Chicken and Duck Talk

Chicken and Duck Talk

One of the best Chinese humorous movies ever is the famous and successful award-winning film called : Chicken and Duck Talk. A 1988 film co-written by Michael Hui who also starred together with his two brothers Sam Hui and the late Ricky Hui, the film is about the conflict that ensues between the proprietor of a BBQ duck restaurant that is in trouble for health violations and the fast food chicken restaurant that opens across the street.

Chicken and Duck Talk movie was the highest-grossing Hong Kong film released in 1988. Even until today, when the tv station reruns the shows, I bet that the show would continue to bring out the laughter from the living rooms for hours.

Why is the movie called Chicken and Duck Talk? It is a Chinese idiom for people not understanding each other.

Recently Kassim had a very embarrassing moment when a  Chicken and Duck Talk situation happened. Kassim was putting 10 oranges (each 39 sen) into a white plastic sheet (during that moment, my mind must be somewhere else, maybe thinking of which stock to study) at a hypermarket. When I approached the hypermarket's assistant, I showed him my ten fingers (to tell him that there were 10 oranges). However he sticked a price tag of RM4.29 on my package, I thought he had mistaken my oranges as of different type, hence the different price instead of RM3.90. The assistant is a Bangladesh and his accent (must be Bangla-Melayu combination) was obviously not understood by me.

I explained to him in simple Bahasa Malaysia language that there were 10 oranges and the price should be RM3.90. I even used my finger to draw the figure 10 x 39 sen while he was trying to explain something that I could not understand.

In the end, he teared up the plastic and counted the oranges for me. There were 11 oranges! How embarrassing for me at that moment as there was a long queue of people behind me looking at me! They must have thought that Kassim was trying to "cheat" 1 orange!

It was obviously right from the start that he was trying to tell me that I had packed in 11 oranges (unfortunately I could not understand) instead of 10 oranges.

Such embarrassing situation would not have happened if in the first place, I had carefully counted the oranges number to be correct! Also, if only the assistant had been someone who could speak simple clear language or dialect that I would understand that I had packed in 11 oranges instead of 10.

See, this is the consequence of a Chicken and Duck Talk situation.

I had decided to open my blog this time with some  entertaining happenings instead of shooting straight at stock market. The point is .... life is not about stock market every day and nite. Ha ha ..

Well, I am sure embarrassing situations happen to almost everyone sometimes here and there to us. Do you have one to share with? If you have one and would like to share, please email to me.

The Sixth Sense

"Sixth sense, or subtle perception ability, is our ability to perceive the subtle-dimension or the unseen world of angels, ghosts, Heaven (Swarga), etc. It also includes our ability to understand the subtle cause and effect relationship behind many events, which is beyond the understanding of the intellect. Extrasensory perception (ESP), clairvoyance, premonition, intuition are synonymous with sixth sense or subtle perception ability." This is what I gathered after a google search.

Do you know of anyone with a sixth sense? I doubt if that anyone would want to let us know that he/she has that sixth sense. That person would rather use it to his/her own benefits. In fact, it would be very dangerous to let others know of your sixth sense ability. You could be kidnapped by some bad guys and forced to use your sixth sense for their benefits.

But I do know that sixth sense seems to prevail in Bursa Malaysia, sometimes with sharp accuracy. Take for example, the current rather hot stock Tek Seng Holdings Berhad. Normally a very quiet stock with thin trading volume, Tek Seng has seen its trading volume increasing by leaps and bound since the early weeks of August.

In my previous blog, I pondered why the sudden massive interest for Tek Seng shares. I believed my pondering question was answered when on Aug 22, Tek Seng announced a profit of earnings per share of 4.1 sen! Incidentally,  Tek Seng closed at 50.5 sen on heavy volume of 10,200,400 shares on that day.

The good result propelled Tek Seng to close even higher at 62.5 sen in the next trading day on Aug 25 with a even higher volume of 32,470,600 shares.

Since then, Tek Seng has settled to close at 58.5 sen on Aug 29.

Those investors who bought Tek Seng shares before the results were released on Aug 22 must have known something about it. Otherwise, how could one explain the massive trading volume. Perhaps, some of them possessed the "sixth sense".

