Wednesday, August 14, 2013

Buying Kossan & Add Position to CIMB

I bought some Kossan. Nitrile glove is gaining more shift over momentum, especially from developed countries. It is money if you have the capacity to produce more nitrile gloves. Previously I always assumed Kossan as "kiasi" glove manufacturer due to its products mix of 50:50 between latex glove and nitrile glove. It is not as daring as Hartalega, its Management seem to be too conservative. However it surprised  the market with its latest aggressive expansion of plant mainly focus on nitrile glove. It is forecast to make more profits for years to come. I am convinced they will make it although its efficiency is no where close to Hartalega output of 45000 pieces of glove per hour. The price is not cheap, so can not consider as value buy, however profit increase will justify higher share price for years to come. There is no industry where production capacity is equal to money as compared to nitrile glove player. I repeat, it is MONEY if you have the capacity, the market is big enough to absorb any new nitrile glove capacity.

I also add my position of CIMB. Its Management has guided that 60% of future profit shall come from overseas (region). CIMB has never fail to deliver since 2003. Its share price is attractive currently at least to me, therefore bet big on it.

Monday, June 24, 2013

Update on My Portfolio

Another post only after 5 months, how to "cari makan"? However to my surprise the number of followers is increasing. What a boring blogger still manage to pull followers.

I disposed my Allianz due to it is fully valued currently based on my valuation, nothing wrong with the company.

I bought some CIMB as the dust already settled. Still opines that it is not fully appreciated as a regional bank by investors. I believe that a regional bank shall fetch a higher PE valuation as compared to a normal local bank. Although one can argue that Maybank is also on track to be a regional bank, which is traded at comparable PE with higher dividend. But one should notice that Maybank is following what is done by CIMB. So why want to buy a follower instead of a leader? CIMB is evolving constantly to realize its ambition to be a regional bank, which is still at infant stage. I foresee there is still more room to grow. Personally I like growth, I like a company able to grow meaningfully in years to come. It also keep streamlining is core businesses and improve its operational efficiency with CIMB 2.0 programme.

My favorite, Hartalega, is flying, hope that the sky is the limit. With NGC already move a big step forward, market appraised immediately with a even higher PE valuation. It is set to grow for years to come with this NGC, which is quantum leap. I said it is a quantum leap which it is, because instead of following what other glove makers did, it plan to multiply is capacity in a single plant. Other glove makers normally plan a plant follow by another plant with normal capacity expansion only. This how I valued Hartalega's management, I don't see a close fight in this sense. Some more NGC will also the most efficient plant by industry standard. Top notch management! It set the standard for others to follow, which I don't think others able to duplicate.

Wednesday, January 16, 2013

Stock Pick 2013 & Strategy

Things have been stagnant for months, no latest development for me. My strategy currently still waiting for the market correction to pick up some stocks I like. GE13 is around the corner, why not wait for it since I am waiting it for months. The bull market starting from early 2009 until today it is still not taking a break, market correction is unavoidable, only when.

Last year my stock pick were Hartalega & Allianz, both of them beat the market by decent margin. Hope that I am able to repeat the same call for this year and years to come. This year I don't have any stock call particularly at this moment, as I believe that the market will present a good chance to buy some good quality stocks that I admired like Hartalega, Allianz, CIMB, Public Bank, Jobstreet, and LPI.

Nothing cast in the stone, is all depend on the prices presented by "Mr. Market". Basically I like insurances, banks and nitrile glove makers, asset light company with solid recurrence cash flow. Although some consumer stocks like Nestle, Dutchlady and DIGI are solid with free cash flow but they are not cheap either. I also don't think that they will drop to PE below 18, this is the pricing I will enter.

Old Town is flying for last few months, it is eye catching. Its capacity expansion and China venture seem attractive. However, the customer experience at their outlet is suck, big time. It should be the worst customer service provided among all F&B. Every time I think of buying it, i not feel comfortable. With this kind of service, how it can retain its shore in the highly competitive environment.

HLFG is relative cheap entry as compared to Hong Leong Bank, however I dont like this method of investing.