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VALUE BUY ICAPITAL.BIZ (ICAP) and more... VALUE BUY ICAPITAL.BIZ (ICAP)Did you make great profit from my previous tips? Please check out my previous recommendation to see them for yourself.Track record doesn't lie. ICAP is another stock for you to make superior profit. What is ICAP doing actually? iCapital.biz Bhd is a closed-ended equity mutual fund launched and managed by Capital Dynamics Asset Management Sdn Bhd. It invests in the public equity markets of Malaysia. The fund invests in stocks of companies operating across financial sectors. It invests in value stocks of companies. The fund benchmarks the performance of its portfolio against the KLSE Composite index. The attraction in ICAP lies in its portfolio,which consists of the following companies:
There are three potential upsides for ICAP: a) Most of these companies have shot up in the recent recovery in the stock market. Most importantly, these companies are cash rich with little debt. These companies will definitely have plenty of room to grow by capitalising on distressed assets and ride on the economic recovery. ICAP is a great proxy to these companies b) Current ICAP's NAV is RM 1.91 while its stock price is trading at a discount. It closed at RM1.79 on Friday. While buying ICAP at discount will provide some safety cushion, investors should also focus on its potential appreciation. ICAP still have about RM 30 mil cash on hand (based on its latest quarterly result) which placed it at a great position to buy on the dip. c) ICAP is only allowed to invest in KLSE currently. If it is allowed to invest overseas,it will boost ICAP's potential and more investors will be more attracted to it since it provide a cheap proxy to value companies all around the world. This is the right time to capitalise on ICAP  Value Buy ALUMINIUM Company of Malaysia Bhd (ALCOM)Aluminium Company of Malaysia Berhad, engages in the manufacture and trade of aluminum sheet and foil products in Malaysia, other Asian countries, and internationally. It offers pre-coated finstocks for use in air-conditioners. Aluminium Company of Malaysia Berhad is a subsidiary of Novelis Inc. A few keys point of ALCOM: 1) Alcom does not produce aluminium but uses it as a raw material for its products. Due to the rise in the commodities prices and depressed demand last year, Alcom suffers a small net loss in its previous financial years. That has been causing the lag in its share price recently. But many didn't know,when the commodities prices were stable from 2007 to 2008, Alcom were able to consistently produced about RM 14 mil p.a. Alcom has established customers in India, Hong Kong, the Philippines and Thailand.Recently,the company was looking at new markets in India and Middle East. Alcom has a market cap of RM 142 mil and consistently reward its investors with 10% dividend. Its currrent asset is RM 133 mil against total liabilities of RM 40 mil. Hence, by paying RM 142 mil for the business,investors are getting RM 90 mil net-net current asset plus non-current asset of RM 93 mil. In short, investors are paying RM 50 mil for ALCOM's business which produces RM 14 mil p.a (or P/E = 3.5 x) and gets non-current asset of RM 93 mil for FREE. 2) ALCOM is controlled by Novelis Inc. Novelis Inc. is the global leader in aluminum rolled products and aluminum can recycling. The company operates in 11 countries, has approximately 12,500 employees and reported revenue of $11.2 billion in fiscal year 2008. Novelis supplies premium aluminum sheet and foil products to automotive, transportation, packaging, construction, industrial and printing markets throughout North America, South America, Europe and Asia. Novelis is a subsidiary of Hindalco Industries Limited, one of Asia's largest integrated producers of aluminum and a leading copper producer. Hindalco is the flagship company of the Aditya Birla Group, a multinational conglomerate based in Mumbai, India. 3) ALCOM has RM 62 mil cash with no debt. Alcom can easily raise another 100 mil from debt market (assuming debt/equity = 0.50). In total, Alcom has access to RM 160 mil to acquire other companies with the assistance from Novelis. Or Alcom can distribute its cash to shareholders through bonus issues / special dividend. To sum it up, Alcom gives you: a) Stable 10% dividend due to stable business and balance sheet. Potential special dividend b) Future appreciation due to business link with Novelis which opens up vast acquisition opportunities c) Great margin of safety at current entry price. The share price has been almost stagnant for the past 1 month. It didn't follow the recovering market sentiment. d) Good business at cheap valuation. Investors are paying RM 50 mil for ALCOM's business which produces RM 14 mil p.a (or P/E = 3.5 x) and gets non-current asset of RM 93 mil for FREE.  Value Buy Pan Malaysia CorporationPan Malaysia Corporation Berhad, an investment holding company, engages in manufacturing, marketing and distributing confectionery, and cocoa-based and other food products primarily in Malaysia, Australia, Singapore, and Hong Kong. It also involves in operating departmental and specialty stores, and property investment activities. The company is based in Kuala Lumpur, Malaysia.
 Value Buy Willowglen MSCWillowglen MSC Berhad, through its subsidiaries, engages in the research, design, development, engineering, supply, sales, implementation, and maintenance of computer-based control systems. The company offers hardware products, including RTUs and communication controllers. Its software products include SysLink VIDEO-SCADA software for telemetry, video surveillance, control, and monitoring functions; system simulator that allows a user to test RTU programs without a physical RTU; and Web accessibility via InterLink. The company’s products also comprise digital video recorders (DVR) and PC-based DVR’s. It operates in Malaysia, Singapore, and Europe. Willowglen MSC Berhad is a subsidiary of New Advent Sdn. Bhd.
 Value Buy Cocoaland HoldingsCocoaland Holdings Berhad, an investment holding company, engages in manufacturing and trading processed and preserved foods, fruits, and other related food stuffs primarily in Malaysia. The company also engages in the wholesale and retail of processed and preserved foods; and the manufacture of fruit juices. Its products include chocolates, cookies and wafer, nuts, candies and gummies, snacks, and soft drinks and jellies. The company is based in Kuala Lumpur, Malaysia. Cocoaland Holdings Berhad is a subsidiary of Leverage Success Sdn Bhd.
Cocoaland may own 1% of China’s Market through the JV. Cocoaland is at RM 1.03,has P/E of around 10 compare to the industry standard, Dividend Yield 5%. Cocoaland is expected to declare bonus issues / special dividend for its investors.  More Recent Articles |
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