These are a few links that will take you to free stock data of any shares you are looking at. It should contain share price, P/E values, total shares issue, historical prices, financial overlook, financial ratios and much more.
Malaysian Stocks
Bursa Malaysia
http://www.bursamalaysia.com/market/
[Type in the stock name in the "Get Quote" box on the top right centre of the page. Then choose "Company Information" from a list that will appear next to the chosen stock. Reload page if it doesn't show any results]
Comment: Good information. Beware, vital stock announcement delayed sometimes (common)
E.g. stock quote page : http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=5657
Malaysiastock.biz
http://www.malaysiastock.biz/Latest-Announcement.aspx
[Same as above]
Comment : Good information on revenue & profit trend, quarter report history, dividend history, bonus/right issue history all in 1 PAGE
E.g. stock quote page : http://www.malaysiastock.biz/Corporate-Infomation.aspx?type=A&value=P&source=M&securityCode=5657
Stock Price Target by Banks
http://klse.i3investor.com/jsp/pt.jsp
[Same as above]
Comment : All bank reports are Revised according to Latest Financial/pertinent data. Do not use this as a primary criteria. However, they give an overlook of a company's Current well being
E.g. stock quote page : http://klse.i3investor.com/servlets/ptg/5657.jsp
Malaysian & International stocks
Financial Times
http://www.ft.com/home/asia
[Same as above]
Comment : Great overall view for any particular aspect
E.g stock quote : http://markets.ft.com/research/Markets/Tearsheets/Summary?s=PARKSON:KLS
Reuters
http://www.reuters.com
[Same as above]
Comment : Good "Overview" page
E.g. stock quote page : http://www.reuters.com/finance/stocks/overview?symbol=PRKN.KL
Bloomberg
http://www.bloomberg.com/quote/PKS:MK
[Same as above]
E.g. stock quote page : http://www.bloomberg.com/quote/PKS:MK
For FAST SEARCHES:
Go to Google.com, type in the name of your stock followed by the website (any one of the above you want to use, except for bursamalaysia)
E.g.
For information on Parkson Bhd,
type in "parkson bhd bloomberg/reuters/ft" and click on your search result.
This is the fastest way of getting to your the free websites quoted above.
These websites are extremely helpful to give you numbers conducted by banks/analysts/etc. However, I would recommend to use your own research data and use the above only as pussuasive authority. There are many other websites such as WSJ
(e.g. http://online.wsj.com/quotes/stock_charting.html?symbol=3368&type=hkse&osymb=HK-jB3368&x=44&y=18&time=2yr&freq=1dy&wtype=64&compidx=&comp=&ma=1&maval=200&uf=0&sid=2156591&symb=HK-jB3368&lf=268435456&lf2=0&lf3=0)
that provide stock charting with buy & sell volume : Volume+ , amongst others.
Use the above fast search technique for them too if extra information is required.
Until next time, happy investing.
P.s. I am not directly recommending the purchase of Parkson Bhd shares. It is just an example.
Wednesday 18 June 2014
Wednesday 11 June 2014
Ecoworld - Buy or Sell?
Ecoworld
A "spinoff" of S P Setia? Perhaps. This would mean there is a new but old company trying to raise more public money to develop more land, purchased at low prices and sold to would be property investor for extravagant price (land has been purchased before from Tropicana from the government for a very modest price).
Back to share investment in Ecoworld. Current share price : RM5.07. So what do you get from this price. These are among the proposed exercises and brief explanations.
1) share split for shareholders :
"Upon completion of the Proposed Share Split, the issued and paid-up share capital of EW Berhad would be RM253,317,000 comprising 506,634,000 ordinary shares of RM0.50 each"
Current par value shares of RM1 becomes 2 shares of a par value of RM0.50 (par value : initial capital injected by the company) hence value of 2 new shares still = 1 share held previously
2) private placement via Share Subcription :
"Pursuant to the Share Subscription Agreement, EW Holdings and Sinarmas Harta (collectively referred to as the “Subscribers”) will subscribe for new EW Berhad Shares for an aggregate cash consideration of RM1,371,639,648.40 (“Subscription Consideration”) at an issue price of RM1.70 for each Subscription Share (“Subscription Issue Price”) "
Hence, the mentioned Subscribers will own 806,846,852 shares or 61.42% of the total share issue after the proposed split.
