Fong Siling 冯时能 (冷眼) “ColdEye” Investing principles from kcchongnz

Fong Siling 冯时能 (冷眼) “ColdEye” Investing principles kcchongnz

Author: kcchongnz | Publish date: Wed, 23 Dec 2015, 08:29 PM

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In the previous article in the link appended below, I have written on the principles of Dr. Neoh Soon Kean, one of the pioneers in fundamental investing in the stock market of Singapore and Malaysia.
http://klse.i3investor.com/blogs/kcchongnz/88424.jsp
In this article, I would like to discuss on the principles of another more well-known super investor, ColdEye.
Fong Siling 冯时能 (冷眼) requires no introduction here as he is very well-known in the investing circle. He has worked as a journalist for many years before involving in investing in the share market. His initial investing experience was not good as he had been losing money following other discipline of investing before using the fundamental approach, according what he has written in his book, 冷眼分享集.
He has written a number of books with many fundamental investing principles. I have provided the above eBook and made it a point for my course participants who understand Mandarin to read his book. There are many good philosophies and principles 心得 which investors should enumerate. Here, I am just sharing a few of them with you.

Principles of ColdEye 冷眼心得
ColdEye reverberates the basic principle of Benjamin Graham that Individual investors must have the mind set of investing, rather than speculating. Investing in a stock should be viewed as investing in a part business, and this should be the “right path” to follow. He said,
“正道”就是从商业的角度，依据基本面进行投资。
The first thing an individual investor should learn is not how to make profit, but how not to lose money. Using the “right path” of investing.
股票投资者，最先要学的，不是怎样赚钱，而是怎样不亏本
Although you may not yield fantastic results from the “right path” of investing, at least it won’t make you bankrupt, causing the livelihood of your family in deep hot soup, but lead you to a more care-free life.
循正道投资，也许收获不如你预想的那麽大，但最低限度不会使你倾家荡产，使你的家人的生
活陷入水深火热之中，使你的人生之路走得更自在。
On the other hand, speculating is the “left path”, the opposite of the “right path”.
“左道”就是在股市投机。
Speculating on and guessing share prices movement is difficult. It is like trying to catch a slippery eel. He admitted that he can’t do it right most of the time, and he believes nobody can.
猜股市如抓黄鳝
我确实不知道明天，下个月或明年股市会怎样，我也不认为有谁有这样的本领。
In order to follow the “right path”, one must do homework, and by doing your own homework, it is more likely you can produce good investing results.
勤做功课必有收获
What kind of homework? In this respect, ColdEye has a few articles on these as below.
数字数字我爱你！
账里乾坤知多少？
The homework includes company announcements, quarterly and annually financial reports, income statements, balance sheet and cash flows statements, and annual reports. These are the most basic and most important information about a listed company.

勤做功课，就是勤於阅读资料，而最重要的资料，就是公司发表的文告，每季财报和常年报告
书。这些文告、季报和年报，是研究上市公司的最基本和最重要的素材.
If you investing in a company, do not tell me you have no time to do this homework which is important for the outcome of your investment.
不要说“没有时间”
ColdEye has also have cited the importance of investing for the long-term to build wealth. He has given examples of investing in a few stocks; Maybank, Public Bank, Hong Leong Credit, OYL and Oriental Holding; and if an investor has held them for 30 years, RM10000 would have become RM1 million.
Why are most investors so impatient to invest for long-term? A business will generally take a few years to bear fruits, a house needs 3 years to complete, why can’t an investor invest in a share and wait for 3 years, or 5 years?
为什么不能等三年？
股票投资，是许许多多投资管道之一，为什么投资者不能接受以上的两项事实。做事业，你可
以等三、五年，股票投资为什么不能等三、五年？
ColdEye, like those super investors in the US which I have discussed in my link below, also discourages the use of borrowed money to invest, because interest payment of the loan is fixed, but income from the investment is unpredictable.
http://klse.i3investor.com/blogs/kcchongnz/88007.jsp
不过，切忌借钱买股票，理由是利息是固定的，收入却难以预测，故借不得。

The Five Investing Metrics of ColdEye
In one of his presentations given to the public on 16^th March 2013, ColdEye listed his investing strategy using 5 metrics that investors should look out for before he invests in that stock:

