April 03, 2012

market view

Indian stocks are cheap right now, especially smaller-cap stocks
- DailyWealth

Singapore Stock Market is the World's Biggest Bargain
- Martin Hutchinson, Money Morning

political risk in the Middle East has increased significantly with war between Iran and Israel “almost inevitable”, and precious metals and equities investments offer some safety.
-Marc Faber

our copper/oil indicator is sending out a warning signal that world equity indices could soon be heading south
- David Stevenson, The Fleet Street Letter

Japanese stocks are set to soar
-James Ferguson, Moneyweek

Spain is the next big problem for the eurozone
- John Stepek, Moneyweek

March 02, 2012

market view

SP500: 55dma crosses down through the 21dma - sell
for now the trend is up

For now the bond market is telling me that the inflation trade - or that risk - is back on. That means that cash is not the place to be, but assets - be it gold, equities or commodities - are.

-Dominic Frisby, Money Morning

February 19, 2012

investment ideas

Emerging Markets dividend stocks - WisdomTree Emerging Markets High Yielding Equity ETF (NYSE: DEM).
-Martin Hutchinson, Money Morning


"war in the region might persuade Iran to shut down the Strait of Hormuz, something it’s threatened several times before. As 40% of the oil barrels shipped around the world has to travel through the Strait, crude prices could be sent skyward."
-Matthew Partridge, Money Morning

when looking for safe haven, Yen becomes strong
When Yen is weak, Japanese stocks become strong
Japanese stocks are cheap
-John Stepek, Editor, MoneyWeek


Canada’s house price bubble is set to burst
Short the Canadian dollar
A huge drop in demand for commodities seems well underway
Short the Austalia dollar
-David Stevenson, Money Morning

India is the place to be in 2012
-Cris Sholto Heaton

January 31, 2012

market view

- China slowing down
- weaker British pound
David Stevenson, Associate editor, MoneyWeek 

- India
- junior gold stocks
- silver
John Stepek, Editor,MoneyWeek

January 21, 2012

market view

- move from emerging market currencies to dollars
- keep in Indian currencies if you must
- buy gold
Merryn Somerset Webb, Editor-in-chief, MoneyWeek


- oil prices to fall
- Europe and Japan is looking cheap
- short AUD
John Stepek, Editor, MoneyWeek

- gold price $1900 end of 2012, or 2013
Dominic Frisby



2012  themes:
attractive - treasury bonds, quality dividend stocks, small luxuries, consumer staples and foods, dollar against euro/aud/canadian, healthcare providers, rental apartments, productivity enhancers,  north american energy
unattractive - developed country stocks, home builders, house prices, consumer discretionary, consumer lenders, banks, junks bonds, emerging country bonds, emerging market stocks, commodities price, old tech capital equipments producers
Gary Schilling

December 02, 2011

property investing in Malaysia

Ways to make money from property investment:
  1. discount from developer
  2. rental return- completed medium cost apartments; 7-8% pa; poor appreciation; timing not needed; tenant management
  3. capital appreciation - completed landed homes; poor rental return 3-5%; good appreciation 5-10%; timing important
  4. commercial properties (shoplots, offices) -rental 6-8% pa; good appreciation 5-10%; location important; for wealthy individuals
  5. raw land development
  6. plantation
  7. orchards/ecofarms
  8. property development
  9. buy basic or run-down house - refurbish
  10. abandoned/haunted house
  11. auctions
  12. accessibility being upgraded - OKR, Kesas, Guthrie
  13. area with new projects
  14. residential convert to commercial - main roads with conversion potential
  15. student accomodation - near LRT
  16. flipping
  17. bird nest farming
(Source: Milan Doshi)

November 15, 2011

DOMINAN

Dominant Enterprise Bhd is involved in the manufacturing and trading of flat laminated and moulded wood products, targeting furniture makers and home fitting manufacturers.

Let's look at some figures for Q1FY12:
  • current ratio =1.84
  • working capital - LTD = $76m
  • debt/equity = 0.05
  • LTD/PAT = 0.6
  • cash/debt = 0.13
So it is in a pretty healthy financial position (except for the last item.)

ROE and ROR is 12% and 4% respectively on a five year average basis. The ROR is on the low side, unfortunately. For comparison, it is around 12% for Evergreen and Eksons.

Revenue and profit has risen since listing in 2003. Currently, local market accounts for a major part of its revenue. It also exports to Australia, Singapore, Europe, US, Asia and other overseas market.  Risks include material cost, oil price and forex risks.

From its annual report 2011: "Our strategy going forward is to identify expansion opportunities in overseas markets and to develop innovative products that cater to consumers’ tastes."

I can't find any analyst covering it, probably because of its low market capitalization.

It is undervalued according to my calculations, so I have been eyeing it for some time. It's liquidity is rather low and price has been on the downtrend since early this year. However it gives a good dividend yield, around 7%. Dividend payout around 30-40% the past few years.

Its price have been consolidating for the past 3 months. If you have bought it at 48c, now you will already have about 10% gain. I noticed it risen on some volume yesterday, so I have initiated a position in it today.