KLSE Stocks and Comments

A talented and proud Malaysian

2012-02-01T17:50:00.000+08:00

CLSA feng shui chart 2011 & 2012

2012-01-27T15:30:00.004+08:00

Free public forum on the forthcoming 1care Healthcare System

2012-01-26T16:11:00.002+08:00

got it from here:

http://medicine.com.my/wp/index.php/2012/01/19/free-public-forum-on-the-forthcoming-1care-healthcare-system/

Organised by the FPMPAM
Venue : Global Business and convention center, PJ, Section 19.
(Map)
Date: 12th Feb 2012
Healthcare forum on 1Care

HAPPY CHINESE NEW YEAR 2012

2012-01-21T00:14:00.001+08:00

Needy folk say RM500 aid will come in handy

2011-12-12T14:12:00.002+08:00

Needy folk say RM500 aid will come in handy
(go and get YOUR MONEY but make sure you are genuinely qualified and wont get caught for cheating)

KUALA LUMPUR: Many came by bus, others by motorcycle while a few walked to sign up for the RM500 aid given to households earning RM3,000 or less.

At Inland Revenue Board offices and several schools and other designated places, it was all smiles for recipients under BR1M, the Bantuan Rakyat 1Malaysia scheme.

Sivaranam Velayuthan, 61, said the money was very welcome, especially since he is now unemployed. He and his 60-year-old wife only get RM160 monthly welfare aid and depend on their two children to buy them food.

“We pay RM124 a month to rent our flat in Setapak, and after paying for electricity and water, we have nothing left.

Queue for aid: People lining up to register for their RM500 aid at the BR1M registration counter at the IRB office at the government complex along Jalan Duta.
“This RM500 will be very helpful. I feel relieved,” he said at the IRB office at the government complex in Jalan Duta.

Housewife Siti Rohani Mohamed, 37, said the money would help her take care of her elderly parents.

“They do not have any income. My siblings and I support them, and it is always nice to have some help,” she said.

Ken Tin Weng, a 43-year-old supervisor, said the aid would make it a happier Chinese New Year for him and his family.

“The money will help buy things to celebrate Chinese New Year next month,” he said.

Police officer Edut Bansa, 32, said the scheme would help her mother back home in Kapit, Sarawak.

“She's in her 60s and she raised us as a single mother. It's good that I can help her,” she said.

At SMK Aminuddin Baki near the city, single mother Tan Kim Neo said the money would help pay off her utility bills.

The 54-year-old NGO administrator said it would be better if the Government gave such aid monthly, but was happy nonetheless.

Former rubbish collector Yaakub Budin, 82, said the money would ease some of his financial burden, especially since he is living alone.

He said the cost of living had risen and, having lost his wife to cancer 15 years ago, the sprightly old man said he had no one to look after him.

“I live alone, so I also have to take care of my health,” he said.

Retired labourer P. Ramaya, 59, said the money would help supplement his RM400 pension, but added that it was not enough, especially since three of his five children were still studying.

His wife, S. Supperamah, 56, added that with her thyroid condition, money was tight for the family.

“I only earn RM1,000 as a road sweeper and we have to pay for our children's college fees, our household expenses and my medical bills,” she said.

Counters had been opened since yesterday to register Malaysians who qualify for the aid at all IRB offices. The registration will continue till Jan 10.

Update Foreign selling weighs on KLCI

2011-08-27T13:40:00.000+08:00

more selling to come,beware and please check your holdings/stocks

Update Foreign selling weighs on KLCI
Written by Joseph Chin of theedgemalaysia.com
Friday, 26 August 2011 15:29

KUALA LUMPUR: Malaysia’s stock market continued to be battered by fund selling of bank stocks on Friday, Aug 26 but more worrying was the selling was extending to other fundamentally strong and smaller capitalised stocks also.

Analysts said the selling was from foreign funds on concerns about the economy slowing, worsened further by the US and European economies. As for the recent corporate results, they said the earnings were not that impressive also.

At 3.21pm, the FBM KLCI was down 22.22 points to 1,442.52. Turnover was 602.32 million shares valued at RM1.39 billion. Losers battered gainers 661 to 99.

It was HL Bank and HLFG’s turn to come under selling, down 42 sen each to RM12.36 and RM11.72. CIMB was the most active, falling 23 sen to RM7.02.

Other big capitalised stocks fell, with GENTING BHD [] down 33 sen to RM9.45 and KLK 24 sen to RM21.24 while Bumi Armada shed 26 sen to RM3.54 after its disappointing results.

Petronas Chemicals lost 22 sen to RM6.08, Airasia 16 sen to RM3.341 and MRCB nine sen to RM1.96

Most Asian markets down on US debt problem

2011-07-29T15:16:00.002+08:00

Most Asian markets down on US debt problem
By YVONNE TAN and JOHN LOH
starbiz@thestar.com.my

PETALING JAYA: Market sentiment in Asia took a beating yesterday, tracking concerns in the advanced markets where in the United States, lawmakers are struggling to find a solution to the country's debt problem.

At the close, most key Asian markets were down by an average of 0.5% each.

At home, the 30-stock FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) managed to claw back some of its morning losses to finish 6 points, or 0.40%, lower to 1,551.91 after losing more than 11 points in the earlier morning session.

“The scary part of the story is the fact that markets have not priced in the US defaulting on its debt. Should the unthinkable happen next week, then a throw back to the chaos of 2008 would again become a reality,” CMC Markets analyst Ben Le Brun told Singapore's Dow Jones.

Down market: A man walking past a stock market indicator board in Tokyo yesterday. The Nikkei Stock Average lost 145.84 points, or 1.45%, to close at 9,901.35 in line with other Asian markets. — EPA
Essentially, should the United States fail to raise its borrowing limit before an Aug 2 deadline, it could default on its debts for the first time in history. On Wednesday it was reported that talks between policymakers on the matter had reached a stalemate.

“From now until a solution is found ... markets will remain jittery,” Danny Wong, chief executive officer of Areca Capital said.

Most stock markets around the world were climbing last week as a new help plan for Greece had eased some concerns that the other major debt crisis over in Europe, would get worse.

“But this US debt impasse has changed the whole equation. Unless the deadlock is broken, the risk on US sovereign credit will inevitably rise,” MIDF said in a report issued this week.

The first test of ratings on the US will be on Aug 4 when US$30bil in Treasury bills mature, it noted.

That said, fund managers are expecting Asian financial markets to enjoy a positive impact from the US debt issues, more so if talks between US policymakers fail.

“While we acknowledge negative knee-jerk reactions on a near-term basis, we believe Asia ex Japan could eventually benefit from a stronger inflow of funds, strengthening their currencies against the US dollar and boosting financial markets,” MIDF said.

Malaysia is also poised to enjoy the “positive effect”, the research house said.

Wong concurs, saying the spillover effect from the debt crisis in the United States would be positive for Malaysia as investors would look elsewhere to channel their funds.

“I am not overly concerned about any deep negative impact from the US crisis. However, if the United States goes into a recession, the global supply chain will be adversely affected,” he said.

MIDF noted that foreigners have been net buyers of Malaysian stocks in 15 out of the last 18 weeks

Local institutions turned net buyers last week, the first time in six weeks, while retailers were net sellers in the week that just ended.

----we should wait and see and be prepared to jump in, always remember play safe, play smart and never ever try to fight the tide

Bar Council: RCI 'suicide' verdict unfounded

2011-07-24T11:10:00.000+08:00

http://blog.thestar.com.my/permalink.asp?id=35882
FROM THE STAR
Bar Council: RCI 'suicide' verdict unfounded
Posted by: waynebwng

The Malaysian Bar, however, does not concur with the finding by the RCI that Teoh Beng Hock had committed suicide. Such a finding, in our view, is unsupported by the facts and the evidence.

Contrary to the statement made by Minister in the Prime Minister’s Department Dato’ Seri Mohamed Nazri Abdul Aziz, forensic psychiatrist Professor Paul Mullen did not testify that Teoh Beng Hock had a “weak character” that had led to him taking his own life. Professor Mullen also did not conclude that Teoh Beng Hock had committed suicide; rather, his testimony stated that “in [his] opinion, what we learned of Teoh Beng Hock’s personality and behaviour do not suggest any increased risk of suicide”. He further opined that the context of the events that had taken place was not one “which, in [his] experience, leads to suicide in custody”, as he had not been made aware of anything “to explain panic and distress sufficient to drive [Teoh Beng Hock] to conclude his honor had been irreparably tarnished”.

This is in stark contrast to what the Minister reportedly stated during the release of the RCI’s report, namely that Teoh Beng Hock had “truly committed suicide based on his character that had changed from a low-risk group to a high-risk group for suicide after undergoing a continuous and aggressive questioning session”. Professor Mullen’s testimony does not provide the basis for the RCI’s finding of suicide, such as that described in the section titled “conclusion on forensic psychiatric aspects” in the RCI’s report.

It is noted that the RCI found the following:

(1) That the time of death had been between 7:15 am and 11:15 am on 16 July 2009;

(2) That Teoh Beng Hock had not been released at 3:30 am and been left alone sitting on a sofa after his statement had been recorded, as Hishamuddin Hashim had issued a written circular the previous month that “witnesses and visitors in the Selangor MACC office should be accompanied at all times”;

(3) That Teoh Beng Hock had been subjected to a fourth interrogation session after 3:30 am by Hishamuddin Hashim and his officers, which was aggressive and relentless. In addition, the RCI rejected the evidence of MACC officer Raymond Nion that he had seen Teoh Beng Hock lying down unattended on a sofa at approximately 6:00 am;

(4) That the fourth interrogation session was probably between 3:30 am and 7:00 am; and

(5) That the window from which Teoh Beng Hock is said to have fallen out was located conspicuously.

In view of the above, and that there was no evidence whatsoever produced at the RCI hearing of Teoh Beng Hock’s whereabouts or movements after 6:15 am, and the staff of the Selangor MACC office would have begun arriving by 8:00 am, to surmise that Teoh Beng Hock had committed suicide between 7:15 am and 11:15 am requires a leap in logic and an assumption of facts not in evidence.

The Malaysian Bar also notes that the joint expert psychiatric report of Dr Badiah Yahya and Dr Nor Hayati Ali – the experts engaged by MACC who were present during most of the court proceedings and had interviewed Teoh Beng Hock’s family members, housemate and work colleagues – stated:

We did not have any evidence on how the investigation was conducted as there were “no written questions posted to [Teoh Beng Hock]” or audio recording as to ascertain the amount of pressure that he experienced. It is not known whether he had experienced in his mind the effects of being possibly prosecuted on the allegations, whether it would have been devastating for him and/or his organisation. This should require more information on what was said and done in the period taken [sic] into custody until he was found dead.

It is very clear to the Malaysian Bar that full responsibility for Teoh Beng Hock’s death lies squarely and solely on the MACC, and that immediate action must be taken to hold the culpable officers accountable for their behaviour. In this regard, we welcome the reported statement by Dato’ Seri Mohamed Nazri Abdul Aziz, that “appropriate action would be taken against the officers through the process of law without delay”. The authorities should investigate the relevant MACC officers for possible offences under sections 304 and 304A of the Penal Code, namely for culpable homicide not amounting to murder and for causing the death of TBH by negligence, respectively.

The Malaysian Bar also calls on the Government of Malaysia and MACC to consider:

* offering an unqualified written apology to Teoh Beng Hock’s family, and to the citizens of Malaysia, for his death; and

* making reasonable recompense to Teoh Beng Hock’s family in respect of his death. The Malaysian Bar extends its heartfelt sympathy once again to Teoh Beng Hock’s family and loved ones.

Free Dr Jeyakumar Now !

2011-07-20T14:23:00.003+08:00

http://thestar.com.my/news/story.asp?file=/2011/7/14/focus/9095793&sec=focus

THE recent arrest of Dr Jeyakumar M. Devaraj, Member of Parliament for Sungei Siput, on charges related to communism was most unfortunate.

Many of us have known Dr Kumar for years, some of us since 1976, when we were classmates at medical school in Universiti Malaya.

In those days the number of students was small and it was thus possible to know one another pretty well after five intensive years together. Most of us knew him first as a fellow university student, then colleague and more importantly as a friend.

In all our years of relationship we have found him an honest and sincere individual, concerned for the plight of the average person. He is a man of integrity and honour, an advocate for the down trodden and those without a voice.

Even as a medical student he was already very much interested in looking out for the interests and well being of the socially and economically disadvantaged segment of society.

Since becoming a doctor and now an MP, he has worked hard to champion the rights of the poor, the marginalised and neglected. Many individuals and communities in desperate need have benefitted from his involvement.

Never have we found him to espouse or communicate communist ideas. He has always stood for social justice. His lifestyle mirrored his beliefs. If anyone cares to trace his service record in the medical services, it will be easy to see that Dr Kumar’s principles and values in life have remained consistent throughout his career.

Unlike many people, Dr Kumar definitely walks his talk. He has shared his time, energy and what little wealth he has with the poor and neglected.

He comes from a distinguished family line. His father was also a very well respected physician and his uncle was the founder dean of the first medical school in Malaysia (i.e. Universiti Malaya).

He could have led a very comfortable life for himself, but he chose to make many personal sacrifices to help others lead a better life.

Many of us have admired Dr Kumar’s passion, determination, discipline and desire to help fellow Malaysians in need. He has been an inspiration to many people.

We appeal to the authorities to free him and others arrested with him.

This letter is signed by 50 concerned colleagues and friends

What can you do?
1) Write to the Press if you can write well.
2) Sign the online petition if you can.
3) Talk to anyone you know and ask them to at least sign the online petition.
4) Vote wisely in the next election.

Investors seeking safe haven bet on gold

2011-07-19T14:36:00.001+08:00

buying gold?good idea?when the market is down we should not loss our focus, concentrate on what you do well!

Investors seeking safe haven bet on gold
By JOHN LOH
johnloh@thestar.com.my

PETALING JAYA: Gold prices are on the way up again as concerns over debt levels in the United States and the eurozone prompt investors to move their funds to safe-haven assets.

Investors were also betting that rising agriculture commodity prices would mean higher food prices after the Standard & Poor's GSCI Spot Index, a measure of 24 commodities, rose for the third consecutive week.

Gold, also seen as a hedge against inflation and volatility, has seen gains since 2009 as an impasse over how to lower the US deficit continued.

Investor fears have also heightened amid concerns that deficit levels in eurozone members Italy and Spain could not be sustained in the long term.

A Bloomberg report said gold futures climbed for nine straight sessions to July 15, which is the longest rally since November 2009.

Analysts who spoke to StarBiz said prices would rise above the US$1,600 per ounce level in the near term due to inflation in China and the debt crises in the United States and the eurozone.

Singapore-based Phillip Futures Pte Ltd analyst Ong Yi Ling said gold was likely to rise to US$1,650 in the August to September period as demand was traditionally strong during that time.

She said that with Federal Reserve chairman Ben Bernanke not discounting another round of fiscal stimulus, this signalled to the markets that the recovery in the world's largest economy could still be a drag on global growth.

Ong added that demand for gold in China was high as both an investment and retail purchase. Investors like it as a store of value and hedge against inflation while rising incomes have allowed retail customers to buy the metal, according to Ong.

She, however, noted that price volatility would increase as prices rose.

Meanwhile, a Singapore-based gold trader attached to a bank said gold prices would likely rise to US$1,615 in the next one to two weeks before the market rebalanced from the price rise.

“Funds are flowing to gold from securities due to the volatility of the US and European markets but may return to the US market as second-quarter financial results may beat expectations,” he said.

According to Brad Durham, an EPFR managing director, there was fear in the markets of a potential downgrade of US debt and more negative news from the eurozone.

“It was a good, old-fashioned flight-to-safety trade,” he said in a Bloomberg report.

Data from the US Commodity Futures Trading Commission also showed hedge funds and other money managers lifted their net-long gold position by 25%, which is the biggest jump since the week ended Sept 8, 2009.

New frontiers for property firms

2011-07-12T11:05:00.000+08:00

New frontiers for property firms
Written by Chua Sue-Ann
Monday, 11 July 2011 11:38

KUALA LUMPUR: Many Malaysian-based property developers are now increasingly spreading their wings to developed economies after an earlier adventure to developing countries such as Vietnam did not pan out well.

In the past few years, larger Malaysian property and construction groups had flocked to Vietnam, once touted as the rising star of Southeast Asia. They include the likes of Gamuda Land (the property arm of Gamuda Bhd), S P Setia Bhd, WCT Bhd, IJM Land Bhd, Berjaya Land Bhd and Ireka Corp Bhd via its London-listed property fund Aseana Properties Ltd.

But now, there appears to be a growing trend for property players to invest in real estate opportunities in Singapore and Australia, and even as far away as Canada and the UK.

A property industry observer opines that earlier optimism on Vietnam’s real estate prospects were largely fuelled by expectation of strong take-up by the sizeable expatriate population in Vietnam — which has since shown to be unsustainable as prices were out of reach of the local population when demand from foreigners dried up.

Over the past two decades — since the “Doi moi” (renewal in Vietnamese) economic reforms initiated in 1986, foreign direct investments have been pouring into Vietnam.

These reforms have made Vietnam one of Asia’s success stories as it made its transition from a command to a more market-oriented economy, with a low-cost industrial base and a growing middle class.

Investors, including those from Malaysia, poured into its real estate sector, where prices and returns were unrealistically high due to a lack of supply of expatriate housing and international-class office space.

Since the 2008 global crisis, however, the euphoria has died as the economy faced economic woes, including rising inflation, a widening trade deficit, currency depreciation, declining foreign direct investments and high interest rates.

“The prices of the higher-end developments there are unsustainable. There isn’t a large middle class population base to support the supply, as prices are aimed at the limited expatriate market. It will take a long, long time for Vietnamese income levels to reach some of the asking property prices before the crisis.

“After experimenting with Vietnam, developers are now going to more stable countries such as Singapore and Australia,” said the observer.

“Local income levels relative to house prices are important, a factor which developers that went to Vietnam ignored during the euphoria,” he said, adding that developed markets such as Australia and Singapore see steady demand from a mix of local and foreign buying interest.

Selangor Dredging Bhd (SDB) is among the list of developers venturing beyond Malaysian shores, having planned several small projects in Singapore.

SDB has three property projects in Singapore, namely its mixed development Okio Residences on Balestier Road, a high-rise residential project Gilstead Two on Gilstead Road and Jia, a low-density residential development on Wilkie Road.

Recently, SDB ventured into London where its indirect subsidiary had in March acquired a piece of freehold land for development.

IOI Properties Bhd, a unit of IOI Corp Bhd, has been active in the Singapore property sector for a while. Together with its joint venture Ho Bee Investment Ltd, IOI Properties is developing the Pinnacle and Seascape at Sentosa Cove on Sentosa Island. It also working with Mergui Development Pte Ltd to develop a high-rise residential project at Mergui Land in Singapore.

Recently, IOI Corp announced its partnership with City Developments Ltd to develop South Beach, a mixed development project with total land area of 8.64 acres (3.46ha) located at a landmark site between Raffles Hotel and Suntec City and next to the Esplanade MRT Station.

But leading the charge in Singapore is UEM Land Bhd which is likely to play a key role in developing projects via its parent Khazanah Nasional Bhd’s tie-up with Singapore sovereign wealth fund Temasek Holdings Pte Ltd.

The partnership between the two sovereign wealth funds to develop land parcels came after a land swap deal after Singapore and Malaysia agreed on the relocation of the Tanjong Pagar KTMB (Keretapi Tanah Melayu Bhd) station in Singapore.

UEM Land’s subsidiary Sunrise Bhd, which it acquired earlier this year, has seen very strong demand for its Quintet development in Richmond, Canada.

Located outside downtown Vancouver, Quintet comprises condominium units and townhouses with a total gross development value of C$400 million (RM1.2 billion) spread over two phases.

Investors snapped up almost all 300 units under Quintet’s Phase 1 late last year within a single weekend. This prompted Sunrise to bring forward the launch of Phase 2 to June this year, which saw 90% of available units snapped up within a weekend. With nearly 600 homes sold, Quintet has sold more homes in the lower mainland area recently than any other development and has broken numerous real estate records, the developer said.

Last weekend, Sunrise launched the final 100 units of the development in Tower E, which has premium mountain and park views.

Property analysts opine that Malaysian developers’ push abroad is in line with the growth trajectory to enable the companies to achieve their aspired scale. “For the bigger Malaysian property developers which want to grow their base and have high annual growth, Malaysia may be too small a market. They would have to go regional,” said one analyst.

Nevertheless, it may prove difficult for Malaysian property developers to go abroad in a big way unless the companies have already built up a strong following and brand, said another analyst.

“For overseas projects, Malaysians would prefer to buy from a developer they’re already familiar with, and can deal with easily here... rather than through long-distance phone calls and correspondence”, the analyst said.

He added that the developers’ plans to expand abroad were also to tap Malaysians who wanted to diversify their assets overseas.

The stronger ringgit also bodes well for Malaysian property groups wanting to venture abroad to buy land and start development, analysts said. Many analysts also pointed to Vietnam’s present economic uncertainties and the policy risks evident in China as the government moves to cool the residential property market in major cities amid fears of overheating.

Although many developed economies, with the exception of Australia, are still facing uncertain economic growth prospects, there are still opportunities to be tapped by property players, analysts said.

In a report last month, CB Richard Ellis (Australia) senior managing director Rick Butler said Australia’s property market showed a pick-up in activity in April after a slow start for the year as buyers began shifting focus towards other Asia-Pacific markets following the Japan earthquake.

“Australia continues to record a noticeable increase in enquiries from Asia-based funds looking to deploy capital previously earmarked for Japan,” Butler said.

Butler expects the pace and volume of real estate transactions in Australia to pick up in the coming months as more assets are made available for sale.

Last month, Magna Prima Bhd announced that it had entered into an agreement to purchase a freehold high-rise apartment project in Melbourne from its developer which had already sold about 62% of the project. The property, named Dynasty Living, is a 25-storey residential development with 320 apartment units which will commence construction in 4Q of 2011.

However, the latest giant to pit its fortune Down Under is S P Setia Bhd which recently launched its maiden Australian property project, the Fulton Lane high-rise apartment and commercial development in Melbourne.

S P Setia is also embarking on joint ventures to develop property in Hangzhou, China, and had recently acquired a project for development in Singapore as it continues its endeavours in Vietnam.

Fulton Lane is a mixed-use project comprising retail space and two blocks of residential units in the northern part of Melbourne’s central business district, with a GDV of A$470 million (RM1.5 billion) and is slated for completion in 2014. S P Setia released about 297 units under Fulton Lane’s Phase 1 launch while Phase 2 will offer over 400 units.

S P Setia’s Fulton Lane property saw strong take-up rates of 70% of its Phase 1 during a recent preview launch, which bodes well for the developer given its ambitions to expand its landbank in Australia.

Australia has managed to escape economic recession during the 2008 global credit crisis, thanks to its booming mining sector, making it an attractive investment destination in the Asia-Pacific region.

Australia’s growing population and a shortfall in housing supply, particularly in the major capital cities of Sydney and Melbourne, have also attracted the interest of investors from Singapore, Indonesia, China and Hong Kong.

Sam Nathan of independent Australian property consultancy firm Charter Keck Cramer noted that Melbourne had been attracting Asia-based property developers and investors in the last five years.

There are currently about 16 high-rise residential projects being undertaken by Asian developers in Melbourne’s inner city region, Nathan told reporters in a recent briefing in Melbourne.

To cope with population growth, Nathan said property players need to deliver 35,000 dwellings per annum but are only completing about 26,500 housing units annually in Melbourne.

Melbourne and Sydney are facing shortfalls in residential properties as demand continues to be driven by immigration-fuelled population growth, rising student population and lifestyle changes.

“This is not a speculative boom. This is a response by the property development community to the fundamental need for dwellings,” he said.

Nathan, however, concedes that prospects appear bright for now, given Australia’s economic prosperity on the back of its booming resources sector due to consumption by China and the Asia-Pacific region.

Like the Vietnam experience, only time will tell if the ventures to the developed economies prove a winning bet in the medium term.

This article appeared in The Edge Financial Daily, July 11, 2011.

From The Edge --What is so wrong about peaceful demonstrations?

2011-07-11T10:25:00.000+08:00

What is so wrong about peaceful demonstrations?
Written by By Azam Aris
Tuesday, 05 July 2011 14:19

As a journalist, I like to revisit some of the issues I have written about. I have gone back to quite a few lately, mostly to update myself and the readers to see if things have changed for the better or remain the same. If there haven’t been any improvements and issues have not been resolved amicably, then there hasn’t been any progress and we are not moving forward as a nation.

Back in 2007, there were a lot of “walks”. Lawyers and their supporters went on a “walk of justice” to Putrajaya to seek the setting up of a Royal Commission to look into the VK Lingam tape. Bersih, the coalition for free and fair elections, was on the road to demand reform of the electoral system, while the Hindu Rights Action Force took to the streets to highlight the plight of the Indian community. Many others took to walking that year and some chose to because they had an occasion to celebrate, for example, International Human Rights Day.

All these demonstrations were deemed illegal by the government as they were not issued permits by the police. But let them walk peacefully, I commented, as there are ways to do it without the risk of havoc and civil unrest.

I quoted a New SundayTimes interview with elder statesman Tun Musa Hitam, the former deputy prime minister, who said as a nation celebrating its 50th independence (then), a multiracial Malaysia was more than ready for peaceful assemblies, and agreed that freedom of expression was not just a middle-class idea.

“Peaceful assembly relates to the right to free expression, the right that is given to human beings to express their views … Freedom in a democratic society is quite clear. People do have a right to demonstrate and they must be given the right,” he said.

In the same article, I pointed out that the Human Rights Commission of Malaysia (Suhakam) had expressed regret that the government had ignored its repeated calls to repeal the law requiring permits for public assemblies and processions. Former attorney general Tan Sri Abu Talib Othman, who was Suhakam chairman at the time, was quoted by The Star: “In London, you can hold peaceful assemblies and the police are around to prevent public disorder. But here, a group needs a permit even to submit a memorandum.

“The possibility of public disorder should be based on evidence, not speculation or imagination. Unfortunately, a gathering of three is an assembly under Section 27 of the Police Act. The intention is irrelevant. Suhakam wants Section 27 repealed because it goes against the Universal Declaration of Human Rights and appears to be inconsistent with the spirit of the Federal Constitution.”

Nearly four years on, this issue about the right to peaceful assembly remains in a muddy quagmire, with no solution in sight. No permits, no rally, no demonstration and no walk. Progress has not been made on how to move forward. There are still no guidelines on how Malaysians can carry out peaceful demonstrations despite the numerous recommendations presented to the government, including proposals by Suhakam, and many effective methods implemented overseas that we can follow.

The right to peaceful demonstration is actually not a complicated matter if the government has the political will. If there were accepted guidelines and rules of assembly, many of the problems today, including parties antagonising each other and bringing up racial issues, could have been avoided.

Instead, the police have made more arrests and questioned Bersih organisers. The Home Ministry has even declared Bersih T-shirts illegal as they are associated with an illegal rally — developments that would not score well for us when it comes to our international human rights ranking.

But Bersih still wants to walk on July 9 — and it wants the police to identify the route — because it feels that since 2007, many flaws have persisted in in the electoral system. The group’s eight demands are reasonable enough, and these include a clean electoral roll, reformation of the postal ballot, use of indelible ink to reduce voter fraud, a minimum 21-day campaign period, free and fair access to media, the strengthening of public institutions to act independently and impartially in upholding the rule of law and democracy, the end of corruption by acting against all allegations of corruption including vote buying and an end to dirty politics.

The Election Commission says it is looking into the demands, but it did not help matters when it admitted to a major error in the electoral roll where six individuals were wrongly registered to the house address belonging to the mother of opposition Gombak MP Azmin Ali.

Malay rights groups Perkasa and Umno Youth also want to walk the same day to present their counter views and express their feelings — some of which have already been expressed in a very aggressive way. The police are perceived as being unfair as arrests have been made against opposition members and Bersih organisers but not against Umno Youth when it demonstrated without a permit in front of the PKR head office and allegedly threatened to burn down the building, ironically, just a few shophouses away from a police station.

Suhakam has maintained its stand and urges the government to allow Bersih 2.0, Perkasa and Umno Youth to exercise their constitutional rights in an orderly and responsible manner. At press time, the police are adamant about stopping the July 9 rally.

So where do we go from here? Let the issue remain unresolved without a workable guideline for many more years to come? Can we continue to deny Malaysians their constitutional rights? Can we become the developed and high-income nation that we aspire to be by limiting what is considered a fundamental right in all developed nations?

The history of the nation’s independence began with Malayans, notably Umno and the Malay pressure groups, demanding that their rights be respected. If not for peaceful street demonstrations, which the British colonial rulers allowed, the Malays would not have defeated the Malayan Union in 1948 — a new British administration that was aimed at further usurping the political power of the Malays and their rulers.
So what is so wrong about peaceful demonstrations today?

Azam Aris is executive editor at The Edge. Comments: feedback@bizedge.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it

BToto: Numbers bode well for dividend

2011-07-07T12:14:00.002+08:00

BToto: Numbers bode well for dividend
Written by Insider Asia
Wednesday, 06 July 2011 11:48

Berjaya Sports Toto may have disappointed the market slightly when it announced a lower-than-expected dividend for the financial year ended April 2011. The gaming company is among the higher yielding stocks on the local bourse, a characteristic that has appealed to investors, especially in times of market uncertainty.

Indeed, high-yielding stocks, including real estate investment trusts (REITs), may be fairly good investments at this point with bank deposit rates staying near the lower end of their historical range and concern over slowing global economic growth dampening sentiment for the broader market.

Berjaya Sports Toto declared a final dividend of three sen per share in conjunction with its 4QFY11 earnings results. That brings total dividend for the year to 21 sen per share, compared with 25.2 sen for FY09 and 27 sen per share for FY10. At the current share price of RM4.43, shareholders will earn a net yield of 4.7%, still decent though not quite up to expectations. The stock will trade ex-entitlement for the final dividend on July 8.

On a positive note, the company’s gearing improved to 22% as at end-April 2011 with net debt totalling RM98.9 million, down from 40% in the previous financial year. The strengthening of its balance sheet should pave the way for higher dividends going forward, especially on the back of expectations of better earnings.

The company’s earnings for 1HFY11 were hurt by the increase in pool betting duties from 6% to 8% in June 2010. Net profit fell by more than 36% year-on-year for the first six months of its financial year. The negative impact was offset by the subsequent reduction in prize payout from RM200 to

RM100 for the 4D Big special prize in December 2010. Earnings recovered smartly, net profit was up a strong 21% y-o-y in 2HFY11. Nevertheless, net profit for the full-year was still down by some 9% at RM348.1 million.

The double-digit earnings recovery should continue into 1HFY12, given the low base effect, before tapering off in the second half of the financial year. Overall, we estimate net profit will expand to roughly RM406 million.

Dividends should rise in line with the higher earnings. Total dividend payout for FY11 was equivalent to about 82% of net profit. Assuming a similar payout level, dividends should total some 25 sen per share. That would raise investors’ net yield to a more attractive 5.6%.

Its valuations too appear fairly decent, estimated at roughly 14.6 times our estimated forward earnings. Indeed, its prices and yields compare quite well with the usual suspects for historically high yields.

The company recently launched a new 4D Jackpot game, previously offered only by rival Magnum, which has seen positive response from the gaming public. Market observers believe the new game is a much needed boost for the company to protect its market share, which has declined over the past two years.

Nevertheless, growth prospects for its underlying gaming business are expected to remain somewhat pedestrian. Turnover growth is expected to be in single digits. Thus we suspect its relatively high yields will continue to be the stock’s main draw, and should provide good floor support to Berjaya Sports Toto’s share price.

Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

This article appeared in The Edge Financial Daily, July 6, 2011.
Nice article to read and share as I owned some BJ Toto, may be times to relook at the fundamentals and buying in some more ?

5 Easy Steps to Becoming a Millionaire

2011-07-04T19:45:00.002+08:00

5 Easy Steps to Becoming a Millionaire Erin Joyce
Wednesday, May 18, 2011

Who wouldn't want to be worth a million dollars? Many of us dream of achieving this goal, more often than not for the sake of the freedom financial stability would bring. So how can we get there? The answers are actually much easier than you might expect. Here are several easy steps to get you into the millionaires' club. (With a little discipline and the help of some powerful savings vehicles, anyone can hit this mark.)