 Buying shares of Delloyd Ventures Berhad

A recent article in Kinibiz in the Tiger Talk page commented about the revised offer for Delloyd Ventures Berhad for minority shareholders. The offerer, obviously fearing that the earlier offered RM4.80 per share was not going to entice the minority shareholders enough, quickly upped the offer price by 40 sen per share to RM5.20 per share.

It is very clear that the major controlling shareholders must have realised that  Delloyd owns some assets that are potentially worth far, far beyond the current book values. If benchmarked against recent transacted prices of its land according to the National Property Information Centre (Bapic), a unit of the Ministry of Finance, its two assets would be worth nearly RM2.1 billion!

According to Tiger's very simple analysis, that is RM764.8 million to be distributed across about 35.18 million shares. In other words, about RM21 per share!

Even the Minority Shareholders Watchdog Group (MSWG) are of the view that the revalued assets of Delloyd could fetch higher value than its current book value.

Recent privatisation exercises were all not smooth sailing for its offerers. Take the recent classic case of MISC which were not successful. The minorities were vindicated in the end! The share price of MISC has since then surged to higher price than the offered price!

Kassim is of the opinion that those with spare money (to be able to park for several years and including forgoing the potential interest rates if kept inside the bank) would have a greater chance of reward if they dare to buy some Delloyd shares and keep it.

Sharing your opinion must also be backed with your own action. Otherwise, people may also ask you back that since you say it is good, why are you not buying it?

Hence, Kassim bought 2,000 shares of Delloyd on Aug 19, 2014 at RM4.95. Together with the broking and stamp duty plus clearing fee, the amount totalled RM9,972.37.

At the time of posting this blog on Aug 29, Delloyd share price closed at RM4.95, mostly trading between RM4.91 and RM4.96 since my purchase. This proved that Kassim did not have the "sixth sense" ability like most of us although the majority of my investments have been rather very profitable!

Kassim urges all minorities shareholders of Delloyd to stand firm and not to give in. When we are united, the major shareholders/offerers will be forced to eventually offer us an even higher price.

Who is with me?

By the way, Selamat Merdeka Day to all Malaysians!  

Every "Seng" has its day

Every "Seng" has its day

One of the most famous saying phrase is "Every dog has its day".  It was reported that this phrase is over 450 years old. The phrase became popularised from one Hamlet by William Shakespeare in the early 1600's. It is also believed that there are various forms of it that originated earlier.

So what it the actual meaning of this quote in our current era? The meaning is quite simple to understand. It means everyone gets a chance eventually or that everyone will eventually be successful during some period in their life.

But over to Bursa Malaysia, Kassim would like to add in a new phrase : Every "Seng" has its day. In case regular readers are going to think that I am going to share more comments about that famous Keck Seng or Hup Seng again, I am sorry to say you are not right in your guesses this time.

Agreeable that there are many "Seng" companies on Bursa Malaysia but there are only a handful of more famous "Seng" companies that usually hog the limelight now and then. You tell me, who hasn't heard of Keck Seng, Hup Seng or Hap Seng? In fact, readers would be tired if I am going to post another blog about Keck Seng or Hup Seng again.

This time, the "Seng" company I am going to mention is a very quite and hardly known company called : Tek Seng Holdings Berhad. I bet many investors don't even know what business Tek Seng is doing at all. Unless of course you are an investor who is prepared to going for long term with the company.

Tek Seng Holdings Berhad

According to a website : http://klse.i3investor.com, Tek Seng is principally engaged in manufacturing and trading of polyvinyl chloride related products and polypropylene (PP) non-woven products and letting of properties. The Company's main business activities are three areas: manufacture of PVC sheeting and PP non-woven; trading of PP non-woven, and trading of PVC leather. Other business segment includes trading of plastic products and materials. Its range of products include packing film, pattern printed plastic sheet, table cloth, shower curtain, raincoats, inflatable toys, advertising banners and others.

Tek Seng also produces PVC leather product that go into fabrication of bags, diary, shoes and car seats, among others. It distributes its products in Malaysia, Indonesia, Myanmar, Republic of South Africa, Singapore, Yemen and other countries.

