Some Sobering Figures About Cryptocurrency
- The seemingly "good thing" to me about Bitcoin is that only 21
million will be available, limited supply. There are a bit more than 18
million already mined and out there. I can see it being a refuge "asset"
much like gold is. There are now and probably for a long long time into
the future a lot of war-torn countries and countries that suffer from
hyperinflation, or just a massive lack of confidence in their own
country's currency. Let's equate it to gold, which has a current global
market value of $9.7 trillion. Pushing aside other cryptocurrencies for
discussion purposes, that would give Bitcoin a value of $460,000 per
coin.
I am still very much a bear on cryptocurrencies because: - even though Bitcoin is the most popular and has limited supply, there are plenty of others such as Ethereum and Bitcoin Cash to rise to the fore; plus the later ones will have much better software encryption which will ensure that the older coins will die from 'natural causes' as speculators jump from one to another - there is a symptomatic feature of a huge bubble in the "me too" Deja Vu voodoo. Much like how plenty of companies just add a ".com" to their company names during the dot com bubble, we are seeing striking similarities being played out - by comparison, many will say that Nasdaq was a bubble during the dot com bubble, and indeed it was... so how high did Nasdaq bubbled to?? ... $6 trillion (or from 1,000 points to 5,000 points before collapsing back towards 1,000) .. before it collapsed to about $1-1.5 trillion. Hence the gold market cap comparison is quite silly because certainly NO ONE will say the whole of Nasdaq is equivalent to cryptocurrencies. Even at just $0.5 trillion, Bitcoin may even get to $26,000 a coin but thats about the very end I think of this bubble
Sam Chem Holdings Sprouting Wings - I like it when a stock is taking its time go past their all time high levels. The fact that the push past did not come with humungous volume indicates that it is not being played but rather genuine accumulation has been happening. The best one line summary for the stock: becoming a leading chemicals distributor in Malaysia and Southeast Asia.
Last 3 quarters Rev / NP: RM242.6m / RM10.2m RM215.9m / RM5.4m RM217.5m / RM9.0m
Getting towards a billion ringgit value in revenue a year. Silly PER of just around 10x. The other good thing is they pay decent dividends, but not for the reasons most people think. I am not concerned about the yield, in fact I think its silly to pay dividends. You want money, you sell some of your shares la. But the fact that they do good dividends consistently tells me that they LIVE ON DIVIDENDS and hold their stock.
So, why is the stock breaching its all time highs? Mind you the stock only has a market cap of RM350m. There could be two reasons: a) the stock has never done a capital/corporate exercise to reward shareholders - a free warrant scenario could easily propel interest
b) asking around the industry players, Samchem has been doing well in its expansion, in particular for their Vietnam ops. So much so that there are talks that a corporate exercise involving a possible listing of its Vietnam ops
I think Samchem could be one of the top stocks to hold for 2018.
p/s this is not a recommendation to buy or sell... just an opinion based on available information and debating the hearsays ... please contact your dealer/remisier before making any decision
I am still very much a bear on cryptocurrencies because: - even though Bitcoin is the most popular and has limited supply, there are plenty of others such as Ethereum and Bitcoin Cash to rise to the fore; plus the later ones will have much better software encryption which will ensure that the older coins will die from 'natural causes' as speculators jump from one to another - there is a symptomatic feature of a huge bubble in the "me too" Deja Vu voodoo. Much like how plenty of companies just add a ".com" to their company names during the dot com bubble, we are seeing striking similarities being played out - by comparison, many will say that Nasdaq was a bubble during the dot com bubble, and indeed it was... so how high did Nasdaq bubbled to?? ... $6 trillion (or from 1,000 points to 5,000 points before collapsing back towards 1,000) .. before it collapsed to about $1-1.5 trillion. Hence the gold market cap comparison is quite silly because certainly NO ONE will say the whole of Nasdaq is equivalent to cryptocurrencies. Even at just $0.5 trillion, Bitcoin may even get to $26,000 a coin but thats about the very end I think of this bubble
Sam Chem Holdings Sprouting Wings - I like it when a stock is taking its time go past their all time high levels. The fact that the push past did not come with humungous volume indicates that it is not being played but rather genuine accumulation has been happening. The best one line summary for the stock: becoming a leading chemicals distributor in Malaysia and Southeast Asia.
Last 3 quarters Rev / NP: RM242.6m / RM10.2m RM215.9m / RM5.4m RM217.5m / RM9.0m
Getting towards a billion ringgit value in revenue a year. Silly PER of just around 10x. The other good thing is they pay decent dividends, but not for the reasons most people think. I am not concerned about the yield, in fact I think its silly to pay dividends. You want money, you sell some of your shares la. But the fact that they do good dividends consistently tells me that they LIVE ON DIVIDENDS and hold their stock.
So, why is the stock breaching its all time highs? Mind you the stock only has a market cap of RM350m. There could be two reasons: a) the stock has never done a capital/corporate exercise to reward shareholders - a free warrant scenario could easily propel interest
Annual Report:
Besides
distribution, the Group has a division that does blending of solvents to
make customised products for specific applications. This division focus
on chemical distribution with value-added services (warehousing (DG
cargo), bulk-breaking (into drums or smaller packaging) & blending
for local industries and is complemented by the set-up in Singapore
(Westgate Tower, Jurong East) that export to other global destinations.
Samchem represents the largest petrochemical companies in the business today – ExxonMobil Chemical, Shell, Petronas, BASF; these are the largest global producers of petrochemicals in this region. Collaboration with these petrochemical giants began in Samchem’s early days and over >20 years of working together, Samchem has expanded out to other ASEAN countries, acquired a wider range of products for distribution, including specialty premium chemicals and established a vast network of customer base for mutual business growth and benefit.
Samchem represents the largest petrochemical companies in the business today – ExxonMobil Chemical, Shell, Petronas, BASF; these are the largest global producers of petrochemicals in this region. Collaboration with these petrochemical giants began in Samchem’s early days and over >20 years of working together, Samchem has expanded out to other ASEAN countries, acquired a wider range of products for distribution, including specialty premium chemicals and established a vast network of customer base for mutual business growth and benefit.
b) asking around the industry players, Samchem has been doing well in its expansion, in particular for their Vietnam ops. So much so that there are talks that a corporate exercise involving a possible listing of its Vietnam ops
I think Samchem could be one of the top stocks to hold for 2018.
p/s this is not a recommendation to buy or sell... just an opinion based on available information and debating the hearsays ... please contact your dealer/remisier before making any decision
http://malaysiafinance.blogspot.my/2018/01/sobering-figures-for-cryotocurrencies.html
