Tuesday, December 28, 2010

Lake Kenyir

Lake Kenyir of Trengganu covers an area of 38,000 hectares or 91,846 acres. It has 30 rivers feeding the lake, 25 waterfalls and 340 islands of which, one is as big as Singapore. It is already a tourist attraction.

The Trengganu government wishes to upgrade this tourist destination by putting up a duty-free shopping complex. It has allocated 20 hectares of land in one of the islands for this purpose.

Lake Kenyir is home to 8000 species of flowers, 2500 species of plants, 1000 species of birds, 370 species of orchids and much much more. Read more here.

EPIC is given the enviable task to build this shopping paradise. This is bullish for EPIC which is one of my picks for a profitable 2011.

To know more about EPIC, click here.

Happy investing.

Friday, December 24, 2010


On Tuesday Oct 19, 2010, I predicted that FimaCorp would hit RM6 by end of 2010. (Please refer to my post on that day).

Today the stock had a good run. It opened trading at RM5.75 and moved up steadily. With 567 lots traded for the day, the stock hit RM6 at 4.40 p.m. with 120 lots traded at that price. It closed at RM5.96 for a gain of 26 sen for the day.

Now that this sleeping beauty is stirring in its slumber, I think it's time for it to wake up. By the first quarter of 2011, it should move up another 50 to 80 sen without much difficulty. But I am hoping it reaches this target within the rest of the trading days in 2010.

Who knows? It may actually be there in the next trading day.

Tomorrow is Christmas Day, and I wish all my Christmas friends, "Merry Christmas and a Happy & Prosperous Happy New Year."

Tuesday, December 21, 2010

Profiting from panic selling

Panic selling occurs when a stock price rapidly declines on high volume. This often happens when some event forces investors to re-evaluate the stock's intrinsic value, or when short-term traders are able to force the stock price down far enough to trigger long-term stop-losses. The entire process creates a tremendous opportunity for bottom-fishers to initiate long positions, especially if the event behind the panic selling was non-material or speculative in nature (such as an SEC investigation or an analyst opinion). Here we shed light on the panic-selling process and introduce a model that can help you predict the right time to take a long position after panic selling occurs. Read more.

Thursday, December 16, 2010

PN 17, What is it?

While there are more than a thousand companies listed in Bursa Malaysia, not all of them are in a financially sound position. Although at the point of listing, these listed companies must meet the Listing Requirements of Bursa Malaysia, given time, the company’s financial position and business direction can change for the better or for the worse.

There are many reasons for these changes, such as change in management, risk profile, management team’s experience, foresight, financial appetite, over-gearing etc.

Prior to 2005, listed companies that are in this PN17 condition are classified under PN4.
Read more.

Thursday, December 09, 2010

Is it too late to buy gold?

In the last thirty years of the last century, gold’s popularity peaked in 1980 — precisely as it bubbled over an all-time high. Interest rates were near an all-time high. Inflation was raging in the double digits. A recession was months away. It was the “perfect case for gold” according to many. And yet what followed was a slow-motion, two-decade long crash in gold. It wouldn’t see $675 an ounce again until 2005 — 25 years later.
Gold’s Recent Decade-Long Run
Odds are, you’ve seen and heard a ton of advertisements for and news articles about gold over the past few years. Starting in mid-2001, gold has grossly out-performed the broad stock market indices, increasing four-fold versus the S&P 500′s 0% return.
Read more.

Better Be Safe Than Sorry

Remove any decorative magnet from refrigerators
Remove any decorative magnet from refrigerators,
and put it far away from any food.
Interesting but very important finding!
A number of researchers at Princeton 's University have discovered something scary!

For several months, they were feeding two groups of mice:
The first group with food kept in a refrigerator, and the second group with food kept in a refrigerator as well but with several decorative magnets on the door.

The objective of this experiment was to see how electromagnetic radiation (that coming out from the decorative magnets on the door) affect food items.

Amazingly, rigorous clinical studies stated that the group of mice that consumed the “radiated” food had as much as 87 % higher probability to get cancer than the other group of mice.
Inexplicably no Governments or health associations, institutions have given any statement in this regard.
However and just in case, is recommendable to remove any decorative magnet from refrigerators, and put it far away from any food.
(The above article is sent to be by one of my blogger friends. If you are not sure what is what, remember:
Discretion is the better part of valor.
Prov. It is good to be brave, but it is also good to be careful.; If you are careful, you will not get into situations that require you to be brave. Son: Can I go hang gliding with my friends? Father: No. Son: But they'll say I'm chicken if I don't go! Father: Discretion is the better part of valor, and I'd rather have them call you chicken than risk your life.)

Tuesday, December 07, 2010

Among the emerging markets that have done well since 2009, Malaysia is placed 3rd place from the bottom. Indonesia gets the pride of place. Turkey gets the silver and Thailand gets the bronze.

Singapore stands at the 10th place among the 14 countries mentioned. Malaysia, being the laggard has a lot of catch-up to do. If it wants to get any where near Indonesia, there is a tremendous amount of space to cover. Does this mean that Malaysia is poised to move up fast from now?

One threat facing these emerging markets, according to David Sterman is: Inflation. Read more.

Sunday, December 05, 2010

Mergers & Acquisitions (M & A)

In our fast-changing world, M & A is essential for survival of the fittest. He who can adapt and change accordingly to the circumstance will emerge as the winner.

The purposes of M & A are to enhance competitiveness, create cost-efficiency, boost revenue, and improve earnings per share. Hence, the rage when an M & A is announced.

A merger is different from an acquisition. When two companies combine forces to build a new entity, it's called a merger. A new name will probably come about for the new company. If Proton and MBMR merge, a new name, something like P & M may emerge as the new company.

When a big company takes over a small company, its called an acquisition. The small company simply disappeared while the big company retains its old name. The reverse of M & A are spinoffs and carve-outs.

An M & A is supposed to create a win-win situation. But not all M &As are bed of roses. Many have not turned out to be as lucrative as envisaged, and many are fiascos. One reason why an acquisition may fail is that the style of management of the acquiring company may not suit the old guards of the acquired company. Flexible working hours, a relaxed dress code and easy access to top management may become things of the past. This may create resentment resulting in shrinking production.

Thus when an M & A is announced, it may not be a time to cheer but a time to weep and fear. Nevertheless, an M & A announcement is often a catalyst that has a dramatic impact on the stock price. This creates the opportunity to make some fast bucks.

In an acquisition, the target company's stock price will rise the fastest. If you have the ability to identify companies that are likely candidates for takeovers, you hold the key to great wealth. Of course this ability does not come without much knowledge and experience. So it is not easy. But then, who says that money-making is easy?

Foreign Funds To Continue Buying

Foreign investors were net buyers of local stocks, helping the index to an intra-day record of 1531.99 points on November 10.

They accounted for 28.38 per cent of the total value of trade in November worth RM39 billion, with local institutional funds accounting for 30.16 per cent of the value traded.

International investors' purchases are at their highest in more than one-and-a-half decade, as low returns from abroad and Malaysia's own economic liberalisation help attract investments into equities.

The appreciating ringgit, ease of credit and inflow of capital helped push Malaysia as the fastest growing market for mergers and acquisitions in the Asia-Pacific region this year with some RM21.3 billion deals on the table. Read more.