Monday, December 31, 2012

Market in 2013 to be decent, but not spectacular: PublicInvest

Market in 2013 to be decent, but not spectacular: PublicInvest

Posted on 28 December 2012 - 05:40am

PETALING JAYA (Dec 28, 2012): The performance of Malaysia's stock market will be decent, but not particularly spectacular in 2013, said PublicInvest Research.

"While the challenging international environment is still expected to pose downside risks to Malaysia's growth prospects, domestic demand is expected to continue to be the anchor of growth, supported by expansions in private investments and consumption," the research firm said in a report dated Dec 21.

"On that score, the performance of the local bourse should be decent, but not spectacular."

PublicInvest said while 2012 was a year of expectation which drove stock markets higher as central banks worldwide had been anticipated to announce stimulus measures and which they subsequently did, 2013 will be marked as a year of execution in which structural issues around the globe will have to be satisfactorily sorted out.

It is keeping its year-end 2013 FBM KLCI target at 1,760 points, an upside of about 5.4% from current levels. Its year-end 2012 expectation is 1,690 points.

"If we were to hazard a guess, we could see the benchmark index trading pattern like a sine wave, with the first-quarter 2013 (Q1) trading downwards on general election concerns, followed by a recovery in Q2 and Q3 on improving macroeconomic conditions in Europe, ending in a likely drift toward the finishing line in Q4 on a gradual slide owing to a dearth of significant market-moving leads," said PublicInvest.

"Stocks which we believe will outperform in the coming year, given the underlying macro conditions, are CIMB Group Holdings Bhd, Telekom Malaysia Bhd, Gamuda Bhd, KPJ Healthcare Bhd, Kian Joo Can Factory Bhd, Dayang Enterprise Holdings Bhd, Perdana Petroleum Bhd, Cypark Resources Bhd and Prestariang Bhd," it added.

To recap, PublicInvest said the government's Budget 2013 plans announced in September this year was largely market neutral as it did not contain anything out of the ordinary, of which most if not all (that is, cash handouts, etc) had been largely factored into expectations.

"The most telling issue however was the fact that the government would be running a deficit for a 16th consecutive year, somewhat necessary in still-challenging economic times but somewhat worrisome given the nation's unhealthy reliance on debt to fund growth, a point of which has been raised time and again by international agencies scrutinising our sovereign rating.

"While it is laudable that the government remains focused on reducing the nation's budget deficit, it is nevertheless a little disconcerting that the quantum remains elevated and running in excess of RM35 billion for the fifth year running," it added.

"Forecast government revenue is premised upon certain assumptions and inherent economic conditions. What if expectations are missed?" said PublicInvest.

The research firm pointed to the fact that close to 24% or RM59.8 billion of the government's annual budget goes to debt service and subsidies, and believes that both are probably addressable and avoidable with more efficient allocation of resources.

On the upcoming general election, PublicInvest said current indications are that the balance of power would remain status quo, with perhaps a slightly lesser majority in Parliament.

"Were that to be the case, the stock market could possibly perk up in positive reaction, with the construction sector likely to race ahead of others as a huge uncertainty is removed. Be that as it may, we do not see significant movements to the upside as well, and think the onset of a bull market rather

unlikely as structural reforms all across the globe will need to be effected from 2013 onwards, capping liquidity-driven enthusiasm."

It said 2013 for Malaysia, will be a time of fulfilling all promises made in the run-up to the 13th General Election.

"All is not gloomy however, as there are still pockets of opportunities for general outperformance in 2013. Growing consumerism within a continent that contains half the world's population still holds promise for companies which have direct and indirect exposures."

Monday, December 24, 2012

Saturday, December 15, 2012

Validate your online banking

Frequently receiving this kind of email asking you to validate your online banking, luring you to their
webpage to steel your informations, I usually will just delete and ignore them as I didnot have any dealing with AMBank, be aware!!!

Dear Customer,


Your AmOnline profile will expire soon. For security reasons, you are required to validate your account login details.

CLICK HERE to validate your account and keep it safe.
Thank you & have a good day ahead!
Warm Regards

AmOnline Team

Thursday, November 29, 2012

'Delisting MAS a wiser option'

'Delisting MAS a wiser option'

By BILQIS BAHARIPublished: 2012/11/29Share   REBUILDING EFFORT: Analysts tell Khazanah that it is better than bankrolling RM3.1 billion cash call

KHAZANAH Nasional Bhd should take Malaysia Airline System Bhd (MAS) private instead of opting to help bankroll a RM3.1 billion cash call, analysts say.

News that the national carrier plans a rights issue, its second in as many years, saw investors selling the stock yesterday.

In 2009, MAS did a one-for-one rights issue of 1.67 billion shares at RM1.60 each to help fund its acquisition of wide-body aircraft, as well as for working capital (including pre-delivery payments for new aircraft ordered) and repayment of bank borrowings.

Investors shunned the latest rights issue plan by selling MAS shares in droves. The stock slumped 17 sen to close at 84 sen on Bursa Malaysia yesterday. It had hit an intraday low of 80 sen a share as sellers swamped buyers.
As a result of the selling pressure, MAS' market capitalisation slumped by as much as RM600 million to close the trading day at RM2.8 billion. A day earlier, the airline had a market capitalisation of RM3.4 billion.

RHB Capital Bhd said in a research note that the corporate exercise is a step in the right direction for MAS but the market is not in the mood for a massive cash call.

"We remain cautious on MAS given the extent of its structural and operational problems that are not adequately addressed ... with a turnaround plan that we find shallow," the research firm said.
Script exercises such as a rights issue are normally seen as a negative signal to the stock market as it involves shareholders forking out more money to subscribe for the issue.

Shareholders who do not participate in the cash call will see their holding diluted, hence there is a tendency for early cash out of shares by those who do not intend to participate.
An analyst from Maybank Investment Bank Bhd opines that the vendors of MAS should opt to take the airline private, restructure the balance sheet, and then list some of its subsidiaries with potential such as Firefly Sdn Bhd and MASkargo Sdn Bhd.

"I think that is a fantastic idea if Khazanah were to privatise MAS... They should have done this years ago. But somehow they are looking at all the options except privatisation," he told Business Times.

The call for MAS to be taken private does hold water as at current prices, it will only cost Khazanah some RM2.8 billion to delist MAS against RM3.1 billion it will have to fork out if no other shareholder were to subscribe for the rights issue.

Analysts argue that MAS could raise as much as RM1.5 billion if it were to list Firefly, considering that its turboprop operation generates a profit of more than RM100 million on a yearly basis.
On Tuesday, MAS announced that it plans to undertake a RM3.1 billion cash call and a RM8 billion capital reduction exercise to help clean its balance sheet and wipe off its accumulated losses.
Major shareholder Khazanah has given MAS its irrevocable and unconditional undertaking to subscribe for its full entitlement under the proposed rights issue.
MAS has said that proceeds from the proposed rights issue are to finance capital expenditure and working capital requirements and to reduce borrowings.

Tuesday, November 27, 2012

Strong insider buying of AirAsia, Sunway REIT, FGVH and Gamuda shares

A nice and meaningful piece of news to ponder when the anoucement of coming election getting close!

Strong insider buying of AirAsia, Sunway REIT, FGVH and Gamuda shares

By CHOONG EN HAN 27/11/2012

PETALING JAYA: Blue chips are back on the radar with the management of some of these companies buying up their own shares.

In a market strategy report by Credit Suisse, analyst Tan Ting Min said there were some fresh insider buying in Gamuda Bhd, AirAsia Bhd, Sunway Real Estate Investment Trust, Felda Global Ventures Holdings Bhd (FGVH) and Wilmar International Ltd.

“Strong insider buying is usually perceived as a buy' signal for these stocks. Among our coverage, we would highlight Gamuda and AirAsia as undervalued, ” she said.

