Stocks Update- EG, IQgroup, MBSB, SCGM, MFCB and OCK

Stocks Update

EG stock.
Added more EG at share price RM0.8x. Low PE ratio with good growth potential. Quarterly result will be out end of this month, hopefully can have more clue on the growth.

There are many funds holding EA stocks. One of CIMB fund just crossed the 5% holding. I think last November was about 3 million shares if it is the same fund and now 11,108,700 units (5.25%)

IQgroup stock.
Bought IQgroup stock at share price RM2.1x after recommended by Unble Ben. Fundamental not so bad, with some growth potential.

SCGM stock.
Bought this stock, small quantity at SCGM share price of RM3.5x. I saw the buy recommendation from Public Investment Bank on SCGM stock with 12-month SCGM target price of RM4.00.

Public Investment Bank said...
Biodegradable  lunch  box  would  be  the  next  growth  driver.  The  ban  on polystyrene food packaging is  expected to drive the demand for  SCGM’s biodegradable  containers  due  to  its  environmental-friendly  feature.  It  is  a polylactic  acid  (PLA)  food packaging  container,  which is  made from  100% plant-based by  products  such as  barley,  tapioca  and corn.  Unlike  the plastic food container,  which  is  made  from  petroleum  by-products  that  could  take  up to 100 years  to decompose,  its  PLA  food containers  only  needed  6 months to fully  disintegrate.  Though the wholesale price  for  the company’s  popbiodegradable lunchbox  cost  (RM0.12)  is  more  than  30% higher  than polystyrene  container  (RM0.09  each),  it  is  still  relatively  cheaper  compared to alternative packaging  such  as  paper  box  (RM0.50)  or  plastic  container (RM0.40).  Our  channel  checks  showed that the replacement  value  for polystyrene  is  about  RM500m/year.  Currently,  the Group  has  a capacity  of producing  only  144,000  lunch  boxes/  day  or  5.2m  lunch boxes/year. Management  plans  to  increase the  production  capacity  for  lunch  boxes  and is expected to be ready by 2Q.

Price has gone up for the past one two years. High PE ratio and limited upside. Why I buy?

This is because recently we had Raya makan-makan. Someone brought packets of nasi briyani for us. The packaging is different, same like the photo I share here. Immediately I think of SCGM stock. But not interested in buying.

Then the next day, someone tapao yong tau foo for us. Again, the packaging has changed. Look at the photo. Then I beh tahan already. Went in to buy SGCM.

Few days later I went to SGCM website to check, I couldn't find the one I saw in their products. Maybe I didnt search thoroughly.

Whatever it is, no harm holding SCGM stock, with capacity expansion and growth potential, and also recpommended by analyst.

MFCB stock.
This Mega First Corporation Bhd stock moved above RM2.00. Too bad I reduced my holdings few weeks ago. I'm thinking lack of direction after their vietnam (is it Vietnam?) contruction. Anyway, I have some, so just be happy also.

MBSB stock.
With the recent sinking of MBSB share price, bought at RM0.71x. Small quantity. I consider bought at a bit high, because some friends just sold at RM0.69x. Should have bought some from them. Reason of buying because many said price very low already. True also, and I also join in.

OCK stock.
They announced the group's 60 per cent-owned subsidiary, OCK Vietnam Towers Pte Ltd, involves the acquisition of 42.04 million ordinary shares of Southeast Asia Telecommunications Holdings Pte Ltd (SEATH), or its entire equity interest, for US$50 million in cash.

The Proposed Acquisition is not expected to have a material effect on the NA and gearing of the Group based on the latest audited financial statements for the FYE 31 December 2015. However, the Proposed Acquisition is expected to contribute positively to the earnings and NA of OCK Group subsequent to the completion of the Proposed Acquisition, envisaged to be completed in the fourth quarter of 2016.

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