Tek Seng has a track record of more than 30 years in the plastics industry. Currently the second generation including three siblings are in the management team. Loh Kok Beng, the eldest son took over the management of the business from his late father Loh Phah Seng @ Loh Boon Teik (the original founder) from 1989.

I do not know if any there are any other listed companies on Bursa Malaysia that are involved in this PVC products, but surely the demand for such products must be there in the market going by the usual profits Tek Seng is making. Other than only a reported loss of 0.04 sen for its 4th Qtr 2014, Tek Seng has been making profits every quarter since the 3rd Qtr 2006 (According to malaysiastock.biz website).

If you calculate the quarter from 3rd Qtr 2006 to 1st Qtr 2014, there are a total 31 quarters and Tek Seng has managed to record 30 quarterly profits! That is quite a remarkable achievement for any listed company.

Granted. Its profits is an average of 3 to 4 sen plus per year only, but Tek Seng has that ability to consistency maintain that profits through difficult times and major crisis that happen sometimes now and then.

After a bonus issue of 1 for 4 implemented in 2006, Tek Seng's share price traded below 40 sen most of the times, occasionally below 30 sen and even below 20 sen during the 2009 world financial meltdown.

Yet if you had invested in Tek Seng after the implementation of the bonus issue in 2006 and bought the share at around 40 sen, you would have received a total of 17 sen dividends since 2007. Yes, Tek Seng has been paying regular dividends since Financial Year 2004. (There was no dividend for Financial Year 2013, the first time since Financial Year 2004).

Yet despite these continuous profits, the management did not rest on their laurels. Tek Seng decided to venture into the solar business. In 2001, Tek Seng's 86.1% subsidiary, TS Solartech Sdn Bhd was formed and deals in solar cells, solar panels, solar modules and solar related products.

The solar business has yet to record any profits as it requires several years for digestion period for it to become viable. But Tek Seng's other divisions such as its PVC products remains stable due to its versatility, cost effectiveness and an excellent record of use. Other than the domestic market, the consumption from overseas still represents a promising market due to the large population size and growth. Tek Seng is also a leading one-stop PVC products supplier in the region.

Tek Seng is a company that will not qualify in my buying's list criteria due to its borrowings compared to its cash and cash equivalents. In fact, I came to know about Tek Seng through a good friend (selling insurance) who was meeting one of the Tek Seng's siblings about insurance. He asked me to do a research on Tek Seng.

It was from his request that I did some research about Tek Seng. I would have given Tek Seng a solid report card for everything except that the company was carrying some rather borrowings which was (in my opinion) more than the small amount of cash it has. But what stood out was its consistent 3 sen plus dividend for a stock that traded at less than 40 sen at that time.

So my friend asked if he should invest or not following my "report". Although I am usually not comfortable to invest in companies with borrowings, but due to Tek Seng's consistent generous dividends and low price of below 40 sen at that time, I decided to put in some money (for its dividend's sake).

On April 28, 2008, Kassim purchased 15,000 shares of Tek Seng at 39 sen. After the purchase with the rare occasions of the share crossing the 40 sen level, Tek Seng's share mostly traded at below 40 sen and sometimes below 30 sen. Since then, Kassim had received a total gross dividend of 12.5 sen or RM1875.00 (12.5 sen x 15,000 shares). My total purchase (including broker's fees) is RM5,897.76 minus RM1875.00 (Dividends) and my cost is RM4022.00. If I am to sell out at today's closing price of 46.5 sen on Aug 15, my profits would be around RM2900.00 plus (46.5 sen x 15,000 shares is RM6975.00 minus broker's fees and my cost of RM4022.00). In term of percentage, it is a good return of 72% for a holding period of 6 years! 

According to the Hokkien Chinese, the pronunciation word of "Seng" means successful. For Kassim, I couldn't agree more. "Seng" has been very successful for me when it comes to investing. I have taken good profits from my investments in Hup Seng and Keck Seng. If I am to cash out today, I would be still enjoying some good profits as well. It would mean Kassim has been triple "Seng" (successful in Hokkien) in his investments in these three "Seng" companies, i.e. Hup Seng, Keck Seng and Tek Seng!

Kassim is willing to go for the longer term with Tek Seng at the moment.