1. Only Marry Once(haha, interesting!)
According to "The Millionaire Next Door" by Thomas J. Stanley, Ph.D and William D. Danko, Ph.D, the average millionaire is married with three children. The wives of these millionaires are good budgeters and most often described as even more frugal than their husbands. Interestingly, according to Stanley and Danko's survey, half of these wives do no work outside the home and of those who do, they are most likely teachers.

One upside of only marrying once is avoiding the costs of divorce and of subsequent weddings. The cost of a divorce depends on many factors including income, attorney fees, court fees, and the assets a couple has and how they are divided. The average wedding cost in the United States in 2010, according to The Wedding Report.com, was $24,070.

2. Live Off One Income
One of the advantages of having a life partner is the potential to pull in two incomes. If you are able, consider structuring your set expenses based on only one income, and save what comes in from the other income. Doing so strengthens your financial position in two ways: In case of an emergency or if one partner loses their job, you will not only have less set expenses to cover, but you will also have built up your net worth as a safety measure.

3. Choose the Right Career
According to The Millionaire Next Door, "self-employed people make up less than 20% of the workers in America but account for two-thirds of the millionaires." The book goes on to list an average of 45 to 55 hours spent working per week, so by no means is this the self-employed fantasy of playing golf while your business grows.

The idea of the "right" career can encompass a myriad of factors. Ideally, this would be a career you enjoy, otherwise you likely won't be putting in the dedication required to be successful. The right career would also coincide with overall working trends, or at least not work directly against them. For example, starting a career in typewriter manufacturing may be something you are passionate about, but it would likely suffer due to the current technological trends.

4. Put Your Money in Appreciating Assets
According to Stanley and Danko, the millionaires in their survey invested nearly 20% of their realized household income each year. Nearly 20% of the household's wealth is held in "transaction securities such as publicly traded stocks and mutual funds" and the millionaires tended to rarely sell their equities. Only a very small number of the millionaires surveyed had ever leased a car; few even drove the current year model. Half of those surveyed had lived in their homes for more than 20 years, which, as the authors point out, means they have likely enjoyed "significant increases in the value of their homes."

The end result? These people put a financial priority on assets that will make them money, from their homes to their businesses.

5. Don't Live the Millionaire Lifestyle
Warren Buffett's frugal lifestyle (especially relative to his net worth) is the go-to example for this point. The average value of the surveyed millionaires' homes was $320,000. The bottom line is, those who spend their money on non-appreciating assets cannot put that same money in an asset that will net them a return and increase their wealth. If it is important to you to build your financial worth, stop spending it on new cars, toys and clothes. (The Oracle of Omaha has a net worth in the billions, but his lifestyle is not as rich as you may think.)

The Bottom Line
Becoming a millionaire is easier than ever. While this is a dream that will take work and discipline to achieve, it isn't as far out of reach as you might think. Be smart with your money and before you know it, you'll be able to count yourself among the world's wealthier citizens.

This article is part of a series related to being Financially Fit

Top 5 Tips to Build Wealth and Success

2011-06-30T12:56:00.002+08:00

Warren Buffett is worth $45 billion. That wealth isn't only a factor of savvy investing and good business — the "Oracle of Omaha" is also known as a penny pincher. Buffett still lives in the same Omaha, Neb., home he bought in 1958 for $31,500.

Follow his frugal formula, and you too may wind up with a lot more money than you ever dreamed.

This week Financially Fit covers five tips to build wealth and success.

1. Live Below Your Means.
Being wealthy isn't just a product of your salary or investment prowess; it's learning how to save.

"We can make a lot of money, you can make a little bit of money, but the second you spend all the money is when people get into trouble. Saving is the key to preserving your wealth," says Ed Butowsky, managing partner of Chapwood Capital Investment Management, a firm that manages money for wealthy individuals.

As many Americans realized during the booming real estate market, just because you think you can afford something doesn't mean you should buy it. Keeping an eye on your bottom line will pay dividends over the long term.

2. Bounce Back From Defeat

With nearly 15 million workers unemployed right now in the U.S., it's easy to get discouraged. Don't! Most successful and wealthy people have overcome obstacles and failure along the way. Steve Jobs was ousted from Apple when he was 30. Today, he's a billionaire and a legend. Plus, after getting fired, he created another billion-dollar media company, Pixar.

"Bouncing back from defeat is something all great achievers have. They have this undying belief good things will happen and will continue to happen," says Butowsky.

Take Michael Jordan. "His airness" was cut from his high school basketball team. Motivated by the rejection, Jordan became a star the next season. The rest is history.

3. Self-Promote

Regardless of the profession, the rich and successful tend to have a strong sense of self-worth — key to skillfully navigating an upward career path. Mark Hurd, who was ousted as CEO of Hewlett-Packard in August, couldn't be kept down for long. Using his business skills and connections, in September, Hurd was named president of Oracle. (Hurd and Oracle founder Larry Ellison are known to be close friends.)

4. Have Street Smarts

Bernie Madoff lived the high life for decades, scamming unsuspecting clients, with a money-making formula that proved too good to be true. Only afterward did we learn that with a little due diligence, most clients could have easily uncovered the fraud.

But it's not only the swindlers and the con men you have to watch out for. Many times, friends and family take advantage of the rich. Whether it's a handout or an investment idea, Butowsky advises his high net worth clients that in most cases, it's wisest to just say "no." The best way to do that: have someone else do it for you.

"You need to really set up a wall between you and your family," he advises. "If you don't want to give them (family or friends) money ... saying no is probably a good idea."

5. Buy Cheap

The rich can afford to splurge, but that doesn't mean they do.

John Paulson, a billionaire hedge fund manager, bought his Hamptons "dream house at a bargain basement price," according to Greg Zuckerman, author of the Paulson-based book, "The Greatest Trade Ever." The story has it that Paulson eyed the home while it was in foreclosure. Finally, on a rain-soaked day, he purchased the home on the Southampton town hall steps. He was the only bidder.

On New York City's Upper East Side, Michael's— The Consignment Shop for Women— has been a bargain-hunting destination for more than 60 years. "We have a good percentage of women who can afford to shop on Madison Avenue but really like the idea of saving that money," says proprietor Tammy Gates.

From Chanel to Gucci and Louis Vuitton, the store specializes in high-end designer merchandise for a reasonable price. Speaking of her clientele, Gates says, "they're wealthy for a reason. They recognize that bargains keep people wealthy. Paying top dollar when you don't have to doesn't make sense."

This article is part of a series related to being Financially Fit

got a call from 03-27818181

2011-06-27T20:42:00.003+08:00

Today is Monday and usually a busy day for a GP's clinic and I got this stupid call 03-27818181~ 2.30pm. A Malay lady claiming from AIA insurance representing Visa wanting to ask me three questions and if answered correcting I may get to win a Samsung Galaxy!!! Wah !But before she can finish talking I felt so annoyed( being so tired in the morning and haven't taken my lunch) and keep on asking her what is the bank that gave her my handphone no.She can't answer and finally give up and promise will call back ~5.30pm

And of course she didnot call back and I google and found out so many people got this stupid marketing call form AIA, read it
http://whocallsme.com/Phone-Number.aspx/0327818181/3

NINE Things That Will Disappear In Our Lifetime

2011-06-27T10:41:00.003+08:00

This is an email from smartbiz, thanks.

Subject: NINE Things That Will Disappear In Our Lifetime

Whether these changes are good or bad depends in part on how we adapt
to them. But, ready or not, here they come.

1. The Post Office
Get ready to imagine a world without the post office. They are so
deeply in financial trouble that there is probably no way to sustain
it long term. Email, Fed Ex, and UPS have just about wiped out the
minimum revenue needed to keep the post office alive. Most of your
mail every day is junk mail and bills.

2. The Cheque
Britain is already laying the groundwork to do away with cheque by
2018. It costs the financial system billions of dollars a year to
process cheques. Plastic cards and online transactions will lead to
the eventual demise of the cheque. This plays right into the death of
the post office. If you never paid your bills by mail and never
received them by mail, the post office would absolutely go out of
business.

3. The Newspaper
The younger generation simply doesn't read the newspaper. They
certainly don't subscribe to a daily delivered print edition. That may
go the way of the milkman and the laundry man. As for reading the
paper online, get ready to pay for it. The rise in mobile Internet
devices and e-readers has caused all the newspaper and magazine
publishers to form an alliance. They have met with Apple, Amazon, and
the major cell phone companies to develop a model for paid
subscription services.

4. The Book
You say you will never give up the physical book that you hold in your
hand and turn the literal pages. I said the same thing about
downloading music from iTunes. I wanted my hard copy CD. But I quickly
changed my mind when I discovered that I could get albums for half the
price without ever leaving home to get the latest music. The same
thing will happen with books. You can browse a bookstore online and
even read a preview chapter before you buy. And the price is less than
half that of a real book. And think of the convenience! Once you start
flicking your fingers on the screen instead of the book, you find that
you are lost in the story, can't wait to see what happens next, and
you forget that you're holding a gadget instead of a book.

5. The Land Line Telephone
Unless you have a large family and make a lot of local calls, you
don't need it anymore. Most people keep it simply because they've
always had it. But you are paying double charges for that extra
service. All the cell phone companies will let you call customers
using the same cell provider for no charge against your minutes

6. Music
This is one of the saddest parts of the change story. The music
industry is dying a slow death. Not just because of illegal
downloading. It's the lack of innovative new music being given a
chance to get to the people who would like to hear it. Greed and
corruption is the problem. The record labels and the radio
conglomerates are simply self-destructing. Over 40% of the music
purchased today is "catalogue items," meaning traditional music that
the public is familiar with. Older established artists. This is also
true on the live concert circuit. To explore this fascinating and
disturbing topic further, check out the book, "Appetite for
Self-Destruction" by Steve Knopper, and the video documentary, "Before
the Music Dies."

7. Television
Revenues to the networks are down dramatically. Not just because of
the economy. People are watching TV and movies streamed from their
computers. And they're playing games and doing lots of other things
that take up the time that used to be spent watching TV. Prime time
shows have degenerated down to lower than the lowest common
denominator. Cable rates are skyrocketing and commercials run about
every 4 minutes and 30 seconds. I say good riddance to most of it.
It's time for the cable companies to be put out of our misery. Let the
people choose what they want to watch online and through Netflix.

8. The "Things" That You Own
Many of the very possessions that we used to own are still in our
lives, but we may not actually own them in the future. They may simply
reside in "the cloud." Today your computer has a hard drive and you
store your pictures, music, movies, and documents. Your software is on
a CD or DVD, and you can always re-install it if need be. But all of
that is changing. Apple, Microsoft, and Google are all finishing up
their latest "cloud services." That means that when you turn on a
computer, the Internet will be built into the operating system. So,
Windows, Google, and the Mac OS will be tied straight into the
Internet. If you click an icon, it will open something in the Internet
cloud. If you save something, it will be saved to the cloud. And you
may pay a monthly subscription fee to the cloud provider. In this
virtual world, you can access your music or your books, or your
whatever from any laptop or handheld device. That's the good news.
But, will you actually own any of this "stuff" or will it all be able
to disappear at any moment in a big "Poof?" Will most of the things in
our lives be disposable and whimsical? It makes you want to run to the
closet and pull out that photo album, grab a book from the shelf, or
open up a CD case and pull out the insert.

9. Privacy
If there ever was a concept that we can look back on nostalgically, it
would be privacy. That's gone. It's been gone for a long time anyway.
There are cameras on the street, in most of the buildings, and even
built into your computer and cell phone. But you can be sure that
24/7, "They" know who you are and where you are, right down to the GPS
coordinates, and the Google Street View. If you buy something, your
habit is put into a zillion profiles, and your ads will change to
reflect those habits. "They" will try to get you to buy something
else. Again and again.

All we will have left that can't be changed are "Memories".
And then probably Alzheimers will take that away from you too !

A good article about forward PE

2011-06-26T10:59:00.003+08:00

reading through the blogs in the morning, snowball of
good stock bad stock- Finance and Investment through a skeptic's eyes has highlighted a good article for reading Value Restoration Project
Do give it a good read!

Run, Don’t Walk, Away From Forward P/Es
Posted on: 2011/06/20, In: Investment Philosophy, Secular Cycles
One of the most consistent messages I’ve heard throughout my career is that the market is inexpensive or at least “fairly valued” based on next years earnings. We hear it at heights of euphoria and the depths of despair. I don’t recall ever hearing the consensus or even a vocal minority calling the market overvalued based on forward earnings estimates. In fact, we rarely even hear perma-bears cite high P/Es based on forward estimates as the primary cause for concern. Over a decade with low and often significantly negative returns, how can that be?

A Flawed Exercise

What makes market calls based on forward P/Es so dangerous is that the concept makes such good intuitive sense. We know the market’s primary function is to look forward and discount the future back to the present. We know that valuation, as James Montier puts it, is “the closest thing we have to a law of gravity” in finance. We know that earnings, while flawed in many ways (another discussion for another day), are essentially what investors want to pay for. To confuse matters worse, when analyzing an individual company’s stock, skilled investors absolutely would want to forecast forward earnings, make pro-forma adjustments from GAAP and then estimate a fair value based on a P/E multiple of that estimate.

Valuing the market on forward earnings estimates is a flawed exercise which often leads to incorrect assumptions about future market returns. It just doesn’t work very well.the rest of articles

Bullish outlook for two IPOs

2011-06-25T11:33:00.003+08:00

Bullish outlook for two IPOs
By LEONG HUNG YEE
hungyee@thstar.com.my

KUALA LUMPUR: Despite the sluggish performance of initial public offerings (IPOs) in major markets, investors and analysts are generally bullish on the IPOs of MSM Malaysia Holdings Bhd and Eversendai Corp Bhd next week.

Analysts said the IPOs were expected to be well-received despite the perceived lack of quality offerings on the market recently

They said the two IPOs were “likely to garner attention” of large institutional investors given its size. “There's also a sheer diversity of companies being listed, which gives investors a better choice to diversify their portfolios,” an analyst said.

OSK Research head Chris Eng said MSM and Eversendai might be considered “small” to foreign investors and as such were unlikely to be affected by regional sentiments.

However, he said Eversendai would have to compete for funds not only with MSM but also Bumi Armada.

“We feel positive about MSM given its strong government ties, defensive business model and leading position in the Malaysian sugar industry. The fact that its shares are in demand and it has just reported a strong jump in profits points to a good debut,” Eng said.

MSM's net profit for the first quarter ended March 31 soared 416.5% to RM62.2mil from a year ago, mainly due to increase in sales and higher prices of refined sugar products.

Revenue for the quarter rose to RM503.17mil from RM497.75mil.

“The positive sentiment could be attributed to the better quality of these soon-to-be listed companies which have strong financial track record,” the analyst said adding that the recent strong financial results posted by MSM would attract investors.

He added that investors' appetite for these mega IPOs appeared to be returning after a dismal performance from few ACE counters recently.

MClean Technologies Bhd and XOX Bhd have been underperforming since it got listed. MClean made its debut on the ACE Market last month at an IPO price of 52 sen. The counter closed at 25.5 sen yesterday, half its IPO price. XOX fell 35% on its debut to 52 sen from its IPO price of 80 sen. A day before listing, the mobile virtual network operator announced it made a net loss of RM1.67mil for the quarter ended March 31, 2011. The counter continued to slide, closing at 41 sen yesterday.

“Not all the newly-listed companies are seeing bad performances in their stock prices. The perception is there because a few of the recent listings are not doing very well.

“But Focus Lumber Bhd, Boilermech Holdings Bhd, Asia Media Group Bhd and Benalec Holdings Bhd are performing well. So, it also boils down to the company,” said a local fund manager.

Analysts said Prada SpA and Samsonite International IPOs on the Hong Kong Stock Exchange did not get the type of reception they were looking for. Prada's shares were traded flat on their debut on the Hong Kong stock market yesterday. Samsonite, which fell 8% on its Hong Kong debut last week, has recovered its losses and was trading at HK$14.58 early yesterday - slightly higher than its listing price of HK$14.50.

Nevertheless, analysts did not expect the regional sentiments to affect the listing of MSM and Eversendai.

Year-to-date, Bursa Malaysia has received 16 new companies. Besides Eversendai and MSM, other mega IPOs this year are Bumi Armada and UOA Development Bhd.

Bumi Armada is expected to be listed this year while Old Town Bhd announced its plan to list on Bursa Malaysia's Main Market on July 11.

Eversendai IPO's institutional offering had amounted to more than 2.5 times the 202.04 million shares on offer to investors under the bookbuilding exercise, while the public portion was 7.3 times oversubscribed. The final institutional price has been fixed at RM1.70.

Still bullish?I can't remember when is the last time I apply for an IPO, even missing the not too long listing of PETROCHEM,why?Not in the mood to analyse all these IPO, it will take up too much of my time.I would to just do a follow-up of whatever exiting stocks that I owned.

'Red-flagged' firms hit by investor backlash

2011-05-07T11:12:00.003+08:00

a good article for weekend reading and further research

'Red-flagged' firms hit by investor backlash
by Goh Thean Eu

Kuala Lumpur: Companies that were red-flagged by auditors and those that reported stark difference in their audited net earnings, saw their stocks punished by investors yesterday.

The selldown in some of the companies was systematic, as investors were wary of their long-term prospects.

Since Friday, some 16 companies either had their books qualified by external auditors, or had revealed significant variance in their audited net earnings.

From the 16, eight companies saw their share prices fall, while two closed unchanged. Shares in the other six companies were untraded yesterday.

Sumatec Resources Bhd saw its share price fall by as much as 48 per cent to close the trading day 13 sen a share.

The Sumatec warrant, which also one of the top 10 actively traded securities fell by more than 50 per cent to 7 sen.

Sumatec's auditors SJ Grant Thornton was not convinced of the company's ability to secure new contracts.

The auditor highlighted that Sumatec did not impair goodwill on its subsidiary's consolidation and deferred tax assets of RM33.48 million and RM13.15 million respec-tively.

It also added that the company's trade receivables of RM5.91 million have been long outstanding and not impaired."

I think, in most cases, the auditors are just making sure that provisions are being made on uncollectable debts. The rule of thumb today is to make provision for debts that can't be collected in six months," said Jupiter Securities head of research Pong Teng Siew.

Other notable stocks that fell include DBE Gurney Resources Bhd and Alam Maritim Resources Bhd.

DBE's shares fell by more than 5 per cent after it reported an audited net loss of RM3.71 million, more than 17 times of its unaudited net loss of RM202,000.

Meanwhile, Alam Maritim's shares fell by 4 per cent after it announced an audited net loss of RM12.9 million for the financial year ended December 2010, as compared to its unaudited net profit of RM2.2million

According to analysts, these variance between unaudited and audited numbers will, to a certain extent, change investors' long-term view of the companies."

As you can see in today's selldown in some of the stocks, investors do take into account all these. Variations like these will make investors cautious of a company's sustainability and the credibility of its unaudited accounts," OSK Research head of research Chris Eng added.

While most analysts feel that most of these "incidents" are mainly driven by companies' misinterpretation of the new accounting standards, some feel that it could be a sign of more bad news to come."

I think we can't discount the fact that it may be a prelude to bigger adjustments later," said Pong.

Technology can never replace human touch

2011-04-25T19:45:00.002+08:00

Technology can never replace human touch

Monday Starters - By Soo Ewe Jin

http://biz.thestar.com.my/news/story.asp?file=/2011/4/25/business/8531110&sec=business#13037318235001&if_height=757

COMMUNICATION is a two-way process. Someone wants to share information, and someone must be willing to receive that information.

Whether the information is sent via a smoke signal, like in the days of old, or through the latest technology, it is totally useless unless it is received, processed and acknowledged.

We may rejoice that we have lots of e-mail storage space, and that we can stay in touch with anyone, anywhere, anytime. But the reality is that you probably only want to stay connected with a handful of people, and the bulk of those connected to you are conveniently ignored.

If we choose to ignore e-mail from people we know, what more unsolicited e-mail?

The Internet works in a rather mysterious way. People hunt for information and if that proves interesting, it will spread like wildfire. Even a local video clip on how snatch thieves attacked a lone motorist in Section 16 has been watched by more than 350,000 people.

Security consultant Benjamin Seow is amazed how people have flocked to view this clip after he posted it online. But I reckon that if he had offered the clip to, say the police, for it to be uploaded on the official police website as a form of public education, it would not have generated such traffic.

A friend who works for a major airline was sharing with me the amazing viral campaign they did recently which was so successful that the system crashed and they had to postpone the launch by another week. It turned out pretty well in the end, with sales hitting record highs. He is now spending long hours trying to figure out the power of new media.

The Internet is full of such stories, which is why the big guys, even with their fantastic resources, generally cannot fathom how a seemingly unknown person can create a bigger impact than them.

I think at the end of the day, it is about making people feel special.

In recent weeks, I have received many thoughtful e-mail and letters from many people, near and far. You cannot template such forms of communication because everyone has gone the extra mile to pen those words to me. And so, my response is to do likewise.

People click when there is genuine communication, not because it is being forced onto them.

Back in 1996, during the great national blackout, I observed how the Tenaga Nasional Bhd (TNB) staff worked non-stop to restore power. When they came to my neighbourhood, one person angrily told them that the food in his fridge had gone bad, he could not watch TV, and that it was too hot to stay indoors.

One of the workers replied, “Sorry for the inconvenience, but I have not even had the chance to go home and see my family for the past 48 hours.”

That effectively silenced the whiner and we all gave the TNB crew a round of applause after they finished their work.

I subsequently wrote an e-mail to the then TNB CEO Tan Sri Dr Ahmad Tajuddin Ali, thanking him for all the hard work his staff had put in. Those were the early days of the Internet and there were no Blackberries and IPhones that connected such senior people to the masses, so I wasn't expecting a reply.

But I did get a reply. A really personal reply where he expressed his thanks that he finally got one positive e-mail from the slew of thousands of angry e-mails and phone calls, especially from VIPs demanding their power be restored first. I was just an ordinary consumer saying thanks but the information was conveyed at the right time and at the right moment, and so it made a difference.

So, to those who want to communicate, be it to millions of people at any one time, or to just that one special person, remember that there is one thing that technology can never replace. It is called the human touch.

Deputy executive editor Soo Ewe Jin wonders if it is possible for some technopreneur to harness the innate ability of a wife to walk by her husband who is quietly reading the newspaper in the living room and say, without any prompting, “Don't even think about it!”

------this is another good article to share, I like the first sentense "COMMUNICATION is a two-way process. Someone wants to share information, and someone must be willing to receive that information."
------Those higher up, please remember communication is a two way traffic, never ever try to force anything on us, please!

Making Money From Hobbies --can you do that ?

2011-04-24T11:39:00.003+08:00

Making money from hobbies

By EUGENE MAHALINGAM
eugenicz@thestar.com.my

A HOBBY can be more than just a pleasant past-time activity. With some effort and perhaps a little bit of luck, it can make you money. One famous example is Famous Amos, the popular US-based cookie company.

While not many will strike gold with their hobbies like the founder of Famous Amos, here are some examples of individuals who have managed to turn their favourite past-times into decent money churners.

Adelyn Koh currently owns and runs the Junk Book Store, which, according to the Malaysia Book of Records, is the biggest second-hand bookstore in the country.

But the idea of selling second-hand books actually started from a hobby, or rather passion for old books, says Koh.

Adelyn Koh with one of the old books available at the store.

“Yes, it started from a hobby of my husband's. He used to collect a lot of books and then one day we felt, why not try selling them?”

The rest, as they say, is history. Koh now operates from a three-storey shoplot in Jalan Tun H.S. Lee, which is just five minutes away from Central Market a long way from humble beginnings of selling books from a 600 sq ft room in Jalan Ampang.

Junk Book Store, established in 1990, today has an inventory of more than one million rare and used books, with the oldest book dating back to the 19th century.

Many individuals are known for “being good with their hands,” and don't realise its significance until someone else starts appreciating it.

For Ratnam, 58, who resides in Johor, tinkering with his 1967 Volkswagen Beetle when he was in his 20s was nothing more than just a weekend hobby.

“I started small, first just changing the engine oil and perhaps adjusting the brakes. Than I moved on to bigger jobs, like engine overhaul and transmission replacements. It was always a hobby and I had no intention of doing it for profit,” he says.

Then one fine day, a friend, who also owned a Volkswagen Beetle, couldn't get it started and went to Ratnam for help.

“I managed to diagnose the problem quickly and got it started,” he says, adding that he did not charge his friend in return for the help.

“My friend kept coming back for minor jobs and would occasionally introduce me to some of his associates (who also owned Volkswagen Beetles) and they started bringing their cars to me for repairs.

“I never asked for payment but many of them felt obliged to pay me. Now, more than 20 years on, I still get people coming to me to repair their (Volkswagen) cars for them and it provides me with some pocket money,” says Ratnam.

A retired postal worker, Ratnam says he's practically a full-fledged mechanic today.

“It started out as a hobby. Little did I know it would help me make extra money now that I'm retired.”

Khatijah, 64, from Kuala Lumpur, used to bake cookies for her son, a banker, and his colleagues. Soon, word spread and she was preparing food for the entire office.

“I first started baking them on weekends for the family. My son would take the remaining biscuits to work the next day. Initially, I started making extra because his colleagues also wanted to taste the cookies.

“Soon, I started getting requests from the bank manager himself. Some of them wanted the cookies for their family and friends and the orders started getting bigger,” Khatijah says, adding that she makes a “nice small income” from her cookies and biscuits.

Many individuals who are active in sports or just do it as a hobby have managed to reap more than just its “health benefits.”

Kepong Baru-based Universe Gym manager-cum-trainer John Anthony was just a regular member at the gym when it began operations in the late-80s. Then, it was owned and run by a close friend of his.

“I would go to the gym in the evenings to exercise, just like anyone else. I would help to take over whenever my friend had to leave the gym to attend to personal matters.”

Due to unforeseen circumstances, John's friend passed away and the gym was closed for about a month.

Fearing that the business would be sold off, John took it upon himself to reopen the gym and manage it on a temporary basis until a suitable partner could take over its operations.

“No one else wanted to take over and the gym was just idling away. I felt that it would have been a waste if it was shut down,” he says.

That was in 1996. Fast forward to today and John is still running the gym. What's more, business has grown and its members have more than tripled.

“We've also shifted to a bigger location and (we're) now the most hard-core gym in Kepong,” he says in jest, adding that he now mans the gym on a daily basis and earns a reasonable side income from it.

John says most of the money is used to maintain and upgrade the gym.

Khalid, 32, from Terengganu, aspired to become a professional football player when he was younger but opted to do something else when he realised that teaching was his true calling.

He still has a passion for the sport and on weekends organises football classes for kids.

“It was a hobby of mine (playing football) and it still is. As a teacher, my weekends are free and I thought, why not try to earn some extra income from it?”

Khalid says he started giving free football lessons to his siblings' children at a nearby field and soon “the group” got bigger.

“Today, I'm coaching kids from my entire neighbourhood,” he says, adding that he does make much from the lessons he gives.

“It's not much, but I don't really do it for the money. The money is just a bonus,” Khalid says.

----Reading through the star today and found this interesting article ---- making money from hobbies,wellsaid.I should start looking at my hobbies(so many half-hearted unproductive hobbies!) and see whether I can make something out of it.

18.4.2011

2011-04-18T10:42:00.003+08:00

So there is no surprise in the Sarawak election and the market really rebound, but can it last?
why I say so? I missed the buying?No ! just read through the Hwang dbs comments, I am still not convinced to start parking my limited funds for the BURSA.

Today's Market Preview
Our Malaysian bourse will probably kick off the week on a positive footing today. Its benchmark FBM KLCI may rise to challenge the immediate resistance level of 1,530 ahead.
Essentially, investors who trimmed their positions last week due to uncertainties over the outcome of the Sarawak state election on
Saturday could make a comeback following the victory of the Barisan Nasional ruling coalition. If so, then Sarawak-linked stocks that were sold down last week – such as Cahya Mata Sarawak, Naim and Dayang – may get a lift today.
Other counters that are likely to be of interest include: (a) Proton, in response to a news report saying that the government could be setting up an advisory council to study a proposed merger with Perodua; (b) Tomei, which has just announced a single-tierdividend per share of 3.3 sen, translating to a dividend yield of 4.9% based on its last done price of RM0.68; and (c) Smartag as it makes its debut listing on the ACE Market this morning

HOT HOT HOT! SARAWAK ELECTION!

2011-04-14T16:19:00.003+08:00

FREE TO READ NOW

http://www.malaysiakini.com/

http://www.malaysiakini.com/news/161457

WHO LOVES PEK MOH ???????!!!!!!!!

HAHAHA

Stop blogging temporarily(hopefully!)

2011-01-04T11:51:00.001+08:00

Due to unforseen circumstances, I have to stop blogging temporarily(hopefully!).

All the best to my readers and friends

JP Morgan: Buying opportunity in property share price weakness

2010-11-04T19:45:00.002+08:00

KUALA LUMPUR: JP Morgan Asia Pacific Equity Research said any weakness in share prices(not pullback?haha) from the Bank Negara Malaysia announcement on the imposition of a 70% loan-to-value cap (LVR) on mortgages for third PROPERTIES [] as “a buying opportunity”.

In a research note issued on Thursday, Nov 4 it said the new ruling was clearly targeted at speculative buyers. Genuine first and even second time home buyers would not be affected, and would still be able to obtain financing of up to 90%.

“This is in line with guidance and not a surprise to the market. The government has already provided hints on this possibility over the past couple of months. Note however that even prior to this, banks have generally been stringent with the previous 90% ceiling LVR already not a common practice as much depends on the credit profile of each customer,” it said.

JP Morgan said on balance, it remains positive. In the short term, developers with higher exposure to the more speculative condo/high rise market (namely in the KLCC and Mont Kiara area, Klang Valley) and even for high-end landed properties in certain limited hot spot locations in Klang Valley (i.e. Desa Park City, Mutiara Damansara) and in Penang, could see some softening in demand.

“Overall however, we believe the move is positive for the long term sustainability and health of the sector,” it said.

It maintained its overweight on IJM Land and SP Setia(noted with thanks but I prefer REAL PULLBACKED ONE!)but preferred the former on valuation. The more speculative condominium market accounts for no more than 20% of sales for SP Setia and 35%-40% for IJM Land.

“For IJM Land, its strong branding, attractive product portfolio at the 'Light' project, and shortage of land in Penang island, also means that it should continue to fare better than most other condo developers, in our view,” it said.

JP Morgan said both companies could also benefit from upside to earnings from new projects i.e. from the commercial KL Eco City project for SP Setia to be launched by year-end, and from the Canal City residential project for IJM Land to be likely launched in 2011.

“We see any weakness in share prices from this announcement as a buying opportunity,” it said.

It said IJM Land was currently trading at a 30% discount to its RNAV of RM3.80/share, while SP Setia is already trading close to its RNAV of RM5.20/share.

During periods of strong liquidity and foreign inflows back in 2007 coupled with healthy sector fundamentals, SP Setia traded up to a 20% premium to RNAV.

ADDED GOOD NEWS FOR PROPERTY STOCKS

UEM Land has 40.3pc support for Sunrise bid

Buying on PULLBACK!

2010-11-04T15:33:00.002+08:00

At Bursa Malaysia, property stocks may stage a mild pullback in a knee jerk reaction to Bank Negara Malaysia's (BNM) caution to lenders against irresponsible lending practices which would contribute to the build-up of excessive leverage among households.
- BNM is imposing with immediate effect the maximum loan-to-value (LTV) ratio of 70% for the third house financing facility taken by a borrower as it seeks to curb "excessive investment and speculative activity in the residential property market".
- The central bank said on Wednesday, the move was expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations.
- Economists said there could be a pullback on property stocks following the imposition of the LTV ratio, which they said was necessary.

for me ,it is time to buy on pullback,but what is pullback? newspaper, forum, websites, blogs etc everywhere you can see the word---PULLBACK

I check it from investopedia
http://www.investopedia.com/terms/p/pullback.asp

What Does Pullback Mean?
A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum.

Investopedia explains Pullback
Often pullbacks are seen as buying opportunities after a security has had a large upward price movement. It is important, however, to analyze closely any pullback as it may be a sign of a definite trend reversal or a slight pause in the upward trend, each having very different trading implications.

So it is not that easy to buy at pullback, better dig up those overpulled, enough pulled, no more pulled before buying,llet start looking or rather pulling!