1. Return on equity, ROE,
2. Cash flows
3. PE ratio
4. Dividend yield and
5. Net tangible asset backing per share, NTA

If you have some basic knowledge in analysing and interpretation of financial statements, these metrics are simple metrics which can be easily extracted from the financial reports.
The strategy suggests to invest in good companies as presented by its high return on equity and good cash flows. These two metrics are also propagated by the super investors in the US as shown in the link below:
http://klse.i3investor.com/blogs/kcchongnz/88007.jsp
The later three metrics measured the price versus value of the companies to invest in. Good companies may not be good investments if the price is not right.
The price-to-earnings ratio, or PE, measure how cheap or expensive a share is selling with respect to its earnings.it is the most common metric used in the investing circles everywhere in the world.
Dividends are tangible cash flows returning to shareholders and important to the overall returns. Besides, it gives a positive signal if a company distribute consistent increasing dividends.
http://klse.i3investor.com/blogs/kcchongnz/85100.jsp
Obviously a higher dividend yield is a better investment. If a company consistently and has the capability to give dividend with a yield of higher than the fixed deposit, it will be a no-brainer investment to me.
The ColdEye investment strategy is reinforced further if the company has good quality net tangible assets, compared to its price.
In this article below, I have attempted to explain each of the metrics mentioned above.
http://klse.i3investor.com/blogs/kcchongnz/75946.jsp
We can see that the 5 metrics of investing of ColdEye cover almost every aspects of sound investing; good companies with the right measurements are found, and selling cheap in every angle. How intuitive is it!
Below I will use some experience of mine using the investment strategy of ColdEye.

Return of stocks using the ColdEye 5 yardsticks
I first posted an article in i3investor regarding the ColdEye 5 metrics of investing after his presentation in a public forum in the link below:

http://klse.i3investor.com/servlets/forum/900214344.jsp

After my above post was published in i3investors, it received good response and constructive comments from many forumers. Many of them asked me about if their stocks meet the Cold Eye 5 yardsticks. These are all well documented in this thread in i3investor below.

http://klse.i3investor.com/servlets/pfs/19817.jsp

Table 1 in the Appendix shows 9 stocks met the criteria above and were chosen as good investing candidates at about the time on 17^th March 2013 basing on the 5 metrics. The return of these stocks were compared to the broad KLCI after two years and nine months as at to date.

As on 23^rd December 2015, the average total return of the 9 stocks chosen is 281% in about two years and nine months, with the median return of 61.3%. This return way out-performed the total return of 8.5% of KLCI over the same period.

There are only two stocks, MBL and APM, making negative return, but with relatively small negative return of about 10%. These are also the only under-performers, or 78% of them over-performed the market.

A number of stocks over-performed the market by wide margins. Latitude returned 883%, Prolexus 786%, Liihen 652%, Willow 121% and ECS ICT 61.3%.

The characteristics of the return of this portfolio basing on the ColdEye investing strategy are summarized as below:

1. Most stocks, seven out of nine, or 78% outperformed the broad index.
2. Those stocks which outperformed the broad index outperformed it by a very wide margins; three digit returns against 8.5%.
3. The underperformers underperformed marginally against the market; maximum underperformance is 20%.
4. The average total return outperformed the broad KLCI index by very wide margin; 281% Vs 8.5%. Similarly, the Median return of the portfolio of 61.3% also way above the return of the broad market.

Conclusions
ColdEye, through his writing shares with us his valuable fundamental investing principles and strategies. The ColdEye 5 metrics in investing appears to be an attractive investing strategy which can provide potential high return with limited downside. The metrics are easy to use and can be quite easily extracted from the three basic financial statements.

For those who are keen to learn about fundamental value investing so that he can do your own homework when investing for long-term wealth building as suggested by ColdEye can contact me for an online investment course for a small fee at

ckc13invest@gmail.com

Remember what ColdEye said not to use the excuse of not having time to learn and do your homework if you want to have good outcome in your investment.

With that I wish everyone Merry Christmas and Happy New Year

The Most essential Lesson for all Investors-Koon Yew Yin

The Most Essential Lesson for all Investors - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Sat, 21 Nov 2015, 11:02 AM

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Many of my close friends and my family members want to know how I dare to buy so much of VS Industry shares. As I have announced on 15^th June 2015, I have 20,445,600 shares, nearly 10% of the total issued shares before one share is split into 5 shares. I am also a substantial shareholder of Latitude and Lii Hen. The price charts show that every one of the 3 shares has gone up a few hundred per cent per year.








