Sunday, December 13, 2009

Hidden Gems in Bursa Malaysia

There are a lot of investing opportunities arise especially when Dubai World announced to delay its interest payment and plans to restructure its debts with bankers. Dubai World had sink in a situation where it is not afford to pay back its loan.
Personally thinking, I am confident that this would not affects the recovery trend of global economy. I still believe global economies will have positive growth in 2010. The reason behind is that, goverments around the globe will keep pumping tonnes of cash into so called'stimulus package' to get rid of negative growth of GDP.
And therefore, future will be better. This time will be the best time to invest in stock market especially for those who miss out the first wave of recovery of the market after the market sinks to its low as much as 50% after the meltdown of financial in Walstreet.
I have studied few stock that i think would be gives satifactory returns in the next few years. The first would be GenM. GenM is holding more than RM1 cash per share as at 3Q FYE2009 and it adds 20sen per year. It pays out 7 sen divendend per year and is in growing trend. Fair value at the moment will be around RM3.50(RM1 cash+ 10xPE2009).
In another scenario, LION group share prices had performed badly except Parkson. Lion group incuding LIONDIV, LIONCOR, LIONIND, LIONFIB and Parkson. I would not elaborate on Parkson since this stock performs quite satisfactory. The other Lion companies have similarities whereby they have a high figure of NTA excpt LIONCOR due to bad performance of AMSTEEL. When we buy those shares, we are actually buying in discounted manner. For example, LIONDIV, the holding company, it has RM1.83 of NTA but its share price is only RM0.41, well below its par of RM0.50. Any positive corporate exercises of Lion group will benefits this stock since LIONDIV is the holding company of Lion group.
The other example would be LIONIND and LIONFIB where they have NTA of RM3.83 and RM4.28 respectively. Given the fact that globa steel price is in recovery mode, Lion group will be able to turnaround in the near term.