I Will Follow Him

I Will Follow Him

One of the most evergreen oldies song is "I Will Follow Him", first recorded by Paola Neri and was covered by Little Peggy March in 1963. It was such a wonderful song that each time you hear the it, chances are your mood will be transformed into auto swinging and dancing mode.

So popular the song was that it was even featured at the end of the 1992 film Sister Act, where it was performed by the nuns’ chorus for the Pope.

Yours truly fell in love with this song when he was around the age of 15 and has since then became a avid fan of this mesmerising song.

In case you are not familiar with the lyrics, here it is ......

~~~~~~~~~~~~~~~~~~~~~~~~

Love him, I love him, I love him

And where he goes I’ll follow, I’ll follow, I’ll follow

I will follow him, follow him wherever he may go

There isn’t an ocean too deep

A mountain so high it can keep me away

I must follow him, ever since he touched my hand I knew

That near him I always must be

And nothing can keep him from me

He is my destiny

I love him, I love him, I love him

And where he goes I’ll follow, I’ll follow, I’ll follow

He’ll always be my true love, my true love, my true love

From now until forever, forever, forever

I will follow him, follow him wherever he may go

There isn’t an ocean too deep

A mountain so high it can keep, keep me away

Away from my love

I love him, I love him, I love him

And where he goes I’ll follow, I’ll follow, I’ll follow

He’ll always be my true love, my true love, my true love

From now until forever, forever, forever

I will follow him, follow him wherever he may go

There isn’t an ocean too deep

A mountain so high it can keep, keep me away

Away from my love

Do-do do-do-do do-do-do and where he goes

I’ll follow, I’ll follow, I’ll follow

I know I’ll always love him

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Wow, the meaning of the song is about the undying love for "him" where there is no mountain too high or an ocean too deep that will keep her love away for "him".

Well, I am not here to ask you to discuss about this song actually.

I presumed by then most of you readers are not "alien" to my style of writing anymore and must be familiar with my way of leading you to here and there.

I am actually here not to discuss about the "I will follow him" song seriously.

I am here to ask if any of you readers

has been a braveheart enough

to FOLLOW ME?

Yes, you heard it right! Did anyone of you has been brave enough to put your trust and your hard-earned money to become shareholders of those companies I shared with?

If you had dared to buy just 1,000 shares of those companies I shared (of course I had bought as well) and keep until end of Dec 2015, would there be profits, bigger profits, loss or break even for you?

The 19 mentioned stocks are as followed :

Hup Seng Industries Berhad,

YSP Southeast Asia Holding (YSP Sah),

Keck Seng (M) Berhad,

Mercury Industries Berhad,

APM Automotive Holdings Berhad,

Apollo Food Holdings Berhad,

LPI Capital Bhd (LPI),

Fima Corporation Berhad (Fimacor),

Integrax Berhad,

NCB Holdings Bhd,

Harrisons Holdings (M) Bhd,

Tek Seng Holdings Berhad,

Thong Guan Industries Berhad (Tguan),

Supermax Corporation Berhad,

Century Logistics Holdings Berhad,

Focus Lumber Berhad,

Imaspro Corporation Berhad,

KAF-Seagroatt & Campbell (KAF),

NTPM Holdings Bhd.

Except for two (APM and Harrisons) which recorded negative returns, the other seventeen recorded positive returns.

It means my percentage of picking winning stocks are 89% over a number of nineteen stocks. (Actually I still have not mention a few more big winners "not featured or listed" in my column, at the same time, i also had a very few losing stocks which very luckily bought in small quantities only many years back).

Out of the seventeen stocks, eleven recorded very handsome gains

of over RM1 or 100% more at certain times.

They are :

Hup Seng, YSP Sah, Keck Seng, Apollo, LPI, Integrax, Tek Seng, Thong Guan, Supermax, Focus Lumber, KAF.

It also means my percentage of picking winning stocks which recorded RM1 or 100% more is over fifty percent over a pool of nineteen stocks.

When you have a overwhelming big winners and a very few losers (also by small margin except APM), your winning profits are going to be very enormous when added in together.

I am also amazed by such amazing big wins too. What were the reasons behind this good runs of big profits? Was I lucky enough in picking any stocks or was my timing just perfect or perhaps did I study enough research on those stocks or perhaps I "followed blindly" all those recommendations by all those famous bloggers?"

I leave all these to you to judge.

Nevertheless, I believe if you had just blindly followed me just to purchase 1,000 shares of all those nineteen mentioned stocks on the respective days my blogs were posted, today you would be laughing all the way to the bank - thanks or no thanks to the humble thoughts of one Kassim!

Selling my 3,000 shares of

Supermax Corporation Berhad

at RM3.52 on Jan 14, 2016

Supermax was bought at RM1.67  on Dec 16, 2014 at the height of all those bad news affecting the rubber glove company. There is no particular reason why i am selling. I believe the fundamental of the company is still there. Perhaps there are times you just want to sell to have that real cash feeling in your hands.

The return is a 110% percent or RM5,450 plus minus if you were to include the dividends and the broker charge fees involved.

Apollo soaring further into orbit again