A super investor must have the following 7 traits or characteristic features:
Trait 1. Be a contrarian investor, the ability to go against the crowd in investing. You must not be afraid to buy when most people want to sell and sell when most people want to buy as if tomorrow is too late to sell.
Trait 2. A great investor is one who is obsessive about playing the game and wanting to win. These people do not just enjoy investing; they live it. They wake up in the morning and the first thing they think about, while they are still half asleep, is a stock they have been researching, or one of the stocks they are thinking about selling, or what the greatest risk to their portfolio is and how they are going to neutralize that risk.
Trait 3. A good investor is the willingness to learn from past mistakes or to admit that he or she has bought the wrong share. It is so hard for people to recognize their own mistakes and sell the bad share which they bought at a higher price. Most people would much rather just move on and ignore the dumb things they have done in the past. But if you ignore mistakes without fully analyzing them, you will undoubtedly make a similar mistake later in your career. In fact, even if you do analyze them it is not easy to avoid repeating the same mistakes.
Trait 4. A good investor must have an inherent sense of risk based on common sense. You must have the common sense to realize the risk of buying any share which has gone up a lot and when all the analysts are recommending buy. No share can go up indefinitely for whatever reason. Quite often you might be tempted to fall in love with your purchase because it has been going up and up. You are so proud of your pick and refuse to sell it. Remember your ego can skew your judgment.
Trait 5: Great investors have confidence in their own convictions and stick with them, even when facing criticism. Buffett never get into the dot-com mania and he was being criticized publicly for ignoring technology stocks. Eventually he was proven right. Unlike Buffet, we small investors can get in and out quickly and make some profit.
Besides confidence, you must have patience to wait to buy when it is has established a base and not buy when it has shot up due to some exciting hot news.
Trait 6. It is the ability to think clearly. Our brain has 3 basic functions. One is to circulate your blood and control your breathing. The second is your emotion and the third is logical thinking. All normal investors allow their emotion to control their logical thinking process. All successful investors can think clearly when faced with a problem.
Trait 7. Finally the most important, and rarest, trait of all is the ability to live through price volatility and fluctuation without changing your logical thinking process. This is almost impossible for most people to do when the share goes through a price correction. A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss. But most people just cannot see it that way; their brains would not let them. Their panic instinct steps in and shuts down the normal brain function.
Most investors believe that no share can continuously go up or come down indefinitely for whatever reason. They will sell to take profit and buy back during price correction. But quite often, the correction is mild especially if the share has fantastic profit growth prospect. They would not buy back at a price higher than the price they sold.
As you know VS Industry share price went up from Rm 2.5 to above Rm 8 in the last 15 months. I know of a foreign professional investor who sold VS at about Rm 4.50 because his chart indicated an unavoidable price correction. When the price continued to climb, he did not buy back because he has not mastered the above 7 traits.
If you want to improve your technic in investing you have to look at the 7 traits frequently until you have mastered them. You have to absolve them into your brain so that you can react automatically like a reflect action.
Basing on the last few quarterly earnings, I believe the company of VS Industry will be able to make more profit this year than last year which complies with my golden rule for selecting shares. But I am obliged to tell you that I am a substantial shareholder of VS. If you decide to buy, you are doing it at your own risk.

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Storm Over Southeast Asian Markets -- Koon Yew Yin

Storm Over Southeast Asian Markets

http://koonyewyin.com/2015/08/14/storm-over-southeast-asian-markets/

Investors in Malaysia need to be concerned over recent developments in our country as well as externally which have a direct or indirect impact on investor sentiment. Hence the continuing political crisis over 1MDB, the sharp decline in the value of the ringgit against the US dollar, the battered commodity market affecting primary producing countries and pull back by foreign investors all have contributed to the depressed stock market.

What has made it even more of a turbulent storm is the recent decision by China to depreciate the yuan.  Very few in the market – even among experts – expected this and the impact has seen the market take a further sharp fall.

There are two considerations that Malaysian investors may want to bear in mind looking ahead. One is that we are not the only country in the region that has seen its market fall badly. Believe it or not but in fact the Singapore share market – which Malaysians would expect to be the strongest and most resilient in the region – has dropped even more than the Malaysian one during the last one year. Of course, this is small or no consolation to our local investors who have lost money. But it puts into perspective the current market fall in our country for those who have started to panic about our local situation; and who think and mourn and groan that we are alone in experiencing this current market fall.

