Potential multi-baggers in a volatile market: AMAL and Burwill

I have invested in Burwill (24.HK) and Alliance Mineral Assets Limited (AMAL) for their future growth, partly because of rampant insider trading in Burwill and the China government’s policy to force the car industry to produce more and more electric vehicles (EV) going forward. For Burwill, I have already reaped about 20% unrealised profit. I am sure very soon I will have paper profit from AMAL too.

AMAL has been a designated stock with almost all Singapore brokerages for a long time and Phillip Securities just lifted this trading restriction after lunch break today, 7 May 2018, and I know my patience will pay off sooner rather than later. 

Fundamentally, AMAL’s forward p/e can hit 1x in less than two years which means conservatively it can potentially be a 6-bagger or better based on the closing price of today, i.e. 37.5 cents.

AMAL daily chart at end of 7 May 2018

Technically for AMAL, bullish belt-hold candlestick pattern just appeared, breaking past its 50-day moving average too! It has broken the nice consolidation phase and from my simple calculation, it should hit 43 cents before it finds its resistance.

Comparison between share prices of Tawana, Burwill, AMAL and Jiangxi Special Electric Motor

The comparison revealed one thing: All the four related stocks are now moving up!

To me, for AMAL, no $2.00, no sell!

Superphang
http://superphang.blogspot.sg

More opportunities if you are a contrarian

2018 is a relatively difficult year for finding multi-baggers partly due to the following threats:

1. S&P 500 still trades at a trailing price-earnings multiple of 24, significantly above the 10-year average of 15.7.

2. The possibility of a US-China trade war
3. Tariffs on imports will raise costs to US consumers, reducing consumption and raising inflation
4. US 10-year treasury yield has been close to 3 per cent --- a level which a lot of analysts think would signal a significant reversal in equities.
5. The World cup in June 2018 will likely bring down the market by an average of 8.6% if history is something to go by.
6. The likelihood of regulations on social media and technology companies because of mounting privacy issues
7. A rise in geopolitical risks
8. Ongoing tensions in Syria

However, unless you do not have the knowledge to separate the wheat from the chaff, volatility itself can be good to those who know how to respond to it.

I still think there is still quite some time, at least a year or so, for the market to move up but the trajectory will be much more arduous this time compared to 2017. What we can do is we can wait for some quality stocks to be artificially corrected by the market and we can buy them on dips.  

I bought Valuetronics on 30^th April 18 at 74.5 cents apiece when its share price slumped by more than 25 per cent since its Dutch MNC customer reported a 1Q18 earnings miss due to weak sales at its home lighting division. Weak earnings announced by its peers as well as soft sentiment in the electronics and semiconductor sector also contributed to the share price decline. I am confident that I will make a good return being a contrarian.

Valuetronics daily chart

Superphang
https://superphang.blogspot.sg

Privatisation of China Vast is on the cards

Insider trading records for China Vast

Just checked the insider purchases of China Vast and the latest figures may signal a privitisation of the company could be on the cards:

China Orient Alternative Investment Fund and China Orient Asset Management Co owns about 8.3% of China Vast. WANG Jianjun and ZHAO Ying own about 72.39%, and Central Huijin Investment Ltd China Construction Bank Corporation together own about 7.81%.
The three groups together own a total of 88.5% combined stake in China Vast. The free float is really very dry now. I think WANG Jianjun will find difficulty to nibble more shares from the open market now.

I will hold my position in 6166.HK until he announces privitisation of the company!

Superphang
https://superphang.blogspot.sg

A long marubozu for Excelpoint’s weekly chart!

Refer to my post of 13 Feb 2018:

http://superphang.blogspot.sg/2018/02/excelpoint-eagely-waiting-for-its.html

and my post of 14 Feb 2018:

https://superphang.blogspot.sg/2018/02/excelpoints-stellar-fy2017-performance.html

Yes, 70 cents now! Up 9.375% since my 13 Feb 2018's recommendation.

Excelpoint's weekly chart with 50w moving average

A long marubozu with sizable volume in the weekly chart after my comments. Anyone huat together with me and get a big angbao for this prosperous CNY?

Superphang

https://superphang.blogspot.sg

Excelpoint's Stellar FY2017 performance

Refer to my earlier post of 13 Feb 2018 on my estimation of the good FY2017 result for Excelpoint and the recommended timing of entry:
https://superphang.blogspot.sg/2018/02/excelpoint-eagely-waiting-for-its.html
Yes, it went up 3.5 cents, up 5.47% and  closed at 67.5 cents. 

Excelpoint just released its stellar FY2017 result on 14 Feb 2018. The highlights were:

• Strong operating performance for FY2017 with record revenue (up 16% yoy)
• Improved balance sheet with increased shareholder equity
• Strategic focus on segments related to the Internet of Things (“IoT”) to explore new growth areas
• Net profit increased 14.8% yoy
• Better dividend declared: A total of 4.5 cents (ordinary + special), 0.5 cents more than the preceding year. The dividend yield based on the closing price on 14 Feb 2018 is 4.5/67.5 = 6.67%. 

The management is confident in its business growth

"The outlook for the electronics and semiconductor industry continues to be positive in 2018. We continue to see business opportunities arising in the markets we serve. Increasingly, technology applications require more electronic components than before, and this is one of our key growth drivers. The recent Consumer Electronics Show held in Las Vegas in January 2018 showcased many new and exciting developments, which will fuel additional demand for technology solutions and applications especially in wireless connectivity and sensors, which are vital segments to the entire Internet of Things (“IoT”) infrastructure. We believe that these developments will support our business growth for FY2018."

Solid p/e and PEG ratio

Based on the closing price of 67.5 cents on 14 Feb 2018: 

p/e is 7.455x.  

PEG ratio is 0.504.

This is easily a 2-bagger.

Conclusion
I will get the 6.67% dividend first while patiently waiting for Mr Market to adjust its price upward to come closer to its fair value of $1.35. 

Superphang

https://superphang.blogspot.sg

Emperor Capital boss bought again and again!

Yes, CEO/Managing Director of Emperor Capital (717.HK) Daisy Yeung and her father Albert Yeung together acted again. This time they bought a total of 6.996 million Emperor Capital shares on 12 Feb 2018 at an average price of HK$0.571 for a total outlay of HK$3.995 million or an equivalent of S$665.8k.

They have given me confidence that my target price of HK$1.00 will be met soon. I wish them 恭喜发财！

Superphang

https://superphang.blogspot.sg

Emperor Capital's boss strikes again!

Very good news from Emperor Capital for this coming CNY!

Refer to my earlier post dated 18 Oct 2017 on Emperor Capital (717.HK) :

https://superphang.blogspot.sg/2017/10/get-good-dividend-while-waiting-for.html

CEO/Managing Director of Emperor Capital (717.HK) Daisy Yeung and her father Albert Yeung together bought a total of 9.996 million Emperor Capital shares on 8 and 9 Feb 2018 at an average price of HK$0.5779 for a total outlay of HK$5.77688 million or an equivalent of S$980k. This is the signal that better thing will come.

Emperor Capital will only announce the result on 23 May 2018. From past patterns, it could be only the start for them to keep buying their company shares from the open market. 

The daily chart has already two white soldiers. The third one will be marching in! 恭喜发财！

Superphang
https://superphang.blogspot.sg