a positive double digit return in the last five years, I must admit that few of the 15 companies did bring some losses. Since one of ways to enhance our investment skills and knowledge is through revision, I am going to share my experiences from these losses in my portfolio in last 12 months - MALAYSIAN BULK CARRIERS BERHAD (5077) and PJ DEVELOPMENT HOLDINGS BERHAD (1945). Hopefully, this record can remind me those mistakes from time to time.

 

Summary: PJ DEVELOPMENT HOLDINGS BERHAD (1945) – Warrant Bought RM0.98, SOLD RM0.77, Loss ~23%





22 March 2015

Revision: Investment Strategy - GST, Ringgit Depreciation, & Oil Price Drop

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As an investor in Malaysia, the recent three factors that may affect my investment decision are - GST implementation, Ringgit depreciation, and oil price drop. In this post, I am going to summarize my opinion, particularly, trying to figure out potential opportunity that may once again maintain or even improve my investment return in the next 1~3 years.


Before that, I would like to re-highlight that every decision or view that stated here is based on present available data and information. If an unforeseen circumstance or event happens, all the strategies and decision (especially for those mid- or long- term plan) must be revised timely to reduce (or hopefully avoid) losses.