The table below compares the performance of the markets in the region and shows that only the small markets of Vietnam and the Philippine have remained in positive territory since the end of 2014. Besides Singapore, Indonesia has also taken a bigger hit than us.

The second consideration is that any economic storm will pass if the economic fundamentals are strong. While there may be many problems with our politics, I am confident that our economic fundamentals are not only strong but are superior to those in many other countries. This is why I have kept my money fully invested in Malaysian and continue to do so. This is why I am sure that we will weather the storm over our market right now.

This is the same in other countries where the fundamentals are strong. For those who have lost money and have lost heart, this is what Business Insider has to say in a recent article.

There is an equity risk premium in the markets. Over the long term, stock investors can earn average annual returns that are close to 5% above what they’d be able to earn at the risk-free rate. That’s a huge number when compounded over decades.

But it must be earned the hard way – battling through the worst the markets can throw at us. And, as both Buffett and Templeton can attest, it is when stocks are treating us the worst that this premium is right around the corner.

Read more: http://www.businessinsider.com/how-two-great-investors-handle-losses-2015-8#ixzz3ikc4taJS

Finally, a reminder, that the stock exchange consists of over one thousand companies in the Main and Ace markets. When you invest your money, make sure you invest in those whose fundamentals are stronger than others and who can take advantage of the shrinking Malaysian ringgit!

As I said many a time, successful investors do not let their emotion over rules their logical thinking process. They dare to buy when people are selling desperately and sell when people are euphoric.    

Change on year
Market	Current	End 2014	Pct Move
Singapore	3091.78	3365.15	-8.12
Kuala Lumpur	1621.62	1761.25	-7.93
Bangkok	1404.15	1497.67	-6.24
Jakarta	4584.25	5226.95	-12.30
Manila	7439.80	7230.57	+2.89
Ho Chi Minh	594.26	545.63	+8.91

Trees at the forest

Matrix Concepts net profit surges to RM115m! fantasic results!

KUALA LUMPUR: Matrix Concepts Holdings Bhd's net profit surged nearly 200% to RM115.4mil in the first quarter ended March 31, 2015 from RM38.6mil a year ago on the back of higher revenue for residential and industrial properties.
 

The company said on Tuesday revenue rose 135.8% to RM317.6mil in the quarter compared to RM134.6mil in the corresponding period a year ago.
 

Matrix Concepts chairman Datuk Mohamad Haslah noted it was a bumper quarter due to quicker construction progress of its on-going residential projects in Bandar Sri Sendayan as well as accelerated payments by investors for industrial properties at Sendayan TechValley.
 

Moving forward, he said the company targets for investment properties segment to contribute 10% to the group revenue in the next five years.
 

“The group also noted revenue contribution of RM2.2mil from investment properties, comprising Matrix Global Schools and d’Tempat Country Club,” the company said.
 

On the other hand, revenue from the residential and commercial properties segment jumped more than 120% to RM220.8mil, from RM99.6mil a year ago. Sales of industrial properties and land were RM94.6mil from RM35.1mil a year ago.
 

Haslah expected demand for residential properties to remain intact due to the population growth of Negeri Sembilan while Kuala Lumpur residents were buying properties in the Klang Valley region.

As at March 31, 2015, the group's unbilled sales of RM392mil would last Matrix Concepts until 2017.
 

“In line with the positive results, the group today declared a first interim single tier dividend of 4.25 sen per share. The dividends will be paid to shareholders on 9 July 2015 based on the Record of Depositors on June 26, 2015,” Matrix Concepts said.

