Tuesday, November 3, 2009

Something caught my eyes today

(1) Australian central banker sent a strong message by raising interest for the the second time within short period of one month. This strong message frightened people to unwind risky asset. For example, Vietnam stock market dived 3.9% today.

(2) IMF expressed concerns of Hong Kong property price soared not within reason sowing a small seed of speculation fever curb is underway. The pressure built up will force Hong Kong stock market to correct.

(3) Our stock market performed quite nicely today despite of the negative regional markets weakness. We have 261 stocks advanced and 389 stocks declined. It's not the internal winner to loser ratio that I want to highlight(it's too basic). It's within 261 winners, 156 of them were penny stocks, wow 60% of winners contributed by penny stocks. What amazed me was 33 stocks gained more than 10% in a day. A little bit hot I think.

(4) The first three points have no significant impact on me but this one that I saw will excite me.

Faber Group reported their Q3 '09 results today. This company involves in Healthcare Facilities Management and property development. The revenue has been recovering steadily over the last three quarters.

Revenue(Q1/Q2/Q3) $ million : 140 / 170 / 197
Profit after tax (Q1/Q2/Q3) $ million : 7.2 / 13.8 / 19.0
EPS (Q1/Q2/Q3) sen : 2.0 / 3.81 / 5.23

Q1 '09 has been exceptionally weak due to lower contribution from the property division. With the recovery, I believe Q4 EPS should come in around 4 sen, normalized EPS in region of 18 sen is a piece of cake. At the closing price of $1.06, a company with ROE of 12% selling at low PE multiple 5-6 times only, will certainly worth investigating further. It's my coming weekend assignment I guess.

1 comment:

Shien Yang said...

why dont you check out TSM Global.
The stock is only selling at cash level.
The business is profitable and it is growing.