ESCERAM ICE-CREAM updated 1

Today i had been watching live, this ESCERAM climbing from 0.425 up to 0.550. I had never thought that this ESCERAM will be so highly dangerously explosive... And today ESCERAM had just released their Q1 Result for 2016. Not to forget there are some surprises in their Annual Report 2015 announced last week Friday.

Well, congrats to those who had been riding on the wind from the day i recommended this stock. So, you must be wondering, what's next? When should i take profit? Hear me out, i might provide you some information.

1) Fundamental Analysis:

The net profit of 2016 had increased 30.85%, from RM1,154k to RM1,510k. For me, this is a significant increase, not many company can go as high as that percentage[2]. In the Q Report, it is mentioned that there is improvement in the operations performance. At the same time, the net cash of the company had been growing linearly. Up to date, the ESCERAM is a net cash company with RM25,277k cash in hand.

The management did mention that the fluctuation in exchange rates may pose challenges to the operation due to increase in various essential cost components. However, they still expect a favourable performance in the coming year as they will continue to explore opportunities to enhance and improve the performance.

In the Annual Report 2015, Mr Chairman, Rithauddin stressed on the company will further generate savings and improve efficiencies by giving priority to factory automation and machinery upgrades. Similar to last year, they will be focusing in reducing wastage to reduce inefficiencies, improving capacities and capabilities despite facing mounting cost pressure. ESCERAM did have cash, trade receivables and trade payables in USD, Thai Baht and Euro while the exchange rate used in the annual report is 3.67, 0.11 and 4.02 respectively.

MIKROMB - BOMB KABOOM

Mikro MSC Berhad aka MIKROMB is a company at the forefront of the electrical distribution industry[1]. MIKROMB is engaged in the research, development and design of analogue, digital and computer-controlled electronic systems or devices for use in electrical, electronic and other industries and provision of technical and maintenance services[2]. There are 3 subsidiaries under MIKROMB. Mikro Sdn Bhd (100%) engaged in sales of the analogue, digital and computer-controlled electronic devices, Formula Concept Sdn Bhd (100%) engaged in manufacturing of the electronic devices and Mikrocap Sdn Bhd (51%) which is involved in trading of capacitors. Wondering what are the these electronics? Well, hope the pictures give you some ideas. For more details, you can click on the link.

MIKROMB Products
From: http://www.itmikro.com/app/webroot/UploadedContent/files/mikro-cat-2015.pdf

MIKROMB developes and manufactures equipment with performs reliably, costs less, reduces project costs and ultimately saves lives. Why MIKROMB keeps growing? There are basically 2 reasons. First, they make quality electrical distribution equipment that is proven to work in even the toughest conditions. Second, they keep their prices as competitive as they can [2]. Wow, such convincing words from the management. Offering 2 years of warranty for their products and adhering to  quality ISO certificates, MIKROMB's equipments can be installed in every type of buildings, from medium to large buildings. Some notable local and overseas projects such as, One Borneo Shopping Complex (KK), Sunway Pyramid2, (KL), LCCT, KLIA2, KLCC, MRT Stations (Singapore), Malaysia Embassy (Cambodia), Resort World Sentosa (Singapore) etc[2]. Their products are exported across three continents, covering China, India, Vietnam, Singapore, Hong Kong, Pakistan, Indonesia, Thailand, etc etc.

Looking through the background seems convincing, now lets look at the fundamental and the technical analysis.

乘风盈资者

J郎和他的朋友，A郎一起在吉隆坡的一间档口用餐。。。

A：我不明白为什么现在的人的车好像豪华过住的地方。还有现在刚出来社会工作的年轻人，他们驾的车比他们租的房间还要贵。如果换来是我，我宁愿多住得舒服一点，我的地点一定会靠近LRT的地方，方便我上班，也避免交通阻塞。

J：对咯，我也是不明白。再加上现在经济那么差，如果连那份工没了就真的更难了，分分钟车还不起，楼也供不到，我不敢想象。（就顺便分享这个图画-摘自The Edge Financial Daily 15 October 2015) [1]最多就是就是车的loan咯

Double COMBO: GADANG vs MITRA

In my previous post, i talk about the impact of Malaysia Budget towards our FBMKLCI and also construction index. I monitor these 2 counters for past few weeks. The magic might be happening already. (Refer to my previous post on my view of Malaysia Budget 2016 towards our equity market, http://gainvestor10sai.blogspot.my/2015/10/malaysia-budget-2016-when-is-right-time.html)

Let us look at the construction index. There is a cup with handle and the breakout point at 271.42, with a resistance at 284. With the budget announcement coming, perhaps it will challenge the resistance. If the market sentiment is positive, then, it should not be a problem overtaking the 284.