 

Malaysians are Not Happy at Work

http://www.jobstreet.com.my/aboutus/malaysians-are-not-happy-at-work.htm

MALAYSIANS ARE NOT HAPPY AT WORK

According to a recent JobStreet.com survey on Employee Job Satisfaction in Malaysia, 78% of the respondents claimed that they were unhappy with their current job. While it is often perceived that the main reason many young talent leave a company is due to the low salary, only 17% out of the 1,145 respondents quoted salary as the main reason for influencing their unhappiness at their current job.
Dissatisfaction with their scope of work was the top reason many felt unhappy at work. Most of these unhappy employees said they felt that they have too much work or that their work is predictable and boring. Another factor was also their poor relationship with their immediate supervisor or boss.
The remaining 22% of the respondents who are currently happy at work revealed the top 3 factors which influenced their happiness:

• 50% are enjoying their working experiences and working challenges
• 21% are happy with their bosses who appreciate and value their input
• 19% are enjoying their work because of their friendship with their colleagues

Overall, the employees agreed that the ultimate change in order to determine their wellbeing at work would need to include opportunities for career development and also work-life balance in the company. If the needs are not met, the majority (62%) said they would find another job to restore their happiness at work. One respondent said, “A company with strong management workflow that meets customer's demands, good colleagues who can help one another with office politics at its minimum, and a good career opportunity is a pull factor for me to enjoy my job.”
A total of 1,145 employees, of which 62% are from the middle management level, took part in the survey that was conducted by JobStreet.com in September 2012.

How to interpret company announcements - Koon Yew Yin

How to interpret company announcements - Koon Yew Yin

Author: Koon Yew Yin | Publish date: Tue, 21 Apr 2015, 04:13 PM

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According to Malaysian Securities Commission’ rules all listed companies have to make announcements of their quarterly results and other business activities that are unusual to their daily business operations.
I would like to share with you my experience on how to interpret and take advantage of the various announcements as follows:

1. Announcement of quarterly result: this is often a catalyst to move share price. If the profit is good, the share price will go up but if the profit is not good the price will likely come down.
2. Announcement of purchasing a large piece of land for development eg MRCB’s recent announcement of signing the S&P agreement to buy the Germen Embassy land in KL for a few hundred million Ringgit. Many investors would think that it is a wonderful deal to be able to own and develop the property right in the heart of KL. But smart investors with some imagination must consider this purchase very risky in view of the oversupply of properties in KL. Moreover, it will take about 7 years to complete the project from planning approval to construction and sale of all the properties before you can see the financial result. At the mean time, investors are exposed to 7 years of risk.
3. Announcement of company share buyback is tricky to interpret. It can mean that the management wants to buy back its own shares because it is undervalued. But sometimes the management wants to prop up the price to stop the price from falling because of poor quarterly result. Investors must look at the profit growth first before buying the share. You may be tempted to buy because the chart says so. Share prices can be manipulated if the daily trading volume is small.
4. Announcement of right issues with free convertible warrants can be tempting to many investors. You must be careful to examine the true reason for calling the right issues. Do not subscribe blindly. Quite often due to poor management, the company has poor cash flow and the business has too many challenges. As a result, the company needs more cash. Moreover, this kind of announcement will push up the share price, offering you a chance to sell at a better price. You must remember that good profitable companies do not need to get money from calling for right issues.
5. Announcement of bonus issues is usually a good sign that the company is able to accumulate sufficient profit to issue more shares to benefit shareholders. This announcement will push up the share price. Of course the price will be adjusted soon after the bonus issue and the price will go up again if the company continues to show good result.
6. Announcement of share placement of not more than 10% of the total issued shares is a good sign that there is demand by fund managers to own these shares. If they buy them from the open market, it will cost more. This is reassuring to all existing shareholders because the big buyers would have studied the operation of the company in great detail before making such a big financial commitment. They should not think that their interest is being diluted. They must bear in mind that the company will have more cash for expansion which will benefit all the shareholders.
7. Announcement of a new substantial shareholder who bought all his shares from the open market is a good sign. According to S.C. rules, any investor who owns more than 5% of the total issued shares has to declare his interest. He has also to announce if he subsequently buys or sell the shares because his action will affect the decision making process of other investors.
8. Announcement of Company Directors’ buying or selling shares is a good indicator of the true value of the shares. All company directors have to make announcement when they buy or sell their shares. If they continue to buy more shares, it is a healthy sign, provided you know that the company is really doing well and that they are not buying them to simply push up the share price.
9. Announcement by a contractor of securing a large multi million Ringgit contract for the construction of a big project through the open competitive tender system will often encourage investors to rush in to buy the shares in anticipation of the company’s profit growth prospect. Many would think that the contractor with additional work would naturally make more profit. You must remember contracting is a very risky business because of the open tender system. The contractor has to take a lot of risk to submit the cheapest price to win the tender. That is why there are so few really successful listed contracting companies. Very often building contractors are also property developers.
10. Announcement of dividend is a good indicator of the company’s performance. The company that declares increasing dividend is definitely a good company. This shows that it has positive cash flow and can afford to benefit all its shareholders. This sort of company will not need to call for right issues to raise cash for expansion.
11. Announcement of privatization of the listed company is rare but when you see this type of announcement, you can make money if you know how to position yourself. The controlling shareholders offer to buy up all the outstanding shares that they do not already own, usually at a higher price than the current market price. As soon as you see the announcement, you can buy it before the price go up to the offered price. If you consider the offer is unreasonable, you can wait until they offer a better price. You must bear in mind that the better offer may not come and it may be more advantage to accept the cash offer and use the cash proceeds to buy other shares.