She noted that despite Gamuda's growing orderbook, its stock price had been hampered by election fears. She said managing director Datuk Lin Yun Ling accumulated 32.9 million Gamuda shares at an average price of RM3.54 (against current price of RM3.66), doubling the stake in the company from 1.7% to 3.3%.
She said since early September, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun together have accumulated 51.8 million shares in AirAsia at an average price of RM2.93 (against current price of RM2.86) while its director Conor McCarthy bought 500,000 shares at RM2.94.
“Following Lion Corp's announcement that it will set up operations in Malaysia (via Malindo Air), AirAsia's stock price fell by 13%,” she said.
Another analyst said although this might be a signal to buy, one have to bear in mind that these insiders have a much lower cost of investment over the years, despite them buying up substantial volume of shares at this point.
“Some of these stocks have dropped to a certain level that offers value, and these insiders might see it as a comfortable entry point to increase their stake.
“One must remember they are strategic shareholders of the company, and they are in it for the long term of maybe five to 10 years,” he said. In the same Credit Suisse report, Tan said Felda bought an additional 3.15 million shares in FGV on Oct 8, adding that its current share price of RM4.66 was barely above its initial public offering price of RM4.55 and 15% below its peak of RM5.50 on July 11.

“We rate FGV an underperform due to its rich valuations and old age profile,” Tan said.
Sunway Real Estate Investment Trust (REIT) has also drawn its chairman Tan Sri Jeffrey Cheah's buying interest as well. She said Cheah bought 20.4 million shares of Sunway REIT on Nov 1 and Nov 2 at an average price of RM1.53 while the current price was RM1.47.

BURSA AT 27.11.2012

 count 12.03pm 27.11.2012 the BURSA at 1599.68..............oversold? rebounding? another trap? wait and see?

Monday, November 12, 2012

Public can dial 03-8000 8000 to make suggestions, air grouses to govt bodies

Let start complaining..........
Public can dial 03-8000 8000 to make suggestions, air grouses to govt bodies

PUTRAJAYA: The public only has to dial 03-8000 8000 for information, to lodge complaints or make suggestions to various government agencies from today.

The number, under the 1Malaysia One Call Centre (1MOCC) initiative, makes it easier for the public to communicate with the agencies under the single point contact concept.

It will be launched by Prime Minister Datuk Seri Najib Tun Razak here today.
Malaysian Administrative Modernisation and Management Planning Unit (Mampu) said with this single number, Malaysians would no longer have to remember or get hold of various contact numbers for their dealings with different agencies.
“Twenty-one agencies have been included under the first phase of the initiative,” it said in a statement yesterday.

“Among these are the Prime Minister's Department and its agencies, Immigration Department, Road Transport Department and National Registration Department,” it added. All other departments and agencies in Putrajaya will be included under the second phase.

“The third phase will cover the entire government department and agencies,” the statement added.

The 1MOCC, a project under the National Blue Ocean Strategy, provides five communication channels telephone, short messaging system, facsimile, e-mail and social media.
Mampu is spearheading the initiative, which also involves the Finance Ministry, Public Services Department, Putrajaya Corporation and Telekom Malaysia.

Wednesday, November 7, 2012 fund manager threatens to quit if hostile party members win board seat

KUALA LUMPUR: “I will resign.” This is the ultimatum Tan Teng Boo has given to shareholders of Bhd if even one of the three people he considers as part of a hostile party gets elected to the board.

Capital Dynamics had on Monday couriered a letter to shareholders stating that the asset house would quit as the fund manager and investment advisor to should either Andrew Pegge, Lo Kok Kee or Low Nyap Heng obtain a board seat at its AGM on Saturday.

They would only require a simple majority to be voted through, Tan told a briefing

Two weeks ago, a shareholder by the name of Evelyn Ho Lai Ming with 50,000 shares nominated the three people for board positions, triggering talk of a hostile takeover at Malaysia's only listed closed-end fund and driving up its shares to RM2.56 yesterday from a low of RM2.29 last Wednesday, with trading volumes rising in tandem.

Lo and Low were aligned to Pegge, who is the founder and a director of Isle of Man-incorporated hedge fund Laxey Partners, StarBiz reported yesterday.

Pegge has been embroiled in bitter shareholder disputes in the past. He has been described as a shareholder activist and manages funds that look to take advantage of “discount volatility” in investment trusts.

Laxey has a track record of targeting listed funds that trade below their net asset values (NAV).

Together with Lo, Pegge had embarked on a similar move in Singapore last year, taking a position in Singapore Exchange-listed closed-end fund United International Securities and seeking board representation on the basis of championing a narrowing of the gap between the latter's market price and its NAV.

Laxey has been a shareholder in since 2010 but recently upped its stake to under 6.9%, making it the company's single-largest shareholder.

Another substantial shareholder with a 6.5% interest is City of London Investment Group, a fund that specialises in investing in closed-end funds which offer exposure to emerging markets.

Combined, they own 13% of, but it is not known if Laxey and City of London Investment are acting in concert.

However, these events could trip up plans by Tan, a seasoned and respected investor, to launch the world's first dual-listed closed-end fund, a project he has been developing for the past three years.

“Our shareholders asked us in 2009 to work on something that would allow them to invest globally. We have since then been working to structure a global fund. It has cost us RM1.5mil so far, not a sen of which we have charged to the fund,” he said.

Tan added that Capital Dynamics had received the approval of the Securities Commission to submit an application for the fund, which would be listed on Bursa Malaysia and another stock exchange in the region.

He declined to reveal more details as the process is not complete.

“Pegge does not realise he has found gold. We welcome him as a shareholder but not as a director.

“Should you focus on the discount to NAV? Yes. As a value investor, you should always buy undervalued stocks. But don't focus on it negatively, you should see it as an opportunity. Why buy during a sale? Because it is undervalued,” he pointed out.

In a document dated June 26, Laxey had sent a requisition notice seeking the appointment of Pegge as a non-independent and non-executive director and also to bring forward proposals “designed to substantially narrow or eliminate the discount” the shares of the company were trading at a relative to its NAV.

“Since Sept 21, 2008, the shares of the company have been trading at a substantial discount to their NAV,” it read, adding that the discount rose to 24.8% on May 30 this year.

Laxey had also sent yesterday a strongly-worded letter to the shareholders of saying it had “lost confidence” in the ability of the present board to close the NAV-share price gap.

Among others, the firm urged shareholders to vote against the reappointment of all the directors save for Pegge, Lo and Low.

According to its calculations, the comparative total return of shares for the latest financial year was a negative 4.5%, underperforming the benchmark FTSE Bursa Malaysia KL Composite Index by 10.1% after adjusting for dividend yield.

“Laxey has spoken to the company to take action on the discount to no apparent effect. Laxey had earlier proposed a resolution to be tabled at this AGM requesting the board to address the persistent discount problem, but this was rejected by them.

“In our view, one of the main reasons for the discount in to exist at such an unreasonable level is the lack of a defined policy to deal with the persistent and widening discount.

“The global closed-end fund industry has over the past decade realised that a substantial discount is not in the interest of its owners the shareholders. Incumbent boards globally have addressed the issue by instigating a series of measures which have collectively reduced both the absolute discount and discount volatility,” it said in the letter.

also read:

Based on whatever informations I can see and interpret, I will throw my support behind Mr Tan.

Monday, October 29, 2012

Testimony of Dr Richard Teo

Below is the transcript of the talk of Dr. Richard Teo, who is a 40-year-old millionaire and cosmetic surgeon with a stage-4 lung cancer but selflessly came to share with the D1 class his life experience on 19-Jan-2012. He has just passed away few days ago on 18 October 2012.

Hi good morning to all of you. My voice is a bit hoarse, so please bear with me. I thought I’ll just introduce myself. My name is Richard, I’m a medical doctor. And I thought I’ll just share some thoughts of my life. It’s my pleasure to be invited by prof. Hopefully, it can get you thinking about how… as you pursue this.. embarking on your training to become dental surgeons, to think about other things as well.Since young, I am a typical product of today’s society. Relatively successful product that society requires.. From young, I came from a below average family. I was told by the media… and people around me that happiness is about success. And that success is about being wealthy. With this mind-set, I’ve always be extremely competitive, since I was young.

