MPHB doing good in gaming division

FY30/9/10
Financial Result
Compare to same quarter last year, MPHB revenue stay flat at RM850.7m. However, PBT jumped 105% to RM138.06m from RM67.24m. Lets have a look at the result of each division.

• Gaming division contribute 91% of company's revenue. Current quarter, its net profit is up RM76.3m to RM89.1m from RM12.8m last year. 4D Jackpot which launched in September last year, lower prizes payout ratio and reduced financial cost contributed to this substantial increase.
• Stock Broking division's PBT increase 34.8% to RM6.2m mainly due to debts recovery and higher net gain from proprietary trading. 
• Financial Services division drop slightly to RM17.7m from RM18m. This is mainly due to write back of provision for impairment of investments in previous corresponding quarter.

In summary, company current quarter's net profit up 67% to RM86m from RM51.6m on 3Q09. Which translate into EPS RM0.081.

Technical Outlook
Support at RM2.12. There are three hurdles pass, as R1 has been broke. R2 was broke a few weeks ago, but it pulled back very quickly. Break above R2(RM2.18) in short term is crucial for this uptrend to continue.

Stock Valuation
Base on EPS RM0.30(ttm) and today's closing price RM2.18, it is trading at P/E 7.2x. With this multiple, i think MPHB is very cheap.

Overall
As we can see, company's revenue has been largely coming from its gaming division(91%). And as we all know, NGO business is a sure profit business and the cash generate will only become bigger and bigger like avalanche . As long as company operating as it is right now, this is only going to be our ATM.

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CSCSTEL make a lost this time

FY30/9/10
Financial Result
Current Quarter vs 3Q10 comparison

The Group achieved revenue and profit before tax for the current quarter of RM192.7 million and RM2.4 million respectively. This represents a significant decrease of RM68.8 million or 26% lower in revenue than that of its corresponding quarter. Profit before tax decrease significantly by RM51.2 million or 96% from RM53.6 million in the corresponding quarter. 
 
The drop in revenue is due to contraction in sales volume as a result of sluggish demand. The reduction of profit before tax was mainly the results of lower sales volume and high cost of raw materials which necessitated a write-down of inventories of about RM10 million to net realizable value.
Current Quarter vs Immediate preceding quarter comparison
The Group’s revenue has decreased significantly by 36%, from RM301.7 million in the preceding quarter to RM192.7 million in this quarter. The decrease in revenue is due to sales volume contraction and lower selling prices of our steel products

The decrease in revenue together with inventories write-down have resulted Group’s profit before tax to reduce significantly by 94% from RM42.1 million in the preceding quarter to RM2.4 million this quarter

Technical Outlook
Despite negative financial result,  CSCSTEL share price has been rising firmly. Until yesterday, before financial result announcement. It's now break under strong support of RM1.83. Its not looking good at the moment.

Stock Valuation
For the pass four quarter,  CSCSTEL make a net profit of RM97.72m, translate into EPS of RM0.26. Its trading at P/E 7x(12/11/10 closing RM1.82). With this multiple, i think its still cheap.


Overall
I think current quarter negative result come as a bit surprise. It might halt the uptrend for CSCSTEL for a while, until some good news kick in. However, CSCSTEL piggy bank has getting fatter. Company holding RM306.2m cash in hand, which is RM0.82/share of cash. 
Whenever steel sector resume to its glory, i think CSCSTEL will be the first to zoom. For long term investor, every price drop is an opportunities to accumulate.

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Gamuda doing free fall?

GAMUDA share price has been in a very consistent uptrend since 5 months ago. Its start from a low of RM2.64 on 27/10/10 to a high of RM4.01 on 04/10/10.

Three days ago, its share price broke below support RM3.77 to close at Rm3.69. Things doesn't stop there as price continue to decline RM0.17 to RM3.46 as of now. Short term MA(14d) is crossing under MA(50d) and its not a good sign. Its just under MA(100d) RM3.52.

 So, what is going wrong with GAMUDA.... i don't know!

When share price went under MA(100d) on May 2010, we saw a rebound in 5 days, then all the way up till early of this month. Will history repeat itself....i'm not sure either.

For those holding this stock, watch closely in the next two trading day. Sell if you need to.
For those thinking of buy on dips, don't rush in until fog is gone.

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