Ooi Kok Hwa -- Is there a super bull run in 2010

2010-11-03T11:05:00.000+08:00

Is there a super bull run in 2010?
Personal Investing - By Ooi Kok Hwa

Although the economic situation now compares with that of 1993, the last push must come from local retail investors

THE recent rally in our local bourse has prompted many seasoned investors, especially those who experienced the super bull run in 1993, to wonder whether the current rally is about to turn into a real bull run. Of course, nobody can tell for sure what will happen next, but we certainly can do some homework, comparing the circumstances back in 1993 against the current situation.

In 1991, Tun Dr Mahathir Mohamad unveiled the philosophy of “Malaysia Incorporated” which was a development strategy for Malaysia to achieve a developed nation by 2020. In the early 1990s, despite slowdown in the global economy, as the third largest economy in South-East Asia, after Indonesia and Thailand, Malaysia was supported by relatively strong macroeconomic fundamentals and resilient financial system. With the real GDP growing at 9.9%, ringgit appreciation, strong export growth and the Government’s measures to hold inflation low at 3.6%, the local stock market became an attractive alternative to foreign investors.

Before 1993, foreign investment in Malaysia was mainly dominated by long-term direct investment in the manufacturing sector. However, as a result of measures taken to develop our domestic equity market, coupled with the strong economic backdrop, we saw a massive influx of foreign capital inflow, which helped fuel the super bull-run in 1993. Within the year, the market increased by 98% to reach an all-time high of 1,275.3 points and foreign investors’ participation accounted for 15% of total trading value of our local bourse. This had also driven the market into a highly speculative one, which lured many retailers into the market, thinking of making fast and easy money.

With the presence of new and unfamiliar players, the market became a huge “casino”. Retail investors bought into stocks based on rumours rather than company fundamentals. Among the hottest topics during that time were the awards of government mega projects, privatisation candidates, sector play and regular news on upward revision of corporate earnings. Examples for the highly speculative stocks were Ekran, Ayer Molek Rubber Co, Berjuntai Tin Dredging and Kramat Tin Dredging.

In 1993, with the economy booming, the Government planned several mega projects, including the KL International Airport (RM8bil), Johor-Singapore Second Link (RM1.6bil) and Kuala Lumpur Light Rail Transit (RM1.1bil). The news of contract awarding immediately sent the market into speculative mood on those potential candidates. Similarly, the news of the Government planning on privatising some of the its own corporations, such as Petronas, KTM and Pos Malaysia had also driven these counters into prime trading targets.

Besides, the ease of accessing bank credit by investors also contributed to the market rally. We noticed that a high percentage of loans was channelled to broad property sector as well as the purchase of securities.

As a result of massive inflow of foreign funds and the super bull run in stock market, Bank Negara introduced a number of selective capital controls in early 1994 to stabilise the financial system,

Recently, our Prime Minister Datuk Seri Najib Tun Razak unveiled the Economic Transformation Programme (ETP) with the aim to boost our gross national income (GNI) to US$523bil in 2020 from US$188bil in 2009. The programme is to attract investment not only from the Government, but also (more importantly) from domestic direct investment as well as foreign direct investment. In view of strong economic growth, our GDP growth is anticipated to increase by 6% this year.

In September, we notice that there was a net inflow of foreign funds again in our equity market. Over the past few weeks, the average stock market daily volume had been hovering above one billion shares per day. Almost every day, the top 10 highly traded stocks were those speculative stocks with poor fundamentals. In addition, we noticed that some retail investors had started to get excited again in the stock market.

According to Andrew Sheng in his book titled From Asian To Global Financial Crisis, there were two main indicators to irrational exuberance during the super bull run in 1993. The first was the amah (domestic maid) syndrome. We need to be careful when amahs got excited about the stock market. This was because they did not know what they were buying and would always be the last to sell. The second indicator was when businessmen began to speculate stocks in the stock market. This was because they might neglect their businesses and use some of their cash for speculation.

Comparing our current market situation with the 1993 bull run, there are certain similarities that we see, such as strong economic growth, ringgit appreciation, inflow of foreign capital and ease of credit. However, our local retailer participation is yet to get boiling, which may be the last push factor towards the bull run. Hence, once the participation of the local investors starts to get heated up, together with more inflow of foreign fund, that may be the signs of the market heading for a ‘mini’ super bull run.

● Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting

PARKSON and the lions....

2010-11-02T14:00:00.003+08:00

This used to be one of my favourite stock few years ago including all the other lion's companies
such as lion div, lion industry, lion corp,lionfib...you name it. With the help of a blogger friend, I even drew up a diagram showing how all the companies interlinked with each other and had a great discussion with some good friends and earned some good money. Now, I totally lost track of the lions, have to restudy back but where is my old notes and old friends? please help!

Positive Outlook for FY10 CONSUMER
· On track to meeting FY10 SSSG guidance
Parkson Holdings (PH) is expected to meet its FY10 SSSG guidance of
10-11% in China, 3-4% in Malaysia and 25-26% in Vietnam with little
difficulty. Consumer demand and spending has been supported by the
positive economic growth momentum in FY10. Malaysia is likely to
outperform forecast given the strong 11.3% SSSG registered in 1HFY10.

· Expanding store network
The group continues to extend its retail network by opening stores in new
locations, injecting minority interest stores and M&A activities.
Management continues to target an annual 15% increase in retail area
with 7-8 new store launches in the pipeline for CY10, of which 5 are in
China (3 of which have already been opened), 1 in Malaysia and 1-2 in
Vietnam. PH is also venturing into Cambodia, with its first store in the
country due to open its doors in 2HCY12.

· Alternative proxy to China’s retail growth
PH has a strong balance sheet with net cash of RM316.5m (at end-June
2010) that will enable it to fund its expansion capex. PH continues to
present a cheaper option for exposure to China’s retail market (FY11 P/E
of 17.3x compared to Parkson Retail Group’s 25.3x) and provides steady
earnings growth driven by a proven business model and continual
improvement in operating efficiency.

· Estimates unchanged
We are confident that our FY11 net profit growth forecast of 27% and
FY12 estimate of 25% will be met. Our assumptions of 7 new stores and
SSSG of 10% in FY11 are conservative and within Management
guidance.

· RM6.70 sum-of-parts target price
Reiterate our RM6.70 target price based on a sum-of-parts valuation
(utilising FY11 P/Es of 20x for China, 11x for Malaysia and 10x for
Vietnam) with a 20% holding company discount. Further, foreign
shareholding in PH stood at 22.4% (at September 2010), significantly
lower than the 30.0% peak in 2008, which would indicate a potential
further upside to share price. full report get it free from ECMlibra
https://www.ecmlibra.com/ecmlsmy/

Malaysian stock market still has legs to run

2010-11-01T21:20:00.004+08:00

Oh, reading through this articles, so optimistist about our BURSA, I dont really agree but have to keep track of my small investment, hopefully Mr Lim , my legs are strong enough to run fast when the crash or so call correction comes(Or rather my hands are fast enough to run my stocks....)

MIDF Amanah CEO says the run will be driven mainly by inflows of funds as investors start to see the full potential of the Malaysian and regional markets.

THE Malaysian stock market still has legs to run and the rally is still at the early stage, MIDF Amanah Asset Management Bhd said.

Hence, Bursa Malaysia still offers plenty of opportunities for investors, the wholly owned unit of Permodalan Nasional Bhd said.

MIDF Amanah chief executive officer and chief investment officer Scott Lim said the run will be driven mainly by inflows of funds, both local and foreign, as investors start to see the full potential of the local and regional markets.

"The market is not fair. It is very selective. The first wave of money is very particular on what they choose. They always buy the most blue-chip. They always buy the best-quality companies.

"After they have invested, they make their money and the (price-to-earnings, or PE) valuation will become too high, from 10 times to more than 15 times," Lim told the media in Kuala Lumpur last week.

The local stock market, which fell by about 50 per cent during the global financial crisis, has regained its momentum.

It has risen by some 17 per cent so far this year, and jumped 80 per cent from the 829.41 points in October 2008.

Lim said this meant that investors would have to look for better value.

"They will go and hunt for lower-valuation companies that have better growth in terms of pricing. So, the development of the market is that when it has become matured, investors will go to the next tier and when the market grows even more matured, the investors will go to the lower tiers.

"This bull market is still at the very early stage because there is still a lot of values to be found. I am not sure how many more good years the rally is going to be. It all depends on how fast they re-price this market," he explained.

Lim added that while the "smart" money had come to Asia, the next money, or next big wave, would be from those people unwilling to leave the US right now.

"But the wave will come and, when it comes, it will be bigger than the first wave," he said.

Lim also noted Asia's strong economic fundamentals, which will make it the epicentre of growth in future.

These fundamentals include a high population base, favourable demographic, accommodative interest rates, healthy government fiscal balance and strong household balance sheet.

Welcome to StockCharts.com

2010-10-28T10:50:00.003+08:00

http://stockcharts.com/

Welcome to StockCharts.com!
Who thought making great looking financial charts could be so easy? We give you the tools, the educational information, the expert opinions, and the support you need to improve your investing. While anyone can use our free tools, subscribers get access to real-time data and much more.

This is the website my friend(over the cyberworld, difficult to call someone a friend) Smartbiz from http://sensecents.blogspot.com/ recommended to me, after few days of reading through, I agree with smartbiz this is one of the best website that teach chart analysis. start with Moving Average. I like the simple description and presentation of the various technical indicators.

You should start reading from:
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators

STOCK PICK FROM JUPITER

2010-10-27T18:35:00.002+08:00

Sector to watch out:
Plantation. O&G and Steel.

Plantation:- TDM, TwsPlant, Rsawit, Swk oil Plams, TSH QL.

O&G: EPIC, Dayang, Handal& Kencana.

Steel: Ann Joo, Lion Industry, Hiap Teck, CSC Steel.

Timber :- Jaya Tiasa, Classic Scenic, Eksons.

Health care:- Topglove, Supermax, Kossan, Faber, KPJ.

East Malaysia:- Sarawak Cable, Cahaya mata, Naim, HSL.

ETP: Zelan ( for trading only), MRCB, AZRB, MahSing, Paramount, Hua Yang.

Transport: AirAsia, Tasco, Airport, Konsort.

Motor:- Tchong, TSM, APM, Proton.

BUY AT YOUR OWN RISK, I DO AGREE WITH SOME BUT NO TIME TO LOOK INTO THE FA AND TA(oh I started learning some TA after my friend Smartbiz post me a good website)

The Rubber Glove Industry

2010-10-27T12:01:00.002+08:00

again from Mr Kok, thanks, I am not buying CPO, Rubber Glove,but concentrating on some small property laggards(a meaningful and yet useless term,as expert used to say leader will always be leader and laggards will forever be laggards, is that so, I dont know ....what I want is my 20%(or ~15%if situation change)profit and looking at these rather small counters with minimal downside risk(I said so)I can have peace of mind.

The Rubber Glove Industry
The Pessimistic Outlook … dated Oct 2010

The Malaysian Rubber Glove Manufacturers’ Association’s (Margma) move to urge its members to increase selling prices, which are denominated in US dollars, seems like rain in the dry spell for the glovemakers.

Margma’s statement is an influential one considering that its 45 members collectively supply 60% of the world’s rubber glove demand. According to Margma president KM Lee, the price increment is about 10% to mitigate the effects of costlier raw materials and a weakening US dollar.

In fact, the majority of glove producers, especially the bigger players, have raised prices of their products. The early birds had done so as early as the beginning of 2010, while some initiated price hikes in Sept – Oct 2010.

The 10% increase took into account that latex constituted some 60% of production cost and the 19% rise in natural rubber or latex prices since early 2010.

In reality only 80% of the price increment will be borne by the customers, and the glovemakers will still have to absorb the remaining 20% of price adjustment. This is the common practice in the industry.

So is the 10% price increase enough to cover the rise in costs and to offset the foreign exchange effect caused by the stronger ringgit?

The price of latex rose by 19% from an average of RM6.57 per kg in January 2010 to a high of RM7.79 per kg in late Oct 2010.

Demand for natural rubber is outstripping supply, due to growing consumption of the commodity for tyre production in growing economies, such as China and India’s automotive industries. Also, the pace of natural rubber production is not keeping up with demand. Apart from weather problems, planters are also reluctant to start replanting activities, causing a fall in production yield.

Meanwhile, the ringgit has strengthened 9% to RM3.12 against the US dollar so far till Oct 2010, helped by the inflow of foreign funds.

Industry players said the issues of costlier natural rubber and stronger ringgit were not new to glove manufacturers. However, the real issue is overcapacity due to consistent capacity expansion in anticipation of constant demand growth due to the outbreak of diseases in the past.

Apart from the capacity expansion among the Malaysian players, there are also new glove manufacturers sprouting up in South America.

It remained to be seen if the 10% hike in glove prices was sufficient to cover the higher costs. This takes into consideration that latex rates are still high, and the overcapacity environment within the glove manufacturing fraternity will also reduce plant efficiency.

Players are also undercutting each other.

4Q2010 & 1Q2011 to be tough for the industry in anticipation of weaker quarterly growth.

In view of the overcapacity landscape, it is likely that players will have less bargaining power to pass down the higher cost to buyers.

The Optimistic Outlook … dated Oct 2010

Nonetheless, some industry observers view that concerns about overcapacity, margin and earnings pressure from the normalising of glove demand, high latex prices and weakening US dollar have all gone overboard.

It concurs that the slowdown in demand, coupled with slower-than-expected cost pass-through due to high latex prices and the weak US dollar, could lead to a continuation of the weak earnings trend for the glove makers. But this is a temporary situation as growing hygiene awareness and increase in healthcare spending should give glove demand a big helping hand.

The glove demand growth is still deemed healthy and glovemakers’ pricing power would still allow them to pass on the additional costs to customers, albeit, with a time lag of one to two months.

Higher latex prices had prompted anticipation of lower demand for natural rubber gloves, and vice-versa should latex prices decline.

Going forward, dynamics in the glove manufacturing industry will be closely watched given the current challenging operating landscape. It will be interesting to see how the players execute their revenue-growth and cost-cutting strategies as they contend with the headwinds.

The CPO INDUSTRY

2010-10-26T11:56:00.002+08:00

This is the work of a remiser Mr Kok, thanks for sending me this , please send more.

The CPO Industry

Optimistic Outlook … dated Oct 2010

The CPO prices are close to rm3000 per tonne level. With CPO on an uptrend, plantation stocks enjoyed a strong flow of funds.

The spike in CPO prices came after the release of a report by the US Department of Agriculture on Oct 8, 2010, which downgraded its forecast of soyabean harvests in North America.

Soyabean output in the US is expected to be lower than projected in Sept 2010 but higher than last year. Rainfall in Aug 2010 failed to boost yields, prompting the government to reduce its acreage estimates.

While weather concerns gave largely driven commodity prices till Oct 2010, market observers say the soyabean supply crunch certainly took the market by surprise as the report changed the outlook for oilseeds for the next six months (Oct 2010 – April 2011).

The report caused soyabean oil prices to jump as concerns over tight supply hit the market. Given that CPO prices move in tandem with soyabean oil prices, things are certainly looking for palm oil, at least in the near term.

CPO prices may be ripe for a further upswing, given the USDA’s downgrade of soyabean crop estimates and the threat to oilseed and edible oil supplies posed by the ongoing. This also coincides with anticipated drop in palm oil yields in 4Q2010 and 1Q2011 due to last years (2009) drought.

An upgrading of CPO prices also led to upgrading the FY2010/FY2012 earnings of all the planters. The PER of big cap planters in Malaysia is at 16 times.

Industry players are bullish about the sector for the next six months (Oct 2010 – April 2011), with a preference for planters with pure CPO play. The stocks will definitely be on uptrend. And should the US carry out its second round of quantitative easing. It will bring liquidity into the market and push prices even higher. But the fundamentals are there to support the share price rallies.

Now (Oct 2010), the tide has turned, plantation stocks in the region are seeing the return of foreign interest.

However, Malaysian plantation stocks may not attract the same kind of attention from foreign investors as they are trading at a premium to their Singapore and Indonesian peers. The PERs of the plantation stocks in Malaysia are in the high teens while those of the Singapore and Indonesian planters are around 13 times to 15 times.

Nonetheless, with the economy picking up and what looks like the start of a strong rally in the plantation stocks, foreign funds looking for exposure in the local index may start considering these counters.

News report say that CPO might rise to RM3600 per tonne by 1Q2011due to potential shortfall in supply. CPO may hit all time high of RM4486 in March 2008. While this level may not be on the horizon. Certain factors will keep CPO prices at a high level.

Strong growth in the emerging markets and an increase in biodiesel mandates will likely boost demand. The upside potential of CPO prices may also be fuelled in the near term by soyabean production risks in South America.

The discount at which CPO is trading to soyabean oil has widened to a historical average of US$120 per tonne, which could also lift demand for CPO in the near term.

Meanwhile Malaysia’s palm oil exports rose by 21.16% to 1.47 million tonnes in September 2010 against the previous month. Year-on-year (yoy), the palm oil export for Sept 2010 reflected a 10.9% climb compared with the same month last year.

Malaysia’s palm oil exports are expected to reach RM65.2bil this year from RM49.5bil in 2009.

Also, the latest monthly statistics for released by the Malaysian Palm Oil Board showed the exports of palm kernel oil increased by 41.44% to 114,224 tonnes, palm kernel cake rose by 95.54% to 252, 749 tonnes and biodiesel advanced 11% to 10,011 tonnes for September 2010 on a month-on-month (m-o-m) basis.

Only oleochemicals exports slid, going down by 7.16% to 170,521 tonnes in September 2010 m-o-m.

But the increase in exports did not entirely correspond with the country’s palm oil inventory where the total palm oil stock in September 2010 marginally increased by 0.23% to 1.71 million tonnes m-o-m. Also, crude palm oil (CPO) stock rose by 18.88% to 929,225 tonnes in September 2010 m-o-m.

But this inventory could be counter balanced by the lower production of palm oil in general that included CPO, palm kernel, crude palm kernel oil and palm kernel cake in September 2010 against the previous month. CPO production went down by 2.72% to 1.56 million tonnes last month against August.

By Murali Krishna PV, CEO of India-based Transgraph Consulting Pvt Ltd … dated Oct 2010

Continued growing demand coupled with lower production and weather factors are expected to lift crude palm oil (CPO) prices to the RM3,300-level in the next four to six months (Oct 2010 & Beyond).He projects the global production of palm oil to decline by 2.41 million tonnes in 2011 while the demand for palm oil is estimated to grow 8% to 10% annually.However the uptrend in CPO would be met with intermittent seasonal corrections due to crop arrival pressure.With the growing per capita income in China and India, demand from these two countries for CPO could reach 37 million tonnes and 26 million tonnes respectively in the next few years (2010 & Beyond). In 2013, there is going to be a major bull run which is already underway.
He expects crude oil to trade on the upside from now (Oct 2010) till March 2011, potentially hitting US$90 a barrel with the downside at US$70. Crude oil could cross the US$100 mark after March 2011.

By CIMB … dated Oct 2010

PALM oil prices are heading towards the RM3,400 mark by the second half of next year (2011) on the back of a bullish run by vegetable oils in the global market,It expects prices to touch RM3,400 per tonne in the first quarter of 2011, but cautioned that it is important to have prices at RM2,800 per tonne in the short term.
Pessimistic Outlook … dated Oct 2010

Factors that may curb the uptrend of crude palm oil (CPO) price in the near term could be the release of higher-than-expected October 2010 production numbers, improved soya bean planting in South America due to better weather conditions, a stronger US dollar or if China revalues its currency, said plantation analysts.

A bearish factor that may hamper the upward movement in CPO price is the release of the October 2010 on Nov 2010 production numbers. An increase in production numbers may see prices cooling. CPO production was 1.56 million tonnes for September against 1.61 million tonnes for August 2010.

The price reversal could take place should there be improved soya bean planting in South America. With improved planting, this may mean a higher consumption of soy oil in the place of palm oil. This might be the case as weather conditions in the United States and South American countries saw further improvement over the next two months (Nov – Dec 2010).

Whether the plantation index will continue upwards will largely depend on the movement of CPO prices.

Meanwhile, should the US dollar strengthen, CPO prices would come off. Commodities, which are priced in the greenback, become less attractive to buyers who use foreign currencies as the dollar strengthens. The rise in all soft commodities is more a function of a weaker US dollar rather than the fundamentals of commodities.

Another consideration will be the outcome of the G20 meeting. Should China look to revalue its currency, then all bets are off”. China has come under external pressure to increase the value of its currency to alleviate pressure on foreign economies by boosting their exports and reducing trade deficits.

Lan Chen, an economist at UK-based LMC International … dated Oct 2010

He disagreed with the bullish outlook for CPO. While CPO prices had generally followed the level of stocks back in the years before 2007 and then tracked the trend of crude oil prices post-2007, recent trends showed that CPO price movements were very much tied to the price of soybean and soybean oil.US soybean oil, which is a direct substitute of CPO, “is more than US$100 (a tonne) overpriced in the US biodiesel market.” This will place downward pressure on soybean oil which in turn will pressurise palm oil prices even more.Additionally, Chen expects MPOB’s stocks of CPO to peak at 2.25 million tonnes next year (2011), without giving a specific timeframe for the estimate. The output will be strong in 2011. In the end, if use today (Oct 2010)’s US dollar exchange rate and petrol price, the CPO price will be RM2,500 to RM2,600.

SABAH by-election, look at SABAH'S STOCK

2010-10-25T16:19:00.005+08:00

then SARAWAK ELECTION, BUY SARAWAK'S STOCKS, then General Election,buy general stocks,can it be that easy to make quick money?I don't know. I believe some people can but I doubt my ability to do so, thus still stick to my strategy, buy when I have the urge to buy, sell when I am too scare to hold any further. Is Alam Maritim a Sabah company, looking at their webpage,http://www.alam-maritim.com.my/
I dont think so, nevermindlah, as long as I can make money.
FROM THE EDGE DAILY

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD

It's share price advanced on Monday, Oct 25 after Maybank Investment Bank Bhd Research (Maybank IB) maintained its hold call on the stock with target price RM1.15 and said it was positive on the company's partnership with the Yayasan Sabah Group.At 9.35am, Alam was up five sen to RM1.12 with 783,000 shares traded.Alam Maritim entered into memorandum of understanding (MoU) with Yayasan Sabah Shipping Sdn Bhd, a unit of Yayasan Sabah Group with a view to form a joint venture (JV) company.

Alam Maritim said the JV would be involved in the provision of services including offshore installation CONSTRUCTION marine operations, and subsea works to the energy industry in Sabah.

MAYBANK Investment Bank Bhd Research (Maybank IB) maintained its hold call on ALAM MARITIM RESOURCES BHD [
registerQuotes("ALAM", "ALAM_span");
] at RM1.07 and target price RM1.15 and said it was positive on the company's partnership with Yayasan Sabah Group.It said the partnership creates a Sabah-based O&G company and sends out a strong signal of intent to capitalise on O&G opportunities in the state. "The SOGT [Sabah Oil and Gas Terminal] and pipe-laying projects would be among the jobs that it could target. "Maintain Hold with a RM1.15 target price, based on 10 times 2011 EPS," it said in a note on Monday, Oct 25

2010 CPR Guidelines

2010-10-23T14:16:00.001+08:00

2010 CPR Guidelines

How the American Heart Association's CPR Guidelines Have Changed for 2010
http://firstaid.about.com/od/cpr/qt/09_2010_CPR_Guidelines.htm

By Rod Brouhard, About.com Guide

Updated October 18, 2010

After a review of the available research published over a 5 year period, the American Heart Association released its 2010 CPR Guidelines. As expected, the focus for CPR is on good quality chest compressions. Here are the differences between the 2005 and the 2010 CPR Guidelines:

* A-B-C is for babies; now it's C-A-B!

It used to be follow your ABC's: airway, breathing and chest compressions. Now, Compressions come first, only then do you focus on Airway and Breathing. The only exception to the rule will be newborn babies, but everyone else -- whether it's infant CPR, child CPR or adult CPR -- will get chest compressions before you worry about the airway.

Why did CPR change from A-B-C to C-A-B?
* No more looking, listening and feeling.

The key to saving a cardiac arrest victim is action, not assessment. Call 911 the moment you realize the victim won't wake up and doesn't seem to be breathing right.

Trust your gut. If you have to hold your cheek over the victim's mouth and carefully try to detect a puff of air, it's a pretty good bet she's not breathing very well, if at all.

I have a secret to share: paramedics have been doing it this way for years. Rarely have I seen an EMT or a paramedic put her ear to a victim's nose and listen for air movement. We just get to work.

* Push a little harder. How deep you should push on the chest has changed for adult CPR. It was 1 1/2 to 2 inches, but now the Heart Association wants you to push at least 2 inches deep on the chest.

* Push a little faster. AHA changed the wording here, too. Instead of pushing on the chest at about 100 compressions per minute, AHA wants you to push at least 100 compressions per minute. At that rate, 30 compressions should take you 18 seconds.

Besides the changes under the 2010 CPR Guidelines, AHA continues to emphasize some important points:

* Hands Only CPR. This is technically a change from the 2005 Guidelines, but AHA endorsed this form of CPR in 2008. The Heart Association still wants untrained lay rescuers to do Hands Only CPR on adult victims who collapse in front of them. My biggest problem with this campaign is what's left unsaid. What does AHA want untrained lay rescuers to do with all the other victims? In other words, what do you do with the victims that aren't adults or that didn't collapse right in front of you? AHA doesn't provide an answer, but I have a suggestion: Do Hands Only CPR, because doing something is always better than doing nothing.

* Recognize sudden cardiac arrest. CPR is the only treatment for sudden cardiac arrest and AHA wants you to notice when it happens.

* Don't stop pushing. Every interruption in chest compressions interrupts blood flow to the brain, which leads to brain death if the blood flow stops too long. It takes several chest compressions to get blood moving again. AHA wants you to keep pushing as long as you can. Push until the AED is in place and ready to analyze the heart. When it is time to do mouth to mouth, do it quick and get right back on the chest

MTUC against private pension fund

2010-10-23T11:28:00.003+08:00

MTUC against private pension fund

Union hopes to dissuade EPF contributors

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has called on the 10 million contributors to the Employees Provident Fund (EPF) not to participate in the proposed Private Pension Fund (PPF) as returns for their investment are not guaranteed. (most of us already not happy with the returns of 5 to 5.75% from EPF,what else with returns that are not GUARANTEED!!!!)

"The returns would depend on market forces, and this was very risky for the contributors because they might lose all their savings," said MTUC secretary-general G. Rajasegaran.(VERY VERY TRUE)

He disclosed that insurance companies had been lobbying for such a fund for a long time, and the MTUC had objected to it and the EPF board upheld the MTUC's concern.

"Now, however, it appears that the insurance lobbyists have succeeded, based on the announcement by the finance ministry that the Government had agreed to appoint insurance companies to handle the fund," he said Wednesday.

Rajasegaran was commenting on a statement by the ministry's economic and international division under-secretary, Datuk Dr Mohd Irwan Serigar Abdullah, that EPF dividends would be gradually scaled down to encourage contributors to bring their money to the PPF. (@#$%^&* DONT EVER COME TO DISTURB OUR EPF CONTRIBUTION!)

Prime Minister Datuk Seri Najib Tun Razak announced during the tabling of the 2011 Budget last Friday that the Government would launch the PPF next year for the benefit of private sector employees and the self-employed. (What benefit?show me the figure first!)

Najib said the existing income tax relief of up to RM6,000 for an employee's contributions to the EPF would be extended to the contributions made to the PPF, including for those self-employed.
Rajasegaran said in view of this new development, the MTUC would soon launch an aggressive nationwide campaign to educate workers and encourage them to reject the PPF. (fast fast fast, please.)

In the meantime, he said the MTUC was seeking an urgent meeting with the ministry to discuss the PPF and its long-term implication for the workers, especially their well-being in old age. - Bernama

klse news of my interest

2010-10-22T10:46:00.002+08:00

Fajarbaru landed a contract worth RM36.47 million from the East Coast Economic Region Development Council (ECERDC) for the CONSTRUCTION of the first phase of the Pasir Mas Halal Park in Kelantan. Yesterday, Fajarbaru said its unit Fajarbaru Builder Sdn Bhd had received the letter of acceptance from the ECERDC on Oct 19. It said the construction period was 15 months commencing from the date of possession on Nov 1 this year.

AirAsia extended the term of its cooperation agreement with Tune Talk Sdn Bhd (TTSB) up to July 27, 2011 to generate extra revenue and further boost the low-cost carrier's branding. Under the terms of the agreement, AirAsia would continue selling any unsold TTSB SIM cards; allow TTSB to continue redeeming unused e-gift vouchers; continue utilising the various advertising platforms; and continue AirAsia's entitlement to be remunerated with a 5% sale commission on total top-up sales.
TTSB is 23.42% owned by Tune Ventures Sdn Bhd, in which both Datuk Seri Tony Fernandes and Datuk Kamarudin bin Meranun are substantial shareholders. The low-cost carrier has also been in focus lately after several analysts raised their target price and earnings estimates on it. - Analyst raised their target price for the low-cost carrier following the release of its preliminary 3Q operating statistics on Tuesday, which saw revenue passengers kilometre (RPK) increasing 26.6% from a year earlier.

MBSB’s net profit for the nine months ended Sept 30, 2010 surged to RM133.21 million from RM66.91 million a year earlier, due mainly to higher loan and financing income, especially from the expansion of personal financing and higher other operating income from personal financing activities. These were partly set off by higher operating expenses and higher loan loss impairment, it said in a filing to Bursa Malaysia on Thursday, Oct 21.
MBSB chief executive officer Datuk Ahmad Zaini Othman said the company’s sustainability of its profit for the current quarter was due to the right strategies adopted.

Tips for first-time house buyers

2010-10-19T17:14:00.033+08:00

I am reading a reply from teh about MU(University of Malaya, during our time we prefer to call her MU),he mentioned MU was TOP 50 in the late 80, I would confirm this as I can recall during my time (mid 80) my Dean used to say MU's Medical faculty was No 3rd in Asia after Japan and Hongkong, even better than Singapore U, now at what position?

from the star
Tips for first-time house buyers

--------------------------------------------------------------------------------

BUYING a house for the first time is like getting married. You need to be level headed, think wisely, plan well and eliminate the chances of regretting the decision later.

For first-time house buyers, scouring the market for a suitable property can be exhilarating but it can also be frustrating if you don’t find “the one” or you do but it comes with a bust-your-budget price tag.

There are a few factors to consider in the pursuit of buying your first dream house. Firstly, a prospective house buyer should ascertain how much upfront money he or she can fork out, says SK Brothers Realty Sdn Bhd general manager Chan Ai Cheng.

“This is important. There are heavy upfront costs depending on what you buy, including transfer cost, legal fees and so forth,” she says.

Secondly, the prospective buyer needs to check with the bank on the amount of loan that can be secured based on the income level. “At the same time, try to have savings amounting to at least three to six months of loan instalments plus household expenses as reserve fund, in case of an emergency,” Chan says.

In short, if you want to buy a house, you need to figure out your affordability – how much you can afford.

A real estate agent tells StarBizWeek that the rule of thumb is that monthly loan repayments should not exceed one third of the gross monthly income.

“In assessing your repayment capability, the financial institution would also take into account your other debt repayments such as car loan, personal loan and credit cards,” he says.

He adds that the margin of financing can go as high as 95%.

“The higher the margin, the higher you will have to pay per instalment. Plus, at a given rate, a shorter tenure will require you to pay higher instalment,” he says.

He adds that after you have set your finances right, make a list of features you are looking for in a house.

“Be sure that the house you are buying is big enough to meet all your future needs, in case you have additional members in the family,” he says.

“Take good note of the area and the neighbourhood as these aspects will play a crucial role in determining the price of the house in case you want to sell it in future,” he adds.

In terms of financing, buyers have a wide array to choose from be it conventional or Islamic.

Under the conventional financing, one’s outstanding loan consists of principal plus the interest charged.

“The interest is actually the financial institution’s cost in obtaining the funds. Islamic financing works on the concept of buying and selling where the financial institution purchases the property and subsequently sells it to you above the purchase price,” says a banker.

As for the loan tenure, it can range from anything up to 30 years or until the borrower reaches the age of 65, whichever is earlier.

She also advises that it’s better to buy than to rent a home as the latter is largely expense without equity.