Not only do I need to go to the top school, I need to have success in all fields. Uniform groups, track, everything. I needed to get trophies, needed to be successful, I needed to have colours award, national colours award, everything. So I was highly competitive since young. I went on to medical school, graduated as a doctor. Some of you may know that within the medical faculty, ophthalmology is one of the most highly sought after specialities. So I went after that as well. I was given a traineeship in ophthalmology, I was also given a research scholarship by NUS to develop lasers to treat the eye.
So in the process, I was given 2 patents, one for the medical devices, and another for the lasers. And you know what, all this academic achievements did not bring me any wealth. So once I completed my bond with MOH, I decided that this is taking too long, the training in eye surgery is just taking too long. And there’s lots of money to be made in the private sector. If you’re aware, in the last few years, there is this rise in aesthetic medicine. Tons of money to be made there. So I decided, well, enough of staying in institution, it’s time to leave. So I quit my training halfway and I went on to set up my aesthetic clinic… in town, together with a day surgery centre.

You know the irony is that people do not make heroes out average GP (general practitioner), family physicians. They don’t. They make heroes out of people who are rich and famous. People who are not happy to pay $20 to see a GP, the same person have no qualms paying ten thousand dollars for a liposuction, 15 thousand dollars for a breast augmentation, and so on and so forth. So it’s a no brainer isn’t? Why do you want to be a gp? Become an aesthetic physician. So instead of healing the sick and ill, I decided that I’ll become a glorified beautician. So, business was good, very good. It started off with waiting of one week, then became 3weeks, then one month, then 2 months, then 3 months. I was overwhelmed; there were just too many patients. Vanities are fantastic business. I employed one doctor, the second doctor, the 3rd doctor, the 4th doctor. And within the 1st year, we’re already raking in millions. Just the 1st year. But never is enough because I was so obsessed with it. I started to expand into Indonesia to get all the rich Indonesian tai-tais who wouldn’t blink an eye to have a procedure done. So life was really good.

So what do I do with the spare cash. How do I spend my weekends? Typically, I’ll have car club gatherings. I take out my track car, with spare cash I got myself a track car. We have car club gatherings. We’ll go up to Sepang in Malaysia. We’ll go for car racing. And it was my life. With other spare cash, what do i do? I get myself a Ferrari. At that time, the 458 wasn’t out, it’s just a spider convertible, 430. This is a friend of mine, a schoolmate who is a forex trader, a banker. So he got a red one, he was wanting all along a red one, I was getting the silver one.
So what do I do after getting a car? It’s time to buy a house, to build our own bungalows. So we go around looking for a land to build our own bungalows, we went around hunting. So how do i live my life? Well, we all think we have to mix around with the rich and famous. This is one of the Miss Universe. So we hang around with the beautiful, rich and famous. This by the way is an internet founder. So this is how we spend our lives, with dining and all the restaurants and Michelin Chefs you know.
So I reach a point in life that I got everything for my life. I was at the pinnacle of my career and all. That’s me one year ago in the gym and I thought I was like, having everything under control and reaching the pinnacle.

Well, I was wrong. I didn’t have everything under control. About last year March, I started to develop backache in the middle of nowhere. I thought maybe it was all the heavy squats I was doing. So I went to SGH, saw my classmate to do an MRI, to make sure it’s not a slipped disc or anything. And that evening, he called me up and said that we found bone marrow replacement in your spine. I said, sorry what does that mean? I mean I know what it means, but I couldn’t accept that. I was like “Are you serious?” I was still running around going to the gym you know. But we had more scans the next day, PET scans – positrons emission scans, they found that actually I have stage 4 terminal lung cancer. I was like “Whoa where did that come from?” It has already spread to the brain, the spine, the liver and the adrenals. And you know one moment I was there, totally thinking that I have everything under control, thinking that I’ve reached the pinnacle of my life. But the next moment, I have just lost it.
This is a CT scan of the lungs itself. If you look at it, every single dot there is a tumour. We call this miliaries tumour. And in fact, I have tens of thousands of them in the lungs. So, I was told that even with chemotherapy, that I’ll have about 3-4months at most. Did my life come crushing on, of course it did, who wouldn’t? I went into depression, of course, severe depression and I thought I had everything.

See the irony is that all these things that I have, the success, the trophies, my cars, my house and all. I thought that brought me happiness. But i was feeling really down, having severe depression. Having all these thoughts of my possessions, they brought me no joy. The thought of… You know, I can hug my Ferrari to sleep, no… No, it is not going to happen. It brought not a single comfort during my last ten months. And I thought they were, but they were not true happiness. But it wasn’t. What really brought me joy in the last ten months was interaction with people, my loved ones, friends, people who genuinely care about me, they laugh and cry with me, and they are able to identify the pain and suffering I was going through. That brought joy to me, happiness. None of the things I have, all the possessions, and I thought those were supposed to bring me happiness. But it didn’t, because if it did, I would have felt happy think about it, when I was feeling most down..

You know the classical Chinese New Year that is coming up. In the past, what do I do? Well, I will usually drive my flashy car to do my rounds, visit my relatives, to show it off to my friends. And I thought that was joy, you know. I thought that was really joy. But do you really think that my relatives and friends, whom some of them have difficulty trying to make ends meet, that will truly share the joy with me? Seeing me driving my flashy car and showing off to them? No, no way. They won’t be sharing joy with me. They were having problems trying to make ends meet, taking public transport. In fact i think, what I have done is more like you know, making them envious, jealous of all I have. In fact, sometimes even hatred.

Those are what we call objects of envy. I have them, I show them off to them and I feel it can fill my own pride and ego. That didn’t bring any joy to these people, to my friends and relatives, and I thought they were real joy.

Well, let me just share another story with you. You know when I was about your age, I stayed in king Edward VII hall. I had this friend whom I thought was strange. Her name is Jennifer, we’re still good friends. And as I walk along the path, she would, if she sees a snail, she would actually pick up the snail and put it along the grass patch. I was like why do you need to do that? Why dirty your hands? It’s just a snail. The truth is she could feel for the snail. The thought of being crushed to death is real to her, but to me it’s just a snail. If you can’t get out of the pathway of humans then you deserve to be crushed, it’s part of evolution isn’t it? What an irony isn’t it?

There I was being trained as a doctor, to be compassionate, to be able to empathise; but I couldn’t. As a house officer, I graduated from medical school, posted to the oncology department at NUH. And, every day, every other day I witness death in the cancer department. When I see how they suffered, I see all the pain they went through. I see all the morphine they have to press every few minutes just to relieve their pain. I see them struggling with their oxygen breathing their last breath and all. But it was just a job. When I went to clinic every day, to the wards every day, take blood, give the medication but was the patient real to me? They weren’t real to me. It was just a job, I do it, I get out of the ward, I can’t wait to get home, I do my own stuff.
Was the pain, was the suffering the patients went through real? No. Of course I know all the medical terms to describe how they feel, all the suffering they went through. But in truth, I did not know how they feel, not until I became a patient. It is until now; I truly understand how they feel. And, if you ask me, would I have been a very different doctor if I were to re-live my life now, I can tell you yes I will. Because I truly understand how the patients feel now. And sometimes, you have to learn it the hard way.

Even as you start just your first year, and you embark this journey to become dental surgeons, let me just challenge you on two fronts.

Inevitably, all of you here will start to go into private practice. You will start to accumulate wealth. I can guarantee you. Just doing an implant can bring you thousands of dollars, it’s fantastic money. And actually there is nothing wrong with being successful, with being rich or wealthy, absolutely nothing wrong. The only trouble is that a lot of us like myself couldn’t handle it.

Why do I say that? Because when I start to accumulate, the more I have, the more I want. The more I wanted, the more obsessed I became. Like what I showed you earlier on, all I can was basically to get more possessions, to reach the pinnacle of what society did to us, of what society wants us to be. I became so obsessed that nothing else really mattered to me. Patients were just a source of income, and I tried to squeeze every single cent out of these patients.
A lot of times we forget, whom we are supposed to be serving. We become so lost that we serve nobody else but just ourselves. That was what happened to me. Whether it is in the medical, the dental fraternity, I can tell you, right now in the private practice, sometimes we just advise patients on treatment that is not indicated. Grey areas. And even though it is not necessary, we kind of advocate it. Even at this point, I know who are my friends and who genuinely cared for me and who are the ones who try to make money out of me by selling me “hope”. We kind of lose our moral compass along the way. Because we just want to make money.
Worse, I can tell you, over the last few years, we bad mouth our fellow colleagues, our fellow competitors in the industry. We have no qualms about it. So if we can put them down to give ourselves an advantage, we do it. And that’s what happening right now, medical, dental everywhere. My challenge to you is not to lose that moral compass. I learnt it the hard way, I hope you don’t ever have to do it.