Apollo soaring

further into

orbit again

  

Clarity is beginning to show up more and more  on Bursa Malaysia especially for those companies exporting their goods/products to overseas countries. No thanks or thanks to the on-going weak ringgit against the USD dollars, those companies's profits improved tremendously each time they report their quarterly results.

The latest to report very stunning results was Apollo Food Holdings Berhad. Apollo reported its 2nd Qtr 2016 results ending Oct 31, 2015 which was double over the preceding year corresponding quarter.

Apollo reported an earnings per share (eps) of 12.05 sen compared to an    eps of only 6.01 sen (Oct 31, 2014). This is an increase of 100% increase of profits. Profits was RM 20,829 million (Oct 31, 2015) compared to RM 10,527 million (Oct 31, 2014).

How did Apollo achieved such remarkable results? I scrolled its accompanying notes and compared its revenue and realised it was almost a flat comparison of both comparing quarters. In fact, there was only an increase of RM3.864 million (2nd Qtr ended Oct 31, 2015) over the RM49.932 million recorded in the preceding quarter. This was due to increase in demand from both local and export markets.

However, Apollo announced that the 100% jump in profits was due to foreign exchange gain on the depreciation of Ringgit Malaysia against the USD dollar.

This huge gain on the foreign exchange gain must be a good ones for Apollo although there were reports of tremendous savings as its new machinery has helped to bring down operating expenses down by as much as 82% to RM1.2 million.

As the Ringgit Malaysia is expected to stay weak at the RM4.00 - RM4.40 levels for many more months to come, Apollo is poised to continue to benefit from this and hence is likely to report record earnings for Financial Year April 2016.

The total eps of 26.04 sen (1st & 2nd Qtr) means on an annualised basis will most probably be an eps of 50 sen (on a conservative basis). What this mean is that Apollo is likely to reward its shareholders with a minimum dividend of 25 sen although yours truly would not be surprised if Apollo decides to make it a 30 sen dividend.

Apollo's cash hoard has also increased from RM100 million to RM116 million as at Oct 31, 2015. Trade and receivables is an impressive amount of RM35 million vs Trade and other payables of RM9.9 million only.

Cash per share is now at RM1.45. As such, Apollo is now in a sweet position to declare higher dividend or even a special dividend anytime.

Somehow, a bit puzzling to yours truly is that in all these years of operating profitable layers cakes business, management remained focus on their business and do have not taken any corporate exercise at all. Apollo has never make an cash calls or even announce any corporate exercise such as bonus share or share splits that come with warrants.

Readers would have remembered I first wrote about Apollo on Oct 7, 2013 titled : Soaring Apollo and Falling Star and subsequently another Apollo feature again on Nov 27, 2013 titled : Apollo vs Hup Seng. Since that first time on Apollo's feature, its share price was around RM4.80. As at today, Jan 8, 2016, Apollo's share price is RM5.78, up by 20% or 98 sen!

Long term shareholders would have no qualm holding on to their Apollo shares including yours truly. But wait, how come I did not mention that I was having Apollo shares when I first blogged about it on Oct 7, 2013? At that time, I could not find my contract buying note. Since then when I was doing some spring cleaning, I found the contract buying note.

Yours truly bought 1,000 shares of Apollo on May 24, 2006 at RM2.45. Since then I have qualified for 11 dividends totalling RM2,100.00 which means my cost for Apollo shares is only RM368.68.

At the current price of RM5.78, I am sitting on a very good paper profit of over RM5,400.00. And I am not likely to sell such good dividend paying company unless the price is ridiculously chased up high.

Apollo is truly another money-good son of Bursa Malaysia.

Focus Lumber Berhad

Focus Lumber Berhad is also another company benefitting from the on-going weakening Ringgit Malaysia vs the USD dollars.

Its latest 3rd Qtr September 2015 revenue was RM122 million compared to its corresponding 3rd Qtr Sept 2015 of RM109 million - an increase of only  RM13 million or 12%. But due to the gain of foreign exchange, its profits after tax was RM21 million compared to RM11 over the same corresponding period. That was an almost 90% rise!

Eps also surged to 20.37 sen compared to just 10.62 sen over the same corresponding period.

Cash also rose to RM85 million or a cash per share of 80 sen. Does this mean Focus Lumber is also in another sweet spot to declare higher or special dividend in times to come? So far, Focus Lumber has been more than above my expectation when it comes to dividend for 2015 compared to 2014. It has so far paid out a total of 15 sen for 2015 compared to just 8 sen in 2014.

But wait, comes February when Focus Lumber announces its 4th Qtr 2015 results, I won't be surprised at all should there be a final dividend of at least 5 sen (making it a total 20 sen dividend for 2015). My years of experience can sometimes be very right with my hunches.

Should that happens, the dividend yield for Focus Lumber would be 6.8% base on its closing price at RM2.90 on Jan 8, 2016.

By then, do you think Focus Lumber would still be trading at below this price? You do your maths now, but I am not asking you to buy, similarly I am also not selling my 36,000 shares of Focus Lumber as well.