Conclusion: There are about 1200 listed companies and many of the companies are making announcements every day. It is impossible to read all the announcements. After you have read the above guidelines, you can select the useful announcements to read to save time.
Under the current condition, I will not read announcements by building contractors and property developers. I am not interested to know about huge land transactions.
I will also not read companies that have poor profit growth prospect.
As you know, our Ringgit is the lowest in the last 5 years and readers should look at announcements by companies exporting their products in US$.

SPIRITUALITY, THOUGHTS

10 CHOICES YOU WILL REGRET IN 10 YEARS

http://thespiritscience.net/2015/04/05/10-choices-you-will-regret-in-10-years/

 

When you’re present, aware and actively creating; there’s nothing really to regret. You see that the mistakes you’ve made are lessons to learn that helped create who you are today. It’s never too late to start living from the heart, for that is a place where regret simply does not exist!

1. Pretending to be something you’re not.

What does it mean to truly be yourself? It’s speaking from the heart and having the awareness that lets you know when to engage and when to listen. If you’ve ever held back something you wanted to say because you’re scared the reaction; you’re still not being your self fully.

Think about the energy you let off in your interactions and see how it’s effecting your peers. The point is to allow your expressions to flow while still having the awareness of knowing what to say and how to say it.

2. Letting others choose your life for you.

This is a big one we all need to understand, especially if you’re a parent! We are our own teachers, guiders and mentors. This can look like a lot of different scenarios from your friend who is a bit too pushy to parents who make you go to university. Communication is key, expressing what you want in the moment is so important to make sure everyone understands where you are coming from.

3. Being unaware.

Our world is filled to the brim with unconsciousness; and it manifests in so many different ways. When we can practice awareness on the smallest scale, like picking up after ourselves, seeing what needs doing and just doing it; having that knowing of what needs to get done.

Cooking for a group when you see everyones hungry, knowing you’ll need something ahead of time and preparing it; just being aware. When this is practiced enough, it becomes habit and translates over onto a global scale!

 4. Keeping negative company around.

This can be a tricky one, and as always, communication is key to understanding. If there’s someone in your life who is causing you distress and you are able to talk to them about it, do it! If the lines for communication aren’t secure enough, don’t feel bad about ejecting yourself from someones life. If they are mistreating you, being unaware or even simply not engaging with you, they might not see it. You can choose to be a facilitator of growth for this person if they will allow for that transformation.

5. Avoiding personal growth.

This is something we’ve all been guilty of; perhaps some more than others. What does this look like? It’s specific to you and your life, the choices you make and the lessons you choose to learn.

When you make a mistake and get called out for it, don’t defend it, just listen and grow from it. Defending, denying or ignoring the problems you create does not facilitate growth.

Seeing what you’ve created and being able to see a solution and how not repeat your mistakes is the greatest recipe for growth.

6. Giving up.

Don’t do this! There is a difference between giving up on something and taking a break from it. When you’re working hard and you need to stop for the night, great job! You deserve that relaxation. When you set a goal for something and don’t complete it – that’s okay, you can continue it later. When you refuse to continue working on something wether its work, relationships, a hobby, etc, that is giving up. Finish what you start because it always feels better.

7. Overthinking everything.

In the design of our society, it’s almost impossible to not overthink things. There is so much stimulation, a never ending stream of thoughts is always flowing through our brains. Take a breath, use this moment to slow down and focus on your breathing, the physical environment and your physical body. This is grounding and will help take you out of your head and into your body.

 8. Not speaking from the heart.

At the end of the day, if you’ve worked hard to make people feel good, you usually feel just as good. When you speak truthfully, from a space of acceptance and true understanding; everything you say resonates with everyone.