Furthermore, she says: “When you invest in a home, it offers the possibility for appreciation in value. At the same time, the equity becomes yours when you’re still paying off your mortgage. You even get to live in it while your investment matures.”

Still, the key determinant ought to always be keeping within the budget.

“That’s most important. It’s easy to be swayed into wanting a bigger home or a bungalow just because your friends or someone else has one. This is nice to wish for but definitely not practical if it’s way out of your budget. Be realistic,” the banker says.

Ask on the “right” timing to buy a house, she says there is no “right” time to buy or sell anymore.

“If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes do not usually occur fast enough to make that much difference in price and a good home will not stay on the market long,” she says.

Do you like the 2011 BUDGET?

2010-10-16T12:04:00.003+08:00

Do you like the 2011 budget just announced?
I don"t really like!!!
I support fully the ONE MALAYSIA slogan but come to the basic, like everyone of you out there I am still a basic moneyminded lay person,thus when I dont see money into my pocket instead trying to steal money from me, I am not happy!
If you want to read all the good news or all leaders' great great response just go to the star and click
http://thestar.com.my/news/nation/

So many of them !tired of reading.
But I am someone that like to read negative news,reading between the lines, look at things at different angles.......basically it is a budget that will benefit mainly the government servant but not those working at the private sector,they got hardly anything.

WHAT !NO Personnal TAX RATE CUT!
WHAT!INCREASE SERVICE TAX BY ANOTHER 1%(better eating at home or at hawkers centre from now)
WHAT!WATCHING ASTRO HAVE TO PAY 6% SERVICE TAX!
WHAT!ANOTHER 100-storey skyscraper RM5billion WARISAN MERDEKA!

Pre-budget sell down?

2010-10-15T10:06:00.002+08:00

So instead of Pre-budget rally, it is a pre-budget sell down indicating market is expecting a not so "rakyat" friendly 2011 budget,oh, I am just prediting only.I may be wrong, what we(am I speaking for the majority?)want is very simple....cut the tax rate, give more educational subsidy/scholarships to the deserved one fairly,give more incentives that will takeoff some burden form our tiny shoulders,executive some measures that will make our country peaceful & safe to live & work and of course earning some decent money. What contract, what project,what slogan,what mission and what sector will be benefited may not be of interest to majority of the rakyat......

14.10.2010 Finally 1500 was broken

2010-10-14T10:35:00.005+08:00

Plantation!Plantation! I missed! should I jump in now?or wait for the pullback(any?)Wait,this is only the first time breaking 1500 barrier,not convincing enough you may say and Oh, I am too busy to look at the market....let it pass., let it be...

KL shares traded higher in early session

Published: 2010/10/14
Share prices on Bursa Malaysia were higher in early trading today with the benchmark index breaking the 1,500-point psychological barrier.
After 25 minutes of trading, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 3.87 points to 1,500.84.
A dealer said continued buying in selected bluechips especially plantation-related stocks helped the key index to start the day in a strong note. "Investors continue to snap up plantation stocks as they are bullish about the earnings of plantation-related companies following the higher CPO prices," he said.
He said market sentiment remained firm ahead of Budget 2011 to be tabled tommorow. At 9.25am, the Finance Index gained 24.74 points to 13,544.96, the Plantation Index increased 98.96 points to 7,360.02 and the Industrial Index added 7.74 points to 2,876.80.

The FBM Emas Index advanced 33.76 points to 10,103.04, the FBM70 perked up 61.65 points to 10,142.96 and the FBM Ace Index added 34.83 points to 4,190.44. Volume stood at 155.636 million shares worth RM156.824 million, with gainers leading losers by 265 to 76, while 197 counters were unchanged and 29 suspended.

Among active stocks, JCY International lost two sen to RM1.08 while Green Packet-Warrants rose four sen to 44.5 sen. TA Global gained 2.5 sen to 47 sen, IRM Group increased 4.5 sen to 43.5 sen and Time dotCom added one sen to 65 sen. Among heavyweights Maybank earned one sen to RM9.02, Sime Darby gained five sen to RM8.90, while CIMB Group shed one sen to RM8.06. -- Bernama

13.10.2010 edited

2010-10-13T10:27:00.006+08:00

reading through news saying Topglove's Boss plans to move upstream by acquiring rubber plantations in the region, no need to depend on others for the raw material(rubber), great!
though he admits it is almost impossible for topglove to sustain such a fantasic rate of growth, glove stocks still moving upwards for the past few days........take a look at the three BIG,
topglove 5.72, Harta 5.33, and Supermax4.52 ......really on huge recovery!Market still strong ,damn strong, everyday up,up,up when everyone expecting a sharp dive coming,really coming?I don't so now.
I am not interested in gloves anymore, focus mainly on property stocks, I like stocks that have projects in Penang(then I can go for a site seeing) like SPsetia, Mahsing, E&O, someone mention sunrise.....any projects in Penang?

4.00pm
sometimes make me wonder what is the point of reading so many analyst's report,is it to gain knowledge or to gain insight when deciding to buy/sell/hold (these three terms are too simple for me to comprehend and I tend to read it the otherway round buy=hold, hold=sell, sell=may be buy, haha)a stock?Or just for the fun of reading before getting bore with life, oh actually I have better things to do.

Yesterday I just posted a NEUTRAL CALL 's report from ECMLIBRA and today the top gainers make up of so many plantation stocks!

PLANTATION ---NEUTRAL FROM ecmlibra

2010-10-12T11:48:00.003+08:00

for the past two years I can't recall buying or holding any plantation stocks,why? I can't understand the whole business or I have other better stocks to look at, I don't know but after reading the report I still find it hard to take a look at any plantation stocks,howabout you ?

Plantation
Neutral
(under review)
September MPOB statistics
· Production declines 2.7% m-o-m
September production came in slightly weak m-o-m as expected given the Eid celebrations that took place during the month. On a cumulative basis, 9MCY10 production is up some 1.6% from 9MCY09. Looking into October, we expect that there could be a spike in production, but not one
as pronounced as was seen in 2009 (see figure 3). This is so because we view that the effects of the El Nino in 1QCY10 are taking a toll on yields and also that La Nina readings have become exceedingly high of late (see figure 7).

· Y-o-y export growth from Pakistan, US, EU and Egypt
Contrary to the belief that China has been driving export growth this year, it appears that exports to Pakistan, US, EU and Egypt are taking the lead instead. 9MCY10 exports to China are actually down 8.4% while exports to the said 4 countries have surged 11%, 14.6%, 18.4% and a whopping 58.4% respectively. Egypt alone took a record 161k mt of palm oil in September alone. To note, cumulative 9MCY10 exports are up 6.4% y-o-y and m-o-m export growth closed up 21%.

· Stock levels remain status quo at 1.7m mt
Stock levels were flat in September given that production still rose and that exports were coming from a low base. With our projection that October production won’t be as high and exports continue to be strong, the rise in stock levels next month may not reach safe levels (>2m mt) to take the industry through the year end festive season and the oncoming production down cycle.

· Sector call under review
September statistics changes our take on the sector to be more CPO price positive. Already, CPO prices nearly hit RM3,000 per mt yesterday, largely fuelled by the USDA report on trouble with soy supplies. YTD MPOB price now averages is RM2,540 per mt. We view that this situation could see CPO prices continue into strength and hence inducing strong corporate results in 4QCY10 and potentially stronger CY11 numbers. Our Neutral call on the sector and target prices of stocks under coverage are under review.
SIMEDARBY HOLD
IOI HOLD
KLKEPONG HOLD
GENTING PLANT HOLD
BOUSTEAD BUY
IJMPLANT SELL
full report please refer to ECMLIBRA & MPOB

CONSTRUCTION---NEUTRAL from ECM

2010-10-11T20:43:00.005+08:00

4th – 10th Oct: Construction index inching up

· Construction index creeps upwards
The FBM KLCI Index and KL Construction Index both gained 1% to end at 1481.41 points and 265.85 points respectively last week. EPF accumulated 0.17% or 3.7m shares in Gamuda amid a 4% decline in share price. However, major institutional funds sold a combined 17m shares, or 1.3% in IJM as prices climbed 2.1%. Sunway Holding’s share price continued its strong performance, ending 3.6% higher for the week.

· Notable construction news
Circulating news of an RM15.6bn bid by MMC Corporation to take over UEM Group has created a flurry of excitement early last week. It was reported that MMC Corp is proposing to lead a consortium involving the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB) to acquire UEM via a special purpose vehicle, in which MMC would have a 40% stake, while EPF and PNB would hold 30% each. It was later confirmed that a preliminary proposal to take over UEM Group had been submitted to the government by MMC Corp. While the quantum was not divulged, MMC has revealed that they have not approached either EPF or PNB to be their partners. At Kumpulan Jetson, the Naza Group’s SM Nasarudin and SM Faliq have resigned from their executive positions, a further indication of their rumoured intentions of disposing their 33.2% stake in the company. However, both will remain on Jetson’s board as non-executive, nonindependent directors. Another executive director, Chow Chee Kin, is also
expected to be redesignated. After months of waiting, Mudajaya has finally seen development on the Securities Commission’s (SC) queries into the affairs related to its power plant project in Chhattisgarh, India. The SC remanded the company for ‘round-tripping’ practices and issued a ‘Caution and Reminder’ to observe its disclosure obligations. Concurrently, Mudajaya also announced the signing of a memorandum of understanding with the government of Laos
for a hydroelectric power project.

· Contracts awarded
WCT won the largest contract last week after securing the RM486m buildoperate- transfer concession for the Integrated Complex at the new Low Cost Carrier Terminal at Sepang.

· Maintain Neutral
We are turning positive on Gamuda in view of expected contract news flow for the MRT project. We note however, that allocation for physical infrastructure is lower under the 10MP. Although set off by numerous projects to be undertaken on a public private partnership (PPP) model, its positive impact is stock specific as certain companies may find difficulty securing financing under a PPP model. Our top pick is Sunway Holdings which is trading at undemanding forward PE of 8.7 times.
full report please get it from ECMLIBRA

BUSINESS TIMES --- BROKER'S VIEW

2010-10-11T01:26:00.002+08:00

This is the page of Business Times I frequent most, but reading more or almost all broker"s view may load you with tonnes of info but blindly following their calls may be suicidal. Still, need to read with open mind and think, think, think....

http://www.btimes.com.my/Current_News/BTIMES/Section/indexind_html?section=industries&category=brokersview

IOI to delay launch of Sentosa Cove projects: CitiCitigroup Research says it is removing the Sentosa Seaview and The Pinnacle Collection projects from its immediate three-year forecasts
Axiata: Maintain buy, target price RM5.30MIDF Research expects that growth for Axiata Group Bhd (6888) will come from its overseas market, especially Indonesia and Bangladesh.
SapuraCrest: Buy, target price RM3.09Kenanga Research remains positive of SapuraCrest Petroleum Bhd (8575) given its locked-in prospects.
Kencana Petroluem : Buy, target price RM2.00
BToto: Buy, target price RM4.50OSK Research has maintained its "buy" call on Berjaya Sports Toto Bhd, but lowered its target Read more:

Selected financial report of interest : TOPGLOVE

2010-10-08T11:27:00.003+08:00

Top Glove: Neutral, target price RM6.06 (Better call it a sell!)

OSK anticipates that Top Glove's first quarter 2011 outlook will be affected by rising latex prices and the weakening of the US dollar and ringgit

Although financial year 2010 was within expectations, Top Glove Corp's (7113) fourth quarter of the same financial year was affected by unfavourable external factors such as rising latex prices and the weakening of the US dollar and ringgit."We anticipate that its first quarter 2011 outlook will not be much different as we think the latex prices and exchange rates will continue to be unfavourable," OSK said.The research house said this will be offset by the stocking up of activities by its customers. (No, I dont think this can be offset satisfactorily)

Top Glove's customers may potentially carry out restocking rather than risk a further hike in selling prices when the rubber trees experience the wintering season, thus causing lower latex production(so the sales will increase but profit margin will still be low as it takes at least 2-3 month to partially pass the increase in cost to the customers).On a year-to-date comparison, both the financial year 2010 revenue and net profit were higher by 36 per cent and 45 per cent respectively following the higher sales and produc-tion capacity of examination gloves.

another article worth reading Stronger ringgit, costlier latex hit glove makers

Selected financial report of interest : RUBBER GLOVES

2010-10-07T14:31:00.005+08:00

RUBBER GLOVES -M&P POSSIBILITY (CIMB)

read it at the smartbiz blog

Top Glove Corp yesterday said the industry is likely to consolidate as demand slows and costs rise but rivals think this is easier said than done. But industry players mainly agree that the sector’s big six, in terms of capacity, are likely to lead in takeovers of smaller rivals and not do deals between them. Rubber glove makers are facing slower demand growth as global fears over a pandemic flu disease subsides. Costlier latex and a weak US dollar are also affecting sales. Although takeovers seem attractive, there are hurdles like finding strategic fits and the challenge of combining different company cultures.

* In an interview with Business Times yesterday, Latexx Partners head of corporate services Dr Liew Lai Lai admitted her company is an attractive target but denied the company is up for sale to Top Glove. “Yes, they did visit us but it remains a market rumour. We have been receiving a few enquiries all along, it is not just Top Glove. While we’re open to a merger or acquisition, so far, we don’t see a strategic fit that would be mutually beneficial,” she said.

*Kossan Rubber senior manager of group corporate affairs Edward Yip said his company is only open to a deal if it results in value creation. “Bigger does not necessarily mean better. What matters is the bottom line. There has got to be consistent profits, productivity improvement and growth prospects. If a merger creates a bigger company but destroys value, what for?”

* Hartalega Holdings group managing director Kuan Kam Hon concurred and said consolidation among the top six is difficult “because all of us are strong individuals with our own set ways of doing business.” “We don’t see this happening at the moment. On paper it looks logical but in reality there are many hidden hindrance,” he said. (BT)

The news on consolidation is not entirely new. Among all the big six manufacturers that we cover, Top Glove, the industry leader, is the only company that is aggressively on the look out for acquisition in order to expand its market share. The current tough operating environment could provide opportunity for Top Glove to acquire a smaller competitor given that it now has RM299.5m net cash in hand.

BUY CALL BY CITIGROUP
DOWNGRADE BY MIDF
FROM HWANG DBS

Top 5 Tips to Build Wealth and Success

2010-10-06T16:20:00.004+08:00

reading through yahoo and found a nice article to share and worth reading.

Top 5 Tips to Build Wealth and Success
Peter Gorenstein and Farnoosh Torabi Tuesday, October 5, 2010

Warren Buffett is worth $45 billion. That wealth isn't only a factor of savvy investing and good business — the "Oracle of Omaha" is also known as a penny pincher. Buffett still lives in the same Omaha, Neb., home he bought in 1958 for $31,500.
Follow his frugal formula, and you too may wind up with a lot more money than you ever dreamed.
This week Financially Fit covers five tips to build wealth and success.

1. Live Below Your Means.

Being wealthy isn't just a product of your salary or investment prowess; it's learning how to save.
"We can make a lot of money, you can make a little bit of money, but the second you spend all the money is when people get into trouble. Saving is the key to preserving your wealth," says Ed Butowsky, managing partner of Chapwood Capital Investment Management, a firm that manages money for wealthy individuals.
As many Americans realized during the booming real estate market, just because you think you can afford something doesn't mean you should buy it. Keeping an eye on your bottom line will pay dividends over the long term.

2. Bounce Back From Defeat

With nearly 15 million workers unemployed right now in the U.S., it's easy to get discouraged. Don't! Most successful and wealthy people have overcome obstacles and failure along the way. Steve Jobs was ousted from Apple when he was 30. Today, he's a billionaire and a legend. Plus, after getting fired, he created another billion-dollar media company, Pixar.
"Bouncing back from defeat is something all great achievers have. They have this undying belief good things will happen and will continue to happen," says Butowsky.
Take Michael Jordan. "His airness" was cut from his high school basketball team. Motivated by the rejection, Jordan became a star the next season. The rest is history.

3. Self-Promote

Regardless of the profession, the rich and successful tend to have a strong sense of self-worth — key to skillfully navigating an upward career path. Mark Hurd, who was ousted as CEO of Hewlett-Packard in August, couldn't be kept down for long. Using his business skills and connections, in September, Hurd was named president of Oracle. (Hurd and Oracle founder Larry Ellison are known to be close friends.)

4. Have Street Smarts

Bernie Madoff lived the high life for decades, scamming unsuspecting clients, with a money-making formula that proved too good to be true. Only afterward did we learn that with a little due diligence, most clients could have easily uncovered the fraud.
But it's not only the swindlers and the con men you have to watch out for. Many times, friends and family take advantage of the rich. Whether it's a handout or an investment idea, Butowsky advises his high net worth clients that in most cases, it's wisest to just say "no." The best way to do that: have someone else do it for you.
"You need to really set up a wall between you and your family," he advises. "If you don't want to give them (family or friends) money ... saying no is probably a good idea."

5. Buy Cheap

The rich can afford to splurge, but that doesn't mean they do.
John Paulson, a billionaire hedge fund manager, bought his Hamptons "dream house at a bargain basement price," according to Greg Zuckerman, author of the Paulson-based book, "The Greatest Trade Ever." The story has it that Paulson eyed the home while it was in foreclosure. Finally, on a rain-soaked day, he purchased the home on the Southampton town hall steps. He was the only bidder.
On New York City's Upper East Side, Michael's— The Consignment Shop for Women— has been a bargain-hunting destination for more than 60 years. "We have a good percentage of women who can afford to shop on Madison Avenue but really like the idea of saving that money," says proprietor Tammy Gates.
From Chanel to Gucci and Louis Vuitton, the store specializes in high-end designer merchandise for a reasonable price. Speaking of her clientele, Gates says, "they're wealthy for a reason. They recognize that bargains keep people wealthy. Paying top dollar when you don't have to doesn't make sense."

Selected financial report of interest : SUNWAY

2010-10-06T11:04:00.002+08:00

SUNWAY
China MOU lapsed CONSTRUCTION
· Enters into MOU for a China property venture
Sunway announced yesterday that its memorandum of understanding (MOU) with the XuanCheng Municipal Government has lapsed and the company does not intend to enter into a definitive agreement. Recalled that Sunway had on 6 May 2010 entered into the MOU with
XuanCheng Municipal Government for the purpose of developing an integrated city, consisting of an international-standard entertainment park, exhibition centre, hotels, shopping malls, offices and residential units on land to be acquired from XuanCheng Municipal Government.

XuanCheng is a prefecture-level city in southeastern Anhui province, People's Republic of China. It lies 260 km to the west of Shanghai. Bordering the provinces of Jiangsu and Zhejiang, it covers an area of 12,340 sq km and has a population of 2.8m.
· Comments
We are concerned of this setback as we were not bullish on this venture. In terms of economic development, Anhui province lags behind that of its neighbour, Jiangsu and Zhejiang. Furthermore, industrial activities in Anhui province are mainly concentrated in Maanshan and Wuhu, rather than XuanCheng. We noted that GDP per capita of XuanCheng is RMB13,051 as compared to Sunway’s maiden property venture in Jiangyin, Jiangsu province which has GDP per capita of RMB91,538.
· Reiterate BUY call
Sunway remains our top BUY for the construction sector. This is premised
on (1) strong earnings growth of 67.6% in FY10, (2) undemanding forward
P/E valuation of 8.6x, (3) more landbank acquisition in the pipeline, and
(4) strength in securing overseas construction contracts. Our target price,
which is based on 10x P/E on mid FY11 EPS, remains unchanged at
RM2.61 as impact on FY11 earnings is negligible. Sum-of-parts valuation
is RM3.14
full report refer to ECM

Selected financial report of interest : HONG LEONG, MMC, E&O

2010-10-05T12:44:00.003+08:00

Hong Leong: Shareholders give nod for EONCap buy
Shareholders of Hong Leong Bank Bhd (HLBK MK, Hold, TP: RM9.12) passed the resolution for the acquisition of the assets and liabilities of EON Capital Bhd for RM5.06bn at its EGM. HLBB’s MD and CEO Yvonne Chia added that she could not comment con EONCap’s ongoing court case. “Whatever happens, we are waiting for the due process and we are positive about it,” she told. On whether HLBB would extend its 30 Nov deadline for EONCap to accept its takeover offer
should the court case turn out to be longer than expected, HLBB’s non-ED said it was “too premature to comment at this stage”. (Financial Daily)

MMC :confirms UEM bid, awaiting government decision
MMC Corp Bhd said that it had submitted a preliminary proposal to the federal government to acquire UEM Group Bhd but had yet to receive “any indication” from the government on its proposal. “MMC will lead a consortium for the proposed acquisition and to date, we have not approached the Employees Provident Fund and / or Permodalan Nasional Bhd to be
our partners,” MMC said in a reply to a query to Bursa Malaysia. MMC is understood to have submitted its proposal to the Ministry of Finance in Aug. The move is seen as a “circuitous” way for MMC to acquire the toll road concessionaire, Plus Expressway Berhad (PLUS MK, Hold, TP: RM4.36). (Financial Daily)

E&O: Makes Penang Turf Club bidding list
Two foreign property development companies – one based in Singapore and another in Hong Kong – and Eastern & Oriental Bhd are among seven candidates shortlisted to bid for the new Penang Turf Club (PTC) development project. Most of the remaining candidates are headquartered in Kuala Lumpur. Those shortlisted for the tender have the option of buying
the 23.09ha site for RM200 per sq ft or developing the site jointly with PTC. It is learnt that those who submitted for the second round of bidding, which closed on 30 Sep had to pay a tender deposit of RM500,000. When contacted, E&O’s ED confirmed the group had submitted a bid in relation to the PTC land. The gross development value of the project was estimated at around RM1.5bn, based on the present market value of the PTC land of about RM500m, the sources said. (StarBiz)

Pre-budjet Rally?

2010-10-04T17:05:00.002+08:00

Just read through the MAYBANK report onBudget 2011
some of the highlights from my remiser comments:

Construction (Overweight) -
Major winner thanks to major projects. The beneficiaries will also flow down to the building material players. Buys:

Construction: GAMUDA (TP: RM4.38), IJM (TP: RM5.50), WCT (TP: RM3.30), SUNWAY (TP: RM2.35) and HSL (TP: RM1.90)
Long steel: ANNJOO (TP: 3.05) and KINSTEEL (TP: RM1.00)

Property (Overweight) - No changes in taxes but watch out for imposition of a higher cap on loan-to-value ratio (LVR) rule. Overweight on the developers with strong demand to be driven by ample liquidity. Buys:
Property: SUNCITY (TP:RM5.20), MAHSING (TP: RM2.30) and GLOMAC (TP: RM1.84)
REITs: SUNREIT (TP:RM1.15), CMMT (TP: RM1.20), AXREIT (TP: RM2.28), ARREIT (TP: RM1.19).

Tobacco, Brewery and Gaming (Neutral) - Regular but manageable excise duty hikes Tobacco - Given the resultant 70sen/pack price increase effective today, we expect BAT and JTI's earnings to continue heading in opposite directions. A larger factor is likely to be the continued shift from BAT's premium Dunhill brand to the illicit sector mainly and secondarily to JTI's value Winston brand.
Sell BAT (TP: RM43.00) & Buy JTI (TP: RM6.00) Brewery - Both listed brewers, CARLSBG & GAB will be able to withstand a measured single-digit percentage increase in duty. We prefer CARLSBG mainly because of greater leverage to the Singapore market, which is enjoying a boost from tourism and the success of the casinos.
Buy CARLSBG (TP: RM5.50) & Hold GAB (TP: RM8.40) Gaming - small chance of a gaming duty increase.
Buy GENTING (TP: RM10.45), Sell GENM (TP: RM2.40).

BRITISH AMERICAN TOBACCO--SELL(pre-budget price hike)

2010-10-04T10:38:00.003+08:00

year in year out it never fails to highlight this kind of pre-budget price hike for tobacco, alcoholic drinks and even empat ekor(gaming) businesses and the conclusion is always SELL and you know why?

BRITISH AMERICAN TOBACCO
Cigarette price hike pre-Budget CONSUMER
· Significant 70 sen increase in retail price
Sin Chew Jit Poh reported yesterday that the price of 20s packs of
cigarettes would be raised to RM10.00 from RM9.30 effective today, citing
the Federation of Sundry Goods Merchants’ Association as its source. We
understand that the Association was notified by BAT of the price increase
via a letter that it received on Saturday. There has yet to be an official
announcement by any of the Big 3 tobacco players, Ministry of Finance or
the Customs Department.
· Likely excise duty hike in budget in addition to cess
The 3.5 sen per stick retail price hike is BAT’s move in anticipation of
lower sales volumes resulting from an increase in excise duties widely
expected close to the Budget 2011 announcement on 15 October 2010,
as well as the impending implementation of the cess of 0.5 sen per stick
announced by the National Kenaf and Tobacco Board (LKTN) on 10
August 2010. Excise duties currently stand at 19.0 sen per stick. Based
on the historical tax-led price adjustment of 1.5x over the excise duty hike
and taking into account the cess, we anticipate a 1.8 sen rise in excise
duties to c.20.8 sen.
· Earnings estimates unchanged
We are maintaining our earnings estimates as our assumptions already
imputed a 7.5% increase in cigarette prices and corresponding 5.5%
decline in sales volumes.
· Downgrade to Sell
DCF-based target price held at RM43.00 but lowering our
recommendation to a Sell. Given the recent run-up in BAT’s share price,
our prospective FY10 net dividend yield of 5.0% makes the stock less
attractive from a defensive stand point. The tobacco sector continues to
face strong negative headwinds of tightening regulation and competition
from high levels of illicit trade (37.5% in FY09)

Investors taken for a ride in scam

2010-10-03T11:39:00.005+08:00

Today front page of The Star, so easy to be cheated or Malaysians lack of investment opportunities? After gold bar investment, fraud foreign currency trading, seaweed plantation, coffee house, Nasi Kandar,earthworm......now kiddy ride machine.

Investors taken for a ride in scam

By JOSEPH LOHsunday@thestar.com.my

PETALING JAYA: Hundreds of investors who were lured into taking part in a kiddy-ride machine scheme have been cheated of their money amounting to millions of ringgit.

The investors, who were lured with the promise of attractive monthly returns, have been duped into paying as much as over RM80,000 each to “invest” in kiddy ride machines that would be placed in several shopping malls around the country.

It is believed that hundreds of people have fallen victim to the scam operated by a Kuala Lumpur-registered company and lost millions in the last few months.

Syndicate members, who approached their victims at shopping malls or contacted them by phone, even went to the extent of applying for credit cards on the victims’ behalf so they could come up with the money for the investment.

One victim who said he had not received any returns, now owes a bank RM35,000 in credit card charges.

Others claimed they received cheques but there was no more payment after a few months. Victims were initially given various excuses but subsequent calls made to the company’s office went unanswered.

The Selangor MCA Complaints Bureau has received 80 complaints so far this year, with losses amounting to almost RM2mil.

Bureau head Datuk Theng Book believes many more people could have been similarly duped.
The majority of victims lost between RM20,000 and RM40,000, with one losing RM84,000.
He said victims of the scam were mostly from the middle-income group.

“The syndicate typically targets the middle-class group, especially those not business-savvy but hoping for better returns on their money,” said Theng, who is also the MCA’s head legal adviser.
Theng said victims had little recourse to recover their money, as current laws as well as the nature of the scam made it difficult.

“They (scammers) find loopholes in the law and exploit them. They are operating just below the law, and there are many uncertainties,” he said, adding that the police and Bank Negara had not been able to stamp out their activities.

“It is an enforcement problem. Either we do not have the expertise to enforce it, or the agencies are looking and waiting for each other to act. In the end, the victims suffer,” he lamented.

He said enforcement agencies should use all the laws available to bring scammers to book.
“It can be classified as deposit-taking because they collect money, promising returns. This falls under Bank Negara as only licensed financial institutions can collect deposits. They can also use the Anti-Money Laundering Act to nab these people.”

Theng said one syndicate had been running scams around the region for years.
“They constantly change the product or the company name. Within six months, they shut down and start a new one. And then they move and sell a new product,” he said.

A Bank Negara spokesperson said victims of the scam could lodge a report with them so that they could investigate and take the appropriate action.

BNMTELELINK can be contacted at 1-300-88-5465 or via e-mail at bnmtelelink@bnm.gov.my.
To check instances of previous fraud cases, visit www.bnm.gov.my/microsites/fraudalert/03_action.htm.

HAI-O SELL TARGET PRICE 1.61 by OSK....very drastic downgrade

2010-10-01T16:19:00.002+08:00

SELL 
Target RM1.61
Previous RM3.57
Price RM3.26
CONSUMER (RETAIL)
Hai-O is involved in wholesaling, retailing,
multi-level marketing and pharmaceuticals,
and also operates modern Chinese
medicinal clinics.
Stock Statistics
Bloomberg Ticker HAIO MK
Share Capital (m) 202.2
Market Cap (RMm) 659.1
52 week H│L Price (RM) 4.93 2.40
3mth Avg Vol (‘000) 635.2
YTD Returns -7.6
Beta (x) 0.72
Major Shareholders (%)
Tan Kai Hee 9.61
Akintan SB 7.17
Excellent communication 5.13
Share Performance (%)
Month Absolute Relative
1m 0.9 1.0
3m -11.7 -22.7
6m -26.2 -32.9
12m 46.4 6.7
6-month Share Price Performance
2.30
2.80
3.30
3.80
4.30
4.80
Apr-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10
Hai-O’s 1QFY11 were below our and consensus estimates, with revenue and net
profit diving 63.1% and 57.7% y-o-y respectively. The poor results were mainly
attributed to its MLM division, which reported a sales contraction of 73% amid slower
membership growth. This is, however, partially offset by the sales improvement at
other divisions. Despite the weak results, EBIT margin improved by 2%-pts on higher
operating efficiency, sales of higher margin products, and the weakening of USD
against RM, which has reduced importat costs. Given that the results were
substantially below our expectation, we cut our FY11/12 earnings forecast by 52%-
55%. Our TP is hence reduced to RM1.61. Downgrade to SELL. full report please get it from OSK

BJ CORP, SAPURACREST,HAI-O

2010-09-30T11:48:00.001+08:00

BCorp posted net profit of RM125.46 million in the first quarter ended July 31, 2010, up 214% from RM39.9 million a year ago. - The better performance was also due to lower investment related expenses of RM17.62 million compared with RM83 million a year ago. - BCorp's revenue rose 8% to RM1.74 billion versus RM1.61 billion a year ago. - Pre-tax profit was RM237.78 million, up 30% from RM182.81 million. - Earnings per share were 2.88 sen versus 1.01 sen.

SapuraCrest posted net profit of RM53.24 million in the second quarter ended July 31, 2010, which a marginal 1.68% increase from the RM52.36 million a year ago - Due higher contribution from the installation of pipelines and facilities (IFP) and the drilling division.

Hai-O's net profit fell 57% to RM7.84 million in the first quarter ended July 31, 2010 from RM18.52 million a year ago as the multi-level marketing (MLM) division recorded lower revenue. - Pre-tax profit was RM10.79 million, down 59% from RM26.28 million a year ago while revenue fell 63% to RM54.75 million from RM148.57 million. - Earnings per share were 3.91 sen versus 22.17 sen.

What are the risks in buying call warrants?-by OOI KOK HWA

2010-09-29T17:48:00.002+08:00

from the star
http://biz.thestar.com.my/news/story.asp?file=/2010/8/11/business/6832498&sec=business

Prices are influenced by intrinsic value and time value

LATELY, we notice that there are growing numbers of call warrants getting listed on Bursa Malaysia. Even though there are many call warrants issued and traded in the market, the trading volumes of these call warrants are relatively low compared with the normal warrants.

Besides, a lot of investors have been complaining that they are unable to make money from the call warrants that they have bought.

Many investors cannot differentiate between a warrant and a call warrant.

A warrant is a transferable option certificate issued by a company which entitles the holder to buy a specific number of shares in that company at a specific price (or exercise price) at a specific time in the future. It is normally issued by a listed company.

A call warrant (like a call option) also gives investors a right to buy stocks in a company within a fixed period of time. However, warrants are issued by listed companies whereas call warrants are issued by investment banks.

An investor monitoring share prices at a private stock market gallery in Kuala Lumpur. Many investors have been complaining that they are unable to make money from the call warrants that they have bought.

If investors exercise the rights in warrants, they will receive the listed companies’ shares.