Any Tek Seng shareholders willing to be with me?

Every "Seng" has its day

Most of the times, Tek Seng's volumes was also very subdued ..... until one day, the famous phrase of "Every dog has its day" sprang to life!

On Aug 11, 2014, Tek Seng opened at 38.5 sen and closed at 48 sen with heavy volume of 15,560,000 shares. Tek Seng closed up 8 sen on that day!

Why the sudden unusually volume that triggered the share price to shoot up by as much as nearly 30 %? Why the sudden massive chase for Tek Seng's shares?

There was no material announcement from the company. Neither was there any expected good news regarding its coming 2nd Qtr results announcement. Or could it be that the solar division is turning around this time into the black? Or is there a possible takeover or merger or perhaps a privatisation exercise?

At the moment, minority shareholders can only wait.

alwayswin111 asked me on Aug 12 this simple question:

"How about you. Are you holding any KSENG?"

Kassim's reply :

Personally no. I sold my 5,000 shares (Before the bonus exercise of 1 for 2) on July 6th 2010 at RM4.96. Had I hold on, my 5,000 shares would be 7,500 shares x the current price of RM6.45 and that will be RM48,375.00 - instead of RM24,800.00 (RM4.96 x 5,000 shares). See, the power of holding on to good shares sometimes is indeed very rewarding.

My spouse still hold 1,500 shares. It was on her behalf and the first 1,000 shares of Keck Seng bought at RM1.65 on Nov 2, 1999.

You can refer my to previous blog dated : Friday, Aug 23, 2013. The title is :  The next “mini Public Bank” company. I Have. Have you?

Keck Seng's rising cash hoard and shrinking share price

Keck Seng's

rising cash hoard and shrinking share price

Towards the last several few weeks of end 2013, there were plenty of "hue and cry" about Keck Seng's then-potential bumper dividend of as much as nearly RM1.00 to be paid out - as the date -line was approaching.

Alas, there was no bumper dividend at all in the end apart from the normal final and interim dividend (which I am dammed sure many minority shareholders would frown at such peanuts' dividend payout).

There were talks that should Keck Seng decided not to pay out the bumper dividend, the "money" would be forfeited by the Inland Revenue Department. I remembered writing about Keck Seng in my blog dated : Dec 21, 2013  (The drum  finally stops beating for Keck Seng) asking if any readers would have any knowledge about what would happen to that "money" in the event of non-bumper dividend payout. There was not a single response at all from any readers regarding this question.

Rising cash hoard

Well, the money is still there in the bank and it is in fact rising by every quarter. The Annual Report 2013 of Keck Seng revealed that cash and bank balances stood at RM917,837 million (ending 2013) as compared to only RM761,093 million (ending 2012).

Since then, that amount of cash has rising even more to RM969,888 million by the end of 1st Qtr 2014. There is a very strong possibility that the cash hoard will surpass RM1 billion by end of 2nd Qtr or the latest 3rd Qtr 2014. If one is to include Keck Seng's investment securities's value of RM426,909 million (as at end of 1st Qtr 2014),  then "kiam siap" Keck Seng would be sitting on a massive cash hoard of nearly RM1.4 billion. How many listed companies in Bursa Malaysia do have that kind of money?

And we do not even talk about its three business i.e. Plantations and Manufacturing, Property and Hotel and Resort that normally yield positive profits every year.

What about its "never-revalued" big acres of land in Johore Bahru? Keck Seng has Freehold and Leasehold Land for Agriculture and Housing Development that were last revalued in ..... 1980! Imagine now is 2014. This means Keck Seng is still carrying its books value based on 34 years ago!

Keck Seng has also several buildings and hotels in USA, Canada, Kuala Lumpur, Singapore and Johor that were revalued at decades ago. It is a strange thing that the management of Keck Seng has chosen not to even revalue these "valuable" assets at all these past years.

Shrinking share price

Despite all well being for Keck Seng until at this point, its share price is not reflected at all. After peaking at RM7.97 on Nov 4, 2013, Keck Seng's share price started to hover at a lower range most of the times. The last nearly two months must be torrid moments for minority shareholders as its share price continued to head south from RM7.19 on June 11 to RM6.55 on Aug 1, 2014.

