Thursday, January 29, 2015

Stock Watch - TWRREIT

Tower Real Estate Investment Trust (Tower REIT) recorded a distribution per unit (DPU) of 7.03 sen a share for the financial year ended Dec 31, 2014 (FY14), down 34.3% from 10.7 sen paid out in FY13.

The REIT, which is part of the Hong Leong group, announced today a final DPU of 3.2 sen for the six months ended Dec 31, 2014, down from 5.61 sen in the previous corresponding period. It had earlier paid 3.83 sen per unit in August.

A filing to Bursa Malaysia today showed Tower REIT’s FY14 realised income fell sharply to RM21.36 million, from RM32 million previously; while gross revenue dropped to RM44.48 million, from RM52.87 million.

Nevertheless, net profit rose to RM48.73 million, from RM32.67 million previously, due to unrealised income of RM27.38 million. recently announced it is disposing of 19 office parcels and 190 car park bays within Menara ING in Jalan Raja Chulan for RM132.34 million cash, which will result in a gain of RM40.4 million for the trust" more.

With a net asset value of about RM1.91 per share and possible positive developments arising from the sale proceeds from sale of Menara ING, I reckon holding some TWRREIT shares in my portfolio could be a good idea.

Tuesday, January 20, 2015

7Eleven - Very Nice!

SEM is my favourite punting stock. After four profitable trades, I'm now riding on paper profits in this latest round...right now SEM is looking good at RM1.40 - up 5 sen.

Friday, January 16, 2015

Stock Watch - PADINI

 - looks like a good time for me to accumulate some PADINI shares. The quarterly dividends are nothing to snub at. The heavy selling down seems overdone.

Monday, January 12, 2015

Goldman sees need for $40 oil

"Goldman Sachs said U.S. oil prices need to trade near $40 a barrel in the first half of this year to curb shale investments as it gave up on OPEC cutting output to balance the market.

The bank cut its forecasts for global benchmark crude prices, predicting inventories will increase over the first half of this year, according to an e-mailed report. Excess storage and tanker capacity suggests the market can run a surplus far longer than it has in the past, said Goldman analysts including Jeffrey Currie in New York.

The U.S. is pumping oil at the fastest pace in more than three decades, helped by a shale boom that’s unlocked supplies from formations including the Eagle Ford in Texas and the Bakken in North Dakota. Prices slumped almost 50 percent last year as the Organization of Petroleum Exporting Countries resisted output cuts even amid a global surplus that Qatar estimates at 2 million barrels a day.

“To keep all capital sidelined and curtail investment in shale until the market has re-balanced, we believe prices need to stay lower for longer,” Goldman said in the report. “The search for a new equilibrium in oil markets continues.”

West Texas Intermediate, the U.S. marker crude, will trade at $41 a barrel and global benchmark Brent at $42 in three months, the bank said. It had previously forecast WTI at $70 and Brent at $80 for the first quarter" more

Thursday, January 1, 2015

KRONO - how fare thee?

As KRONO market price sinks to new lows, even below its IPO price of 29 sen, it is timely to be reminded of the following...

"Kronologi is no fly-by-night company. It’s been around for 12 years, with its forte in EDM infrastructure technology where it services the likes of Starhub in Singapore, Public Bank Bhd in Malaysia, PTT Exploration and Production Public Company Ltd in Thailand, Philippine Long Distance Telephone Company in the Philippines and companies within the Pertamina Group in Indonesia.

Earnings-wise, Kronologi has been growing, especially in the last three years.

Since its financial year Dec 31, 2011 (FY11), revenue had grown from RM32.78mil to RM42.17mil in FY13, representing a compounded growth of 13.43%.

During that period, net profit was almost unchanged from RM5.47mil to RM5.56mil due to the company’s expansion to new markets.

For the six months to June 30, 2014, revenue already stood at RM28.1mil on a profit of RM3.41mil." [Source]