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The week of 18 August – 24 August 2016
Volume 28 Number 01
The 2nd Chance
Cash balance at 11 Aug 2016:
RM 60,613.57
Add: –
Less:
–
Net Cash Balance Available:
RM 60,613.57
Asset Allocation Percent (%)
Amount (RM)
Cash
100
60,613.57
Equities
-
-
Total
100
60,613.57
Comments:
Section D2
was set up, at our own initiative, to assist our subscribers who may have followed
our stock selections that have subsequently not worked out. The first part was started with
RM15,274.69 cash on 7 Dec 2000. The KLCI was 735.97 points. Subsequently,
The 2nd
Chance Portfolio
reached the original cost of RM80,000 and was closed.
On 30 Oct 2014,
i
Capital re-activated
Section D2
. It assumed that our subscribers initially
invested RM10,000 (or its percentage equivalent) for each dead duck and the quantity bought
was derived from there. Any dividends received have been ignored. We sold these dead ducks
on 30 Oct 2014 and would re-invest the proceeds at the right time. The objective is to recover
our principal as soon as it is realistically possible. Once this is achieved, we will close this
special portfolio again. So far, we have sold 16 counters at a cost of RM160,000.
Counter
Date bought
Qty
Price KLSE CI
Total cost Current price
+/-
Currently, no shares are in this portfolio.
Comments: The Second Chance
retains
its portfolio.
The objective of this
portfolio is capital recovery.
In terms of time, we hope
it would not take too long.
The investment approach
used by Capital Dynamics
will be a mixture of our
eclectic market timing
and trading. There are no
restrictions on the type of
shares or stock exchange
that will be invested in. Its
funds will come from the
sales of the dead ducks.
The 2nd part started with
RM57,591.50 cash on 30th
Oct 2014. The KLSE CI was
1,842.78 points. This paper
portfolio is supervised
by Capital Dynamics.
Purchases /sales are based
on daily closing prices.
Purchases/sales can be
made any day.
Portfolio Performance at 29 Jul 2016
The 2nd Chance
KLCI
Source: Capital Dynamics
-10.28%
2.82%
4.98%
-6.02%
cumulative return annualcompoundreturn
E.1. Updates on Section B (Stock Selections)
Announcements
BURSA MALAYSIA
AHEALTH
AMWAY
TMCLIFE
APM
UNIMECH
WASEONG
BPPLAS
TASCO
GENM
IVORY
PARAMON
Revenue for 6 months ended 30/06/2016 advanced 11.28% to
RM294.2 mln. Pretax profit grew 17.77% to RM24.68 mln. Net
profit rose 29.32% to RM19.46 mln. Net earnings per share were
16.61 sen. 5.5 sen dividend declared.
i
Capital retains its Buy below
RM3.00 rating.
Revenue for 6 months ended 30/06/2016 increased 12.71% to
RM574.8 mln. Pretax profit decreased 45.05% to RM34.81 mln. Net
profit declined 48.53% to RM24.23 mln. Net earnings per share were
14.74 sen. 5.0 sen dividend declared.
i
Capital retains its Sell rating.
It has entered into a memorandum of understanding with Advance
Renal Care (Asia) P/L to jointly explore establishing and/or operating a
dialysis centre in Thomson Iskandar Johor Bahru for one year.
Its indirect wholly owned subsidiary, APM Automotive IndoChina
Ltd (AAIL) has entered into a joint venture agreement with Tachi-S
(Thailand) Co Ltd (TACHI-S) to develop, manufacture, assemble and sell
automotive seats in Vietnam for the original equipment manufacturers.
The joint venture will also participate in the joint development of
automotive seats for customers requiring seat design development.
AAIL will contribute 49% of the investment capital while TACHI-S will
contribute the remaining 51%. The investment will be funded through
internally generated funds.
Its wholly owned subsidiary, Unimech Capital S/B has acquired a 49%
equity in Uni Media Studio S/B (UMS) from Mr. Chan Chee Keong
and Mr. Foong Chee Keong for a cash consideration of RM0.123 mln.
The business activity of UMS is the provision of media advertising and
related services. The acquisition is to strengthen its control of UMS and
benefit from the potential increase in earnings contribution from UMS in
the future. The acquisition was sourced from internally generated fund.
[i] With reference to the tender awarded by Nord Stream 2 AG to its
indirect wholly owned subsidiary, Wasco Coatings Europe B.V. for
the provision of concrete weight coating and storing of more than
200,000 pipes for Nord Stream 2 Project, a letter of intent was signed
to commence mobilisation of works pending the finalisation of a
formal contract to be signed. [ii] Its indirect wholly owned subsidiary,
Wasco Coatings Europe B.V. has acquired the entire stake in Dobona
Oy, a company incorporated in Finland for €2,500.00 (equivalent to
RM11,161.75). Dobona Oy is presently dormant.
Revenue for 3 months ended 30/06/2016 gained 9.13% to
RM129.7 mln. Pretax profit edged down 1.46% to RM8.148 mln.
Net profit inched down 1.28% to RM6.009 mln. Net earnings per
share were 3.0 sen. 2.50 sen dividend proposed.
i
Capital retains
its Hold rating.
Its indirect wholly owned dormant subsidiary, RWD US Holding
Inc. has filed for voluntary dissolution and it was dissolved.
With reference to Penang High Court Civil Suit No: 22NCVC-102-
06/2015, Ivory Indah S/B has succeeded in its application to strike
out the plaintiff’s writ and statement of claim and the court has struck
out the plaintiff’s case.
Revenue for 6 months ended 30/06/2016 slid 7.72% to RM258.6 mln.
Pretax profit edged down 4.91% to RM52.99 mln. Net profit dipped
9.79% to RM33.60 mln. Net earnings per share were 7.95 sen. 2.5 sen
dividend declared.
i
Capital retains its Hold rating.
Revenue for 6 months ended 30/06/2016 rose 22.47% to RM164.2
mln. Pretax profit increased 45.82% to RM14.37 mln. Net profit
expanded 40.18% to RM10.97 mln. Net earnings per share were
5.85 sen. 2 sen dividend proposed.
i
Capital retains its Buy below
RM0.89 rating.
TECNIC
Revenue for 6 months ended 30/06/2016 was zero. Pretax profit
plummeted 98.60% to RM2.615 mln. Net profit plunged 98.60% to
RM2.614 mln. Net earnings per share were 6.47 sen. No dividend
declared.
i
Capital retains its Hold rating
E
| Updates
D
| Medium Term Portfolios
27
Capital Dynamics Sdn Bhd