Truth is universal and everyone will understand where you’re coming from when it’s from the heart.

9. Waiting for the next day.

Bring yourself back to the present. Focus on your breathing again, focus on what needs to get done this moment. If you’re constantly wanting the day to end, to be somewhere else or dying to crawl back into bed, evaluate what you’re doing with your life. Where is your attention going, do you enjoy the jobs or tasks you preform each day? We have a lot more freedom than we realize; do what you love. 

10. Being unproductive.

What are you bringing to the world? Create from your soul! What brings you the most joy, makes you the most excited and inspires you immensely? The world needs creations from the heart, ideas that shift us into the next stages of consciousness. What are you bringing to the table?

Most of us aren’t in our purpose so navigating life can leave us feeling lost. Follow what brings you joy, that thing that you want to share with the world.

Rubber Gloves - More Upside from Earnings Growth!

Rubber Gloves - More Upside from Earnings Growth(finally !!!)
from KENANGA

We maintain our OVERWEIGHT rating on the rubber gloves sector. Rubber glove stocks under our coverage have performed well YTD, led by KOSSAN (+30%), SUPERMX (+26%), HARTALEGA (+23%), and TOPGLV (+21%). Nevertheless, we believe they still have further upside moving into 2Q15. The stage is set for rubber gloves makers to post decent-to-solid quarterly earnings growth over the next few quarters. Our investment case is based on: (i) resumption of earnings growth in coming quarters, underpinned by new capacity expansions matched and fueled by sustained demand for rubber gloves, led by nitrile gloves, (ii) favourable USD/MYR exchange rate, and (iii) the sustained low raw material prices especially latex. We expect glove makers to announce good sets of 1QCY15 numbers due to the commencement of new capacity starting from Jan 2014 and a favourable forex rate. As an indication, the recently announced Top Glove’s 2Q15 results which topped expectations were boosted by the strengthening of US dollar against MYR. In the meantime rubber glove players indicated that customers have been found for their new plants’capacities. Our Top Pick is HARTALEGA with a TP of RM9.50. We continue to like HARTALEGA for its: (i) highly automated production processes model, (ii) solid improvement in its production capacity and reduction in costs leading to higher margins compared to its peers, (iii) innovation in producing superior quality nitrile gloves, and (iv) positioning in a booming nitrile segment with a dominant market position. We also have OUTPERFORM calls for KOSSAN (TP: RM6.68) and SUPERMX (TP: RM2.75).

Mixed bag of 4QCY14 results. Results of the glove makers from the 4QCY14 results season were mixed. Both Supermax and Hartalega posted results which came in below expectations. However, Kossan Rubber came in within but Top Glove topped expectations. Hartalega’s results were lower due to higher-than-expected operating expenses arising from new recruitment of labour for the incoming NGC project. Supermax saw lower-than-expected sales volume and start-up costs incurred in new plants. Kossan interestingly saw a 7% QoQ volume growth driven by maiden contribution from additional new 5 lines in Plant 1. However, the best performer was Top Glove in its recently announced 2Q15 results which topped expectations, due largely to an 8% strengthening of US dollar against the RM.

New in-coming capacity to drive quarterly earnings growth in FY15. Concerns of oversupply appear to have dissipated as earlier highlighted. In fact, in-coming new supply had been slower-than-expected. However, after a year of slowdown in most of 2014, all four players namely Hartalega, Kossan, Top Glove and Supermax have started commissioning their new plants gradually in end 4QCY14, albeit at a slower pace. As such, the slower-than-expected ramp-up in new production capacity further reinforces our positive outlook on the sector by allaying concerns on competitive pressure and oversupply issues. Apart from favourable forex, we expect new capacity to drive earnings growth of rubber glove stocks under our coverage over the next few quarters. Hartalega’s NGC plant has commissioned production in end Dec CY14 and currently with six running production lines. We expect Kossan to register solid growth in both revenue and earnings for 2015 with additional capacity of 6b pieces of gloves added after the full completion of three plants with 17 double-former high speed technological advanced production lines running in full force. We understand that customers have been secured. This brings the three new plants’ installed capacity to 22b from 16b per pieces of gloves per annum. On Supermax, we understand that two lines, from the new plants namely Lot 6059 and Lot 6058, are expected to start commissioning soon. From our channel checks, demand for nitrile gloves is strong.