Secondly, a lot of us will start to get numb to our patients as we start to practise. Whether is it government hospitals, private practice, I can tell you when I was in the hospital, with stacks of patient folders, I can’t wait to get rid of those folders as soon as possible; I can’t wait to get patients out of my consultation room as soon as possible because there is just so many, and that’s a reality. Because it becomes a job, a very routine job. And this is just part of it. Do I truly know how the patient feels back then? No, I don’t. The fears and anxiety and all, do I truly understand what they are going through? I don’t, not until when this happens to me and I think that is one of the biggest flaws in our system.
We’re being trained to be healthcare providers, professional, and all and yet we don’t know how exactly they feel. I’m not asking you to get involved emotionally, I don’t think that is professional but do we actually make a real effort to understand their pain and all? Most of us won’t, alright, I can assure you. So don’t lose it, my challenge to you is to always be able to put yourself in your patient’s shoes.

Because the pain, the anxiety, the fear are very real even though it’s not real to you, it’s real to them. So don’t lose it and you know, right now I’m in the midst of my 5th cycle of my chemotherapy. I can tell you it’s a terrible feeling. Chemotherapy is one of those things that you don’t wish even your enemies to go through because it’s just suffering, lousy feeling, throwing out, you don’t even know if you can retain your meals or not. Terrible feeling! And even with whatever little energy now I have, I try to reach out to other cancer patients because I truly understand what pain and suffering is like. But it’s kind of little too late and too little.
You guys have a bright future ahead of you with all the resource and energy, so I’m going to challenge you to go beyond your immediate patients. To understand that there are people out there who are truly in pain, truly in hardship. Don’t get the idea that only poor people suffer. It is not true. A lot of these poor people do not have much in the first place, they are easily contented. for all you know they are happier than you and me but there are out there, people who are suffering mentally, physically, hardship, emotionally, financially and so on and so forth, and they are real. We choose to ignore them or we just don’t want to know that they exist.

So do think about it alright, even as you go on to become professionals and dental surgeons and all. That you can reach out to these people who are in need. Whatever you do can make a large difference to them. I’m now at the receiving end so I know how it feels, someone who genuinely care for you, encourage and all. It makes a lot of difference to me. That’s what happens after treatment. I had a treatment recently, but I’ll leave this for another day. A lot of things happened along the way, that’s why I am still able to talk to you today.

I’ll just end of with this quote here, it’s from this book called Tuesdays with Morris, and some of you may have read it. Everyone knows that they are going to die; every one of us knows that. The truth is, none of us believe it because if we did, we will do things differently. When I faced death, when I had to, I stripped myself off all stuff totally and I focused only on what is essential. The irony is that a lot of times, only when we learn how to die then we learn how to live. I know it sounds very morbid for this morning but it’s the truth, this is what I’m going through.

Don’t let society tell you how to live. Don’t let the media tell you what you’re supposed to do. Those things happened to me. And I led this life thinking that these are going to bring me happiness. I hope that you will think about it and decide for yourself how you want to live your own life. Not according to what other people tell you to do, and you have to decide whether you want to serve yourself, whether you are going to make a difference in somebody else’s life. Because true happiness doesn’t come from serving yourself. I thought it was but it didn’t turn out that way.
Also most importantly, I think true joy comes from knowing God. Not knowing about God – I mean, you can read the bible and know about God – but knowing God personally; getting a relationship with God. I think that’s the most important. That’s what I’ve learnt.

So if I were to sum it up, I’d say that the earlier we sort out the priorities in our lives, the better it is. Don’t be like me – I had no other way. I had to learn it through the hard way. I had to come back to God to thank Him for this opportunity because I’ve had 3 major accidents in my past – car accidents. You know, these sports car accidents – I was always speeding , but somehow I always came out alive, even with the car almost being overturned. And I wouldn’t have had a chance. Who knows, I don’t know where else I’d be going to! Even though I was baptised it was just a show, but the fact that this has happened, it gave me a chance to come back to God.
Few things I’d learnt though:

1. Trust in the Lord your God with all your heart – this is so important.

2. Is to love and serve others, not just ourselves.
There is nothing wrong with being rich or wealthy. I think it’s absolutely alright, cos God has blessed. So many people are blessed with good wealth, but the trouble is I think a lot of us can’t handle it. The more we have, the more we want. I’ve gone through it, the deeper the hole we dig, the more we get sucked into it, so much so that we worship wealth and lose focus. Instead of worshipping God, we worship wealth. It’s just a human instinct. It’s just so difficult to get out of it.
We are all professionals, and when we go into private practise, we start to build up our wealth – inevitably. So my thought are, when you start to build up wealth and when the opportunity comes, do remember that all these things don’t belong to us. We don’t really own it nor have rights to this wealth. It’s actually God’s gift to us. Remember that it’s more important to further His Kingdom rather than to further ourselves.

Anyway I think that I’ve gone through it, and I know that wealth without God is empty. It is more important that you fill up the wealth, as you build it up subsequently, as professionals and all, you need to fill it up with the wealth of God.

Tuesday, October 23, 2012
Have you ever wondered how a credit card works – what happens behind the scenes as you swipe your card and make a purchase?

How does the retailer get paid, and how does your bank keep track of how much you owe on your credit card?
In this infographic, we explain the inner workings of a credit card, as well as offer tips to credit card holders on how you can minimise the fees on your card, and what to do if you’re in too much debt.

Tuesday, October 9, 2012

Quick career tips to propel you to greatness

LAST week, I had the pleasure of spending time with Nobuyuki Idei, the former chairman and CEO of Sony Corp.
Idei-san shared with me some of his sadness in seeing Japan go through the numerous issues triggered by the tsunami. A few hours later, I met a friend who complained about how horrible his job was. The next day, I heard the plight of a pilot who was jobless due to the current oversupply of pilots in the country. Next up was a number of university students who lamented how hard it was to find a job in this country. The moping went on and on. By the end of the week, I felt like a sadness magnet.
Thomas Edison looked at setbacks as a chance to rebuild even stronger.

I spoke to a colleague and she felt the same way I did. Apparently, she too felt like a grievance centre too. So, instead of writing an HR article this week, I have decided to write a “be happy” career advice letter. So, here goes:
A career advice letter:

Dear friend,
Let me assure you that your career will go nowhere if you are in a state of misery. Great leaders don't complain but proactively solve issues plaguing them. Thomas Edison, with his friends, watched his state-of-the-art factory destroyed by fire. Insurance only covered a small fraction of the cost. Instead of complaining how luck was never on his side, he rebuilt his factory within weeks. He saw the blaze not as a disaster but as a fantastic opportunity to redesign a better factory.

Edison smiled a lot. You, too, can start by smiling. People who smile more aren't just more stable and better at getting along with others they live longer too.
US researchers found that those who smiled most intensely lived longer than those who weren't smiling. The researchers, whose results hold even when corrected for other factors, claim the wider you grin and the deeper your laughter lines, the more likely you are to have a long existence.

On the flip side, pessimistic and negative people have more health issues. Studies reveal that pessimism is associated to mental problems, pains, chronic sicknesses and decreases in physical functioning.
Optimistic people have far better careers too. According to psychologist Elaine Fox, “optimists feel they have some control over what happens to them, tackling problems as temporary hitches rather than as ongoing difficulties.”
So, cheer up and brighten up. That itself will increase your probability of success.