3) share subscription for shareholders via Rights issue shares with free detachable warrants
The above private placement will dilute current public shareholding from 34.95% to 13.48%. Every public company is required to have 25% in the hands of the public (hence "Public" Company). Hence, this exercise is necessary for the company to remain a public company (in the process raising RM788,000,000, before the warrants are exercised, for repayment of bank loans and future land acquisition). This is beneficial for shareholders as long as the rights price matches that of EW Holdings and Sinarmas Harta. If not, your share value will be diluted.
[rights: shares (quantity depending on current no. Of shares held) offered at a lower price
Warrants: depending on type. Convertible to shares / Detachable-can be sold separately]
4) further Private placement
The Proposed Placement will involve the placement of such number of new EW Berhad Shares, representing up to 20% of the existing issued and paid-up share capital of EW Berhad post completion of the Proposed Share Subscription and Proposed Rights Issue with Warrants (“Placement Shares”) to investors to be identified via a book-building exercise at an issue price to be determined (“Placement Issue Price”).
In short: The above proposals will cause a Dilution effect of 41.56% OR in other words, you will retain a value of 58.44% of your current shares assuming you fully subscribe to the proposed Rights issue and are able to exercise all of your free warrants.
The above number is generated from taking the total number of shares after the relevant proposals for shareholders, divided by the total number of shares after adding shares to be issued to private individuals/corporation.
A small discussion. Ecoworld is a land development company that is about to raise sufficient cash for future developments. As a shareholder, it is crucial to know whether this company will pay sufficient dividends to substantiate the dilution that is about to occur. Not to forgo the value of the company presently and post proposed corporate actions. Assuming the company generates RM2bil for the year 2014, with a net profit of RM200mil, a P/E ratio of 36x is estimated for post corporate actions with current share price, assuming full public float.
It is estimated the P/E to be about 15-30 if net profits are higher and dilution occurs at a slow pace. This would put the company's valuation alongside other large developers or cheaper allowing for capital appreciation.
Not to forget other considerations, such as cash flow, debts, etc. However, it is opined that the major influence on share price for large cap companies in Malaysia is the pension fund and other large institution. As long as this Ecoworld sells its products and continue growing its land banks, it would seem that it's share price will continue to appreciate [assuming ESOS and other future proposals does not further dilute public shareholder's stake].
A continuous and/or dilution effects is contrary to safeguarding shareholders interest. After all, shouldn't public companies benefit public instead of private individuals via private placements amongst others? However, a company that does not care for its public shareholders, may still be a good investment assuming it continues to deliver performance.
It is extremely common that companies grow without benefitting the public shareholders. Hence, having a management team that focuses on shareholder value is priceless. Not having this would lead to the paradox of striving to generate profits and concurrently not wanting to be made used of.
Conclusion. If a company provides opportunity for capital appreciation, it should also provide some sort of guarantee in maintaining your capital value. Supporting companies with pure greed for returns may backfire in other ways, perhaps general increases in property price.
[I will recommend a Buy for the long term if you have some extra cash lying around]
Reminder: Investment should be for the longer term. A suggestion, if you have RM10000, spend half and keep 25% x 2 (RM2500 x 2) for back up in case the share price dips (many purchases=larger purchase costs). In the long run, assuming the company focuses on shareholder value, has a great brand, cash flow, balance sheet & pays dividends (if possible equal to that of bank interest rate), you will do well.
Until next time happy investing.
A "spinoff" of S P Setia? Perhaps. This would mean there is a new but old company trying to raise more public money to develop more land, purchased at low prices and sold to would be property investor for extravagant price (land has been purchased before from Tropicana from the government for a very modest price).
Back to share investment in Ecoworld. Current share price : RM5.07. So what do you get from this price. These are among the proposed exercises and brief explanations.
