GORENG ADDICT BLOGSPOT - Investing And Trading Bursa Malaysia Stock Market
Disclaimer : This is my personal blog. Author will NOT be responsible for information errors, incompleteness or delays or for any actions taken in reliance on information contained herein. Examples in this blog are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The author assume no responsibility for your trading results. There is a high degree of risk in any form of trading and speculation. Trade at your own risk.
Despite the ongoing bull run in the stock market these few weeks, there appear to be some stocks which have been neglected in the current rally. It may be a blessing in disguise, of course, because it probably means that you & I could take a position when it is still cheap.
One of such stock is TA (4898) a stockbroking company - TA need no introduction because the company have been around for a long time. Here is what I like about TA shares.
1) Share price - 96 sen compared to NTA of RM1.81 (only 53% of NTA). Note that TA's 62.95% stake or 3,202,334,270 shares in TAGB (0.42) alone is worth RM1,344,980,393 or 78 sen per share. Then there is the stockbroking business and the lending business. Are these business only worth 18 sen ???? The market seems to have mispriced how much TA shares are really worth now. At 96 sen TA is trading at P/E of only 8.68x!
2) Aggressive insider buying of shares - Datuk Tiah Thee Kian have been purchasing TA shares on a regular basis, the last time during July 21-22, 2014. He currently hold 30.71% of TA.
Particulars of Shareholder
Name : Datuk Tiah Thee Kian
NRIC/Passport No./Company No. : 470901-01-5071
Nationality/Country of Incorporation : Malaysian
No. 44 Jalan Medang Tanduk, Taman Bukit Bandaraya, 59100 Kuala Lumpur
Descriptions (Class and Nominal Value):
Ordinary Shares of RM1.00 each
Name and Address of Registered Holder:
TASEC Nominees (Tempatan) Sdn Bhd
34th Floor, Menara TA One
22 Jalan P. Ramlee
50250 Kuala Lumpur
Details of Changes
Date of Notice : 24/07/2014
No. Date Transaction Type No of Shares Price (RM)
1. 21/07/2014 Acquired 500,000 1.030
2. 22/07/2014 Acquired 500,000 1.044
Circumstances by reason of which change has occurred:
Acquired from the open market
Nature of Interest:
No of Shares Held After Changes:
Direct : 525,652,200 shares (30.7100%)
Indirect/Deemed Interest : 0 shares (0.0000%)
Total : 525,652,200 shares
24/07/2014 07:00 AM
Ref Code: 201407243600097
(Source : Bursa Malaysia company announcements)
3) Property Development
TAGB is one of the largest prime land and property owner in the KLCC vicinity
Upcoming TAGB project
Development of 2 plots in Jalan P Ramlee-currently car park- into 50 storey towers - GDV RM1.4 billion
Condo on 4.3 acres in Dutamas - GDV463m
3.3 acre,commercial development called Nova Square -GDV RM1.39 billion
Boutique residential development in Jalan U-Thant - GDV RM106m
The company have acquired these prime sites long ago at sharply lower prices
Since TA is also a stockbroking company, its fortunes are tied to the stock market in general. This year 2014 sees a tremendous increase in the trading of stocks especially on low priced penny stocks which is the retailer favourite trades and will benefit TA due to its large retail base customers. Already TA Enterprise Bhd’s pre-tax profit for the first quarter ended April 30, 2014 soared to RM103.061 million from RM57.451 million in the same period a year ago.
5) Stock Chart showing a Bullish Flag Pattern
TA share price is forming a Bullish Flag Pattern after the recent rally to new 52 week highs of RM1.07 on 23/7/2014. The Flag pattern indicate that TA is consolidating its gains for the past few months until it is time to rally again. Watch for the breakout at RM1.07 and support at 95 sen (30 day MA) and another support at 85 sen which is the price where the current rally started.
6) M & A Catalyst
TA is the last stand alone listed stockbroking house not owned by a bank. There have been many rumours about the stockbroking arm being sold off because of the fierce competition among brokers for business. It remains a mystery as to what Datuk Tiah game plan for TA is in the foreseeable future.
TA will definitely be a good company to be invested in, looking at it's low market capitalization at the moment with a huge potential. TA will be looking great in the coming days, weeks and months based on :
- Lowest P/E stockbroking house listed in KLSE.
- Low share price compared to NTA (53% discount to NTA of RM1.81) - Strong retail base customers will increase profits in current pennies stock rally. - Huge potential in property development. - Potential M & A Catalyst on stockbroking arm. TARGET RM1.40
Yes, a bit slow but the rally in PDZ is finally coming! After 2 1/2 months have passed, the right side of the cup handle pattern seems to be forming at last. Volume is up again signalling market interest in the stock. Earlier the rally stalled as the Efogen buy was delayed to August. It coincide with the announcement that the Efogen deal is nearing to full completion (by mid Aug) that will transform PDZ into an oil & gas outfit. Expect something to happen in month of August.
My first target is 19 cents, the high of the year followed by a shallow correction to form a cup handle before moving up to test the 20 - 25 cents level, being the anticipated secondary target price for PDZ. You can sell at 19 cents or if you want more money, wait for the rally after the cup handle is complete.
(Disclaimer: Targets are only meant to be used as guidelines, and other aspects of technical analysis should also be employed for deciding when to sell.)
IF you are cursing your bad luck for not making some money on those stockbroking counters which flew away like Insas, TA Enterprise, KAF, OSK, fear not, there is one more yet to move significantly - that is K & N Kenanga or simply known as Kenanga.
Some statistics about Kenanga -
NTA - RM1.11
EPS - 0.85 (2013)
PE Ratio - 85x
1st Q Net EPS - 0.96 (already exceed whole of 2013!)
EPS for whole 2014 - 3.84 sen *
PE Ratio based on share price 82 sen - 21.3x *
It is the cheapest stockbroking house now. Things look promising for Kenanga as there appear to be a pennies rally this year. The year high is 86 sen not far from today price at 82 sen. It look to be forming a new FLAG pattern with increasing vol.
Expect this to be broken in the coming days, weeks with a target price of rm0.88 (length of FLAG POLE (83 - 75= +8 sen or +9.7% upside) and my medium-term target price of rm1.00 if the market remains good. Cut loss at 79 sen below the lower FLAG line. Trade at own risk !
K1 disappointed many investors who thought the stock could rally after the AGM on June 20th. It is forming a cup-and -handle chart pattern (see chart below)
In a cup-and-handle pattern, the buy point for conservative traders is when the stock price close above the highest point of the right side of cup which was 44.5 cent. Thus the best entry point is 1 bid above this, at 45 cent, with a stop loss at 40 cent the low of the cup handle.
Cup and Handle Pattern
K1 fascinate me because of the slightly deformed cup handle - see chart below - the handle is straight for few days before sloping down unlike a traditional cup handle which is always sloping down (see diagram above).
What a deformed cup handle means is that the chart pattern could break down, the rally could take longer than normal or the upswing will not be as strong as in a traditional cup handle rally. This is because some of the buyers did not sell their holdings and will probably do so later. Hopefully this will not be the case for K1 stock later. But we will have to see what happens. Trade at your own risk.