Saturday, May 7, 2011

'Red-flagged' firms hit by investor backlash

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.

Monday, April 25, 2011

Technology can never replace human touch

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!

    Sunday, April 24, 2011

    Making Money From Hobbies --can you do that ?

    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.

    Monday, April 18, 2011

    18.4.2011

    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

    Thursday, April 14, 2011

    HOT HOT HOT! SARAWAK ELECTION!

    FREE TO READ NOW

    http://www.malaysiakini.com/

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

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

    HAHAHA

    Tuesday, January 4, 2011

    Stop blogging temporarily(hopefully!)

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

    All the best to my readers and friends

    Thursday, November 4, 2010

    JP Morgan: Buying opportunity in property share price weakness

    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
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