Meanwhile, upon maturity of call warrants, investment banks will only pay investors in cash if the closing price of the listed companies is higher than the exercise price of the call warrants. Investors will get nothing if the closing price of the listed companies is lower than the exercise price.

There are many risks in buying into call warrants. Call warrants have shorter maturity period as compared to warrants. Normally, warrants have maturity period of five years or more whereas call warrants have very short maturity period of less than a year.

In many instances, investors who have bought into these call warrants do not realise that their call warrants have expired. Nevertheless, call warrants will be automatically exercised upon the maturity date if the settlement price is higher than the exercise price.

As mentioned earlier, a lot of call warrants are not actively traded in the market. In fact, a majority of them do not have trading volume on a daily basis. We believe one of the possible reasons is that some of these call warrants are getting nearer to maturity date.

The prices of call warrants are influenced by their intrinsic value and time value.

If the call warrants are getting nearer to their maturity date, the time value will be closer to zero. In addition, if the mother price of the listed companies is being traded at a lower price than the exercise price plus the premium that the investors have paid for the call warrant, the market price of these call warrants will fall below their original issue price.

For those who have subscribed into these call warrants, rather than cutting losses and selling them into the market, they will likely hold on to the call warrants and hope that the mother price will recover one day. Unfortunately, in many instances, investors get nothing upon maturity of these call warrants.

Given that the gap between the buying and selling prices is quite big for some call warrants, many investors find it difficult to buy or sell the call warrants. Hence the fact that call warrants usually have low trading volume implies that this is an instrument with very high liquidity risks.

The main reason for a lot of investors to purchase call warrants is the hope of getting payments from investment banks. However, investors need to understand that the majority of the call warrants are European-styled, which means investors cannot exercise them before the maturity date.

The majority of call warrants are settled in cash for the difference between closing price and exercise price. The formula for cash settlement amount is equal to the number of call warrants x (closing price – exercise price) x 1/exercise ratio. Hence, investors need to pay attention to the exercise price, exercise ratio and premium that they have paid.

For example, the exercise price on Call Warrant Company A (Company A CA) is RM10, the exercise ratio is 10 Company A CA to 1 Company A share and the premium investors need to pay is 10 sen for each Company A CA. To the call warrant holders, in order to breakeven, the mother share price of Company A needs to go higher than RM11 or RM10 plus RM1 (10x10 sen, which is the total premium that they have paid).

Lastly, investors need to pay attention to the fundamentals of the mother companies and check the potential price appreciations for these companies.

Companies with good prospects will have higher possibilities of price appreciation and therefore lower risk of buying into the call warrants.

Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.

GAMUDA,JAYA TIASA & OTHERS

2010-09-29T10:22:00.001+08:00

Gamuda's earnings surged 77% to RM76.61 million in the fourth quarter ended July 31, 2010 from RM43.29 million a year ago, due to higher contributions from all divisions and expects to perform better in the next financial year
- Revenue however declined 24% to RM714.78 million from RM942.24 million a year ago.
- Earnings per share were 3.79 sen versus 2.16 sen.
- For the financial year ended July 31, 2010, earnings rose to RM280.69 million from RM193.69 million.
- Revenue was lower at RM2.45 billion compared with RM2.73 billion in FY09.

Jaya Tiasa posted stronger set of results for the first quarter ended July 31, 2010.
- Net profit was RM22.69 million versus only RM791,000 a year ago.
- Revenue rose 12% to RM185.5 million from RM166.3 million.
- Pre-tax profit jumped to RM30.1 million from RM2.1 million.
- Better results in revenue and pre-tax profit were mainly due to improved proceeds from logs sales with 7% increase in average selling price;
- Better margin of plywood sales with 16% reduction in costs of production due to higher production volume;
- 66% increase in sales volume and 9% higher average selling price of fresh fruit bunches (FFB).

Bursa Malaysia has sought court action to force Golden Plus to compel it with the directives issued by Bursa Malaysia and consent order over the appointment of a special auditor.
- The directives and consent order are with regards to the appointment of a special auditor (SA) to review the affairs of GPlus and its subsidiary companies.
- This was in relation to its compliance with the Listing Requirements, including proper and accurate disclosures to its shareholders.

Formis Resources Bhd, which is undertaking the RM69.0 million government e-courts contract, said the implementation is on schedule and is about 90% completed.
- Formis executive vice-chairman and chief executive officer Datuk Mah Siew Kwok said Formis had a solid recurring income stream of RM61.0 million from maintenance and service contracts and an order book of RM194.3 million order as at Sept 15.
- He said the group also has a strong pipeline of potential projects, having tendered for a total of RM1.36 billion worth of contracts.

Supermax expects to achieve nearly RM1 billion in annual sales by the end of the current financial year Dec 31, 2010 driven by world demand and good marketing strategy.
- This would be 20% above the previous annual sales of RM800 million.

Buying and selling signal --- by OOI KOK HWA

2010-09-28T10:14:00.002+08:00

Buying and selling signal

This article by Ooi Kok Hwa, an investment adviser and managing partner of MRR Consulting, tackles some basic skills needed to detect the buying and selling strength of a stock price.

THE price movement of a stock is dependent on the demand and supply of the stock, which in turn is influenced by the buyers’ buying interest and the sellers’ selling interest.

Every buyer or seller has different purposes when entering into a trade. The followings are general “rules”, which provide us with some hints on whether the stock price will probably go up or down.

Investors should not view these “rules” as a foolproof method that will hold true all the time. There are certain occasions that market manipulators might be using these “rules” to mislead the general public.

Rule 1: Buyers are showing small orders and sellers are showing big orders. However, the stock prices are holding quite well – buy signal.

When we want to purchase a stock, we will call our remisiers to check on buying or selling orders on the stock. A lot of selling orders with only a few buying orders on the stock may imply that the stock price would come down.

However, if the stock prices are holding quite well, it could mean there are some net buyers accumulating the stock.

The reason for this is buyers may refuse to show their buying orders to attract sellers to sell at the buyers’ buying price.

Showing high buying orders may delay selling interest, as sellers will wait for the buyers to buy at their selling price. Hence, it is a “buy” signal if we notice the above rule on any stock.

On the other hand, if buyers have big orders and sellers have small orders while the stock price continues to drop, it might be a “sell” signal that this stock has some big sellers that are not willing to show their selling orders but they need to sell the stock now.

Showing big selling orders may cause panic on the stock. Hence, to sell at higher prices, sellers will try to hide their selling orders.

Logically, if a stock has a strong buying interest, the stock price should go up instead of come down. Hence, the weakening stock price may imply that sellers outnumber buyers.

Rule 2: The overall market is weak but your stock price is moving against the overall market trend – buy signal.

In a down market, if a stock that you own is inching up steadily despite the overall weak stock market sentiment, this may imply that there are some net buyers on this stock.
We view this as a “buy” signal where buyers are eagerly accumulating the stock in spite of the weak market. In most instances, the stock price will move higher the moment the overall market sentiment recovers.

In contrast, if the overall market is moving up but your stock is being beaten down, it is a “sell” signal. Normally, insiders are aware of certain crucial bad news that is still not available to the market yet.

Rule 3: Stocks carry a lot of bad news and are trading at high volume but stock price remains stable – buy signal.
Sometimes a certain stock is facing huge bad news but the stock price is holding on quite well. Normally, it may imply that buyers are not worried about the market concerns on this stock. The current stock price may have discounted all the bad news.

In contrast, if a stock, despite having all the good news in the media, continues to see its price decline, this is a “sell” signal that shows there are certain sellers who have some concerns over the stock, but the overall market is still not aware of the news.

Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.

BUY STOCKS WITH LOW PRICE-TO BOOK RATIO BY OOI KOK HWA

2010-09-27T15:09:00.002+08:00

Buy stocks with low price-to-book ratio
Personal Investing
By Ooi Kok Hwa

A fortnight ago, we elaborated on four of the seven criteria used in stock selection. In this week's article, we continue with the remaining three criteria: B for Book Value, H for Health and M for Management.

THE book value of a company is an important indicator of a company’s value as it tells us what the owner’s cost of a company is. No owner would be willing to sell a healthy and growing company at below cost unless the company has problems that are not known by general public.

Normally, we use book value per share (total shareholders’ funds divided by the outstanding number of shares of a company) to compare with the current stock price.

Price-to-book ratio is computed by dividing the stock price by a company's book value per share. It gives us the number of times the current stock is selling above or below the book value.

A ratio of lower than one means the current stock price is trading at lower than its book value.

One of the selection criteria is to select stocks with lower price-to-book ratio.

Benjamin Graham in his book entitled Security Analysis said we should consider buying stocks with price-to-book of lower than 1.5x. The number 1.5x or below implies that the maximum price that we pay for a company should not exceed 50% of the owner’s cost.

Due to the implementation of new financial reporting standards, there have been a lot of write-downs and impairment on certain assets of listed companies.

As a result, we can safely say that the current book value of these companies should reflect the owner’s real cost.

The price-to-book ratio is also frequently used in valuing banking, finance and insurance companies. In most instances, it is quite difficult to search for financial institutions that are selling at below their book values. This is because the book value is mostly in cash.

Normally owners would not accept any value that is less than the book value. This explains why most analysts use the price-to-book ratio in valuing financial institutions.

H for Health refers to the financial health of a company. We use debt-to-equity ratio (D/E ratio) to determine the level of borrowings of a company.

It is computed by taking a company's total debts and dividing it by a company's total shareholders’ funds.

A lower ratio implies that the company is using less debt but more equity to fund its operations. Even though cost of borrowing is lower than cost of equity, most investment gurus prefer companies to use less debt.

It will be even better if we are able to find companies that are cash rich and have zero borrowings.

According to Graham, a good company should have a D/E ratio of less than 0.5x. It means that for every RM1 the owner puts into the company, the maximum amount that he should borrow is 50 sen.

The rationale is to look for companies with lower financial risk - lower borrowings mean companies pay less interest expenses and face lower bankruptcy risk.

M for Management refers to companies with high management quality. It is always very difficult to determine the management quality of a company.

Almost all investment gurus, like Graham, Philip Fisher and Warren Buffett say that the management quality is one of the most important factors in stock selection.

A good management should exhibit unquestionable management integrity and try their best to maximise shareholders’ wealth through high dividend payment and capital gains.It is almost impossible for each listed company to consistently show high profit during all periods, especially in a weak economy.

However, a good management will make sure that they are able to perform better than their peers even in the toughest business environment.

The writer is a licensed investment adviser and managing partner of MRR Consulting.

Capital gain versus dividend ? which one is better? by OOI KOK HWA

2010-09-25T10:46:00.005+08:00

Capital gain versus dividend ?which one is better?

Personal Investing - By Ooi Kok Hwa

DESPITE the high FTSE Bursa Malaysia KL Composite Index levels, a lot of investors have been complaining about not getting the desired returns by investing in the stock market.

This is because they are holding shares in companies that have poor fundamentals, and the majority of the sestocks are still selling at very cheap prices.

As a result, most investors not only incur capital losses due to low prices but al so not get any dividends from these companies. In this article, we will look into the importance of capital gain versus dividend.

When we look at the performance of listed companies, we find that the majority of companies t hat have performed well in terms of stock prices are companies that pay good dividends; for example Nestle (M) Bhd, Dutch Lady Milk Industries Bhd, Public Bank Bhd etc.

Most investors are aware of these stocks that pay good dividends. However, some would not consider buying into these stocks because to them, the stock prices are too high or too expensive.
Instead, some investors prefer to take the chance and buy penny stocks, which they think are cheap and have higher probabilities of getting huge capital gains.

Unfortunately, most of them find that after a few years, they are still not receiving any dividends from these stocks, while the stock prices are still far from their targets, some of them even below their purchase prices.

Investors wh o buy stocks that pay good dividend s need to have the mindset and habit of holding stocks for long-term.

Normally, people who prefer to invest in di vidend-paying stocks will not speculate on these stocks but keep them for the long-term as the companies have been rewarding them with good dividend payments over the years.

Companies that pay good and consistent dividends also reflect the sharing attitude of the companies and the owners.

There have been instances wher eby some listed compan ies, when in need of funds, would raise the money from investors through various types of capital calls.

However, when the companies start to accumul ate excess cash, they do not reward investors with special dividend payments.

Instead, if their stock prices were selling below the net cash per share of the companies, they woul d consider taking the companies private so that they can have direct access to the cash.

Hoping for capital gains Many companies refuse to pay dividend s to investors because they claim they need to retain profits for future expansion.

Even though there are cases where future expansions turn ou t to be successful and generate good profits to the companies, there are als o cases where expansion projects fail.

We notice that st ock prices for companies that either pay very low or no dividends would fluctuate according to t he overall sentiment of the stock market, whereas stock prices for companies that pay good dividends tend to be relatively more stable.

Most investors know the need to buy low and sell high to make money. However, most do not know when to sell their stocks. We cannot sell a stock just because we have bought it cheap.

According to Benjamin Graham, we should only sell a stock when the fundamentals of the company deteriorates.

We should not sell the stock if the stock price is temporarily above its intrinsic value as it is not easy to identify a company with good quality management.

Besides, this type of company usually pays stable and growing dividends as it usually has a fixed dividend payout policy to reward investors.

However, most investors may sell their stocks too early. Companies that are unable to pay dividends are usually companies that incurhigh capital expenditure for future expansion.

These companies not only do not have any excess cash to pay dividends, they also have high gearing and need to retain all profits for expansion. Hence, investors who buy these stocks will have to bear higher risks.

In short, it is safer to buy into companies that p ay good dividends.

As mentioned earlier, companies that pay good dividends reflect the attitude of the companies and the owners, whether they are willing to share profits with minority shareholders.

This is important as we have growing cases of companies with issues on corporate governance.

Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.

I AM WHO I AM by Namewee

2010-09-25T10:13:00.001+08:00

BJ CORP DIDNOT GET SPORTS BETTING LICENCE?

2010-06-08T14:48:00.003+08:00

Gaming: Najib says no sports betting licence yet for Ascot Sports
The finance minister has yet to issue a sports betting licence to Ascot Sports Sdn Bhd and is in the midst of discussing the licence’s terms and conditions, Prime Minister Datuk Seri Najib Razak said. The government was still obtaining feedback from various quarters on the proposal to license sports betting in Malaysia “with the view of reducing and subsequently
eradicating unlicensed betting in Malaysia”. (Financial DAILY)

announcement to SC on 12.5.2010

The Minister of Finance has given its approval for the re-issuance to Ascot of the licence
to carry out sports betting operations upon certain terms and conditions.
Ascot proposes to commence its sports betting operation in the 2nd half of the year 2010
with its retail betting operations being housed at 220 selected Sports Toto outlets, subject
to relevant approvals being obtained. In addition, Ascot also proposes to provide
telephone betting services to customers who wish to register accounts with them. The
primary focus of Ascot will be on sports betting on soccer games in the initial stages with
the aim of increasing their product service offering to other sports in the future subject to
the terms and conditions of the licence.

PPB

2010-05-20T10:01:00.001+08:00

FROM THE EDGE----the unexpected things can happen to any company/stock no matter how good they are.

PPB continues slide
Written by Surin Murugiah
Thursday, 20 May 2010 09:28

KUALA LUMPUR: PPB GROUP BHD [] extended its losses in early trade Thursday, May 20 and fell 12 sen to RM16.30 with 241,400 shares done as at 9.15am.

On Wednesday, the stock lost 5.79% or RM1.02 to RM16.60, the sharpest decline since Oct 24, 2008 when it fell 6.71%.

It saw RM1.21 billion erased from its market capitalisation after its 18.4% associate company Wilmar International's Indonesian subsidiaries had been reported to be under probe for alleged unlawful value-added tax-restitution claims.

Meanwhile, Wilmar International's stock price fell by 6.9% on Wednesday on tax fraud allegations. After Wednesday's close, the company provided further clarification to SGX on the process of claiming VAT refund, which is very straightforward.

The company also said its internal records in respect of the VAT refund claims vis-a-vis export sales will stand up to scrutiny.

OSK Research in a note Thursday said that besides the announcement to SGX, the company also clarified that its COO Martua Sitorus was not personally under investigation for the tax fraud allegations.

"We believe the market will be relieved as Martua was the person who spearheaded Wilmar's expansion in Indonesia. After (Wednesday's) selldown, Wilmar is trading at under 15 times PE for both FY10 and FY11.

"Should the company be able to sort out the issue, the stock will be a bargain even at these levels. While the stock may still weaken somewhat from here, we believe it is now cheap enough for investors to start nibbling on. We are encouraged by the company's strong stand on the issue."

OSK Research reiterated its buy call on Wilmar with target price of S$7.35.

BCorp: Right time to list F&B unit

2010-04-03T14:04:00.000+08:00

from the star business online
BCorp: Right time to list F&B unit( but I have sold almost all BJcorp last few days!)
By DANNY YAP
danny@thestar.com.my
PETALING JAYA: Diversified group Berjaya Corp Bhd (BCorp) believes the “timing is right” for its food and beverage (F&B) business to be listed on Bursa Malaysia and the company plans to list the business under the name of Berjaya Food Bhd (BFood) by the second half of the year.
In an e-mail to StarBizWeek, the management of BCorp said it was timely to raise the profile of its Kenny Rogers Roasters (BRoasters) restaurant business via its listing.
BRoasters is 100%-owned by Berjaya Group Bhd, a wholly-owned subsidiary of BCorp and the proposal is to inject BRoasters into BFood, the yet-to-be-listed entity.
The management said the Roasters restaurant business had potential and expected its shares to appreciate over time with its listing on the exchange.
The first BRoasters was established in Malaysia way back in November 1994.
On whether other franchise chains of BCorp would be injected into BFood, the managemnet said: “We may consider if the franchise chains are ready and profitable. At present, only BRoasters is ripe for listing.”
The management said BRoasters’ revenue had grown from about RM23mil in the financial year ended April 30, 2005 (FY05) to about RM52mil in FY09. After-tax profit had increased from a mere RM1.5mil in FY05 to RM7.9mil in FY09 (excluding exceptional items).
A local analyst said BCorp could be on an acquisition trail to boost its F&B business via BFood.
“The company is using BRoasters and its assets as a vehicle to list under a new name (BFood) as BRoasters had the profitable track record to qualify for main board listing,” he said.
The analyst said it was likely that other F&B chains within the group and possibly F&B chains not within the group could be a target of acquisition to enhance the value of BFood over time.
“The acquisition can be ‘organic’ or F&B chains outside the group,” he said, adding that acqusition would be the fastest way to grow, provided the F&B chains acquired were profitable.
Currently, BCorp owns 47 restaurants and 16 independent franchisees that are mostly F&B related, including Starbucks, Wendy’s, Papa John’s Pizza and Krispy Kreme Doughnuts.
In addition, BCorp also owns KRR International Corp, the owner of the KRR brand worldwide.
The diversified group also has other businesses, including gaming outlets, property develoment, trading, insurance, among others.

DAIBOCHI, SEB,OVERSEA,BJ CORP,POS,SUPERMAX

2010-04-01T11:56:00.002+08:00

from the EDGE
CIMB research rates Daibochi (target price: RM4.60) and Tomypak (target price: RM 4.66) as Outperforms -ability to pass on rising raw material costs to their customers -double digit pretax margins recorded for 4 straight quarters, trend should continue in 2010 -potential catalysts for both stocks 1) further margin expansion
2) contracts from major non-F&B companies
3) attractive dividend yields of 5-6%

××××××××

Seremban Engineering Bhd (SEB) to expand capacity -to raise RM17m from its IPO and use half of it to fund group's capital expenditure, expected to be listed in the 2Q -1 SEB shares for every 15 Success Transformers shares -rights issue price RM0.85 Ex date: 12 April 2010

**********
OSK Research says Oversea has a well established presence with over 30 years of culinary expertise, earning them recognition across the region.Targeting to open one new outlet in Ipoh and a café outlet in Klang Valley by 2011, Overseas plans sights to expanding abroad via a new licensing program to operate food service outlets under their brand name."For its listing on the ACE market, we think the offer price of RM0.23 at 7.8x FY10 EPS is fair given that its earnings is relatively smaller as compared to its peers which are trading in the range of 9-11 times price-to-earnings ratio," it said.
*********

BERJAYA CORPORATION BHD [ ] (BCorp), whose share price hit an 11-year high of RM1.77 in intra-day trade on Tuesday, announced on Wednesday, a net loss of RM155.12 million on the back of RM1.66 billion revenue in its third quarter ended Jan 31, 2010 (3QFY10), was mainly due to non-cash dilution effects amounting to RM150.46 million when its interest in BERJAYA LAND BHD [ ] (BLand) was diluted from 56.44% to 53.25% upon maturity of the BLand ICULS on Dec 31, 2009.
********

Pos Malaysia has recommended a first and final dividend of 12.5 sen per ordinary share less tax. The dividend was subject to shareholders' approval at its forthcoming AGM.Shares of Pos Malaysia rose to a four-month high of RM2.34 in intra-day trade after the government announced that Khazanah Nasional would divest its 32% stake. On Tuesday, Pos Malaysia also jumped 19 sen (+9.2%), its largest gain since May 18 last year.

**********

SUPERMAX CORPORATION BHD [ ] is expected to reap the immediate fruits from the US Healthcare Reform Bill as the glove maker is set to increase its export of medical examination gloves to the US market by 5% to 7% in FY10.
IOI Corporation Bhd may write back the impairment loss made in the financial year ended June 30, 2009 (FY09) on a joint-venture property project in Singapore towards the end of the current financial year since the value of property has risen in the island state

NEM steers away from race-based affirmative plan

2010-03-31T11:44:00.004+08:00

Very ambitious and strong commitment to change
FROM THE EDGE FINANCIAL DAILY
KUALA LUMPUR: The New Economic Model (NEM) proposed by Prime Minister Datuk Seri Najib Razak takes a fresh approach to the country’s affirmative action and targets to more than double the income per capita of Malaysian households by 2010.( good!though I doubt it can happen so soon!)
In unveiling the proposals for the NEM prepared by the National Economic Advisory Council (NEAC), Najib said that the renewed affirmative action policy in the NEM would focus on raising income levels of all disadvantaged groups. ( this is the correct and long awaited move)
“It will focus on the needs of all our people — those living in the long houses in Sabah and Sarawak and poor rural households in Semenanjung Malaysia (Peninsular Malaysia), who often feel disconnected from the mainstream economic activity,” he said at the opening of the Invest Malaysia 2010 here on Tuesday, March 30.
According to the NEAC report, the focus of the NEM should be on the bottom 40% of Malaysia’s income strata — both individually and regionally as this group was disadvantaged and required special attention. This 40% of the households earn less than RM1,500 per month.
One of the three objectives under the NEM is to raise income per capita of Malaysian households that currently is US$7,000 (RM22,890) to US$15,000 by 2020, said Najib.
He said that it would be no easy task to achieve the goals set by the economic model but the rewards would be great.
Another salient observation from the NEAC report is that 80% of the workforce has education up to the Sijil Pelajaran Malaysia (SPM) level.( yes, a lot of dropouts even Chinese before SPM )“This is not in line with a high-income economy,” the prime minister said. “Creating a high-income nation will mean higher wages throughout the economy. Even wages for blue-collar workers will be based on them acquiring higher competencies, with their performance more readily benchmarked against international competitors. With more skills, comes greater responsibility, and better, higher paying jobs.”
The NEAC, headed by Tan Sri Amirsham Abdul Aziz, handed the report and recommendations for the formulation of the NEM to Najib. It would now be discussed by the various stakeholders in the government which include the component parties of Barisan Nasional, before being incorporated into the 10th Malaysia Plan scheduled to be unveiled on June 10 in parliament.
The final blue print for the NEM would only be firmed up in August when the 10th Malaysia Plan is approved.
Najib said that the renewed affirmative action policy would be market-friendly, merit-based, transparent and must be based on needs and not race.( hopefully WHATEVER POLICY CHANGE ,this time will be REAL!)
“For instance, one important consideration will be developing a competitive and transparent tender process, with set and clear rules for the whole bumiputera community, made of both Malay and other indigenous groups. This is set out as a common-sense enhancement of our policies for a new economic reality and where inclusiveness is a key component in our new economic model. In practice, this approach will mean greater support for the bumiputeras — a greater support based on needs, not race,” he said.
Apart from creating a higher-income economy, the other two principles of the NEM are sustainability of the economic activities and inclusiveness that will ensure no one is left out of the wealth-creation process.“
There is little value in pursuing a future based entirely on wealth creation. Pursuing growth that depletes resources and displaces communities will have dire consequences for future generations. This is a false and futile choice,” he said.( TRUE,VERY TRUE!)
He also realised that there would be some opposition to the NEM as it required a change in mindset.“
In the short term, there will be entrenched opposition. Some economic sectors may experience adverse effects. The process of change is never easy, and there will be painful moments. But for the long-term strength of our nation, we cannot afford to duck these issues any longer,” he said.In assessing the results of the NEM, Najib said that it should encompass the whole spectrum of measuring wealth such as equity ownership, other financial and non-financial assets, and access to wealth-creating opportunities such as long-term concessions and contracts.“
Even in measuring ownership, it should go beyond equity to include other properties, business assets such as retail, landed properties, commercial building, intellectual property and other services as well as managerial positions,” he said.
IMPLEMENTATIONS!
IMPLEMENTATIONS!
IMPLEMENTATIONS! PLEASE.

CIMA,TNB,HONG LEONG,GENTING, IJM,AXIATA, PARKSON

2010-03-31T09:52:00.002+08:00

CIMB: Investors in talks for bad debt unit
CIMB Group Holdings Bhd (CIMB MK, Buy, TP: RM15.25) is in talks with three foreign investors interested in buying stakes in a unit set up to manage its bad debt, CEO Datuk Seri Nazir Razak said. CIMB aims to conclude its first agreement by the end of this year. “We are looking at selling down at least 51%,” Nazir said. The South-East Asia Special Asset Management Bhd unit had about RM8.4bn worth of bad debt when it was created in October to gradually purge the estimated RM14bn of non performing loans inherited from Bumiputra-Commerce Bank and Southern Bank before the merger into CIMB in 2006. (Malaysian Reserve)
********

TNB: Eyes second quarter profit boost
Tenaga Nasional Bhd (TNB) (TNB MK, Buy, TP: RM9.90) expects a strong second-quarter profit after electricity demand surged, and had doubled its full-year demand growth forecast, CEO Che Khalib Mohamad Noh said. TNB saw a 13.8% increase in power demand in the second quarter from a contraction of 7.6% in the equivalent period a year earlier. “Due to this, we think that we are going to exceed our initial estimate of 3% demand growth for the full year. My guess is that it will be 6%-7% for the full year,” Che Khalib said. (StarBiz)
*********

Hong Leong: Returns with the same RM7.10 a share offer for EON Cap
Hong Leong Bank Bhd (HLBB) (HLBK MK, Hold TP: RM8.71) has returned with the same cash offer for EON Capital Bhd (EON Cap) – RM7.10 a share or RM4.9bn for the latter’s entire assets and liabilities. The price is the same as its first offer made previously which values EON Cap at 1.4 times book value based on shareholders’ funds of RM3.6bn as at 31 Dec 2009. According to a statement from Bursa Malaysia, HLBB requires EON Cap’s board to confirm that EON Cap agrees to certain conditions regarding the offer on or before Apr 5. These include EON Cap and HLBB each submitting their respective applications to the finance ministry and relevant authorities for approval based on the offer price before Apr 9. (Financial Daily)
*********

Genting: ‘Aggressively’ looking at investments in the US and elsewhere
Genting Bhd (GENT MK, Hold, TP: RM6.37) is aggressively looking at a variety of potential investments in the United States and other countries, said its head of strategic investments and corporate affairs, Datuk Justin Leong. The company is “looking at investments” quite “aggressively” as the markets open up,” he said, but declined to delve into specifics. He
said Genting was cautiously optimistic about the global financial environment. (Financial Daily)
**********

IJM: Bidding for RM4bn worth of projects
IJM Corporation (IJM MK, Hold, TP: RM4.30) is bidding for projects worth RM4bn, giving it a strong possibility of boosting its total orderbook past the RM4bn mark from the current RM3.6bn, said its CEO Datuk Krishnan Tan Boon Seng. “With improving economic conditions, there should be opportunities to increase the order book. Certainly by year end we will
cross the RM4bn mark,” he said, adding that IJM would be sticking to its core business and continue to operate in its traditional markets. He also said there have been concerns about the lack of news flow in the infrastructure industry in Malaysia but believed the situation would change in a month or two. (Financial Daily)
**********

Axiata: To announce first dividend payout since Telekom demerger
Axiata Group Bhd (AXIATA MK, Hold, TP: RM4.15) will be announcing its dividend policy by 3Q2010 en route to its maiden dividend payout since being demerged from Telekom Malaysia Bhd (T MK, Hold, TP: RM3.54) in April 2008. Axiata’s move to pay dividends will be financed by its sale of an 18% stake in its Indonesian subsidiary PT XL Axiata Tbk, which is expected to raise between RM1.83bn to RM2.02bn. Axiata is inclined to use the proceeds for consistent dividends and lowering its borrowings. CEO Datuk Sri Jamaludin Ibrahim said there will be divestment of non-core businesses in Iran, Thailand and Pakistan. (Malaysian Reserve)
***********

Parkson: To invest RM220m this year
Parkson Holdings Bhd plans to invest about RM220m this year for expansion, up from RM180m in 2009, said CEO Datuk Albert Cheng. He said a total of RM150m to RM170m would be invested in its biggest market China and RM20m to RM25m for Malaysia. “We would invest around RM20m for our market in Vietnam,” he said. Cheng said the company was expecting an increase of 15% to 20% in its retail space this year for its stores in Malaysia, China and Vietnam. (Financial Daily)

CIMB, IOI,ASTRO,PROTON

2010-03-30T11:19:00.002+08:00

CIMB: Well capitalised to support overseas units
CIMB Group Holdings Bhd (CIMB MK, Buy, TP: RM15.25) will not need to raise capital even if it were to inject equity into its subsidiaries in Indonesia and Thailand, as the Malaysian banking group is well capitalised, said its group CEO Datuk Seri Nazir Razak. He said the banking group had a total risk-weighted capital ratio in excess of 15% currently and hencewas in a comfortable position to support its overseas subsidiaries PT Bank CIMB Niaga and CIMB Thai Bank. "Both CIMB Thai and Niaga also have ample capabilities to fund their operations via bonds as opposed to equities," Nazir said. (Financial Daily)
CIMB Group Holdings Bhd (CIMB MK, Buy, TP: RM15.25) has applied for new banking licences in Vietnam and Cambodia in a bid to strengthen its regional presence. The group already operates in Indonesia, Thailand and Singapore. "That's all for the moment, but CIMB does have strategies for all other Asean markets," group chief executive Datuk Seri Nazir Razak
said when asked if the group planned to expand to other countries. (BT)( will it be too late to buy now?)
××××××
IOI: Unilever has no plans to end supply contract
Unilever says it will not cancel palm oil supply contracts with IOI Corp Bhd (IOI MK, Hold, TP: RM5.21) and that it is confident the planter will address concerns over logging forests raised by a green group. IOI had dismissed the report by Friends of the Earth that it cleared rainforests on Borneo Island to expand, saying the allegations were inaccurate. "We believe IOI is a very responsible supplier and are confident that if there is truth in the current allegations, IOI will address them," Unilever head of sustainability Jan-Kees Vis said in an e-mailed response. (BT)

××××××
Astro’s wholly owned subsidiary, Measat Broadcast Network Systems Sdn Bhd (MBNS), has successfully migrated to the Communications and Multimedia Act 1998 (CMA) licensing regime. In a statement to Bursa Malaysia, Astro said it had secured new licences from the government for new content applications service provider, network service provider and network facilities provider under the CMA. Astro said the migration was on “terms that are no worse off to MBNS” and did not have any material effect on the business and operations of the group. (Financial Daily)
×××××××
Proton: Government will not divest Proton to foreign companies
The government has no intention of divesting its equity in Proton Holdings Bhd as it does not want the national car manufacturer to be controlled by foreign parties. Deputy Finance Minister Datuk Chor Chee Heung said Proton was currently negotiating assembly and product joint venture possibilities with several original equipment manufacturers. However, he said the discussions did not involve equity participation but a strategic partnership to enable Proton to
become more innovative, domestically and internationally. (Malaysian Reserve)
××××××
Bolton: Acquired land in Jalan Peel for RM39m
Bolton Bhd entered into a deal with Intrapuri Sdn Bhd to acquire a piece of land in Jalan Peel, Kuala Lumpur for RM39m cash. It will develop medium high-end service apartments on the 2.2ha property, with an estimated gross development value and gross development cost of RM280m and RM220m respectively. Development of the property is expected to commence on completion of the proposed acquisition and after obtaining all the approvals from relevant authorities, with an estimated development period of five years. (BT)