When sanity returns

When sanity

returns

According to a Goggle search, the meaning of SANITY is explained as the  the ability to think and behave in a normal and rational manner. What it means is that for one to do something or to make a decision for something,  one must be in a state of sanity so that a better decision is derived.

But during the times of chaos or crisis happenings, many people actually act in the opposite of sanity. They panic, act irrationally and become insanity with their actions and decisions.

One of the most common places to find insanity is actually in Bursa Malaysia. And these insanity situation happens from time to time each time a major crisis develops.

It is during these time of panic caused by those insanity people that those with sanity state of mind are likely to make a better and wiser decision that will ultimately tilt in their favours over a period of times when finally ... sanity returns.

Just a few months back at the height of world market crash where even at one time the Dow Jones dropped over one thousands points on the opening bell before  crawling back for some recovery. Even our Composite Index dropped by some forty points on certain days.

It was during those panic-stricken times that many investors lost their nerve and dump their shares in massive drove and sellers simply overwhelmed buyers all days through, even though it is common knowledge amongst investors that investing is all about the strong fundamental of a company that will dictate the share price.

But when the majority of sellers become insane on that day, and genuine sanity buyers are few, prices can be swiftly pressed down to unimaginable levels. It is during those moments of madness that the real long term investors will dare to pick up some shares at heavily discounted price.

One of those incident was when the bad news hit Supermax Corporation Berhad about the insider trading issue related to APL Industries Berhad (APLI). The share felled to unbelievable price under such great ferocity selling and I was those lucky brave ones to pick up at RM1.67 the very next day (on Dec 16, 2014). It hit a 52-week low of RM1.58 on Dec 15, 2014. Since then, the current share price has recovered  superbly to close at  RM2.96 on Dec 17 following bouts of rallies accompanied by some encouraging corporate news.

Another of my 2015 favourites, Focus Lumber Berhad reported an excellent 2nd Qtr results of 7.8 sen compared to its 1st Qtr of 3.22 sen. But due to such extreme weak market sentiment on that day where the Composite Index dropped over 40 points, "insane" sellers ditched such a good cash rich company for a cheap price. Despite having 31,000 shares before this, I still could not resist such a fire bargaining sale and picked up 5,000 shares at RM1.46 plus.

As a matter of fact, on that day and some other days, market behaved in a very irrational way for many companies. I have to believed Focus Lumber shares must be one unjustifiably sold at a song on that day.

All because many strong hearted investors lost their sanity and courage  on that day .....

But as time is always a healer and a good judge, another few months down  the road, when companies started to announce results again and market sentiment has returned to sanity level, the share prices of good fundamental companies also begin to find its justified levels.

When Focus Lumber announced its 3rd Qtr results on Nov 17 with an even better sequential results of 9.35 sen and an almost 100% increase dividend payout (10 sen dividend followed by an earlier interim dividend of 5 sen), "sane" investors chased after the shares from the next day onwards resulting in a gain of 23 sen to RM2.68.

Since then, Focus Lumber has constantly traded at the RM2.70 - RM2.80 range although it touched a high of RM3.00 on Nov 24, 2015.

The share price of Focus Lumber has even surpassed YSP Sah and Signature International Berhad right now. Refer to my previous blog on Sep 13, 2015 titled : The Power of Market Sentiment.

At that time, on YSP Sah was traded at RM2.53 on Aug 19, Signature was traded at RM2.36 on Ag 24 and Focus Lumber was just traded at RM1.51 on Aug 21, 2015.

Fast forward to another three months and another set of quarterly results and the share price of these three mentioned companies are as followed  on Dec 17.

Focus Lumber is at RM2.77 on Dec 17, 2015.

(Up by a whopping RM1.31)

YSP Sah is at RM RM2.47 on Dec 17, 2015.

(Down by 5 sen)

Signature is at RM RM1.88 on Dec 17, 2015.

(Down by 13 sen)

What does this tell you?

From my point of view, it says that when the market sentiment has returned and most investors has recovered from insanity, a better decision to base a fairer value of a particular company based on its fundamental points from a vastly majority of investors will surely accord a fairer value share price.

Buying 10,000 shares

of NTPM Holdings Bhd

on Dec 17, 2015

It has been a long time since I bough a new stock. Many times I have been frequently asked if there is any good stock to buy. Well, here it is this "premier tissue and toilet paper' company called NTPM Holdings Bhd. Perhaps I shall share some of my reasons why I am buying some shares of this company in my future blogs, most probably in 2016.

As this probably is my last blog for 2015, I like to thank all those readers/followers/email fans/supporters who have been with me throughout the year and since this blog's inception.

I like to wish you a very Merry Christmas and a very wonderful 2016!