TheLearner 8

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I hope you guys enjoy reading my personal opinions. Congratz for those who followed me earlier.

Joined May 2020

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2 weeks · translate
< Personal Opinion >

Allow me to quote a short paragraph in recent announcement:
"KTC was listed on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 25 November 2015 under the condition that the Company is required to allocate 12.5% of its enlarged issued share capital to MITI-recognised Bumiputera investors (“Bumiputera Equity Condition”) within 1 year after achieving the profit track record required for a listing on the Main Market of Bursa Securities or 5 years after being listed on the ACE Market of Bursa Securities, whichever is earlier."

This counter IPO on 2nd April 2017, oversubscribed by 45.66 times. Its share price opened with a 100% premium over its initial public offering (IPO) price of 15 sen per share. Source: https://themalaysianreserve.com/2017/04/03/ktc-debuts-on-ace-at-100-premium-over-ipo-price/

So after 4 years and 6 months time has passed, they are now required to issue shares to Bumiputera investors. As this Bumiputera investors must be MITI-recognised and recent announcement that Bumiputera shares can only sell to Bumiputera, some topic to discuss whether this is good or bad for KTC.

This stock currently on sideway movement, or maybe as no movement for those looking for excitement in market. There is a support at RM0.155 level.

Execution plan (Long term, no TP or CL since it is long term):
Entry: RM0.155

Issue new shares, but restricted selling condition, KTC get the capital to repay debt, incurring lesser interest cost, more cash as working capital. Sounded like being forced to take the money. No dividend payout record, nothing to worry on more shares may reduce the dividend per shares, EPS may get diluted but this is not within my interest. What I can see here is my stock picking for KTC is based on its growing revenue, improving profit and a low risk price level, a bargain worth risking my capital.

If the QR came in similar to previous QR, revenue 173.9m and profit 2.0m, making its financial year 2021 a 686.6m revenue and 8.7m profit. All time high yearly revenue. All time high profit was in financial year 2019 of 11.8m, which we see accompanying share price at RM0.220 (short period before QR announcement), then MCO and peak again at RM0.245. Definitely worth taking the risk for me.
2 weeks · translate
<ENDING MY COVERAGE> Reason: Loss making company that doesn't fulfill my entry criteria.
You may follow me to know my opinions on other counters.
2 weeks · translate
So it did rebounded to RM0.535 high! Although I didn't enter as it doesn't fulfilled my entry criteria, but good sum for those who did. Close to a 10% gain easily from here.
2 weeks · translate
Since my entry 2 months ago at RM0.265, lowest it ever visit is RM0.255. Highest is RM0.330.
This is a -3.77% downside and a +24.53% upside if anyone ever realised at that highest price. Worth risking my money!
2 weeks · translate
Vaccination on track, Malaysia should move to recovery and adapt life in the endemic. Lowest price of RM0.310 observed, now RM0.330, not bad, I gonna enter at this price.
2 weeks · translate
Okay, continue holding this, around 20% easy money collected.
2 weeks · translate
Okay, hit TP. Congratulation to myself.
2 weeks · translate
Finally reached 100 followers! This counter also went up 8% from my entry.
1 month · translate
< Personal Opinion >

This stock got the potential to rest back on MA200. Not my usual execution, but I am chipping in this time round. The fundamental was bad previously, but with the dry bulk season, fully booked containers and the hike in the rate for sea shipping, this would worth for a short term play. I planned to do the following:

Execution plan (Short term):
Entry: RM0.325
TP: RM0.380
CL: RM0.310

Chipped in only a small amount at this moment in view of political uncertainty in Malaysia.

If you like my post, do help to follow me here. I am having 88 followers now, am aiming for 100 to unlock the post idea features. Note that this is not buy/sell recommendation, you should do your own research, form your own view for any action. Thank you.
1 month · translate
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