Career advice
Here are a few career tips for you:

1. Always smile. It's the best lesson you will learn in life. When I was working in a tough assignment at NBC (a TV and media company), I hated the job and was constantly complaining to my friends. The only upside was being based in New York City and having an office next to Conan O'Brien's studio so I got to meet lots of movie stars. But I was depressed about how “stupid” my job was. But my mentor gave me a piece of advice that I will never forget. He said “just smile” and things will turn out better. So, everywhere I went and in whatever I did, I smiled. True enough, things turned around and I was given a bigger role. Smiles make a difference.
2. Take on the toughest and hardest jobs early on in your career. Tough jobs teach and accelerate you, pushing you out of your comfort zone. Don't jump for the easy, sexy jobs. You may end up having too much time with easy roles and may start complaining.
By taking on the job that no one wants, people will notice your bravery, excitement and determination. It will give you confidence that you can take on the world and be prepared for anything thrown to you. I hated the tough assignments in my first few roles. But I keep plugging along and ultimately was rewarded by tougher roles which helped me accelerate faster.
3. Keep learning. Each time I ask people if they love to learn, they all answer yes. What most people forget is that learning is very painful and tough. It requires hard work and practice. Try learning a new language or a new skill. It requires hours of focus, dedication and persistent practice. You can't be CEO instantly. You have to learn so many thing before making the grade to run an organisation. But learning requires sacrifice and time. Getting the big job involves hard work and learning.
Here comes the tough part. You want to move to a new role to learn more but your manager does not let you. Instead of getting upset with your boss, first answer these questions: Have you learned all there is to learn in your current role? Have you contributed as much as possible to your current role? Have you performed your role better than your predecessor? Have you left a significant legacy in your current role?

If you answered yes to all these questions, first wear a smile on your face and then let your manager know you are getting bored and need to move on. Usually, if you are truly an asset to the company, your manager will figure out how to give you a new role.
4. Don't be a victim to circumstances. Don't be taken hostage. Control your destiny or someone else will. Your career is your career. Your career does not belong to the head of HR or the CEO. You and you only will determine if you have a great life and career. Take responsibility for your life. So, don't hide under banner like “I have no talent” or “he is better than me”. Those are just cop-out statements. You are ultimately accountable to yourself. And complaining is another way of escaping the reality of a situation. If your career is going nowhere, it is probably your fault. Sure, there may be other variables but you need to take charge and not play victim.
The good news for you

Instead of focusing on the negatives, focus on the good news all around you. Yes, there is good all around. Let me share with you three things that are going for you and your career right now:
1. You have gifts, strengths, talents, and interests that can take you and your career to incredible heights. In fact, some of your inherent capabilities probably aren't being fully utilised to help you in your career. So, look yourself in the mirror and repeat this statement to yourself “I am a genius” and go out there and use your gifts fully.
2. The greatest leaders have had the worst luck. Soichiro Honda had his factory blown up three times and lost everything but he still prevailed. Abraham Lincoln was a defeated man for many years but he ultimately received honour as a great leader. All great leaders go through horrible experiences. So, if you are having a horrid time, you can smile and bask in the knowledge that you are part of a group of greatness. And you will prevail.

3. Many successful people had bad grades. Richard Branson did not finish school. Neither did Albert Einstein. Bill Gates and Steve Jobs didn't finish university. In Asia, Lim Goh Tong, Robert Kwok and others never had great academic careers. So, if you were horrible at school, you can still be successful. And if you were a good student, don't worry. There are tons of examples of good students doing well too.
So, I would like to end this letter by asking you to do me a small favour. Imagine you are now in 2022. Ten years have passed since you read this letter. Now, imagine only positive things have taken place in your life. Describe these wonderful positive things that have happened to you. As you reflect on these wonderful positive experiences and see how everything you ever wanted has happened, I am sure you will start smiling and doing. Positive thoughts are meaningless if not accompanied by positive action. So, smile and do.

Yours positively,

Roshan Thiran
Roshan is the CEO of Leaderonomics, a social enterprise whose goal is to help everyone smile continuously.

Monday, October 8, 2012

Finance Twitter

Budget 2013 – What the Govt Doesn’t Want You to Know

another good and funny blog that talk about anything under the sun in a very special way.

Friday, October 5, 2012

Of scams, shams and schemes : Ten questions to ask before you put your money in the wrong place

Ten questions to ask before you put your money in the wrong place.
Here are 10 questions to ask before investing in a money-making scheme:

1. ARE the returns too good to be true?
If someone promises you 20% a year when fixed deposits pay 3%, that’s a damn good rate of return. But you need to find out what the risk is. Typically, the higher the return, the higher the risk.

2. DOES it claim to protect your capital?
If your returns are high and the scheme promises to preserve your capital, run as fast as your two legs will carry you. No one, not even the greatest investor the world has seen – Warren Buffett – can promise you that.

3. HOW is your capital protected?
If capital is protected and the return is reasonable, ask this question. If it is merely the word of the scheme or the company that is running the scheme, it will not be worth the paper it is written on if the scheme collapses and goes bust.

4. WHY does the company not make the money for itself?
If you are still convinced that they can give you such a return with no corresponding risk, ask yourself this question. They can very well borrow some money from their bank, sell all their assets or beg from their relatives if they can get that kind of returns instead of letting you make the money. Generosity like that does not exist.

5. HOW much work do you have to do?
The less work you have to do for the returns, the more suspicious you should become. If you are in direct selling, you have to work hard to get your commissions.
But if you are sitting back, kicking off your shoes and putting your feet up on the stool while watching the world go by and your money flow into your bank account, let me tell you something: It won’t last!

6. DOES it pay you when you recruit someone else into your scheme?
If it does, be very careful because that’s the classic way of spreading the scheme. You recruit someone, you get paid, your recruit gets someone, he gets paid – it spreads in geometric progression like wildfire.
But don’t forget, you most likely have not recovered your initial investment. The scam is still accumulating money and waiting for the last minute before it packs up, money and all, and flees.

7. DOES it claim that it has a proprietary product, service or method?
Oldest trick in the book, this one. They have such a fantastic advantage over the rest with this and they are so generous that they want to share it with you so that you will gain from it too. Charity from those who have not made enough money to be that charitable is rather suspect.

8. WHO are the promoters? Are they reputable people with solid track records and businesses built up through hard work? Or are they commission salesmen and saleswomen who have a glib tongue with which they smooth over the pitfalls of their so-called business?

9. HOW long have they been in business?
If they are new to the game, better be suspicious than sorry later.
There are many reputable direct sales organisations and if you are a good salesperson, you can make some money but usually they have been around for a while. I won’t name them, you know who they are.

10. HAS it started delaying payments?
Oh, poor you! If you are in it after asking all these questions and were still, well, conned, it may well be too late.
If they are delaying payments, they either got it wrong and can’t pay you or they are in the process of running and leaving you high and dry. Get the investigators in and salvage whatever you can.
Finally, remember, these scams can be quite smart, sophisticated and rather persuasive. Put them to the test by asking and answering these questions — hopefully you don’t have to answer question 10 by which time it may be too late — and we guarantee you will be safe.
Or your money back. Promise!
> P. Gunasegaram is an independent consultant and writer

Thursday, October 4, 2012

Malaysia to slash CPO export tax

Finally something is coming but will it be too late ?
Malaysia to slash CPO export tax


MATCHING INDONESIAN GAP: Minister to submit proposal on reducing rate to between 8pc and 10pc tomorrow
THE government plans to slash crude palm oil (CPO) tax to match the margin between crude and refined oil with that of Indonesia so that refiners here are better able to compete with rivals there.

Indonesia and Malaysia are the world's top two CPO producers respectively.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said he will present to the Cabinet a proposal tomorrow to lower the CPO export tax to between eight and 10 per cent from the current 23 per cent.

"I think this will put us in a very much competitive position as the margin between crude and refined (palm oil) will match the 13.5 per cent tax gap in Indonesia," he said at the ministry's get-together with the media here yesterday.
In the last three weeks, CPO prices had plunged to below RM2,300 a tonne, its lowest in a year.
To stem falling prices, Dompok said the reduction of the CPO tax should make it easier for refiners in Malaysia to become more competitive in the market.
When the tax gap between crude and refined palm oil in Malaysia matches that of Indonesia, refiners here would stand a better chance to buy up more of the commodity and reduce the current high stock levels in the country.
As refining activities pick up, players would be able to reap economies of scale and make some money to stay in the business.