Although the current price of RM6.55 on Aug 1 is a decline of 18 % from its peak of RM7.97 on Nov 4, 2013, Kassim believes strongly that the downside seems less at the moment. The fundamental of Keck Seng is all there to see. What else can it go wrong?

Share buy-back

This must be a "non-existing" share buy-back exercise at all - in my opinion especially since June 2012. Why? Keck Seng only purchased 10,000 shares in June 2012, Dec 2012, July 2013, Dec 2013 and on July 2, 2014. Just a total of 50,000 shares only! Prior to that, at least Keck Seng was more active in its share buy-back exercise programme, purchasing as many as 1,245,300 shares BEFORE June 2012.

For a company with so much money, it is indeed very measly to spend so little to buy back its own shares from the open market.

"Fantastic Four" of Keck Seng

Regular readers  reading the online comments in the i3investor.com blogspot, would have noticed that Superdaddy, leslieroycarter, prudentinvestor and stockoperator have been actively sharing views and comments about Keck Seng for a long time.

And they are have been championing Keck Seng every now and then and sometimes with their good questions and answers. According to prudentinvsestor's comment posted on July 23, "EcoWorld would be a ready buyer of Keck Seng's plantation land next to Taman Kota Masai when its land is depleted within the next few years". If this is true, isn't this wonderful for Keck Seng as it just wait for a good offer from this "land-hungry" EcoWorld?

SYABAS to these fantastic four. Please continue to share comments and views in 3investor.com blogspot. Kassim really enjoys reading the comment everytime and look forward to it.

"Action" of Keck Seng's Management

What has the management of Keck Seng done so far this year? If one is to scroll through the announcement page of Keck Seng in Bursa Malaysia, very little action was being carried out by the very conservative management.

The latest (and in fact only action so far this year) was the announcement by Keck Seng (Malaysia) Berhad regarding its' wholly owned subsidiary, KSG Enterprise Limited.

It reads as : "Acquisition of Asset by wholly owned subsidiary, KSG Enterprises Limited

Reference is made to the Announcements made on 28 May 2014, 30 May 2014 and 3 June 2014 on the acquisition of Asset by  Keck Seng (Malaysia) Berhad's wholly owned subsidiary, KSG Enterprises Limited. (“the Acquisition”).

The Board of Directors of Keck Seng (Malaysia) Berhad ("KSM") is pleased to inform that the Sale & Purchase Agreement was subsequently assigned by KSG Enterprises Limited to KSNY Enterprises Limited, a newly incorporated and wholly owned subsidiary of KSG Enterprises Limited. The Acquisition has been completed on 24 July 2014, US Eastern Time as advised by KSM's Lawyer.

This Announcement is dated 25 July 2014."

Actually this is a Non Related Party Transcation.

Personally I believed that minority shareholders would have love to see the management being involved in more pro-actions activities that would have enhanced the value of its share price. But knowing the very conservative style of the management, it is not a surprise that nothing has been done so far this year. As such, the share price of Keck Seng will continue to drift sideways for some time to come.

As my spouse still holds 1,500 shares of Keck Seng, the 18 % decline is also being felt, too.

Syabas to the unsung heroes and heroines

Recently my dad was admitted at Hospital Lam Wah Ee, Penang for an appendicitis which required surgery in July. He was warded for nearly ten days at the Open Ward Section No. 515. I spent a lot of my time there looking after "his little needs of this and that" for hours over several days. I had the opportunity to observe and interact with the Staff Nurse (Male and Female), Assistant Nurse and those supporting staff (ex. serving meals and cleaning up the ward).

I must say my dad and myself were most pleased with the ways they performed their duties with most concern and care. They simply get on with their jobs without any tempers (despite the Open Ward being full with patients before Hari Raya). And questions and request for assistance were met promptly without any unpleasant feeling.

A BIG THANK you again for a job well done.

If any of the readers (who are working at Lam Wah Ee Hospital or have friends working there), please help to convey this deserving compliments from the bottom of my heart to them.

They deserved a big pat! They are truly the unsung heroes and heroines of the hospital who truly get on with their duties without any fuss and with full of diligence.