1) share split for shareholders :
"Upon completion of the Proposed Share Split, the issued and paid-up share capital of EW Berhad would be RM253,317,000 comprising 506,634,000 ordinary shares of RM0.50 each"
Current par value shares of RM1 becomes 2 shares of a par value of RM0.50 (par value : initial capital injected by the company) hence value of 2 new shares still = 1 share held previously
2) private placement via Share Subcription :
"Pursuant to the Share Subscription Agreement, EW Holdings and Sinarmas Harta (collectively referred to as the “Subscribers”) will subscribe for new EW Berhad Shares for an aggregate cash consideration of RM1,371,639,648.40 (“Subscription Consideration”) at an issue price of RM1.70 for each Subscription Share (“Subscription Issue Price”) "
Hence, the mentioned Subscribers will own 806,846,852 shares or 61.42% of the total share issue after the proposed split.
3) share subscription for shareholders via Rights issue shares with free detachable warrants
The above private placement will dilute current public shareholding from 34.95% to 13.48%. Every public company is required to have 25% in the hands of the public (hence "Public" Company). Hence, this exercise is necessary for the company to remain a public company (in the process raising RM788,000,000, before the warrants are exercised, for repayment of bank loans and future land acquisition). This is beneficial for shareholders as long as the rights price matches that of EW Holdings and Sinarmas Harta. If not, your share value will be diluted.
[rights: shares (quantity depending on current no. Of shares held) offered at a lower price
Warrants: depending on type. Convertible to shares / Detachable-can be sold separately]
4) further Private placement
The Proposed Placement will involve the placement of such number of new EW Berhad Shares, representing up to 20% of the existing issued and paid-up share capital of EW Berhad post completion of the Proposed Share Subscription and Proposed Rights Issue with Warrants (“Placement Shares”) to investors to be identified via a book-building exercise at an issue price to be determined (“Placement Issue Price”).
In short: The above proposals will cause a Dilution effect of 41.56% OR in other words, you will retain a value of 58.44% of your current shares assuming you fully subscribe to the proposed Rights issue and are able to exercise all of your free warrants.
The above number is generated from taking the total number of shares after the relevant proposals for shareholders, divided by the total number of shares after adding shares to be issued to private individuals/corporation.
A small discussion. Ecoworld is a land development company that is about to raise sufficient cash for future developments. As a shareholder, it is crucial to know whether this company will pay sufficient dividends to substantiate the dilution that is about to occur. Not to forgo the value of the company presently and post proposed corporate actions. Assuming the company generates RM2bil for the year 2014, with a net profit of RM200mil, a P/E ratio of 36x is estimated for post corporate actions with current share price, assuming full public float.
It is estimated the P/E to be about 15-30 if net profits are higher and dilution occurs at a slow pace. This would put the company's valuation alongside other large developers or cheaper allowing for capital appreciation.
Not to forget other considerations, such as cash flow, debts, etc. However, it is opined that the major influence on share price for large cap companies in Malaysia is the pension fund and other large institution. As long as this Ecoworld sells its products and continue growing its land banks, it would seem that it's share price will continue to appreciate [assuming ESOS and other future proposals does not further dilute public shareholder's stake].
A continuous and/or dilution effects is contrary to safeguarding shareholders interest. After all, shouldn't public companies benefit public instead of private individuals via private placements amongst others? However, a company that does not care for its public shareholders, may still be a good investment assuming it continues to deliver performance.
It is extremely common that companies grow without benefitting the public shareholders. Hence, having a management team that focuses on shareholder value is priceless. Not having this would lead to the paradox of striving to generate profits and concurrently not wanting to be made used of.
Conclusion. If a company provides opportunity for capital appreciation, it should also provide some sort of guarantee in maintaining your capital value. Supporting companies with pure greed for returns may backfire in other ways, perhaps general increases in property price.
[I will recommend a Buy for the long term if you have some extra cash lying around]
Reminder: Investment should be for the longer term. A suggestion, if you have RM10000, spend half and keep 25% x 2 (RM2500 x 2) for back up in case the share price dips (many purchases=larger purchase costs). In the long run, assuming the company focuses on shareholder value, has a great brand, cash flow, balance sheet & pays dividends (if possible equal to that of bank interest rate), you will do well.
Until next time happy investing.
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