TIMBER STOCKS TO LOOK OUT FOR

2010-03-29T12:13:00.004+08:00

Timber stocks, Proton in focus

Written by Joseph Chin
Monday, 29 March 2010 10:21

KUALA LUMPUR: Timber stocks advanced in the early session on Monday, March 29 on expectations of higher prices as demand from Japan picks up .
Hwang DBS Vickers Research, on the stock market outlook, said even though key US equity barometers ended flat on Friday, it said there may be incremental buying interest coming in to lift share prices, ahead of the much anticipated Invest Malaysia 2010 conference to be held on Tuesday and Wednesday."
Hwang DBS Vickers Research said there could be rotational trading activity in CONSTRUCTION [registerQuotes("CONSTRUCTION", "CONSTRUCTION_span");] counters today following a news article speculating that Bina Puri (and its unlisted joint venture partner UEM Group) is on the verge of clinching the third package to build a new low cost carrier terminal valued at RM1.1 billion. Bina Puri and its partner might have beaten other contenders such as Sunway Construction, MRCB, Fajarbaru and Gadang Holdings-PPC joint venture, it said.
Timber stocks were the gainers, with Cymao up 24 sen to 90 sen but with only 200 shares done, Subur Tiasa rose 24 sen also to RM2.52, Jaya Tiasa 17 sen to RM3.92, Lingui 16 sen to RM1.36, Ta Ann 15 sen to RM5.95 while WTK added 11 sen to RM1.34.( ANY CHEAP AND UNDERVALUED TIMBER STOCKS THAT HAVEN'T MOVE?) ---cut & paste from the edge

IOI, AXIATA, BINA PURI, ALAM MARTIN, UNISEM

2010-03-29T11:51:00.001+08:00

IOI Corp: IOI refutes NGO’s claim on unsustainable plantation
IOI Corp Bhd (IOI MK, Hold, TP: RM5.21) has rebutted the allegations of unsustainable plantation activities in West Kalimantan, Indonesia, by Western non-governmental organisation Milieudefensi. Milieudefensie, the Dutch branch of the international organisation Friends of the Earth, in a Mar 15 report, made several allegations including instances of potential land conflict, unauthorised plantation development on forest land, encroachment on peat land and open burning. IOI said a thorough investigation into all the allegations established that Milieudefensie’s field research had been highly selective and limited. “A clear action list and timeline has been set by IOI to address the remaining points raised by Milieudefensie,” IOI added. (StarBiz)

Axiata: Indonesia’s XL share sale nets US$554m
Malaysian telecoms firm Axiata (AXIATA MK, Hold, TP: RM4.15) has raised 5.1trn rupiah (US$554m or RM1.8bn) from the sale of shares in its Indonesian unit XL Axiata, XL’s president director said. Axiata is reducing its stake in XL Axiata, Indonesia’s No.3 mobile phone provider, to 68.5% through the share offering from currently 86.5%, in order to increase the free float and improve liquidity. The 1.53bn shares in XL Axiata were priced at 3,300 rupiah a piece, at the top end of the indicated range, and the share offering was 3 to 4 times oversubscribed, XL Axiata president director Hasnul Suhaimi said. (Financial Daily)

Bina Puri: RM1.1bn LCCT job almost in the bag
Bina Puri Holdings Bhd, together with its joint-venture partner UEM Group Bhd, is close to securing the third package of Malaysia Airport Holdings Bhd’s (MAHB) new low-cost carrier terminal (LCCT) worth some RM1.1bn, sources say. The JV is expected to receive the letter of award soon. The new project would be a boost to Bina Puri’s future earnings and order
book which currently stands at RM2.3bn, stretching over the next three years. (The Edge)

Alam Maritim: Bags charter contracts worth RM83.2m
Alam Maritim Resources Bhd said its unit Alam Maritim (M) Sdn Bhd has landed two charter contracts totalling RM83.16m from unidentified established oil majors to provide an accommodation vessel and an accommodation work barge. The three year charter for the accommodation vessel had a contract sum of about RM39.96m after which there is a two year
option to extend the charter on a yearly basis. The charter contract for the accommodation work barge had a contract sum of about RM43.2m, with a primary period of 13 months with options to extend for two more years. (Malaysian Reserve)

Unisem: US$60-70m for capex
Semiconductor manufacturer Unisem (M) Bhd is allocating between US$60-70m (RM198.6-231.7m) as capital expenditure (capex) for its current fiscal year to expand capacity and capitalise on rising demand for electrical and electronic (E&E) components ad products. Unisem chairman and managing director Jon Chia Sin Tet said about 75% of the capex would
go to expanding production capacity at its manufacturing site in Chengdu, China by building more factories. The remaining 25% will be used to augment the assembly and test capacity at its factories in Ipoh, Malaysia and Batam, Indonesia. “We will embark for organic growth in 2010 to 2012” Chia said. Unisem has no immediate fund-raising plans, Chia added.
(Financial Daily)

Bumi Armada: Talk of listing
Talk of an initial public offering (IPO) of T Ananda Krishnan’s oil and gas support services company, Bumi Armada Bhd, has surfaced again, after years of speculation. Parties familiar with the situation said some investment banks, both local and foreign, have been pitching for the advisory, placement and underwriting work for Bumi Armada’s IPO. Leading the pack, they said, is CIMB Investment Bank. However, other industry sources have not ruled out a sale of part of the company to private equity players, instead of the IPO route. (StarBiz)

Alliance: Shortlists 8 for CEO post
Alliance Bank Malaysia Bhd is considering a candidate from among eight individuals to replace Datuk Bridget Lai as its chief executive officer (CEO), sources said. The bank hopes to send the name of the chosen candidate to Bank Negara Malaysia for approval before the end of next month. Out of the eight candidates, three are Malaysian, three Singaporean and the rest foreigners from other countries. Alliance Bank is also on the lookout for senior management as it looks to partially reorganise the bank's management structure. (BT)

BERJAYA SPORTS TOTO -- BUY

2010-03-27T12:09:00.002+08:00

FROM ECM LIBRA
Positive start to Supreme Toto 6/58 GAMING
• 6/58 average revenue per draw at RM800k
Berjaya Sports Toto’s (BST) new lotto game, Supreme Toto 6/58 (6/58) recorded average revenue per draw of approximately RM800k since it was launched three draws ago on 20 Mar 2010 with a maiden jackpot of RM10.9m (Figure 1). This was within expectations as Mega Toto 6/52 (6/52) and Super Toto 6/49 (6/49) recorded similar revenue per draw when their jackpot was approximately RM10m (Figure 2 & Figure 3).
• Average lotto revenue per draw more than 30% higher
Since 6/58 was launched, BST recorded average lotto revenue per draw of RM1.5m (Figure 4). The incremental average lotto revenue per draw was approximately RM500k (6/58 average revenue per draw of RM800k less discontinued 6/49 average revenue per draw of RM300k) or some 30% higher. Lotto revenue per draw will trend higher as the last total jackpot offered was only RM18m when the total minimum jackpot is RM13.9m (Figure 5). This is especially so when the jackpots snowball to levels way higher than the minimum.
• Non-lotto revenue will also benefit
Lotto revenue comprised only 7% and 10% of FY08 and FY09 gross NFO revenue and grew RM132.4m y-o-y but was outpaced by non-lotto revenue which grew RM321.9m y-o-y or two and a half times more (Figure 6). Increased visits to outlets driven by large jackpots also
resulted in higher non-lotto sales. With larger jackpots going forward due to the high 6/58 minimum jackpot of RM8.9m, we foresee non-lotto revenue growth as well. With the competing Magnum 4D Jackpot being struck on Sunday, this will only help BST’s cause (Figure 7).

• Maintain Buy and RM4.91 TP( I will sell by then.)
As only three draws have passed, we leave our earnings estimates unchanged for now. Our RM4.91 TP is premised on end-FY11F DCF utilising 7.9% WACC and 1.5% TGR. We forecast that investors will also receive 27 sen single tier DPS (4QFY10F: 4 sen single tier, FY11F: 23
sen single tier) between now and end-FY11F translating into 17% upside potential. With 681 outlets (Magnum: 485, Da Ma Cai: 343), BST is the single largest NFO operator in Malaysia and is well poised to secure the sports betting license.

AXIATA, TM & OTHER BUSINESS NEWS

2010-03-25T11:14:00.001+08:00

Axiata: XL bookbuilding favourably received
The bookbuilding exercise of PT XL Axiata Tbk, Axiata Group Bhd’s (AXIATA MK, Hold, TP: RM4.15) Indonesian operations, has been received favourably by investors, according to a news report. According to FinanceAsia, the shares of XL have received much interest because of the indicative price range was set at a steep discount to Indonesia’s number two mobile company, PT Indosat Tbk. Quoting sources, FinanceAsia said the order flow was bolstered by the fact that the deal would be open to qualified institutional buyers in both Malaysia and Indonesia, which are not typically tapped for international offerings. (Financial Daily)
**********

TM: To announce UniFi pricing
Telekom Malaysia Bhd (TM) (T MK, Hold, TP: RM3.54) will announce its much-anticipated pricing structure for its nextgeneration high-speed broadband service, “UniFi”, which was launched with the promise of a “world of faster, richer and more reliable online experience.” TM Chairman Datuk Dr Halim Shafie said the pricing would be made available on TM’s
website. (Financial Daily)

*******
Plantation: Malaysia to launch long delayed biofuel mandate
Malaysia has asked petroleum companies to bear the extra cost of selling diesel blended with palm oil from June next year to kickstart sales of the green fuel after a four year delay. Commodities Minister Tan Sri Bernard Dompok said that the green fuel, a blend of 5% palm and 95% diesel, will be introduced in stages in the central states on the mainland. Eventually, the mandate will be extended to other Malaysian states and will take up half a million tonnes. Dompok said the government will bear the cost of developing six petroleum depots with blending facilities at a cost of RM43.1m. (Financial Daily)
*******
Telecommunication: Lower broadband rates from Telekom and more community internet centres Prime Minister Datuk Seri Najib Razak announced six initiatives to encourage broadband usage among Malaysians, including a reduction in rates on broadband packages from Telekom Malaysia. The initiatives will benefit some 17m internet users in the country and boost broadband coverage. The measures would be implemented under the National Broadband Initiative (NBI). Among the initiatives are to set up community broadband centres at a cost of RM60m, to have e-kiosks at community centres and sub-district offices at a cost of RM4m, to set up 873 new telecommunications towers, and Telekom to make broadband packages together with netbooks with rates reduced from RM50 to RM38 a month. (NST) ( we are waiting far too long.)
*********
Banking: BNM to issue 7 more banking licenses
Bank Negara Malaysia (BNM) will issue seven more banking licences – five for conventional banking and two for Islamic banking. Governor Tan Sri Dr Zeti Akhtar Aziz said the central bank was in the final stage of assessing the applicants which comprised not only global banks but also Islamic insurance companies. The five conventional licences would be issued to those from Asia, Europe and the Middle East. “Sometime in May or early June, the announcement will be made,” she said. (Financial Daily) （good, more the better.)
********
Economy: Khazanah and EPF to hasten GLCs divestment
The government has directed Khazanah Nasional Bhd and the Employees Provident Fund (EPF) to hasten the divestment of their equity holdings in government linked companies (GLCs) to make the capital market more attractive to foreign fund managers, Prime Minister Datuk Seri Najib Razak said. However, he said the reduction of holdings in GLCs by the government’s investment arm and EPF would not undermine national interest as it was protected by the government holding a golden share in strategic investments as well as regulators keeping an eye on what the companies do. (Financial Daily) (sure or not ?then better look out for small and medium size glc company。）
*********
Economy: Economy could grow up to 5.5%, says BNM
Bank Negara Malaysia (BNM) expects the economy to grow between 4.5% and 5.5% this year with higher consumer
spending, increase in business investment and improvement in exports to Asia. Furthermore, there is potential upside for
the economy to surpass the projection as gross domestic product (GDP) in the first quarter of 2010 itself is estimated to
surpass that of fourth quarter last year, according to BNM Governor Tan Sri Zeti Akhtar Aziz. The projected local growth in
2010 is based on the expectation of a “gradual and uneven” global economic recovery which is still facing downside risks
mainly in the advanced economies. (Malaysian Reserve)
3

MAH SING, ALLIANCE, EONCAP, HO HUP,MASTEEL & other business news

2010-03-24T11:17:00.001+08:00

Mah Sing: On track to meet RM1bn sales targetMah Sing Group Bhd is on track to achieve its RM1bn sales target this year, having hit sales of RM516m in the first three months. Managing director Tan Sri Leong Hoy Kum said the achievement was three times the RM170m sales registered in the previous corresponding period. He said the company had gone on an acquisition trail last year to secure prime landand expected to see some results this year. The group has landbank with a GDV and unbilled sales of about RM6bn, which provides earnings visibility for about six to eight years. (StarBiz)( This is the stock I hold for quite sometime, somehow attached to its good news,finding it difficult to let go!)
********
Alliance: Two more top executives quit A month after Alliance Bank Malaysia Bhd group CEO Datuk Bridget Lai resigned her position, two other top executives have submitted their resignations. In its confirmation, Alliance Bank said the two were Sachi Ratnajoothy, executive vicepresident/ CEO of Alliance Investment Bank and head of financial markets at Alliance Bank, and Lok Eng Hong, the head of dealing, equity markets at Alliance Investment Bank. “We confirm that Sachi and Lok have recently tendered their resignations from the bank for personal reasons to pursue their own interests,” it said. (StarBiz)( resignations again!)
*******
EON Cap: BNM clears directors’ resignationEON Capital Bhd confirmed the resignation of two of its independent directors, including its chairman, Tan Sri Syed Anwar Jamalullail, with immediate effect after obtaining clearance from Bank Negara Malaysia (BNM). According to its filing to Bursa Malaysia, the resignations of Syed Anwar and Yeo Kar Peng came into effect last Monday, Mar 22. In a separate statement, EON Cap said it had received BNM’s clearance for the resignations of its 4 independent directors. As such, the resignation of the two other directors Datuk Dr Mohd Shahari and Rodney Gordon Ward, has yet to come into effect. (Financial Daily)( resignations....)
*******
Ho Hup: Tan Sri Tong Yoke Kim emerges as substantial shareholderIn yet another twist to the Ho Hup Construction Co Bhd saga, Tan Sri Tong Yoke Kim who controls 19.3% of Bina Puri Holdings Bhd has emerged as a substantial shareholder in Ho Hup with 7.3% interest. According to a filing to Bursa Malaysia, Tong acquired 7.4m shares in Ho Hup in an off-market transaction on Mar 10, 7 days before the company held an EGM which saw the removal of seven directors and the effective control of the founding Low family. The emergence of Tong as a substantial shareholder in Ho Hup is bound to raise eyebrows, given that it had just crossed a major hurdle in resolving its boardroom tussle. (Financial Daily)( my once favourite stock in trading, missing the good timeloh.)
×××××××
Masteel: Second tranche of private placement at RM1.015 a shareMalaysia Steel Works (KL) Bhd (Masteel) has fixed the second tranche of its private placement shares which comprise 5.8m shares of 50 sen each at an issue price of RM1.015 a share. The issue price represented a discount of 3.82% to the five day volume weighted average market price (VWAMP) of its shares up to and including March 22, 2010. The issue price of its second tranche is the same as the price of its first tranche of placement shares, although this had represented a 7% discount to the five day VWAMP up to and including March 2. (Financial Daily)（out of the steel's stock, I had never touch masteel,always bypassed it to choose cscsteel, annjoo, kinsteel)
××××××
Construction: Three Acts to be amended by 2011 Three Acts in the construction industry will be amended by early 2011 following liberalisation of the services sector, Works Minister Datuk Shaziman Abu Mansor said. The Acts are the Quantity Surveying Act 1967, the Engineers Act 1967 and the Architect Act 1967. The services sector is to be fully liberalised by 2012 to attract more foreign direct investments into the country and it is expected to contribute 60% to the gross domestic product. Shaziman said the Acts need to bestandardised for the benefit of all parties, such as standard guidelines on regulations for foreign companies in the local construction field. (Malaysian Reserve)
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Economy: PM sees higher FDI after coming admin reformMalaysia should see increased foreign direct investment (FDI) this year after the government implements administrative reforms, the country's Prime Minister Najib Razak said. The country's new economic model, to be announced later this month, would include unspecified administrative reforms that should result in a "marked improvement" in FDI, Najib toldan investment forum in Hong Kong. He also reiterated an earlier statement that Malaysia's GDP growth should hit 5% or more this year. The country's economy shrank by 1.7% last year. Najib is scheduled to unveil initial details of a new economic model to boost growth and win back foreign investment at the annual "Invest Malaysia" conference organised by Bursa Malaysia on Mar 30. (Financial Daily)

AMMB, KNM, UEMLAND

2010-03-23T12:21:00.003+08:00

AmBank Group, a unit of AMMB Holdings Bhd (AMM MK, Buy, TP: RM5.24), plans to bolster its Islamic banking and financial services in the region as part of its expansion drive. "But we will expand on our own and will not buy any stakes in other banks or seek partners. Malaysia is already known as a leader in Islamic banking and we should continue to lead," Chairman Tan Sri Azman Hashim said. The bank has not decided which country it plans to venture into, but Indonesia, where it has a stockbroking business, could be a possible destination. (BT)
AmBank Bhd, a unit of AMMB Holdings Bhd (AMM MK, Buy, TP: RM5.24), sold RM1.42bn of bonds, less than planned, as it balances its assets and liabilities. It may sell a further RM1bn in private placements after meeting with investors later this month. “Demand was very strong but some investors’ expectations on pricing we thought were unrealistic, so we said we’re not interested,” chief financial officer Ashok Ramamurthy said. AmBank said in February it may sell as much as RM3bn of senior debt for the first time as it seeks to lower interest rate risk and boost its capital adequacy ratio. (Malaysian Reserve)
*******
KNM: Offer price may be reduced
KNM Group Bhd (KNMG MK, Hold, TP: RM0.90) has not extended BlueFire Capital Group Ltd’s (Bidco) exclusivity period for due diligence but still aims to conclude talks in four weeks, raising speculation that a revised lower offer price could be in the offing for the takeover. KNM said although it had not extended the period, which expired yesterday Mar 22, it had agreed to wrap up negotiations with the parties involved by Apr 16. “An announcement will be made on the outcome of such discussions when they are concluded,” KNM said in a filing to Bursa Malaysia. (Financial Daily)
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UEM Land Bhd has fixed the issue price of its rights issue at 80 sen per rights share, representing a 44.1% below its fiveday volume-weighted average market price up to Mar 19 of RM1.43. In a filing to Bursa Malaysia, UEM Land said the issue price was 34.4% below the theoretical ex-rights price of UEM Land shares of RM1.22. The rights issue will involve
the issuance of about 1.2bn rights shares and will raise RM971.3m. The rights shares were issued on the basis of one rights share for every two shares held as at 5pm on Apr 5. (StarBiz)

YTLPOWER,AXIATA, SUNWAY, AIR ASIA, PLUS

2010-03-22T11:07:00.003+08:00

Wessex Water Ltd, subsidiary of YTL Power International Bhd (YTL MK, Buy, TP: RM2.5), is expected to start work on the ambitious project of rehabilitating the highly polluted Klang and Gombak Rivers in Selangor and treating the water to make it safe for drinking at the latest by early next year. It made a successful bid with I-Berhad for a portion of the entire project and will be working in the lower reaches of the Klang River, between Puchong and Shah Alam. Managing Director Gareth Jones said its portion of the project will cost between RM400m and RM600m. The entire project valued at about RM15bn will span 15 years. (BT)
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Axiata Group Bhd (AXIATA MK, Hold, TP: RM4.15) told Bursa Malaysia that the book-building process for the sale of a 20% stake in its Indonesian unit PT XL Axiata Tbk would start on Monday, Mar 22. “Axiata has determined an indicative price range of 3,000 to 3,300 rupiah per share for the purpose of approaching eligible institutional/sophisticated investors under the book-building exercise,’’ it said. Axiata currently owns an 86.5% stake in XL Axiata and could receive about RM2bn, assuming that all 1.7bn shares offered are sold at the higher end of the indicative price range. Axiata believes that through the book-building exercise, it can achieve a more representative pricing for the XL shares. (StarBiz)
××××××

Sunway Holdings Bhd (SGW MK, Buy, TP: RM2.00) expects record profits in 2010 as it plans to tender for jobs worth up to RM16bn globally, said a top executive. The firm, ranked seventh among local builders with a market value of US$268m (RM884.4m) said its construction orderbook is expected to grow by one-third to RM4bn this year, partly boosted by the
Malaysian government's roll-out of public sector contracts. "Market conditions have improved
over the last six months and we are confident of securing some projects that we have tendered locally," managing director Yau Kok Seng said. (BT)
Perdana ParkCity Sdn Bhd has shortlisted seven companies to build a RM250m hospital in Desa ParkCity in Bukit Menjalara, Kuala Lumpur. They are Sunway Construction Sdn Bhd, unit of Sunway Holdings Bhd (SGW MK, Buy, TP: RM2.00), Crest Builder Holdings Bhd, Putra Perdana Construction Sdn Bhd, UEM Construction Sdn Bhd, Bina Puri Construction Sdn Bhd, Ahmad Zaki Construction Sdn Bhd and Japanese giant Obayashi Corp. Tenders will close this Friday and the contract will be awarded in April or May based on merits, technical expertise and track record. Construction will start by May or June and be completed in 2012. (BT)
*******
Low-cost carrier AirAsia Group (AIRA MK, Buy, TP: RM1.67) expects to carry some 27m passengers this year, up from the 24m passengers achieved last year. AirAsia group chief executive officer Datuk Seri Tony Fernandes said AirAsia, together with its long-haul affiliate, AirAsia X will be able to achieve 27m passengers as load factors remain strong and signs of economic recovery are underway. "We will use the new plane deliveries this year to continue driving our initiative of becoming a full-fledged Asean carrier this year," Fernandes said. (BT)
*******

PLUS Expressways Bhd, the country's largest toll highway operator, is eyeing more highway concessions in the Asia Pacific region as part of its expansion plans. Its managing director Noorizah Abd Hamid said the company is in talks with several countries in the region to build new highways or upgrade and maintain existing facilities. Noorizah cited Vietnam as a country with great potential due to its burgeoning population and surging economic growth. "We have the potential to go abroad either to be an equity holder of a concession, (participate) on a joint venture basis or start from scratch by building a new highway altogether," she added. (BT)

TM, PETRA, BJ CORP

2010-03-19T10:37:00.003+08:00

TM: Has spent RM1.9bn on HSBB so far
Telekom Malaysia Bhd (TM) (T MK, Hold, TP: RM3.54) has spent about RM1.9bn and the government some RM900m to date in rolling out the high-speed broadband (HSBB), group chief executive officer Datuk Zamzamzairani Mohd Isa said. TM is putting in RM8.9bn while the government is contributing RM2.4bn on an incurred claims basis based on project milestones reached by TM in the RM11.3bn project. “We are expecting to get about 750,000 premises passed by end of this year,” he said adding that physical work for 44 out of 95 exchanges nation wide would be completed by year end. (Malaysian Reserve)
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Petra Perdana: Gets nod for workboat funding
Petra Perdana Bhd (PETR MK, Sell, TP: RM1.18) said funding for a 169-crew workboat named Petra Sovereign has been approved. Executive director Shamsul Saad said in a statement the RM49m financing would cover 80% of the purchase price and the repayment was expected to be within 5 years. “The vessel, which is part of our fleet renewal programme, will be used in Malaysian waters for brownfield maintenance services,” he said, adding that the fleet renewal was on track to be completed by year-end. (StarBiz)

Berjaya Corp: Will assemble BYD cars elsewhere if necessary
Berjaya Corp Bhd (BCorp), which has won a deal to assemble the Chinese marque BYD for the Asean market, says it will manufacture the cars elsewhere if the group could not obtain the manufacturing licence locally. “The government has to think properly whether they want it here, because Malaysia needs more investment,” said BCorp chairman and CEO Tan Sri Vincent Tan. There is currently a freeze on new manufacturing licences for the production of petrol-powered vehicles below 1.8litres. “We think we have a strong case with very compelling economic reasons for the government to grant us the approval,” he added. The company hopes to assemble a mix of small and medium-sized cars. (Financial Daily)

Berjaya Retail: To be listed either in June or July
Berjaya Retail Bhd (BRetail) will be listed either June or July this year with the exercise raising RM50m for future expansion, said Berjaya Group chairman and CEO Tan Sri Vincent Tan. He said the listing, which initially targeted for the first quarter of the year, was delayed to enable to synchronise the fiscal year-end of Singer (M) Sdn Bhd and 7-Eleven (M)
Sdn Bhd. Pursuant to the listing, Berjaya Corp Bhd (BCorp) would sell Singer to BRetail for RM360m and 7-Eleven for RM600m. The number of BRetail shares to be distributed would range from 337.6m to 471.9m depending on BCorp’s share capital. (Financial Daily)

WAH SEONG, POS, KSL,HOHUP,MALTON

2010-03-18T11:51:00.002+08:00

Wah Seong Bhd (WSC MK, Buy, TP: RM3.40) submitted its bid to buy over Italian company Socotherm SpA three weeks ago, said deputy managing director Giancarlo Maccagno. The wahresults of the tender, which has attracted four other parties,would be known by end-April. Maccagno declined to reveal the cost of the acquisition, which would be funded internally.
“We believe we are strong contenders for this bid as we are in the same business of pipe-coating and would derive tremendous synergies if both companies merged,” he said. “We are also bidding for RM5.3bn worth of projects,” Maccagno added. (StarBiz)
×××××

Pos Malaysia Bhd has set its 2010 key performance indicator (KPI) targets where it has projected a revenue of RM930m for the financial year ending 31 Dec 2010, a 3% increase over FY09’s achievement. Other KPI targets for the year include a dip in earnings before interest, taxes, depreciation, and amortization (EBITDA) to RM110m and lower return on assets
(ROA) of 3.3% to 4%. “The group’s growth for 2010 will be underpinned by strategic alliances with other postal operators and global integrators, higher sales of motor insurance and new financial services offered,” it said. (StarBiz)
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Templeton Asset Management Ltd’s unit Templeton Emerging Markets Group has emerged as a substantial shareholder with a 5% stake in KSL Holdings Bhd after taking up part of a placement of new shares by the property outfit. KSL announced the issuance of 35.1m shares at RM1.18 a piece on Feb 25. In a joint statement, Templeton Asset Management executive chairman Mark Mobius said the fund was impressed with KSL’s position as a leading Malaysian
property developer with a strong track record and an experienced management team. (Financial Daily)
******

Ho Hup Construction Bhd shareholders voted out all the directors linked to deputy chairman Datuk Vincent Lye Ek Seang and replaced them with a group that effectively help the founding Low family regain control. However, it is said that this may not be the end of the tussle and there may be more manoeuvrings including legal ones in the months ahead. 55.9% of shareholders voted to remove the seven directors. In their place, six new directors – Tan Sri Kamaruzzaman, Hew Thin Chay, Yusob Md Tasir, D Felix Dorairaj, Slamat Hamzah and Chow Seck Kai – were voted in. About 55.8% of shareholders voted to pass the resolutions. According to an observer, 118 shareholders, proxies and corporate representatives were present. (Financial Daily)
******

Malton Bhd plans to develop a RM2.5bn commercial and residential project in Kuala Lumpur on a parcel of land owned by Ho Hup Construction Company Bhd. The proposed development would be carried out over 10 years, and is expected to comprise of shopping complexes, shop offices, office towers, service apartments and hotel. Malton’s unit Pioneer Haven
Sdn Bhd is solely responsible to meet the cost of the proposed development. Ho Hup’s unit Bukit Jalil Development Sdn will receive 17% of the gross development value with a minimum RM265m while the remaining 83% would go to Malton’s unit. (Malaysian Reserve)

*******
Top Glove Corp Bhd unveiled plans for two new factories costing RM70m to meet expected increase in demand after quarterly profit doubled recently. Dubbed “Factory 22” and “Factory 23”, the new facilities would be part of an on going expansion exercise to increase capacity by 8.3bn pieces a year once the expansion is completed by May 2011. Apart from
Factory 22 and Factory 23, other expansion plans includes adding more production lines in existing factories. (Malaysian Reserve)

WAH SEONG, HONG LEONG,TM, PHARMANIAGA,

2010-03-17T10:30:00.003+08:00

Wah Seong: May buy pipe-coating business in Nigeria
Wah Seong Corp Bhd (WSC MK, Buy, TP: RM3.40) is in talks to acquire a venture in Nigeria to tap demand for its products amid increased exploration. The company may provide technical assistance and later take up an equity stake in Orleans Group, a pipe coating business based in the West African nation, deputy group managing director Giancarlo Maccagno said. Maccagno declined to reveal the cost of the acquisition, which would be funded internally as the company
has RM400m in cash reserves. Wah Seong may look at expanding its gas compressor business, he added. (Financial Daily)

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Hong Leong: Yet to revive EONCap bid
Rin Kei Mei has won shareholders’ support to appoint seven directors but it may be too early for him to declare victory as Hong Leong Bank Bhd (HLBB) (HLBK MK, Hold, TP: RM8.71) has yet to revive its offer to take over the group’s asset and liabilities. A HLBB official said the banking group was currently reviewing its plan to acquire EONCap. “Following EONCap’s EGM, HLBB is currently reviewing its position and thus will not at present be resubmitting its offer to acquire
the entire assets and liabilities of EONCap,” the official said. (Financial Daily)

*******
TM: Inks licensing deal with English FA
Telekom Malaysia Bhd (TM) (T MK, Hold TP: RM3.54) has signed a licensing agreement with the England Football Association to be the official England telco licensee in Malaysia. The partnership with the FA, which runs through to the end of 2010, will give TM the exclusive use of the England crest and England player imagery in the telco category in Malaysia. “This partnership provides us with a unique opportunity to create an exciting marketing campaign for our customers and football fans here in Malaysia” said TM chairman Datuk Dr Halim Shafie in a statement. (Financial Daily)

******
Pharmaniaga: EPF denies plans to buy a stake
The Employee Provident Fund Board (EPF) has denied that it is interested in acquiring a part or the whole of UEM Group Bhd’s 87% stake in Pharmaniaga Bhd, as reported by an English-language daily. An official with the EPF said there was nothing further to comment as “this is not true.” Meanwhile, UEM Group said it was unable to comment on any speculation. Nevertheless, it is understood that several parties are interested in buying UEM’s stake in Pharmaniaga.
(StarBiz)

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Water: PFI of RM10bn for Klang River cleaning project
The RM10bn Klang River cleaning project, which is part of the river’s RM50bn rehabilitation and development project, is expected to be funded via a private financing initiative (PFI). Selangor Menteri Besar Tan Sri Khalid Ibrahim said that a detailed briefing on the project would be held on Mar 29. “We will come up with a detailed briefing whereby all the four
companies involved and the state will discuss the scheme and how to allocate the task of cleaning up the river,” he said. (Financial Daily)

*******
Water: PAAB to seal Perlis, Perak water deals by end-May
Pengurusan Aset Air Bhd (PAAB) will complete the takeover of water assets in Perlis and Perak by end-May as part of the national initiative to regulate the water services industry. “Things are moving very fast in these two states at the moment and we expect the agreements to be signed at least by the end of May,” a source said without divulging the value of the deals. PAAB has said it planned to wrap up the deals in all states by mid-year although CEO Ahmad Faizal Abdul Rahman said that “he didn’t like deadlines.” (StarBiz)

