Worthy Stocks by dollardollarbill

Star Media, once a shining star in the newspaper industry, now faces the inevitable fate of a sunset business. The dawn of digital media has cast a long shadow over traditional print newspapers, and The Star is no exception. But like a star in its final moments, there will be one last burst of light before it fades into obscurity — a phenomenon known as a supernova. The recent move by Star Media to hike cover prices for its physical newspaper by 50% from RM2 to RM3, could potentially lead to a significant increase in earnings. While more recent data is not available, for 2H2018, The Star had an average of 151,623 paid printed copies in circulation per publication day (audited and verified by the Audit Bureau of Circulations). Assuming that The Star’s print circulation has now decreased by half to 75k per day, this would still equate to about 27 mil copies per year. A RM1 increase in cover price could potentially result in a boost of RM27m flowing directly to its bottom line. Assuming a...

Stock symbol: SWKPLNT Stock code: 5135 Share price: RM2.98 (18 Feb 2022 closing price) Shares outstanding: 279.03mil Market cap: RM831.5mil A rising tide lifts all boats... but which is the best boat to ride in? It's almost been a year since my last write up on Sarawak Plantation Bhd / SWKPLNT (5135). Including dividends, the stock has since returned 57% (up to 18 Feb closing price). I thought it would be good to do a quick write up to clarify my own thoughts. First of all, what are the major themes in the stock market now? Two definite ones are: (1) Surging inflation (2) Rotation from growth to value stocks Given (1) and (2), SWKPLNT seems to be in a sweet spot . .. Inflation Research shows that commodity and commodity stocks outperform during inflationary periods. Within the commodity space, crude palm oil (CPO) have been performing wonderfully and prices are expected to remain elevated driven by strong fundamental factors Foreign brokers are turning bullish while some local bro...

SARAWAK PLANTATION (SWKPLNT) – a  horse  with latent potential + the right  jockey  = a  CHAMPION racehorse Stock symbol: SWKPLNT (5135) Stock price: RM1.99 Market cap: RM555.27mil Shares outstanding: 279.03mil Part 1: A horse with huge latent potential CPO prices have been bullish, recently breaching the RM4,000/tonne mark for the 2 nd  time in 3 months. A number of positive factors will continue to drive and support CPO prices. But why are most plantation stocks not rallying? That’s because they are trading at  expensive  valuations of around 30x P/E with low production growth of only of 3-6%, while some even have negative production growth. However, there is an  exception … One  rare  species. One with  double-digit   production growth  and an  attractive   single-digit   P/E . This jewel is little-known  Sarawak Plantation Bhd (SPB) , an  undervalued  company with  explosive earn...

ASIA FILE CORP BHD (7129) – well positioned to ride on the takeaway and food delivery tidal wave Share price: RM2.22 Market cap: RM432mil Shares outstanding: 194.76mil 1. F&B takeaway packaging – the growth driver and share price catalyst Even before Covid-19 came about, food delivery services was already a growing sector. However, due to Covid-19, the growth of takeaway and delivered meals have accelerated even more. Malaysians have become accustomed to this  new normal  and this trend should continue to grow. This phenomenon has led to a  surge  in the use of  takeaway food packaging . One publicly listed company that is benefitting from this  new normal  is  Asia File , which ventured into takeaway food packaging not too long ago. Most people I’ve spoken to are still unaware that Asia File started a business in takeaway food packaging. As such, I believe Asia File’s share price has not fully priced in the potential of this business. The tak...

The most undervalued Malaysian bank could be unlocking more than RM1bil from its crown jewel     Affin Bank (5185) is looking to list its 63%-owned Affin Hwang Asset Management Bhd (AHAM) , according to recent news . Affin Bank is said to be currently working with advisers on the listing.   This unlocking of value could be a near-term catalyst for Affin Bank (the most undervalued Malaysian bank, trading at about 0.3x P/BV ). The value to be unlocked will be the current value of AHAM minus the price that Affin Bank paid for it.  Affin Bank purchased AHAM for RM282mil in 2014   What could be the current value of AHAM?   Asset management companies are generally valued at market cap to asset under management (AUM), better known as price-to-AUM, P/AUM .   So, one way to gauge the value of AHAM is to look at its AUM, which is currently about RM67bil (as at 31 Oct 2020).   Let’s gauge…   If AHAM is valued at 4...

This is an update to my first Focus Point post (click here to view).   There is a saying that good things come in pairs. For me, it was two positive events that happened this evening.   Bonus issue – creating bullish market sentiment   The first was the announcement of the proposed 1 for 2 bonus issue. This was a pleasant surprise as it was just in July last year that a 1 for 3 bonus issue was proposed (and completed in Sep 2019).   As most would know, bonus issues usually create positive investor sentiment towards the stock.   Macarons – another hot selling goody   The second positive event for me today was the discovery that FamilyMart’s newly launched Macarons are made by Focus Point’s 100%-owned Multiple Reward Sdn Bhd and that the macarons sells out very quickly everyday .   I went to three FamilyMarts today morning to get my hands on the macarons. But to my surprise they were all sold out at three outlets.   ...