Showing posts with label small cap stock. Show all posts
Showing posts with label small cap stock. Show all posts

Wednesday 9 August 2017

Rakuten: Go for undiscovered gems - small-cap

Tuesday, 25 July 2017


Rakuten Head of Research Kenny Yee and Vice President Research Vincent Lau at Market Briefing yesterday for select media on the small- and mid-cap stocks for the second half of the fiscal year. With the spotlight on small- and mid-cap stocks shining brighter than ever this year, this market holds much potential for an investor. - The Star
Rakuten Head of Research Kenny Yee and Vice President Research Vincent Lau at Market Briefing yesterday for select media on the small- and mid-cap stocks for the second half of the fiscal year. With the spotlight on small- and mid-cap stocks shining brighter than ever this year, this market holds much potential for an investor. - The Star

KUALA LUMPUR: A rising tide lifts all boats.
For investors looking to ride on the inflow of foreign funds into the stock market, an online brokerage is telling clients to go small.
“If you look at the FBM Small Cap Index, there is still value to be found within this space.
“The average price earnings ratio (PER) of the FBM Small Cap Index is trading at around the 13 times earnings level,” said Rakuten Trade Sdn Bhd head of research Kenny Yee.
“Some companies are even trading at single-digit PERs and this is where we are looking at aggressively to promote,” he told a press conference here on its investment outlook.
But after a surge earlier this year, finding the undiscovered gems in the small-cap universe is getting tougher.
“These stocks usually have a higher beta, but it is also getting tougher to unearth all the good small companies,” he said, adding that not all small companies with cheap valuations were of good quality.
The FBM KLCI is trading at an average mean of 16 times its historical PER, which Yee reckons is “neither cheap nor expensive”, given growth expectations.
Yee believed that the benchmark index would end the year at 1,850 points from the current 1,760 points, representing a further upside of 5%.
While he continued to be optimistic on the outlook of the FBM KLCI, Yee also advocated a focus on small and medium-cap stocks for any possible high beta opportunities.
Yee also said small and mid-cap stocks could see an even steeper climb from the spillover effect of the larger caps.
“If what we expect comes true, whereby the influx of foreign funds comes through, then we will see a very positive (impact on) the KLCI,” he said.
On a related matter, Yee said corporate earnings would see a further improvement this year, building upon last year’s gains.
“After last year’s growth of around 5%, we are seeing better earnings growth this year and it may surpass the 6% level.
“Corporate earnings could be underpinned by growth in the banking sector.
“Consensus is that there could be a further downturn in the consumer or housing space, but many are still seeing loan growth within the banking sector,” Yee said.
He added that the ringgit could see an improvement and possibly retest the RM4 level on catalysts such as solid prospective foreign direct investment inflows, especially from China at an estimated RM240bil.
“Since the ringgit/US dollar has the closest correlation to the yuan/US dollar, any positive impact on the yuan should likely be positive on the ringgit,” Yee said.

Read more at http://www.thestar.com.my/business/business-news/2017/07/25/rakuten-undiscovered-gems-in-smallcap-universe/#w5JR6m2H4XohkM2i.99

Monday 9 November 2015

Small and mid-cap stocks showing better results


“I personally think that if investors spend time and look at each individual company, they will see good investable companies,” chief executive officer Datuk Tajuddin Atan told reporters on the sidelines of the Focus Malaysia Best Under A Billion Award event recently.
He said while the big listed companies and the top 30 are investable, the focus will be on the small and medium-cap companies that are growing and have good potential.
More cash injection into the capital market will help improve its performance, he said, pointing out that a few companies are already giving good results as well as providing clarity in their plans.
“Investment by ValueCap Sdn Bhd (the government-owned fund manager) by looking at the fundamentals and their performance would improve the market especially in terms of liquidity,” he added.
Inter-Pacific Research Sdn Bhd head of Research Pong Teng Siew was quoted as saying small and mid-cap stocks had performed quite well.
“Investors are still in a holding mode, on expectations that ValueCap will start investing in the equity market in late November or early December.
“No one is selling ahead of that. Once the investment starts to come in then we can expect the market to climb,” said Pong. — Bernama


Read more: http://www.theborneopost.com/2015/11/09/small-and-mid-cap-stocks-showing-better-results/#ixzz3qwlsAkhA