US market 16.3.2010

2010-03-16T12:56:00.001+08:00

US MARKET
Mixed finish for stocks
Stocks ended mixed Monday, fighting back from big losses, as investors weighed Moody's warning about the United States' AAA rating and a proposed bank regulation bill ahead of Tuesday's Federal Reserve meeting. Stocks had tumbled through the early afternoon, but managed to trim losses by the close. The Dow Jones industrial average gained 0.2%
(+17.5 pts, close 10,642.5). The Nasdaq lost 0.2% (-5.5 pts, close 2,362.2) and the S&P 500 lost 0.1% (+0.5 pts, close 1,150.5). U.S. light crude oil for April delivery fell US$1.44 to US$79.80 a barrel on the New York Mercantile Exchange. (CNNmoney)
*******
Higher industrial production points to more investment
Industrial production unexpectedly rose in February, due in part to gains in demand for computers and semiconductors that signal the pickup in U.S. business investment is being sustained. Output climbed 0.1%, the eighth consecutive increase, as utility use and mining increased, figures from the Federal Reserve showed yesterday in Washington. Economists forecast industrial production would be unchanged after increasing 0.9% the prior month, according to the median of 60 projections in a Bloomberg News survey. Estimates in the survey ranged from gains of 0.5% to a 0.7% decline. (Bloomberg)
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Manufacturing in New York expands for eighth month
Manufacturing in the New York region expanded in March for an eighth straight month, indicating factories are sustaining production and lifting the U.S. economy. The Federal Reserve Bank of New York’s general economic index fell to 22.9 this month, in line with the median forecast of economists surveyed by Bloomberg News, from 24.9 in February. Readings
above zero signal growth in the so-called Empire State Index that covers New York and parts of New Jersey and Connecticut. The report showed orders, sales and employment increased in March, a sign that manufacturing gains may last for months and help spur the rest of the economy. Factories added workers to payrolls in the first two months of 2010 after companies replenished inventories that were drawn down at a record pace last year. Economists forecast the New York Fed’s index would decrease to 22 according to the median of 40 projections in a Bloomberg News survey. Estimates ranged from 15 to 29. (Bloomberg)
*******
Homebuilder index declined to 15 in March
Confidence among U.S. homebuilders unexpectedly declined in March, a sign the housing recovery is having trouble gaining momentum. The National Association of Home Builders/Wells Fargo index of builder confidence dropped to 15 this month from 17 in February, the Washington-based group said yesterday. A reading below 50 means most respondents
view conditions as poor. The report showed traffic of prospective buyers dropped to a one-year low, indicating an extension of a tax credit for purchases is sparking little interest. Projections of record foreclosures this year, a lack of job growth and an end to Federal Reserve purchases of mortgage-backed debt are hurdles for the real estate market. The builder confidence index was forecast to hold at 17, according to the median forecast of 43 economists surveyed by Bloomberg News. Projections ranged from 15 to 19. The index, first published in January 1985, averaged 15 last year. (Bloomberg)
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Europe: Employment in record decline
The number of people employed in the 16-nation Eurozone fell by a record 2.7m last year, as the economic crisis took itstoll, official figures showed. There were 347,000 fewer Eurozone employees in 4QCY09, according to the European Unionstatisticians Eurostat, a sign that the payroll losses were losing pace at least. Employment fell in the Eurozone fell by 1.8%
last year, after a rise of 0.9% in 2008. In the 27-nation EU as a whole, over 4.02m fewer people were in gainful employment. (AFP)

This is the page that I frequent most

2010-03-12T11:15:00.000+08:00

THE EDGE

http://www.theedgemalaysia.com/business.html

S&P STOCK UPDATE--BIMB,FABER,MTD,STB

2010-03-05T13:44:00.002+08:00

S&P EQUITY RESEARCH
Stock Updates
After a better-than-expected 4Q09 for BIMB (BIMB MK, MYR1.23, Hold), we revise our estimates to reflect the change in financial year end to December, making the December 2010 FY an 18-month period. We lift our earnings estimates for FY10 and 2011 to MYR236.9 mln and MYR186.0 mln from MYR127.2 mln and MYR151.5 mln for FY10 and FY11 (Jun) respectively. We tweak our 12-month target price to MYR1.40 (vs. MYR1.30). / Alexander Chia

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We maintain our Buy recommendation on Faber (FAB MK, MYR1.90), but lift our 12-month target price to MYR2.10 (from MYR1.60) after raising our earnings estimates. We like Faber for the improving outlook of its Facilities Management Services (FMS) operations that have been strengthened by the infrastructure maintenance and FMS contracts in Abu Dhabi./ Kum Seng, Wan

********

We keep our Hold call on MTD Capital (MTD MK, MYR3.40), and raise our 12-month target price to MYR3.60 (from MYR2.80) after lifting our earnings estimates. We keep our call after 9MFY10 (Mar) results, as we believe its 21% share price increase over the past two months has adequately reflected its improving earnings outlook in FY11, which includes maiden earnings
contribution from the South Luzon Expressway. / Kum Seng, Wan

********

Though Seacera’s (STB MK, MYR0.40) 2009 earnings were ahead of expectations, and its earnings outlook is improving due to higher demand for homogeneous tiles and packaging materials, we maintain our Hold recommendation. This is due to its small capacity and market share, which limit its earnings growth prospects. Its capacity expansion. We keep our 12-
month target price at MYR0.41. / Kum Seng, Wan

AXIATA,SPSETIA,MRCB & other business news

2010-03-04T09:55:00.000+08:00

Axiata Group Bhd (AXIATA MK, Buy, TP: RM4.15) is considering a dividend payout from 2011 onwards as its balance
sheet has improved on the back of improving business conditions. This would be its first payout to shareholders since its
listing in 2008 after the demerger from Telekom Malaysia. Also, the group’s Indonesian unit, XL Axiata has a free float of
0.2% as Emirates Telecommunications Corp controls another 13.3% stake in the Indonesian firm. “We have said back at the
end of 2008 that we are open at possibility in increasing the float up (to) 15% to 20%. It is something that we are always
looking at,” said the CEO, Datuk Seri Jamaluddin Ibrahim. (StarBiz)
* * * * *
SP Setia Bhd (SPSB MK, Buy, TP: RM4.05 ) has increased its sales target for the financial year ending October 31,
2010 (FY10) to RM2bn from RM1.65bn, on the back of a jump in sales of RM608m in the first quarter. The group
recorded its record high sales of RM1.65bn in FY09. According to its president and CEO, almost all of the RM2bn target will
come from the local market and 10% will come from its projects in Vietnam. Its total 10 ongoing projects in Malaysia have a
GDV of RM26bn that would last for 10 to 20 years on 3,900 acres of land. (StarBiz)
* * * * *
The Employees Provident Fund (EPF) is making a conditional takeover offer for the shares it does not already own in
Malaysian Resources Corporation Bhd (MRCB) at RM1.50 cash apiece, after it triggered the general offer (GO) following its
subscription of 171.47m rights shares last year. MRCB said following its subscription of the rights shares, EPF’s shareholding
in MRCB rose to 33.8% or 461.52m of RM1 each. EPF intended to maintain MRCB’s listing status and would explore various
options to rectify the company’s public shareholding spread. (Financial Daily)
* * * * *
Pharmaniaga Manufacturing Bhd (PMB) has had its manufacturing licence revoked following a routine audit by the
pharmaceutical services division of the health ministry. In a statement to Bursa Malaysia, Pharmaniaga however did not
reveal the reason. It said the cessation of production would not have a significant financial impact on the group as the other
business lines were not affected. “The company is taking all necessary steps to ensure that the issues raised are addressed
expeditiously for the re-issuance of the licence to enable the plant to resume production as soon as possible,” it said, without
saying what the “issues” are. (Financial Daily)
* * * * *
Malaysian Bulk Carriers Bhd (Maybulk) is eyeing potential vessels to grow its fleet as the global financial crisis has
resulted in lower vessel prices. The company will be looking for available second hand vessels instead of ordering new
vessels. On newly built vessels, the company is waiting for the market to correct itself. Maybulk’s fleet currently consist of 13
of its own vessels and two vessels on long term charter. In view of the fleet expansion, Maybulk may declare lower dividends
for shareholders as the company conserves its cash reserves to finance the expansion plan. (Malaysian Reserve)
* * * * *
Faber Group Bhd is targeting revenue to grow between 12% and 15% this year. The company’s focus will still be on
overseas operations as it was the major contributor to the integrated facilities management (IFM) segment last year. “We will
be moving according to our roadmap which is to enhance operations in United Arab Emirates and India. We are also looking
at diversifying and expanding our business into the IFM segment which is the major contributor to company revenue,” said
managing director Adnan Mohammad. (Malaysian Reserve)
* * * * *
Malaysia will miss its output target of 18.1m tonnes because of a shortage of foreign labour even as yields recover, a top
industry official said. Industry regulator Malaysian Palm Oil Board (MPOB) chairman Datuk Sabri Ahmad said Indonesian
plantation workers make better pay at home as more oil palm estates start up there while employers in Malaysia have trouble
hiring because of a stricter work-permit process. Sabri said the industry was in talks with the government to get more “flexible
work permits” for foreign labourers who make up about two-thirds of the half a million estate workers in Malaysia. Many of the
returned Indonesian labourers subsequently get jobs in plantations in Indonesia’s Kalimantan province. (Financial Daily)

CIMB, PBB, SIME DARBY & OTHERS

2010-03-03T10:35:00.000+08:00

CIMB Investment Bank Bhd, a wholly owned unit of CIMB Group Holdings (CIMB MK, Buy, TP: RM15.25) gets nod from
the Vietnam Securities Commission for its subscription of equity interest in Vinashin Shipbuilding Finance Company
Securities LLC, (VFC Securities). The approval was obtained on Feb 23, CIMB said in a statement to Bursa Malaysia. VFC
Securities will change its name to CIMB Vinashin Securities LLC with immediate effect. VFC is wholly owned by Vietnam
Shipbuilding Industry Group (Vinashin), the largest shipbuilder and an industrial conglomerate in Vietnam. (Financial Daily)
* * * * *
Public Bank Bhd (PBB) (PBK MK, Buy, TP: RM14.50) has no plans to raise fresh capital this year despite some quarters
expressing concern that its capital ratios may decline upon the implementation of enhancements to the Basel III framework,
said its chief operating officer, Leong Kwok Nyem. The Basel Committee announced that it had approved the consultation of a
package of proposals to strengthen global bank capital and liquidity regulations, dubbed as Basel III. Leong said that the bank
was comfortable with its capital levels. Its risk weighted capital ratio rose to 14.2% as at Dec 31, 2009. (Financial Daily)
* * * * *
Sime Darby Property Bhd, a subsidiary of Sime Darby Bhd, (SIME MK, Hold, TP: RM8.30) is awaiting approval from the
state and federal governments for its proposed 10,861 acre Selangor Vision City (SVC) development. The SVC is
located along the Guthrie Corridor Expressway from Lagong to Bukit Jelutong, and 3,450 acres of the total 10,861 acres have
been developed. The entire SVC project will have an estimated GDV of RM10bn, and will focus on the Bukit Jelutong City
Centre and an environmentally-friendly township named Elmina East, which has an estimated GDV of RM6bn. (Financial Daily)
* * * * *
Bank Negara Malaysia (BNM) will raise interest rates in a measured, gradual way in order to keep supporting the
economy, governor Tan Sri Zeti Akhtar Aziz said. Zeti said that inflation pressures remained modest and the central bank
would not rush to withdraw policy support. “Interest rates will continue to be supportive of growth. Current rates were brought
down to these levels because of the extraordinary circumstances to avert a fundamental recession,” Zeti said. She also added
that a change to banks’ reserve requirements was not likely to be part of the normalisation process unless there is fundamental
situation of excess liquidity in the system. (Financial Daily)
* * * * *
The government will emphasize on promoting more domestic private investments through public-private partnership
(PPPs) under the 10th Malaysia Plan instead of depending on foreign direct investments to ensure future growth.
Minister in the Prime Minister’s department Tan Sri Nor Mohamed Yakcop said domestic private companies have upgraded
themselves to be at par with international standards and that it’s time to provide opportunities for local investors to support
sustainable economic growth. He added that the government will continue to place emphasis on infrastructure development to
propel the country’s economic transformation via private sector participation in PPP policies. (Malaysian Reserve)
* * * * *
Malaysia’s government said exports may grow this year at twice the pace it predicted earlier, citing rising global
demand for palm oil and electronics. Overseas shipment may increase 6% or 7% this year, more than a previous forecast of
3.5%, International Trade and Industry Minister Mustapa Mohamad said. “The recovering global economy would contribute to
increased demand for Malaysian exports such as electrical and electronic products, furniture, rubber products as well as
commodities,” he said. (Malaysian Reserve)
* * * * *

HAPPY CHINESE NEW YEAR

2010-02-10T11:17:00.002+08:00

TELEKOM, MAS, SIME

2010-02-02T18:02:00.001+08:00

Telekom Malaysia Bhd (TM) (T MK, Buy, TP: RM3.54) the country's dominant fixed-line operator, has finally revealed the pricing for its High Speed Broadband (HSBB) access to industry players, more than one year after the project was first announced. This means that service providers, including mobile operators, broadband service providers and pay-TV operators will now know how much it will cost them to ride on TM's fibre optics network to offer services like video-on-demand, Internet protocol television (IPTV), voice call and Internet surfing. It is believed that most of the industry players came away feeling that the pricing offered by TM was "good" and "reasonable", but remained concerned on how the prices will affect them in the long run. TM executive vice-president Rafaai Samsi gave an assurance that the company would not abuse its "power". The pricing comes in two forms: a one-time charge and a monthly recurring charge. It charges service providers one-time fees of between RM52 and RM55 for activation of each Internet port. On a monthly basis, it charges the service providers between RM100-200 per megabit per second (Mbps), in terms of bandwidth subscription. (BT)
* * * * *
Malaysian Airline System (MAS MK, Sell, TP: RM2.21) is seeking financing for 3 Boeing 737-800 aircraft according to its chief executive officer Tengku Datuk Azmil Zahruddin. MAS will receive three B737-800s this year with the first to arrive in October. Last week, MAS received the blessings of its shareholders to raise RM2.67bn from a rights issue mainly for a fleet expansion exercise. The company also got the approval of shareholders to spend about RM3.19bn on the acquisition of two B747s and two B777s from Penerbangan Malaysia Bhd and six new A380s. (Malaysian Reserve)
* * * * *
Sime Darby Bhd (SIME MK, Hold, TP: RM8.10) is in negotiations to acquire Sapura Resources Bhd’s BMW dealership held under wholly owned Sapura Auto Sdn Bhd, industry sources say. The price tag for the dealership is being bandied at some RM40m, adding that details of the acquisition are still being finalised. It is learnt that Munich based Bayerische Motoren Werke AG, the parent company of BMW, has to give the nod for the acquisition to go through. According to Sapura Resources’ annual report, this dealership and its assets have a net book value of RM24.8m. The RM40m price tag is likely to include inventories such as cars, parts and machinery. The sale of the BMW dealership will have huge impact on Sapura Resources, as the business is the core activity of the company. Sime Darby has established BMWdealerships in various parts of the region held under Auto Bavaria Sdn Bhd and has a 49% stake in BMW Malaysia Sdn Bhd, which is the wholesaler of BMW cars, spare parts, and accessories. (The Edge)
* * * * *
AirAsia X will temporarily suspend its flights to Abu Dhabi beginning Feb 21 in a bid to realign its fleet to cover priority areas. “We are temporarily suspending the flights to prepare for other flights especially to India but we will revert back to Abu Dhabi at a later date,” AirAsia X CEO Azran Osman-Rani said. He added that it wasn’t because of competition with Etihad
Airways the flights have been suspended. “We cannot be flying five times weekly to Abu Dhabi, we need more frequencies, better airplanes and capacity before we get back there,” Azran said. AirAsia X began flying to Abu Dhabi in November with load factors of over 65% using its A340 aircraft. The low-cost carrier’s A330 seats are not as comfortable and to add more flights or
use the A330 does not bode well for AirAsia X on that route, where passengers demand quality and comfort. It has embarked on a seat refurbishment exercise and would be grounding planes to fit the new seats. AirAsia X will get back to Abu Dhabi when the new seats have been fitted into its aircraft, according to a source. (Starbiz)
* * * * *
Wilmar International Ltd has shelved plans to spin off the group’s operations in China on the Hong Kong Stock Exchange after its original application lapsed. “The company has no current intention to submit a fresh listing application to the HKEX for the listing of Wilmar China,” Wilmar said in an announcement to the Singapore Stock Exchange. It noted that in
accordance with HKEX’s guidance letter, the exchange considers any new application submitted within three months of a lapsed application as a renewal/continuance of the original application. Wilmar did not elaborate. The PPB Group has an 18.35% stake in the Singapore listed company. (Starbiz)
* * * * *
DRB-Hicom Bhd plans to set up an automotive university college to produce skilled human capital for the industry. It told Bursa Malaysia yesterday it had formed a unit, HICOM University College Sdn Bhd (HUCSB), with an authorised capital of RM10m, or 10m ordinary shares of RM1 each, and paid-up capital of RM2 of two RM1 shares each. DRB-HICOM said the
university college would carry out the business of higher educational and vocational training institution, focusing on programmes to enhance the competency and skill of human capital for the automotive and automotive-related industries. DRBHICOM said the university college would complement its automotive business. DRB-HICOM said it foresaw itself contributing
towards making Malaysia as one of the leading education hubs for the region. (Starbiz)

Stocks Falter Despite Giddy GDP --another down day for BURSA tomorrow?

2010-02-01T16:13:00.003+08:00

Stocks Falter Despite Giddy GDP
By Melinda Peer 01/29/10 - 05:27 PM EST

NEW YORK (TheStreet) -- Stocks slumped on January's last trading day despite Friday's robust fourth-quarter GDP growth and a slew of strong earnings reports. The major averages put in their worst month since February 2009.
More on AMZN
DOWNStocks erased earlier gains made on a strong GDP report as U.S. indices finished the week -- and the month -- in the red.
The Dow Jones Industrial Average shed nearly 106 points this week, or 1% and finished the month 1% lower. The S&P 500 lost 18 points, or 1.6%, on the week and slumped 3.7% this month while the Nasdaq surrendered 58 points, or 2.6%, weekly and lost 5.5% in January.
On Friday, the Dow Jones Industrial Average lost 53 points, or 0.5%, to close at 10,067. The S&P 500 shed 11 points, or 1%, at 1074 and the Nasdaq finished down by 32 points, or 1.5%, at 2147.
"Despite earnings, markets have been taking their cues from overseas all week -- whether it's been concerns about China or Greece -- there's been a lot of questions about where growth is going to come from," said Mike Sokoll, director of Nasdaq OMX's market intelligence desk. "So even though we had a strong GDP number today, market gains didn't hold. I think perhaps people are wondering whether this is just stimulus juice and whether growth can hold up."

>>Microsoft Sees Lower IT Spending
The tech sector led the declines, with key tech stocks among the Dow's worst performers. Microsoft, Boeing(BA Quote) and Intel(INTC Quote) were the day's biggest duds, with Hewlett-Packard(HP Quote) and IBM(IBM Quote) not far behind.
"Tech has been one of the market's leading sectors, so they're a likely place to take profits," Sokoll added.
Shares of Microsoft(MSFT Quote), Sirius XM Radio(SIRI Quote), Qualcomm(QCOM Quote) and Intel were seeing heavy volume on the Nasdaq, with only Sirius trading in green territory.
An 8% decline in Microsoft's business sales appeared to spark fears that weak enterprise spending could flatten future technology growth.

US TUMBLES & other news from EUROPE

2010-01-29T09:56:00.002+08:00

Stocks trimmed losses by the close Thursday, but remained deep in the red, with techs falling after cautious outlooks from Qualcomm and Motorola. Ongoing worries about the labour market also gave investors a reason to retreat. Stock declines were broad based, with 24 of 30 Dow components falling. Weaker-than-expected economic readings on durable goods orders
and unemployment were also in play, overshadowing President Obama's push for jobs. Ford Motor's first annual profit in 4 years and other positive profit news were mostly ignored. Later in the day, Fed Chairman Ben Bernanke was confirmed for a second term after heavy lobbying by Democrats and the Obama administration. The Dow Jones industrial average lost 1.1% (-
115.7 pts, close 10,120.5). The Nasdaq lost 1.9% (-42.4 pts, close 2,179.0) and the S&P 500 lost 1.2% (-13.0 pts, close 1,084.5). U.S. light crude oil for February delivery fell 23 cents to settle at US$73.44 a barrel on the New York Mercantile Exchange. (CNNmoney)
* * * * *
Orders for capital goods rose in December, and more Americans than anticipated filed claims for unemployment benefits last week, indicating business investment is making a comeback while the job market stagnates. Bookings for durable goods excluding transportation equipment climbed 0.9% last month, exceeding the median forecast of economists surveyed by Bloomberg News, figures from the Commerce Department showed yesterday in Washington. Orders for durable goods excluding transportation equipment were projected to rise 0.5%, according to the survey median. Forecasts ranged from a 0.5% decline to a 3.1% increase. Total orders increased 0.3%, less than anticipated and suppressed by an unexpected 38% plunge in demand for civilian aircraft. Initial jobless applications fell to 470,000 in the week ended Jan. 23 from 478,000 the
prior week, the Labour Department said. Initial jobless claims were forecast to decline to 450,000 from a previously reported 482,000 the week before, according to the median estimate of 42 economists surveyed by Bloomberg. Estimates ranged from 400,000 to 480,000. (Bloomberg)
* * * * *
Ben S. Bernanke won Senate approval for a second term as Federal Reserve chairman, as supporters who credited his actions to stem the financial crisis and recession overcame opponents saying he failed to prevent them. The Senate voted 70 to 30 to confirm the 56-year-old former Princeton University professor, the narrowest margin since the chamber started
confirming Fed chiefs in 1978. Opponents said Bernanke failed to head off the worst financial crisis since the Great Depressionand then put taxpayer money at risk by participating in rescues of firms including American International Group Inc. and Citigroup Inc. Supporters, including some who criticized his record on bank supervision, credited Bernanke with averting a
deeper recession by slashing interest rates and pumping US$1trn into the economy. (Bloomberg)
* * * * *
German unemployment rose for the first time in seven months as a weakening economic recovery and the coldest January in 23 years forced companies to cut jobs. The number of people out of work this month climbed a seasonally adjusted 6,000 to 3.43m, the first increase since June, the Nuremberg-based Federal Labour Agency said yesterday. Economists
forecast an increase of 15,000, according to the median of 28 estimates in a Bloomberg News survey. The jobless rate rose to 8.2% from 8.1%. Rising joblessness in Germany underscores the stumbling rally in Europe’s biggest economy after it emerged from recession in 2Q09. While the export outlook is improving, investor and consumer confidence declined in January, and the
recovery remains “fragile,” Economy Minister Rainer Bruederle said Wednesday. January is set to be the coldest recorded since 1987, disrupting construction and transport, the German Weather Service said. Canals all over Germany have been frozen, interrupting shipments of steel, coal and grain. (Bloomberg)
* * * * *
European confidence in the economic outlook improved for a 10th month in January as reviving global demand helped stoke exports and bolstered earnings across the 16-nation euro region. An index of executive and consumer sentiment increased to 95.7 from a revised 94.1 in December, the European Commission in Brussels said yesterday. Economists expected confidence to rise to 92.3 from a previously reported December reading of 91.3, the median of 29 forecasts in a
Bloomberg News survey showed. Signalling a revival in production, capacity utilization rose for a second quarter, yesterday’s report showed. The index, compiled every three months, increased to 72.4 from 71. The euro region may grow 1% this year, the International Monetary Fund said on Jan. 26. (Bloomberg)

EONCAP, PUNCAK,SUNCITY, HOHUP, DRB-HICOM, GADANG

2010-01-28T11:44:00.001+08:00

EON Capital Bhd (EONCap) has received a time extension of 5 days from Hong Leong Bank Bhd (HLBB) (HLBK, Hold, TP: RM8.71) to review the latter’s RM4.92bn takeover offer. EONCap said it had on the same day requested for a time extension and HLBB had granted it until Feb 2 to respond to its proposed takeover of its assets and liabilities. It is learnt that EONCap’s board had spoken to some of its major shareholders, namely Khazanah Nasional Bhd and Employees Provident Fund, and they had agreed with the board that it should ask for more time to review the offer more closely. Based on EONCap’s announcement, its board had only sought a time extension and did not request for changes to be made to the terms and conditions of HLBB’s offer. “The additional time will allow the board to fulfil its fiduciary duty to consider every reasonable option for securing the best value for all shareholders,” EONCap chairman Tan Sri Syed Anwar Jamalullail said. Under the terms set by HLBB in its offer, it had the right to withdraw its offer if EONCap was in acquisition talks with other parties. Another condition was that once the offer was accepted by EONCap, it would be binding on both parties for the sale of EONCap’s entire assets and liabilities. It was reported that EONCap might seek to reset some conditions put in by HLBB, which included being able to talk to HLBB on a non-exclusive basis. (Financial Daily)
* * * * *
The suit between Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) and Puncak Niaga Holdings Bhd’s (PNH MK, Hold, TP: RM3.66) 70% owned subsidiary Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) has been set for mention at the KL High Court on Feb 22. Splash is suing Syabas for RM196.34m in alleged outstanding amounts, not including interest. According to Puncak Niaga, Splash’s claims were in respect to a supply charge and capacity charge from
Syabas under a privatisation agreement dated Jan 24, 2000, a Feb 3 2005 supplemental agreement and a novation agreement. Puncak Niaga announced that the KL High Court allowed Konsortium Abass Bhd’s application for adjournment of the hearing is now fixed for Feb 3. Konsortium Abass is suing Syabas for RM63m for non-payment of water invoices. (Star Biz)
* * * * *
Sunway City Bhd (SCITY MK, Buy, TP: RM3.60) has hired RHB Investment Bank and Credit Suisse as the main coordinators for the planned listing of its REIT in Malaysia. The listing of the REIT, the biggest ever in Malaysia, is likely to happen in the first half of 2010, and the company may raise about RM1bn in its public offering said sources. The REIT will have a market cap of more than RM3bn. Credit Suisse will act as the international global coordinator while RHB will handle all domestic issues. Sunway City said earlier this month the REIT would group at least four properties in KL and one in Penang. (Star Biz)
* * * * *
Ho Hup Construction Co Bhd’s management acknowledged the possibility of a “third force” emerging in the tussle for control of the company. The company said, “Fuelled by the tussle between two opposing shareholders, the third force appears to be preparing for a coup come Feb 4.” Ho Hup’s EGM is scheduled for Feb 4, and its outcome will determine the direction in which the company is going to take. The statement implies the third force is acting in concert with former MD Datuk Low Tuck Choy. (Star Biz)
* * * * *
DRB-Hicom Bhd, which mainly assembles and distributes automobiles, plans to pay RM80.83m to privatise its 79%- controlled unit Edaran Otomobil Nasional Bhd. The proposed privatisation would see Edaran’s shareholders receiving RM1.55 for every share they hold, or a 174.3% premium prior to the shares suspension on March 11, 2008. The proposed privatisation, which would be carried via a selective capital reduction and repayment exercise, is mooted as DRB-Hicom is facing difficulty in addressing the shortfall in the public shareholder spread requirement of 25%. DRB-Hicom would use its unit Hicom Holdings Bhd for the proposed exercise which may be financed via internal funds and bank borrowings of Edaran. With the privatisation, DRB-Hicom would be able to fully consolidate the earnings of Edaran going forward. (Malaysian Reserve)
* * * * *
Gadang Holdings Bhd has proposed to acquire a leasehold parcel of residential land off the Sungai Besi highway in Sungai Besi here for RM33m or RM62 per sq ft. Gadang said yesterday its sub-subsidiary Natural Domain Sdn Bhd had inked a sale and purchase agreement (SPA) with the vendor, GSS Properties Sdn Bhd, to acquire the land measuring about 49,377.47 sq metres (531,494.15 sq ft). It proposed to undertake a residential development there in the future. (Financial Daily)

Interest rate going to hike and they say property market will be good!