Construction Index

In this post, i gonna roughly going through 2 construction counters, namely GADANG and MITRA. If our Budget 2016 is not disappointing, i think there will be another round of breakout for the construction counters. 

Malaysia Budget 2016 - When is the right time to Ride the Wind?

Malaysia Budget 2016 is coming soon on 23 October 2015. When the budget is released, normally the construction counters will be impacted and most construction counters tend to go up. So, i had done some studies on the effect of Budget towards the FBMKLCI and also the construction index (closing price on the announcement date, 1 week before/after, 2 weeks before/after, 4 weeks before/after and 8 weeks before/after). First let's look at the announcement dates. For 2015 budget, our PM had revised Malaysia budget because of the slump of oil price. All the data provided and forecast are based on previous year data, it might be incorrect. So, please have your own judgement and take these data as a reference.

Now, lets look at our FBMKLCI. The sequence of the year is based on the colour of rainbow (red, orange, yellow, green etc etc)

ESCERAM ICE-CREAM

ESCERAM sounds like ice-cream.. Can they perform as a MAGNUM ice-cream or just a normal ice-cream?

Formers

ESCERAM is a company which produces ceramic formers subscribed by the glove industry throughout Malaysia. Initially, they started with producing formers for examination gloves, but now they have expanded the range to surgical, household, industrial, balloons and speciality formers. Take a look at this video, i think you will understand what formers are and a process to produce gloves,  https://www.youtube.com/watch?v=A9PMs_N33fU.

Having operations and factories in Malaysia and Thailand, ESCERAM had 15 years of experience and produced and sold more than 30 million formers.[1] Why ceramic hand formers? They are for continuous industrial use under heavy-duty conditions, to withstand the complex processes which involving heat and chemicals to produce gloves, the formers need to have a high degree of resistance to industrial chemicals, exceptional mechanical strength, high thermal shock resistance and a very narrow of dimensional fluctuations. The types of gloves vary and have different processes. 

A Story of a Cat and Boy J

A crowd of 3 to 4 people gathered around a drain. Out of curiosity, Boy J ran ahead of his friends to see what was happening. "Meow, meow". A cat was trapped inside the drainhole. Using a smartphone's flashlight, they were able to see a brown patched cat meowing at the corner of the brick. Boy J's friend came up and asked what happened. Everybody's intention was straight forward. They wanted to rescue the cat out from the drainhole, or else it would die of hunger inside the drainhole. 

Illustration purpose only

When they tried to lift up the metal cover of the drainhole, a passer by, middle aged lady looked, shook her head and said,"Don't worry, the cat knows how to get in, it will know how to get out from the drainhole. If you guys lift the metal cover, if a car drive through and the wheel got stuck in the hole, then you guys have to pay for the damage." After saying those discouraging words, she left them behind. 

Boy J took her advice and planned to leave the cat behind. But when he was about to walk away. The crowd and his friends were still trying to rescue the cat. So he decided to ignore what the lady had said and continue to rescue the cat. They lifted the metal cover of the drainhole. They started to discuss the ways to rescue the cat.

"Lets climb down and bring the cat out",boy A said. But the hole was deep, but no idea how deep was it. Nobody acted only boy J tried to climb down, but it was around 2 meters deep. "Cannot. It is too deep. And it will be dangerous as the slope is quite stiff without anything to step on" Boy J said. "What about we bring a rope, tie to the tree and one of the person climb down?", boy B said. "Why don't we call the securities of condo to help out?", girl A suggested.

As many ideas and discussions were going on, Boy J, without wasting any time, ran back to his condominium. Looking around his condo and thinking what could be useful. "Ahhh, an umbrella, whereby we can lower the umbrella and the cat can land on the umbrella and we lift it up. But, can the umbrella fit in the drain? Ooh, I will take two umbrellas, one big and one small. And, ohh, I will bring a dustpan with me in case the umbrella is not long enough." He talked to himself while he was preparing all the materials.