The minister also noted that for this move to be effective, there has to be curbing exports of duty-free CPO as well.
"Out of the quota of five million tonnes of duty free CPO we've allowed to be exported, only half has been utilised. I want the companies which have not used up their quotas to surrender back the approved permits," he added.

Tuesday, October 2, 2012

Bullbear Buffett Stock Investing Notes

Bullbear Buffett Stock Investing Notes

Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.

Saturday, September 29, 2012

Investor may shift to stocks with rise in rpgt

Investors may shift to stocks with rise in RPGT

THE planned rise in the Real Property Gains Tax (RPGT) to curb speculative activities on properties and avoid a property bubble could return investors to the stock market, say analysts.
Under the 2013 Budget, the government has proposed a review of the RPGT. Effective January 1 2013, RPGT will be imposed on profits for the disposal of properties within two years of buying at 15 per cent, and 10 per cent for those sold in the third to fifth year.
The idea of raising the RPGT is to discourage people from buying and selling houses for quick profit. RPGT is also another government's source of revenue.
Properties held longer than five years are not subject to RPGT. Also, disposals of properties between husband and wife, parents and children, grandparents and grandchildren are exempted from RPGT.
"I don't think the move to increase RPGT rate would dampen the market. In absolute terms, it is not large enough to discourage people from speculating in properties," said OSK Investment equity capital market head Gan Kim Khoon.
"However, we believe property investors will put off buying houses for a while and invest in the stock market as the property market has softened," Gan told Business Times.

Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said the rise in RPGT rate was within expectation and it will have less physical impact on developers as the construction period for new projects usually takes two to three years.
Leong also lauded the government's efforts in increasing housing affordability and reducing the cost of property ownership.
"There is strong demand for serviced apartments from 500 square feet and landed properties below RM1 million. The 50 per cent stamp duty exemption for first-time purchase of homes under RM400,000 will help to reduce the cost of purchasing a house by up to RM3,500," he said.
Master Builders Association Malaysia (MBAM) is, however, disappointed with the increase in RPGT rate for properties sold within a period of two years and after three years.
"We feel that the financial measures imposed by Bank Negara Malaysia to curb property market speculation is sufficient as it is," said MBAM president Matthew Tee in a statement


Read more: Investors may shift to stocks with rise in RPGT

Thursday, September 27, 2012

Budget 2013 – what do we want and what can we afford?

An interesting piece of Budget's expectations from Tan Sri, GOOD!
Budget 2013 – what do we want and what can we afford?
Comment by Tan Sri Ramon Navaratnam

BUDGET 2013 has been one of the most difficult to design and to present to the people and Parliament. I’ve done this many times before, so I think I know!
This budget is crucial for many reasons. First, we are facing global economic decline and considerable uncertainty that can adversely affect our socio-economic outlook.
Second, the 13th general election is imminent. People and voters want and think they can get more from this budget. Third, more so now, there is a major conflict between two perennial budget issues – what people want and what we can afford.
The Government now faces the exacting challenge of both wanting to please the voters and protecting the integrity of the budget and indeed the sustainability of the economy. The budget will thus have to strike a clever balance that will not easily please everyone – the people and the foreign financiers.
On the macroeconomic front, we must take into account the rising concerns of the international rating agencies, the World Bank and the International Monetary Fund (IMF), which will be closely watching how we manage these conflicting demands.
We can all merrily ask for more perks, tax concessions, subsidies and even more spending to make us all feel good and happy. But we have to think of the impact of more “give-aways” on the overall health of the economy. We have to remember our overriding need to control the budget deficit and debt burden that have been rising rapidly and weighing down the confidence in the economy in the longer term.
For instance, the longer-term implications of an unduly populist budget, which can lead to a downgrading of our financial rating by Fitch and/or Standard & Poor’s or even the IMF, can be serious. Just as important, foreign investors would want to be assured that the economy is being managed well with greater prudence and fiscal discipline.
Hence, we have to aim to reduce the budget deficit, the federal budget debt and the national debt in this Budget 2013.
So how would the Government also meet the rising expectations of the rakyat?
An important strategy of the budget should seek to give greater priority to fighting inflation.
Prices are rising for several reasons. When the supply of goods and services decrease, prices increase. So, the budget should break more bottlenecks in the supply chains.
The budget should remove more taxes and administrative constraints on small businesses. The economy should be further liberalised without imposing too many controls on land for cultivation of food, and in granting licences and approvals and quotas for small and medium enterprises that are the backbone of our economy.
Budget expenditures should also be more stringently managed to get more value for taxpayers’ money and the borrowings that have to be paid back with interest.
Unemployment and unemployable graduates are becoming major problems. This is largely due to the poor and unsuitable education we provide. Instead of churning out many unemployable graduates from our public schools and universities, more budget allocations for academic education should be diverted to technical education to produce productive technicians who are more employable and who can even operate their own businesses.
The budget strategy should adopt a basic human needs approach. It should provide more funds for housing, transportation, school expenses and reduced utility rates. It could allocate more funds for 1Malaysia clinics, shops for low-priced clothing and a whole range of other basic needs of the poor and low-income groups from the lowest 40% of our population.
It could lessen the subsidies that are now also enjoyed by the high-income groups. Surely, people like professionals, managers and big businessmen do not need petrol and other subsidies as well as scholarships for their children.
Let the budget look after the poor and encourage the rich to look after themselves. After all, big business, particularly foreign investors and multinational corporations, enjoy much more in terms of incentives and tax concessions.
But how do we finance these basic needs of the poor? The budget has to ensure that we get more bang from the taxpayers’ buck. Taxpayers’ money has to be more efficiently spent through more genuine tendering of contracts, a drastic cut in corruption and the removal of inefficient contractors and developers. They short-change the budget and, worse still, the public.
For example, houses can be less expensive if there are fewer “abandoned housing schemes” caused by unscrupulous and unqualified contractors.
Tax evasion and avoidance could be reduced to increase budget savings, to narrow the deficit and debt. The goods and services tax (GST) can be introduced so as to apply mainly to goods and services consumed by the rich and not the poor and low-income groups.
The tax base could thus be widened to get more to pay taxes. Approved permits should be scrapped or auctioned instead, to free the market, raise revenues and increase confidence in fighting wasteful protectionism.
Tax reliefs for the lower-income groups can be increased without too much adverse effects on budget revenue. In any case, this is also the role of the budget – to help promote better income distribution by raising the disposable income of the low-income groups.
The income gaps are widening and the Government has to address this problem more carefully, before it causes social problems. Development expenditure could be reduced or slowed down to reduce the budget deficit and debt burden.
This can be done as we did before, through a managed go-slow on some low-priority, non-urgent and even ‘prestige projects’ that can be stretched over a longer period.
Budget 2013 can meet the challenges and conflicts that we face if we give greater priority to meeting the basic needs of the poor and low-income groups, raise our standards of discipline in revenue and expenditure management, and thus go all out to lower the budget deficit and debt burden.
The budget will then make us all feel good and at the same time enable our continued socio-economic stability and prosperity on a more sustainable basis.
l A former senior civil servant, Tan Sri Ramon Navaratnam is chairman of the Asli Centre of Public Policy Studies.

Wednesday, September 26, 2012

The Wall Street Journal Asia Edition

my day will not start without an early morning visit to

Monday, September 24, 2012

another hardworking technical analysis's blog that can last the time and chalenges.

Wednesday, September 19, 2012

Where is Ze Moola

Where is Ze Moola

Another good  fundamental 's blog with straight to point ,no nonsense and non tolerance of any hanky panky
dealings or reportings

Sunday, September 16, 2012

cwyeoh KLCI stock analysis

cwyeoh KLCI stock analysis
This is my analysis to KLSE stock based on each quarter report. Objective of the blog is to provide a platform for easy visualize company previous quarter reports.   another frequently updated and hardworking blogger giving you a detail, precise and analytical view on stocks,welldone Mr Yeoh!