2010-01-27T11:14:00.003+08:00

Bank Negara Malaysia (BNM) yesterday hinted of a sooner than expected interest rate hike after keeping the country’s overnight policy rate (OPR) unchanged at 2% at its first monetary policy committee (MPC) meeting for the year. “Moving forward, monetary policy would remain accommodative to ensure that the economic recovery is well entrenched. At the same time, MPC also recognises the need to ensure that the stance of monetary policy is appropriate to prevent the build up of financial imbalances that could arise from interest rates being too low for a prolonged period of time,” the central bank said in a statement. BNM said that going forward, the economy is expected to expand further in 2010, with growth being supported by strengthening domestic demand, particularly private consumption and further improvements in external demand. (Financial Daily)

**********

The Malaysian property market, estimated to have registered transactions worth RM75.42bn last year, is expected to improve further in 2010 in line with the economic recovery. The transactions involved 337,990 properties as compared with the 340,240 valued at RM88.34bn in 2008, said the director general of Valuation and Property Services Department, Finance
Ministry, Datuk Abdullah Thalith Md Thani. "This year will be a good year for all. The property market for this year will improve as the number of transactions involving new housing and construction activities, increases," Abdullah Thalith said yesterday. He pointed out that Malaysia is expected to steer towards a recovery path this year, driven primarily by domestic demand, with commodity prices for rubber, crude oil and palm oil also improving. These, he said, will help to increase the confidence level among consumers and provide a positive impact for the property sector. Abdullah Thalith said the government would continue to implement appropriatmeasures to restore confidence and market sentiment. He said the liberalisation of Foreign Investment Committee (FIC) guidelines, would lift the competitiveness of Malaysia, as an investment destination. Furthermore, Abdullah Thalith said, acquiring properties in Malaysia would be even more attractive, as the FIC approval is no longer required. (BT)
*

LOCAL BUSINESS NEWS 27.1.2010

2010-01-27T11:10:00.001+08:00

Hong Leong Bank Bhd (HLBK MK, Hold, TP: RM8.71) (HLBB) is said to be sticking to its offer price of RM4.92bn or RM7.10 per share for EON Capital Bhd (EONCap) despite the target company’s board stating that the price is too low. It is learnt that HLBB would not revise its offer price and was prepared for the offer to lapse, which falls due tomorrow. The Minority Shareholder Watchdog Group (MSWG) describes HLBB’s offer as not a fair price and has called on shareholders of EONCap to reject the offer. MSWG CEO Rita Benoy Bushon said based on MSWG’s estimates, a fair price for EONCap shares would be between 1.6 and 1.7 times book value, translating to about RM8 per share based on the latest quarterly results. In addition, it is believed that property group Mulpha International Bhd has written to Bank Negara to seek the green light to start talks to acquire a stake in the bank. However, under the Banking and Financial Institutions Act 1989 (Bafia), the single shareholder limit for financial institutions is 20%, which would amount to some RM984m at RM71.0 per share. (Financial Daily & Starbiz)

* * * * *
Puncak Niaga Holdings Bhd’s (PNH MK, Hold, TP: RM3.66) 80% owned subsidiary Sino Water Pte Ltd has pumped in an additional RM1.71m into its China-based Xinnuo Water (Binzhou) Co Ltd unit. Puncak said as of Jan 20, 2010, the paid up registered capital of Xinnuo Water stood at about US$1.5m. (Malaysian Reserve)
* * * * *
AirAsia Bhd (AIRA MK, Buy, TP: RM1.67) is targeting 2m passengers in the first year on its newly launched Indian routes. “We are known for very aggressive marketing and we will use a lot of means to promote AirAsia. 2m passengers cannot be got without a lot of hard work. That is a huge number and a huge target in this economic environment. It can’t come without a lot of investment,” said CEO Datuk Seri Tony Fernandes said, adding that it would cost the group RM5m to RM6m in the initial period. (Financial Daily)
* * * * *
While Petra Perdana Bhd (PETR MK, Sell, TP: RM1.21) chairman and CEO Tengku Datuk Ibrahim Petra Tengku Indra Petra claims that the disposal of the 5.38% stake in Petra Energy Bhd (PEB) did not require shareholders’ approval, suspended executive director Shamsul Saad is disputing this. Shamsul disputed that the disposal of the 10.5m shares was based on the shareholder mandate, while the board of director claimed otherwise. On Sept 10, 2009, Petra Perdana placed 10.5m shares, representing 5.38% stake in its then subsidiary PEB at RM1.53 oer share to TA First Credit Sdn Bhd and as a result of this disposal, Petra Perdana suffered a loss of RM0.5m. He stressed that there were no mention of getting shareholders’ approval at any board meeting nor was there any board approval prior to the sale of the 5.38% stake. Shamsul said that at an EGM on Nov 9, 2009, Petra Perdana independent non-executive director Lawrence Wong had confirmed that the PEB stake sale was a negotiated sale and arranged by one of the leading broking firms. Shamsul said the controversial 25.03% PEB stake disposal by Petra Perdana on Dec 11, 2009 was brokered by TA Securities Holdings Bhd. TA Securities was appointed by Ibrahim at an “unusually high 3% placement fees”. Coincidentally, TA Securities was also appointed by Ibrahim as valuation agent for the transaction. (StarBiz)
* * * * *
Parkson Holdings Bhd wholly-owned subsidiary Parkson Vietnam Co Ltd has increased its shareholding in Parkson Hanoi Co Ltd to 70% from 49%, by contributing RM3.4m as charter capital of Parkson Hanoi. Parkson said Parkson Hanoi is now effectively a subsidiary of Parkson Vietnam. Parkson Hanoi has a total investment capital of RM20.4m and a charter capital of RM16.3m which has been fully paid. (Malaysian Reserve)
* * * * *
Global Industries Ltd announced that its majority Malaysian owned affiliate Global Offshore Malaysia Sdn Bhd has been awarded a contract for transportation and installation of offshore facilities for projects in Malaysia. The contract, under which the actual scope of work will be defined annually, is initially estimated at around US$70m (RM240.1m) for the first
year, and has options for two 1-year extensions upon the expiry of the contract. John Clerico, Global’s chairman CEO said: “This is the first contract we have been awarded in conjunction with our Malaysian partners, Kencana HL Sdn Bhd and we are very pleased that Petronas has showns such confidence in the Global-Kencana partnership’s ability to carry out the significant
scope of work involved with this project.” (Financial Daily)
* * * * *
INVESTMENT

EONCAP, SIME, MAS, DAYANG, AIR ASIA

2010-01-26T10:49:00.001+08:00

The Prime Minister has met with the 3 candidates to succeed Tan Sri Mohd Hassan Marican, and a decision on the post of president and CEO at Petroliam Nasional Bhd (Petronas) will be made in the next few weeks. There is a good likelihood that an internal candidate may be picked among the three names that are being talked about – Datuk Shamsul Azhar Abbas (former MISC Bhd MD), Datuk Anuar Ahmad (Petronas Dagangan Bhd chairman) and Datuk Wan Zulkiflee Wan Ariffin (former MD/CEO of Petronas Gas Bhd (PTG MK, Buy, TP: RM10.90) from 2003-2007). Both Anuar, currently vice-president of human resources management, and Wan Zulkiflee, currently vice-president of the gas business are board members of Petronas.(Starbiz)

* * * * *
EON Capital Bhd (EONCap), while evaluating Hong Leong Bank Bhd’s (HLBB) (HLBK MK, Hold, TP: RM8.71) RM4.92bn takeover proposal, deems the offer price as “significantly” undervaluing the targeted banking group. EONCap chairman Tan Sri Syed Anwar Jamalullail said it had “sought clarification” from HLBB yesterday on a range of details in its acquisition proposal, with a particular focus on valuation. Last Thursday HLBB made an RM4.9bn cash offer to acquire all of EONCap’s assets and liabilities, which include its core operations in EON Bank Bhd, translating into RM7.10 per share. EONCap has seven days to confirm that it is agreeable to table the offer for consideration and approval by its shareholders at a general meeting and take steps to issue and despatch within five weeks from the offer date the notice of general meeting and the shareholders’ circular. (Financial Daily)
* * * * *
Sime Darby Property Bhd (SDPB), the property arm of Sime Darby Bhd (SIME MK, Hold, TP: RM8.10), will form joint ventures with both local and foreign property developers to help develop its 14,800ha of landbank in the country. "One of the strategies we have adopted is to accelerate the development of our landbank through joint ventures. We are now talking
to a few parties," SDPB managing director Datuk Tunku Badlishah Tunku Annuar said. He declined to name the potential parties. According to sources, SDPB has chosen Sunrise Bhd and IOI Properties Bhd as its joint venture partners to begin with. Tunku Badlishah also said SDPB will launch RM2bn worth of properties this year, amid prospects of an economic recovery
gaining strength. It will launch properties ranging from affordable to high-end homes and landed to high-rise within its 10 existing townships in the Klang Valley. (BT)
* * * * *
Malaysian Airline System Bhd (MAS MK, Sell, TP: RM2.21) has completed its fund-raising plan for this year and 2011 following a proposed one-for-one rights issue to raise RM2.67bn. Shareholders had voted in favour for the proposed rights issue meant to fund future fleet expansion, finance its fleet renewal program and as working capital. “Based on our projections,
we do not need any more rights issue this year and for next year,” MAS’s managing director/CEO Tengku Datuk Azmil Zahruddin Raja Abdul Aziz said. The right shares are priced at RM1.60 each, or at about 32.1% discount to the theoretical exrights price of RM2.36 based on a five day volume weighted average market price up to Dec 21, 2009. “However, should the
opportunity for consolidation such as merger and acquisition presented itself, MAS may return to the capital market again to raise fund, Tengku Azmil said. (Malaysian Reserve)
* * * * *
Dayang Enterprise Holdings Bhd (DEHB, Buy, TP: RM2.20) subsidiary Dayang Enterprise Sdn Bhd secured an RM8.5m job from Petronas Carigali Sdn Bhd. The job was for the provision of hook-up and commissioning of Petronas Carigali’s facilities at the Tangga Barat cluster development project phase 1. (Financial Daily)
* * * * *
AirAsia Bhd (AirAsia) (AIRA MK, Buy, TP: RM1.67) hopes to increase the contribution of food and beverage (F&B) to its ancillary income by 20% to RM48m this year from RM38m in 2009, said its chairman Datuk Aziz Bakar. Under the partnership, F&N’s 100PLUS and Coca-Cola would be sold on all AirAsia and AirAsia X flights departing Malaysia for one year from Feb 1, 2010 with an option for extension. Aziz said that AirAsia hopes to reach sales volume of 48,000 cans per month and the drinks would be priced at RM5 a can. (Financial Daily)

YTL,MAS,YNH, HOCK SENG LEE

2010-01-25T10:22:00.002+08:00

YTL Corp Bhd (YTL MK, Buy, TP: RM8.00) has proposed to use 81.5% or RM1.108bn of a proposed RM1.36bn bond issuance to refinance its 2007/2012 exchangeable bonds. In a recent circular to shareholders, it said although the exchangeable bonds had a final maturity date of May 15, 2012, there was a put option to redeem the bonds on May 15, 2010. “The redemption would amount to 108.7% of the principal amount totalling RM1.108b,” it said. YTL said of the proposed RM1.36bn exchangeable bonds to be raised, RM1.108bn would be used to refinance the 2007/2012 exchangeable bonds, RM230.26m would be used to finance future investments or projects of the group and/or repayments of borrowings taken for such investments, and the remaining RM21m would be utilised within six months from the issue date of the bonds for expenses for the exercise. An EGM would be held on Feb 5 to seek shareholders’ approval to issue the bonds. (Financial Daily)
* * * * *
Malaysia Airlines' (MAS MK, Sell, TP: RM2.21) maintenance unit and its Indian partner have signed an initial deal to provide heavy maintenance services to Jet Airways over the next 10 years. The deal, which can be extended for another 5 years, was the first major deal for the partnership in India, a market where airline fleets are expected to triple in the next 10
years. MAS-GMR Aerospace Engineering Co Ltd (MAG), a 50:50 joint venture between MAS Aerospace Engineering (MAE) and GMR Hyderabad International Airport Ltd (GHIAL), signed the Memorandum of Understanding (MOU) with Jet Airways.The MAG facility in Hyderabad will be built on the eastern side of the Rajiv Gandhi International Airport with the capacity to
service an estimated 60-80 aircraft per year upon completion of Phase 1 in 2011. It will provide base maintenance services starting with C and D checks for narrow bodied aircraft like Airbus A320 and Boeing 737 and subsequently wide-body aircraft like A330 and B777. (BT)
* * * * *
YNH Property Bhd (YNHB MK, Hold, TP: RM1.72) unit Kar Sin Bhd (KSB) has been served with a writ of summons and statement of claim by the Inland Revenue Board (IRB) for back taxes for the years of assessment 1998 and 1999, amounting to RM1.059m and RM3.336m respectively. YNH said IRB was further seeking penalties amounting to RM150,164and RM517,112 for late payment of the abovesaid taxes. “KSB will be entering its appearance vide its solicitors to contest the abovesaid claims,” it said. (Starbiz)
* * * * *
PLUS Expressways Bhd is proposing to acquire a majority stake in an Indian company, Indu Navayuga Infra Project Pvt Ltd, which has a concession to widen and maintain an existing highway in Tamil Nadu. PLUS told Bursa Malaysia the acquisition involved up to a 74% stake in Indu Navayuga Infra. PLUS said the shareholders of Indu Navayuga would hand over a 49% stake of the company on the “commercial operation date” for RM57.3m. It added that on the third anniversary of the commercial operation date of the highway, the existing shareholders would transfer another 25% stake for a purchaseconsideration of RM16.7m. (Starbiz)
* * * * *
Hock Seng Lee Bhd has been awarded a contract worth RM35.79m by the state Public Works Department for the construction of package B of the Lubok Antu/Lemanak/Engkari road in Sri Aman division. The company said in a filing with Bursa Malaysia that the scope of works included earthworks, drainage, flexible pavement and bridges and would be completed by February 2011. (Starbiz)
* * * * *
Tanjung Offshore Bhd is bidding for up to RM1.5bn worth of projects as it pursues an organic growth strategy towards sustaining earnings over the longer term. The oil and gas support services provider, which is anticipating its maiden overseas income in the current fiscal year, was also planning to raise funds to refinance existing loans and facilitate business expansion plans, its managing director Omar Khalid said. On fund raising initiatives, Omar said Tanjung Offshore was considering bank loans and private placement of new shares. Foreign income will be supported by global sales of Tanjung Offshore’s gas generators and waste heat recovery units, which are manufactured in Indonesia and the UK respectively. According to Omar, Tanjung Offshore is also eyeing new businesses in the Middle East, India, Vietnam and Thailand.
(Financial Daily)

US & EUROPE NEWS----BAD!

2010-01-22T13:25:00.002+08:00

Stocks tumbled Thursday after the Obama administration announced a proposal to increase regulation of the nation's biggest financial firms, including limiting the size and scope of their trading operations. Stocks had fallen through the morning as lingering worries about China's lending practices hit commodities and the broader market. Reports showing a rise in jobless
claims and a drop in manufacturing activity added to the pressure, overshadowing Goldman Sachs' better-than-expected profit report. But declines accelerated as investors geared up for and then dissected the White House's afternoon announcement. The Dow Jones industrial average lost 2.0% (-213.3 pts, close 10,389.9). The Nasdaq lost 1.1% (-25.6 pts, close 2,265.7) and the S&P 500 lost 1.9% (-21.6 pts, close 1,116.5). U.S. light crude oil for February delivery fell US$1.66 to settle at US$76.08 a barrel on the New York Mercantile Exchange. (CNNmoney)
* * * * *
More Americans than anticipated filed claims for unemployment benefits last week, reflecting a backlog of applications from the year-end holidays. Initial jobless claims rose by 36,000 to 482,000 in the week ended Jan. 16, the highest level in two months, from 446,000 the prior week, Labour Department figures showed yesterday in Washington. The jump was due to an “administrative” accumulation from late December and early Januaryholidays, and did not reflect “economic” reasons, a Labour Department spokesman said. Initial jobless claims were forecast to decline to 440,000 from 444,000 the week before, according to the median estimate of 40 economists surveyed by Bloomberg. Estimates ranged from 430,000 to 457,000. Continuing claims fell by 18,000 to 4.6m in the week ended Jan. 9. The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. (Bloomberg)
* * * * *
Bundesbank President Axel Weber said it’s unlikely that the German economy, Europe’s largest, stagnated in 4Q09, striking a more optimistic tone than the country’s statistics office. “It’s not likely that economic growth in Germany was flat in the fourth quarter,” he told reporters in Berlin yesterday. At the same time, “I can’t rule out flat growth in Germany in the first
quarter.” The German economy was probably unchanged in terms of growth in 4Q09, the Federal Statistics Office said on Jan. 13, capping the worst year for the country since World War II. Gross domestic product fell 5% in 2009, a sharper decline than economists had estimated, after expanding 1.3% in 2008. The Bundesbank said last month that the outlook has “brightened
perceptibly,” predicting 1.6% German growth this year and 1.2% in 2011. Still, unemployment is set to rise and the strong euro may hurt Germany’s export industry. (Bloomberg)
* * * * *
Expansion in Europe’s service and manufacturing industries unexpectedly slowed in January, adding to signs the pace of the economy’s recovery may weaken. A composite index based on a survey of purchasing managers in both industries in the 16-nation euro region fell to 53.6 from 54.2 in December, London-based Markit Economics said yesterday in an initial estimate. Economists expected an increase to 54.4, according to the median of 15 estimates in a Bloomberg survey. A reading above 50 indicates expansion. The euro-region economy may lose momentum as the effect of government stimulus measures tapers off and rising unemployment erodes consumers’ willingness to spend. An index of services dropped to 52.3 in January from 53.6 in the previous month, Markit said. A gauge of manufacturing increased to 52 from 51.6 in December. (Bloomberg)
* * * * *

GENTING, YTL CEMENT, AXIATA---all the HOLD call, or it should be SELL?

2010-01-22T10:35:00.001+08:00

Genting Bhd’s (GENT MK, Hold, TP: RM7.50) proposed construction of a theme park and hotel in Johor is part of thegroup’s broader development plans in Iskandar Malaysia. Genting head of strategic investments Datuk Justin Leong said: “The development plan will be subject to a detailed market feasibility study and is contingent to the successful development of the Johor Premium Outlets, the retail shopping project that Genting Group is developing with US-based Simon Property Group Inc.” He added that the building of a theme park and hotel in Johor is part of a broader development plan that the Genting Group has for its operations in Iskandar Malaysia. The company is exploring the project through its plantation unit, Genting Plantations Bhd (GENP MK, Hold, TP: RM6.70), which is already working on a joint venture project to
develop a high-end shopping complex in Johor. (Financial Daily)
* * * * *
YTL Cement Bhd (YTLC MK, Hold, TP: RM4.50)’s unit YTL Cement Singapore Pte Ltd has made an offer to purchase Holcim Investments (Singapore) Pte Ltd’s entire 55.87% equity stake in Jurong Cement Ltd (JCL) for S$61.9m (RM148.98m) or S$2.50 per share. The offer price is 40 cents or 19% higher per share than the price Holcim has offered in December last year to acquire YTL Cement Singapore’s stake in JCL. YTL Cement’s offer comes on the heels of
Holcim’s rejection of its earlier S$50m bid to purchase only a cement plant and terminal at Pulau Damar Laut from JCL’s unit Jurong Cement Bulk Terminal Ptd Ltd (JCBT) last Monday. The board of Holcim rejected YTL Cement’s earlier offer on the basis that it would “emasculate the remaining business of the company”, according to a report. A fight between YTL Cement and Holcim has been on the radar since Holcim offered to buy shares it did not own in Jurong Cement for S$2.10 per share in December last year. However, YTL Cement was of the view that Hocim’s offer was not attractive. Instead of accepting, the group indeed later responded with a proposal to buy over some assets, namely a cement plant and terminal in JCL on Jan 11. (Financial
Daily)
* * * * *
Axiata Group Bhd (AXIATA MK, Hold, TP: RM3.13) may sell Islamic bonds to refinance about RM4bn of borrowings, its CFO said yesterday. Datuk Yusof Annuar Yaacob said the company was looking to secure better rates and longer tenure through refinancing. “We are looking to refinance some of our bank borrowings into Islamic but we haven’t finalised the structure nor have we gone to the market to raise the money yet,” Yusof said. “The facility we have is in place until 2012. We believe that rates are very low and we want to take the opportunity to lock in some of those low rates.” (Financial Daily)

LOCAL BUSINESS NEWS 21.1.2010

2010-01-21T15:22:00.002+08:00

Baswell Resources Bhd has bagged a US$100m (RM336m) subcontract from Hong Kong-based project management and building material sourcing company Metroplex Resources Ltd for a mixed development project in Abu Dhabi. Baswell has signed a memorandum of understanding (MoU) with Metroplex to entirely manufacture and install the furniture and fittings of the development. Baswell said it would collaborate with Metroplex and the Al-Amry Group to design, build and install a project for the Al Reem Island mixed development. “The MoU is consistent with Baswell;s market development plans as the company intends to enter into various collaborative agreements with other parties to enhance its international furniture
manufacturing status,” said the company. (Financial Daily)
* * * * *
Vale to invest RM3bn in Perak. With land and port deals virtually sealed, a Brazilian mining giant’s plan to build a distribution centre in Perak is set to kick off this year. According to Vale SA, the first phase will involve US$900m (RM3bn) in capital expenditure, including US$98m (RM333m) in 2010. The Vale project took a significant step forward on Tuesday when KYM
Holdings Bhd said its agreement to sell 16 parcels of land in Teluk Rubiah, Manjung to Vale International SA, had become unconditional. (StarBiz)
* * * * *
A mixed development project has been proposed for the site located directly across The Renaissance Kuala Lumpur and next to the Sunway Tower. The developer of an abandoned hotel project at the junction of Jalan Sultan Ismail and Jalan Ampang in Kuala Lumpur has submitted a new proposal for a mixed development project on the site, the city's mayor said. The
site, a prime piece of land located directly across The Renaissance Kuala Lumpur and next to the Sunway Tower (previously Wisma Denmark), was previously slated for the opening of the five-star The Grand Duta Hyatt hotel. However, the project was stalled due to the 1998 Asian economic crisis. Kuala Lumpur City Hall (DBKL) mayor Datuk Ahmad Fuad Ismail said it has
received an application from the developer for a 52-storey mixed development project consisting of service apartments, offices and a hotel. Kuala Lumpur Landmark Sdn Bhd, a subsidiary of Olympia Industries Bhd, was given the contract to develop the RM570m Grand Duta Hyatt in 1994. Mycom Bhd, the holding company of Olympia, then teamed up with Kuala Lumpur
Landmark to develop a 52-storey building to house its headquarters and the hotel. However, construction was halted in July 1998, when the group encountered financial difficulties during the economic crisis. The project was to recommence in 2003, but never did start. The hotel was built up to the 29th level before it was stopped. (BT)
* * * * *
Sales of new vehicles could hit a new high this year after the industry turned in a better than expected performance in 2009. Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said total industry volume (TIV) could be higher than the all-time high record in 2005. Aishah, however, said MAA's official forecast for 2010 was 555,000 units, or 2.4%, more
than 2009, amid positive signs of an economic recovery and low interest rates. Last year, the TIV eased marginally 2% to 536,905 units, from the 548,115 units registered in 2008. MAA originally forecast that sales would contract by a double-digit percentage to 480,000 units in 2009. Last July, it revised the figure to 500,000 units. MAA expects the TIV to continue to grow around 3 per cent annually to 566,500 units in 2011 and 583,500 units in 2012 before breaching the 600,000 mark in 2013. Rising consumer sentiment, an improvement in the business confidence level and an expected rise in commodity prices, would provide support to the auto industry, she added. Passenger vehicles accounted for 91%, or 486,342 units, of the total sales in 2009. This was 11,117 units lower than in 2008. The commercial vehicle segment only eased 0.2%, or 93 units, to 50,563 units. Total production last year declined 41,541 units, or 7.8%, to 489,269 units. Of this, the passenger vehicle output stood at 447,002 units, down from 484,512 units in 2008. Aishah said the year-on-year sales volume in December surged by 20% to 47,668 units. On a month-on-month basis, it expanded 5.5%. (BT)
(so proton, EPMB A GOOD BUY ?)
* * * * *
Malaysia may approve the introduction of a goods and services tax in March to increase revenue as the government seeks to narrow a budget shortfall, second Finance Minister Ahmad Husni Hanadzlah said. Full implementation of the levy may take about one a half years after approval as the system’s infrastructure is put together. The goods and services tax of 4% is expected to generate an additional RM1bn annually in revenue. Essential items such as agricultural products, poultry and livestock products, sugar, rice, flour, cooking oil and eggs will be exempted from the tax, the government has said. “We know very well that the sources of revenue for the government have been dependent heavily on petroleum. By introducing the consumption tax, we can have alternative sources of revenue,” Ahmad Husni said. (Malaysian Reserve)

SAPURA CREST, DAYANG, LEADER ANNJOO

2010-01-21T09:40:00.001+08:00

EON Capital Bhd (EONCap) was given the regulator’s consent to start merger talks with Hong Leong Bank Bhd (HLBK,Hold, TP: RM8.71). Bank Negara Malaysia has no objection for EONCap to begin negotiations with Hong Leong that will lead to the “merging (of) the licensed entities under EON Capital Group with Hong Leong Bank Group,” EONCap said in a stock
exchange filing. The approval is valid until June 30. (BT)
* * * * *
SapuraCrest Petroleum Bhd (SCRES MK, Hold, TP: RM2.48) plans to tap into the fast growing oil and gas (O&G) in India, having invested US$110m (RM369.6m) under two joint-ventures and building two derrick lay barges that are expected to start operations in the first quarter of 2010. The investments are part of SapuraCrest’s joint-ventures with Indian partners Larsen & Toubro Ltd (L&T) and Quippo Prakash Pte Ltd. Over the next five years, the company will focus on the installation of pipelines and facilities (IPF). Presently, SapuraCrest provides facilities maintenance and upgrading as well as soil investigation and survey works in India.SapuraCrest’s Indian operations over the last 10 years have contributed about US$200m to its overall earnings. (Financial Daily)
* * * * *
Korea Electric Power Corp (Kepco), which has just landed a US$20bn contract to build nuclear powered power plants in the United Arab Emirates (UAE), is apparently in talks with Malaysia on the possibility of building such a facility here. According to earlier reports, Tenaga Nasional Bhd (TNB MK, Buy, TP: RM9.90) and Kepco had agreed in June 2009 to work together on a nuclear pre-feasibility study. According to Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui, in a new long term energy policy was in the final stages of being drafted by his Ministry as well as the Science, Technology and Innovation Ministry. In October last year, he was quoted as saying that the government would look at the option of using nuclear power to generate electricity by 2025 as a long term solution to meet the country’s energy needs as it
could no longer depend on its existing power resources, namely natural gas, coal and hydro. (Malaysian Reserve)
* * * * *
Naim Holdings Bhd has been ordered to carry out a limited review by its external auditors on its quarterly report submissions, after the company delayed the recognition of a gain from the disposal of Dayang Enterprise Holdings Bhd (DEHB MK, Buy, TP: RM2.20) shares until its annual audited accounts. In reprimanding Naim, Bursa Securities said the company had breached the stipulation in the Listing Requirements (LR) that a listed issuer must ensure “each announcement is factual, clear, unambiguous, accurate, and succinct and contains sufficient information to enable investors to make informed investment decisions”. Naim had reported an unaudited profit after taxation and minority interest of RM62.51m in its 4Q report for the financial period ended Dec 31, 2008, which was announced on Feb 25, 2009. However on April 30, it announced an audited profit after taxation and minority interest of RM80.75m in its annual audited accounts for FY08. Naim explained that the difference was mainly due to the dilution of company’s equity interest in Dayang Enterprise, which resulted in a gain of
RM13.93m to the group. (Financial Daily)
* * * * *
Leader Universal Holdings Bhd has secured a US$107m (RM356.95m) project to develop power transmission system in Cambodia on a build-operate-transfer (BOT) basis. Construction works on the project to develop a 230 kilovolt power transmission system, which would be divided into three stages, is expected to be fully completed by December 2013. Leader Universal’s unit Cambodian Transmission Ltd has also signed the 25 year power transmission agreement with Electricite Du Cambodge, a wholly state owned limited liability company of Cambodia. “Negotiations with the design and build subcontractor and suppliers of materials required for this project are completed and pending finalisation of the agreements. The project is part
of a development of Cambodian grid system and provides future 230kV extension to other parts of the country around Tonle Sap in Cambodia. (Malaysian Reserve)
* * * * *
Ann Joo Corp Sdn Bhd, the single largest shareholder of Ann Joo Resources Bhd (AJR) disposed of nearly 20m shares in the latter recently. A filing to Bursa Malaysia showed AJC sold the shares in the open market between 15 and 19 January. After the recent disposals, AJC’s stake was reduced to 64.69%, comprising of 325.19m shares in AJR. (Financial Daily)

EONCAP,GENTING,MAXIS,YTL, PETRA,NOTION

2010-01-20T10:09:00.003+08:00

EON Capital Bhd (EON Cap) has left the door open to negotiate with other banks, besides Hong Leong Bank Bhd (HLBB) (HLBK MK, Hold, TP: RM8.71), for a potential acquisition or disposal of assets and liabilities or a merger and acquisition (M&A). EON Cap said the negotiations would be for the banking group, which wholly owns EON Bank Bhd, to either dispose its assets and liabilities to a third party or to acquire the assets and liabilities of the third party banking group. However, the industry players are unsure how the central bank would respond to EON Cap’s request, given that no other banking group, at least publicly, had expressed interest in EON Bank. EON Cap’s application to BNM for permissions to talk to other parties may indicate that its major shareholder Primus Pacific Partners Ltd is reluctant to clinch deal with HLBB, without a competing bid towards extracting better value for EON Bank, Primus is the single largest shareholder of EON Cap with a 20.2% stake. Even if HLBB was not Primus preferred buyer, HLBB has already secured permission to talk with Rin Kei Mei and Tan Sri Tiong Hiew King, who own a combined stake of 32.57% in EON Cap, through Kualapura Sdn Bhd, Lintang Emas Sdn Bhd and RH Development Sdn Bhd. (Financial Daily)
* * * * *
Genting Bhd (GENT MK, Hold, TP: RM7.50) plans to build a theme park and hotel within the Iskandar region in Johor to complement the group’s Resort World Sentosa, said its chairman Tan Sri Lim Kok Thay. Lim said for a start, Genting would build a mall in the region in a joint venture with Simon Property Group, the largest mall operator in the US, with Genting’s
portion of the project cost estimated at RM200m. The group, under Genting Plantations Bhd (GENP MK, Hold, TP: RM6.70), had 10,000 acres in Kulai, Johor and this landbank would make it easier for the group to expand its Iskandar plan later. He noted that the response to the mall would determine the implementation of the theme park and hotel plan. By having a hotel in
Iskandar, it would give the visitors the choice of cheaper accommodation compared to hotels in Sentosa. Meanwhile, Lim said Genting was looking at various opportunities in the US that emerged in the aftermath of the global financial crisis. (Financial Daily)
* * * * *
Maxis Bhd (MAXIS MK, Buy, TP: RM6.10) expects half its revenue to come from non-voice services by 2013. Non-voice services like text messages, ring tone and game downloads as well as internet surfing made up about 32% of Maxis’ total revenue as at end-September 2009. One of the main growth drivers will be its non-text messaging services such as mobile content downloads and surfing. The segment accounts for a third of the group’s non-voice revenue, from 12% five years ago. (BT)
* * * * *
The government wants the developer responsible for developing areas in Sentul, to include low cost houses in their proposed mixed development project, said Federal Territories and Wellbeing Deputy Minister Datuk M Saravanan. He said Kuala Lumpur City Hall (DBKL) would discuss with the developer YTL Land & Developer Bhd, a unit of YTL Corp Bhd (YTL MK, Buy, TP: RM8.00) to build 2,400 low cost houses, in their proposed condominium and commercial development for the area. “The low cost houses are necessary for the low income group and squatters in the area to own a house in the area, once it is developed,” he said yesterday. Saravanan said to ensure low cost houses were build by the developer, DBKL would amend the
agreement on the development of the area to include the building of low cost houses. (Malaysian Reserve)
* * * * *
Petra Perdana Bhd (PETR MK, Sell, TP: RM1.21) executive chairman and CEO Tengku Datuk Ibrahim Petra said the sale of Petra Energy shares and the sale of Petra vessels to Petra Energy were done in the interests of shareholders. In a statement he said that the board is clear in its objectives and is determined to meet its financial and cash flow commitments, as the company is expected to encounter a cash flow deficit of RM40m – RM70m for the next 12 months. It was reported that Petra executive director Shamsul Saad has submitted a complaint to the Securities Commission alleging breaches in procedures for the sales. Tengku Ibrahim said “We have no choice now but to look for alternative funding arrangements until the postponed hearing on March 3.” He added that he was aware that all proceeds from the divestment of Petra Energy shares are placed in an escrow account and that the loan was not due until 2012 and 2013. “But the urgent financial commitments and tight cash flow of the company were far more important and required immediate redemption of the loan”, he said. (BT)
* * * *

Petroliam Nasional Bhd (Petronas) has been invited by the Timor-Leste government to invest in its offshore gas development, Petronas president and CEO Tan Sri Mohd Hassan Merican said yesterday. Timor-Leste recently rejected a proposal by Australian-based Woodside Petroleum and partners to develop the offshore Greater Sunrise gas field. The rejection was based on the fact that Woodside would develop the gas field without building an onshore plant to liquefy the gas.Hassan was speaking to reporters at the signing ceremony between Petronas Lubricants International Bhd (PLI) and ProtonHoldings Bhd. The agreement between Proton and Petronas is for a supply, technical and commercial collaboration in the area of automotive lubricants and functional fluids. PLI’s chairman and Petronas’ vice-president for the oil business, Md Arif
Mahmood said the tie-up would also provide for a profit-sharing arrangement with Proton in the aftersales or service-fill market segment and greater cooperation in initiating joint marketing and promotions. (Financial Daily)
* * * * *
Ho Hup Construction Co Bhd yesterday revealed that the reports by its investigative accountants showed various suspected offences of criminal breaches of trust, misappropriation of property and cheating had been committed against its group of companies. There also existed reasonable suspicion that various breaches of director’s duties had beencommitted. It said the Penal Code and Companies Act breaches concerned the nine projects and transactions including cashcheque payments totalling RM5m without proper supporting documents and payments via cash cheques amounting to RM2.4m for “Perlin Mandeera Project” in Sri Lanka that the company had no record of. Others included a RM14.5m development agreement with Syarikat Kemajuan Perumahan Negara Sdn Bhd without any board approval and the acceptance of road
projects in Madagascar for RM216.9m without proper feasibility study and board approval. The company had taken all necessary actions including filing of a suit against its former managing director, Datuk Low Tuck Choy for damages amounting to RM235.6m and legal costs. (Starbiz)
* * * * *
Japan’s Nikon Corp Ltd has emerged as a substantial shareholder in Notion VTec Bhd after taking up 10% or 13.84m shares in the precision component maker in a private placement exercise. The shares were placed out for a total of RM33.78m or RM2.44 a share, the price set on Jan 6, 2010 at a 10% discount to the weighted average market price of RM2.7066 for the five preceding market days. Notion executive chairman Thoo Chow Fah said in a statement yesterday that Nikon’s equity investment in the company indicated the strong confidence placed in the group, and that it should not affect the group’s other camera businesses. In a separate statement, Nikon said the investment would help the camera maker increase its presence in the digital camera market through the utilisation of Notion’s technologies in the manufacture of its products and development of a framework to achieve a stable supply of highly competitive digital cameras. The proceeds of RM33.78m will be used mainly for the expansion of its facility in Thailand with an additional 200,000 sq ft of floor space. The new plant is expected to be operational in the first quarter this year. With the completion of the private placement, Notion’s total paid-up share capital now stands at 152.24m shares. (Financial Daily)
* * * * *
The Kuala Lumpur High Court has fixed April 2 to rule on whether to make public the government’s water concession agreement with Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) and the company’s audit report, as sought by the Malaysian Trades Union Congress (MTUC) and other parties. Judge Datuk Mohamed Appandi Ali, who sat at the high court’s appellate and special powers division, fixed the new date in chambers yesterday. According to MTUC’s counsel Matthew Thomas Phillips, the court had instructed the parties concerned to file written submissions before April 2. Phillips also said that MTUC had instructed him to seek clarification from the Selangor state government on whether it was objecting to the judicial review. Klang member of parliament Charles Santiago, who spearheads the Coalition Against Water Privatisation initiative, said the judicial review was sought to challenge the state and federal governments to release information to the people. MTUC and 13 others filed for judicial review on Jan 15, 2007 after the Energy, Water and Communications Ministry denied their request to view the water concession agreement between Syabas and the federal and state governments as well as Syabas’audit report. (Malaysian Reserve)

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By EUGENE MAHALINGAM
eugenicz@thestar.com.my