Saturday, April 28, 2007

One is Enough

There was a time when I received six same annual reports when I needed only one. These reports were elegantly and beautifully presented with lots of pictures inside. But the worst thing was that the bottom line in the P & L account statement was in red ink. They might have cost a few ringgits each. Adding in packing and delivery charges, the actual cost per copy could be up to at least seven ringgits. I couldn’t help sighing, “What a waste.”

We know that when we open an account with a broker firm, a CDS a/c will be allocated to us. Thus, if we open accounts with three broker firms, we have three CDS accounts. Often we have the same stock in each of the accounts, and thus, three same annual reports will be sent to us. You can imagine how many millions of annual reports are wasted in this manner. This is money down the drain for nothing. Why waste shareholders’ funds when they can be saved?

I understand that in America one person has only one CDS account irrespective of how many broker firms you deal with. You can buy and sell at any broker firm but only one CDS account is all that is needed.

Why can’t we follow such a system of one person one CDS account? Apart from the possibility of using the wrong account to sell, there are plenty to be saved.

Underutilization of assets is a waste. To use, consume, spend or expend thoughtlessly is also a waste. Like most people, I hate to see waste. Over the years, I have been wondering why Bursa cannot do anything to improve things in this respect. We have to change for the better if we want to move forward. Complacency has no place in an ever- changing world.

Not so long ago, some companies have gotten smart. The YTL Group for example; they packed the annual reports of YTL Corp, YTL Power, YTL Land, YTL Cement, and YTLE all into a disk. From this alone we can visualize the shrewdness and excellence of the management.

How about those companies who got fined year after year for late filings or other obligations not carried out? What can you say of their management when the red ink at the bottom line has become redder and redder? You already got the answer.

Be smart, associate with successful people to be successful.