Tuesday, September 11, 2012

Malaysia-Finance Blogspot

Malaysia-Finance Blogspot   NO 1 FINANCE'S BLOG IN MALAYSIA  
Salvatore_Dali ... too young, too old, too sarcastic, too dark, too funny, too charismatic, too poor, too Cantonese, too Malaysian, too frank, ...too bad ... and die-hard M.U. fan! email: The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.

Thursday, August 30, 2012

Tuesday, August 28, 2012

Thursday, August 23, 2012

Why is MAS still flying? Is it in NATIONAL INTEREST to keep bailing it out? - Koon Yew Yin

Why is MAS still flying? Is it in NATIONAL INTEREST to keep bailing it out? - Koon Yew Yin

MAS has just reported a loss of Rm 349 million in the 2nd quarter 2012 which is smaller than the loss of Rm 526 million in the same corresponding period last year. This is still twice as much as the first quarter loss of Rm 171 million. The total loss for the first half of 2012 is now Rm 520 million. The company has suffered losses in every quarter of the last 6 quarters.

As usual, there are the incorrigibly optimistic cheerleaders for the airline who are unable to see the writing on the wall. These ‘experts’ are still touting that the company is in recovery mode and will soon be returning to profitability.

The market however sees the prospects for the airline differently. During the past few days the airline share has been scrapping the one ringgit level. This is the lowest share price that the airline share has recorded during the past five years. Without the support of government-linked funds and left to market forces alone, it is possible that the share price of MAS will drop even more.

Many investors still holding on to the share must surely be hoping that MAS will not try to ‘break the record’ loss of Rm 1,262 million set in 2005 or that achieved in 2011 when the loss was Rm 2,521 million.

For non-investors, the recurring losses of MAS are a great mystery especially when they are compared with the performance of SIA. I972 Malaysia-Singapore Airlines (MSA) became MAS and SIA. In the last 10 years from 2002- 2011 SIA reported a total pre-tax profit of Singapore $13,992 million, averaging S$ 1.4 billion per year Should the government continue to bail out MAS?

The most recent losses bring the total losses of MAS to at least over $3 billion. In any normal business, any company incurring large and sustained losses would have closed down or gone into bankruptcy. This has not happened to MAS yet but I think the time is right – many observers will say, long overdue - for the government to withdraw the open cheque book extended to MAS.

When planning the future of MAS, it is important that the government avoids not only the past mistakes but also takes a rational approach based on economic fundamentals. One line of simplistic thinking is that there is a bright and profitable future for MAS since the number of air travellers continues to increase by about 5-7 percent per year.

But if you look at the history of airline industry profitability, this is not the case for airlines worldwide. The fact is the airline industry requires huge capital and produces poor returns on capital employed. Hence, year after year, many airlines produce poor profit margins or outright losses.

Why you might ask is it that an industry with year-on-year rises in sales cannot generate good returns to shareholders?

It all comes down to the economic structure of the industry. One of the forces that limit profitability is the intensity of the rivalry between the leading airlines. There is over-supply leading to pressure on prices. This is exacerbated by a high degree of freedom for new competitors to enter the industries.

If, say, an airline route between two destinations is found to be reasonably profitable it is not long before new entrants move in or current airlines simply move their planes to this profitable route.

It is truly an industry governed by the principle of “survival of the fittest”.

The ego and elections factor

It would seem that every developing nation wanting to show off to the world its progress MUST have its own airline, regardless of the impact on an industry already grossly over-supplied, and regardless of whether they have the ability to manage efficiently. So there is a regular stream of announcements of new airline ventures.

Now that Malaysia has also done it and failed dismally, the next logical question to ask is why doesn’t the Malaysian government allow MAS to fold up or go under?

There are two main reasons: Firstly, the perennial optimism of managers and shareholders. “Just one more chunk of money will see us break through into profitability as we rout the opposition!” seems to be the credo of these parties based on their self and not national interest.

Secondly, there is government interference. This factor however is less found now as many governments have learnt not to come to the rescue of their airlines.

Malaysia has not learnt these lessons – initially for reasons of national pride tied to the ego of leaders but now increasingly apparently to save jobs and to prevent the retrenched employees from voting for the opposition. This may make sense politically but it is poor economics.

Let MAS fly or crash without further interference or delay is the only way forward in the national interest.

Friday, August 17, 2012

Thursday, August 16, 2012


another good one with fundamental and technical analysis

Alex Lu I am a remisier in the Malaysian stock exchange, currently attached with Kenanga Investment Bank Bhd. I have started this blog to record my observations of the Malaysian stock market as well as other investment markets. My email is

Saturday, August 11, 2012



Thursday, July 12, 2012

3 Secrets Of Successful Companies

3 Secrets Of Successful Companies

Some companies are just better than others. It could be name recognition, innovation, market share or any number of other attributes that makes a good company stand out from the herd. The important thing for an investor is being able to spot the eventual winners before they become household names.
In this article we'll take a look at three key attributes that make a company successful. Learn to spot them early, and you could find ride the coattails to success too.

Three Secrets of Success

So, what is it about one company that makes it a good company, and does that description equate to a good stock to invest in? The answer depends on whether you ask an accountant, an economist, a marketer or a human resources expert, but by pulling all of those disciplines together, you generally can define a good company by these three characteristics:

1.Competitive advantage

2.Above-average management

3.Market leadership

Competitive Advantage

Michael Porter pioneered the concept of competitive advantage and broke it down into two forms: differentiation advantage and cost advantage. Differentiation advantage is when a company provides a superior service or product for the same price charged by the market. Cost advantage is when a company provides the same service or product as the market, but at a lower price. Porter collectively refers to these as "positional advantages" because they define the firm's position as having the leading service or product in its specific industry. He also states that these advantages cannot be sustained for any length of time because the promise of economic rents invites competition.

•Barriers to entry

Good companies can also maintain their high status if there are significantly high barriers to entry into their fields. This can include large fixed costs, such as those associated with heavy manufacturing, or long-term research and development costs, like those found in the pharmaceutical or computer software development industries. All of these entry costs can deter competition from entering the market, thus helping the company sustain its leading status. (To learn more about these barriers, check out Economic Moats Keep Competitors At Bay.)
•Name Recognition

We tend to take the value of name recognition for granted when looking at a company's status. Brand names like Kleenex and Coke have become synonymous with their products. The problem with name recognition is placing a value on that name, and there is no easy way to do that. A name only has qualitative value, but it can provide a long-term relationship between a company’s products or services and its customers. While it can be debated whether this trait alone makes a company good, when combined with the other characteristics it can be a powerful source of success.

•Price Leadership

There is nothing more powerful than providing comparable services or products to the market for a lower price. In any economic environment, boom or bust, there will always be a demand for low-priced services and products. Being able to come to the marketplace with consistently lower prices across the board can fill a niche in the market that can attract customers for a long period of time. The key in price leadership is being able to sustain that level and fend off others who try to compete in that space. (For greater detail, check out Competitive Advantage Counts.)

Above-Average Management

The quality of its management is a big factor in whether a company is successful, and an important attribute in any management team is a blend of experience. Experienced managers can not only lead a company through market cycles, but they can also provide mentorship for the next generation of managers.

Another telling attribute is when management tends to stay at a company for a long period of time. Talented managers can be swayed to move from company to company with handsome compensation packages, but tend to stay at companies where they like to work and they believe in their company's future successes. (Learn how to investigate the management behind the numbers in Evaluating A Company's Management and Is Your CEO Street Savvy?)
Market Leadership

One of the most important characteristics in becoming a good company is market leadership. Leadership can come in many forms, but the reputation that comes along with this tag is priceless. The label of "industry standard" is one that every company strives for. Examples include leading the market in quality, innovation, customer service or even warranties.
Market leadership is probably the hardest status to maintain. No competitor is content being No.2 in the industry. This is where barriers to entry come into play. If the company you are watching competes in an industry with high barriers to entry, it's much more likely that its market dominance can continue. Companies can also move toward market leadership by buying and merging with other successful companies to improve their market share, vertical and horizontal integration, and technological bases. (For more on this topic, read Which Is Better: Dominance Or Innovation?)