Weakening of MYR vs. USD is short-to-medium-term positive to rubber glove players. Taking a que from Top Glove’s recent 2Q15 results, we expect other glove makers to report good sets of 1QCY15 numbers underpinned by the strengthening of USD against MYR. YTD, the USD had risen by 7% against the RM (USD1 = MYR3.69). Generally, a weakening Ringgit is positive for glove makers. Since sales are USD-denominated, theoretically, a depreciating ringgit against the dollar will lead to more revenue receipts for glove makers. Ceteris paribus, a 1% decline of RM against USD will lead to an average 1%-2% increase in the net profit of rubber glove players. However, we believe the impact from currency movements to glove players’ earnings is neutral over the long-term. This is because glove players typically hedge the currency on a consistent basis, hence in theory any negative or positive impact will be neutralised over time.

We like KOSSAN, maintain OUTPERFORM and TP upgrade to RM6.68. We are raising KOSSAN’s TP from RM6.00 to RM6.68 by upgrading our PER from 16x to 18x (at +2.0 SD above its historical forward average) as its prospect is enhanced by the new production lines that could potentially lead to higher margins. We believe KOSSAN’s new gloves production lines could potentially lead to higher margins from improvement in productivity and efficiency as the lines are designed to focus on larger orders with fewer clients (compared to previous production scheduling model) for a single product type and specification, thus reducing idle downtime from frequent machinery setting adjustments to accommodate diverse specifications. This could lead to an output of 35,000 pieces of gloves per hour, which is higher than its existing average production line speed of 29,000 gloves per hour, a robust 20% enhancement. Its current production style comprises shorter production lines catering to a large customer base with diverse products, which reduces reliance risk on few larger clients. However, such an arrangement also limits margin expansion due to more downtime on frequent machinery setting adjustments.

Maintain OVERWEIGHT. Our TOP PICK is HARTALEGA with an OUTPERFORM and TP of RM9.50. We raised Hartalega’s TP to RM9.50 from RM8.20 based on higher FD CY16 PER of 24 compared to 21x previously (at +2.0 SD above its historical forward average) due to its solid management and its ability to consistently remain head and shoulders above its peers in terms of better margins, solid improvement in production capacity and reduction in costs. We like HARTALEGA for its: (i) highly automated production processes model, (ii) solid improvement in its production processes and reduction in costs leading to higher margins compared to its peers, (iii) innovation in producing superior quality nitrile gloves, and (iv) positioning in a booming nitrile segment with a dominant market position

Doctors may add GST cost to fees

Doctors may add GST cost to fees

http://www.thestar.com.my/News/Nation/2015/03/27/Doctors-may-add-GST-cost-to-fees-Not-wrong-for-private-clinics-to-raise-price-of-consultation-says-o/?utm_source=dlvr.it&utm_medium=twitter

PUTRAJAYA: Private healthcare services are not supposed to be charging the Goods and Services Tax (GST), but the cost could be hidden in the consultation fees.

Customs GST division senior assistant director II Norazura Hashim said it was not an offence for doctors to embed their GST costs into the consultation fees.(then how to explain to patients,are we suppose to cheat patients?)

“As long as they do not have a separate GST fee indicated in their invoice, they are not doing anything wrong by passing on the cost to patients,” she told reporters.(poor patient! poor doctor!)

Norazura said private doctors might have to pay the GST to their drug suppliers and would not be able to claim the tax as private healthcare falls under the exempt supplies list.

“Due to this, doctors or clinics may in turn raise their consultation fees to cover whatever GST payment they make.”

Asked whether there was monitoring of clinics, Norazura said it was up to consumers.

“We expect a general increase of between 3% and 4% in healthcare costs following the introduction of GST.

“Patients who notice massive fee increases should lodge complaints with the Domestic Trade, Co-operatives and Consumerism Ministry.

“The authorities will then investigate and take the necessary action,” she said.

On a separate matter, Norazura said the ministry had not finalised the list of medical equipment that would be GST-exempt.

“When it comes to medical equipment, there is a difference between Item Three and Item Six of the GST Exempt Supply Order 2014.

“All medical equipment purchased by government  are exempted, while only selected equipment are exempted for private hospitals,” she said.

She said the full list of the exemptions approved by the Ministry of Finance would be uploaded on the Customs website soon.