Friday, January 19, 2007

The Controlling Interest is Important

The controlling or major shareholder has the greatest influence over the success or failure of a company. It’s best to associate yourself with only the good. You should avoid the bad and the ugly. After all, you don’t need many counters to make you rich.

It is not easy to know who is who. Read and read; the more you read, the more you know.

Look at defunct companies and companies that are about to go under. That should tell you a great deal.

I like small-cap stocks with good earnings per share, sustainable earnings and good earnings growth, which have strong majority shareholders. Some of these companies are:

VADS / Telekom
RUBHD / Ranhill
Onastel / China Steel of Taiwan
YTL Cement / YTL
Batu Kawan / KLK (Batu Kawan actually controls KLK)
IOI Property / IOI Corp
Landmark / Genting
Hexagon / Robert Kuok
DIGI / Telenor Asia

There are many more in the market. Seek and you shall find. Readers, who have identified, please add to the list. Thanks.

The above comment should not be construed as a solicitation to buy or sell. You buy or sell at your own risk