So what is it about one company that makes it a good company, and does that good rating equate to a good stock to invest in? If the company has a competitive advantage, above-average management and market leadership, you are looking at a potentially strong investment. While these traits alone don't necessarily tell the whole story, they are important factors in evaluating whether a company might be recognized by investors globally as a good investment.

Tuesday, June 19, 2012

The 5 Most Dangerous Places to Get Investing Advice

The 5 Most Dangerous Places to Get Investing Advice

By Hans Wagner
November 16, 2010 1

Where do you get your stock investing ideas? Inspiration can come from many places, and while some resources make a lot of sense, others are a sure path to financial ruin. Here is my list of the five most dangerous places to get your investing advice.

1) Internet Message Boards

If you're currently turning to an online message board for investing advice, stop right now. The people posting on these web forums are notorious for making over-the-top predictions with little, if any, rationale supporting their claims.

The majority of posts can be broken down into a few categories: baseless claims, bragging, spam, and name-calling.
But the biggest problem with online investing message boards is the rampant manipulation. Some users post comments to purposefully manipulate the trading activity in their favor. For many companies, especially those lightly traded, it might be possible for the right comments to move the stock price in one direction or the other.

There are even cases where executives of companies use the message boards to influence the price of a stock by making inappropriate comments. Papers filed by the FTC revealed that for several years Whole Foods Market (NASDAQ: WFMI) CEO John Mackey posted highly opinionated comments under the pseudonym "Rahodeb" on a Yahoo! Finance message board.

Investors who make buy and sell decisions based on the message boards are playing a dangerous game.

2) Penny Stock Spammers

Right up there with the internet message boards are those annoying emails claiming that some new discovery (still widely unknown to the media) is about to send this $1.00 stock soaring into the stratosphere, quickly making millionaires out of anyone who buys shares.

That'd be fine, except for there's never very much information to substantiate the claim. But these emails are still going around, so someone must be taking the bait.

3) Hot Stock Tips

These aren't quite as bad as the penny stock spam emails, but that's not really saying a lot. These messages, usually filled with exciting language and testimonials from other investors, claim to have some inside information that, once disclosed, will make the stock double in price. According to the "researchers," only a crazy person would turn down such a sure-fire offer.

But the reality is if they did have inside information then someone has broken the law by disclosing it. Yet just like the penny stock spam, these hot tips don't ever seem to stop finding their ways into people's inboxes and mailboxes. While hot stock tips might be interesting, do yourself a favor and carry out the necessary research before making a commitment.

4) The Inexperienced Advisor Making a Commission on Their Sales

Would you take the advice of someone who was just beginning to understand stocks and the stock market? Can a newly minted broker address all of your questions in a thorough and complete manner? I know each broker must start somewhere, just be careful of the newbie who is selling what the firm is pushing.

Any time you rely on a broker's advice (regardless of their experience), remember to ask yourself if their suggestions are really right for your portfolio. This is especially true if the broker receives a commission each time he or she makes a sale. In Little White Lies from Your Broker, Dave Sterman urges investors to be wary whenever a broker is pushing a stock. "...Sometimes, a firm decides that its traders hold too much of a certain stock. And guess who has been told to help get rid of those shares? The broker." [Even the most well-intentioned brokers don't always deliver the straight scoop. Read Little White Lies from Your Broker to find out if your broker is watching your back.]
If you want to use a broker or advisor, be sure their interests align with yours. Many quality advisors do a commendable job. Most of them structure their compensation around your success, whether it is a straight fee or based on performance.

5) Financial News Networks

Don't get me wrong, I like CNBC and Bloomberg. They provide a quality product that includes views from each side of an investing issue. Many of their guests are very successful investors who deserve attention.

The problem arises whenever they recommend a stock -- many investors enter orders immediately. In some cases, you can see the price jump up on the ticker at the bottom of the TV. With millions of viewers, any comment on a stock can move the market.
Just because a noted investment advisor thinks a particular company has potential to appreciate, does not mean it is right for you. The traders buying the stock do not understand the fundamentals nor do they have a good entry or exit strategy.
Jim Cramer's Mad Money show is a good example. Jim features several stocks during his show. In each case, he exhorts his listeners to do their homework and not to buy immediately. Yet you can see the price leap up as many followers try to get in on each stock he commends.

The Bottom Line

Consider where your investing advice comes from. Is it from a reliable source? One with a proven track record of accomplishment? Does it fit with your personal view of the market? If you can answer "yes" to each question, AND you've already done your own homework, pat yourself on the back -- you've managed to navigate through the muddy waters of dangerous investing advice.

Thursday, June 14, 2012

5 Mistakes Most People Make When Investing in the Stock Market

5 Mistakes Most People Make When Investing in the Stock Market

By Joe R S

Many people, when they step back and really look at the performance of their investments, will find that their broker is making more money than they are. They will be making trades left and right, feeling like Masters of the Universe, but when it comes down to it a lower return is being made than the return from a money market account. Sometimes, they are making even less. The vast majority of people, mutual fund managers included, would do far better just putting their money in an index fund and forgetting they owned it.

Yet some people do far better than the index funds. Not just a few people, but a lot of people. Despite what some professors at the business schools write in their papers, despite all of the studies that show that the majority of fund managers cannot beat index funds for returns, there are many people who do outperform the index funds and the managed funds.

What is their secret? Do they have an uncanny ability to predict the fluctuations of the market? Do they have contacts that provide them with knowledge that allows them to buy or sell ahead of the crowd? Do they have some sixth sense that allows them to determine which stocks will outperform? Maybe some do have some of these advantages, but the vast majority are just investing differently. They are avoiding some of the common mistakes most investors make.

With some changes to your investing style, you too can improve your performance and make the market beating returns. You can become what I refer to as a "Serious Investor," rather than someone who is just trading stocks for entertainment. In Las Vegas the person who is serious about making money from gambling will be the guy who buys the casino. If you'd like to get up from the table and move upstairs where the odds are in your favor, you'll need to change your strategy from that of a trader to that of an investor.

Here are five mistakes that most people make when they are investing in the stock market:

1) Trading based on price. Many people will buy a stock just because it has dropped in price from where it once was. Others may buy a stock simply because it has increased rapidly in price. Some may sell a stock shortly after buying in because the share price drops a bit, thinking that there must be something wrong with the purchase. Good investors use market fluctuations to get better prices when they buy and sell, but never let the price that the market is offering dictate their decisions.

2) Selling winners too soon. Many people sell shares when they gain a percentage above what they paid for the shares. Often stocks that are doing well keep doing well. If one sells stocks when they have moved up a percentage, one will miss out on some big gains.

3) Holding onto losers, waiting to get back to even. This mistake, combined with mistake #2, results in a portfolio full of losers. The notion that one does not suffer a loss until one sells is nonsense. If you would not buy the stock today, you sell, use the loss to offset taxes on gains and some ordinary income, and move the funds into something with a brighter future.

4) Buying based on hype. The broadcasters at CBNC, the analyst interviewed by the Wall Street Journal, and that guy named hotdude252 on the Yahoo message boards does not have some great insight that no one else knows about. Even if they did, everyone else watching that broadcast or reading that message board will be buying or selling that stock too, so by the time you put your order in the price will have already adjusted itself to account for whatever news or commentary is out there. Make your decisions based on analysis of company earnings and prospects, not based on what some nameless poster says.

5) Buying too little. This is probably the most common mistake of all. Many people do some great analysis, make good judgements about future trends and pick some great stocks, but then only buy 100 shares or so. When the stock doubles, they may make only a few thousand dollars in a hundred thousand dollar account. While you certainly shouldn't put more in a single stock than you can afford to lose (because bad things can happen to single stocks very rapidly), make sure that you are putting enough into each position to make a difference when you are right.

Avoid these common mistakes, use a disciplined approach, and keep putting away money regularly into investments and you'll see your assets grow.

The author of this article is also the author of the Small Investor Blog, For more information about stock investing, stock picking, hedging, investment strategies, and growing wealth please visit.

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