CMSB is a conglomerate involved in cement manufacturing, trading in construction materials, construction, road maintenance, property development, financial services, technology, education and other services.
Its vision is: To be the Pride of Sarawak.
The key statistics as at March 31, 2011 are as follows:
1Q2011: Vs 1Q2010
Revenue: RM 226.367m Vs 177.633m
Profit before tax: 43.095m Vs 21.347m
EPS : 9.30 sen Vs 3.68 sen
NTA: RM4.08
Current Assets: RM1,267,736,000 of which 189,614,000 is in cash
Current Liabilities: RM378,669,000
Borrowings: RM299,668
Share Capital: RM329,446,000
Par Value per share: RM1
In 2010, the government has allocated RM4.7 billion for the construction of roads & bridges, and RM2.6 billion for water supply & sewerage services. It is hopeful that more will be allocated in 2011. These government spendings will be a boast for the bottom line of the company. Looking at the above figures, there is every reason to believe that company will do well going forward. The stock was last traded at RM2.30 per share cum dividend of 10% less tax. At this price, the stock is undervalued.
Technically speaking, the stock was seen to be in demand when trading started last Friday. It is now coming out of a well-formed base. Demand is likely to continue when trading resume come Monday morning.
Review of performance (Excerpt from filings with Bursa)
The Group’s recorded a pre-tax profit of RM43.10 million for the three months ended 31 March 2011, compared to a pre-tax profit of RM21.35 million for the 3 months ended 31 March 2010. The higher contribution was registered by the Construction Division and there was a gain on acquisition of CMS Roads Sdn. Bhd. and CMS Pavement Tech Sdn. Bhd. of RM12.21 million.
The profit before tax for period ended 31 March 2011 was contributed by all Divisions except Property Division. The Manufacturing Division, being the largest contributor to the Group’s profitability, continued to achieve healthy results. The Construction Materials Division continued its excellent performance, recording a hike in profit before tax riding on the back of the government’s spending on continued projects.
The Construction Division registered a jump in profit primarily because of the re-acquisition of the profit-making entities namely CMS Roads Sdn. Bhd. and CMS Pavement Tech Sdn. Bhd., which contributed positively in the quarter under review. The higher contribution was also due to the profit from government’ s spending on periodic road maintenance work and road rehabilitation.
The Group’s associate in the steel fabrication and manufacturing of steel pipes industry, namely KKB Engineering Bhd continued its sterling performance in the 3 months period ended 31 March 2011. However, the Group’s other associate in the investment banking industry reported a lower profit for the current period compared to previous corresponding period.
B2. Material changes in profit before taxation for the quarter
The Group’s profit before tax of RM43.10 million in the quarter under review was 19% lower than the profit before tax of RM53.16 million in the preceding quarter. This was because the Construction and Manufacturing Division registered exceptionally high profits in the preceding quarter.
However, the Group’s associate in the investment banking industry returned to profit this quarter as compared to a loss in the preceding quarter primarily due to the loss incurred previously as a result of impairment made in respect of the investment bank’s loans and advances and impairment of investment in an associate.
In the stock market, nothing is certain. It is said that the only thing certain is uncertainty. Therefore, do exercise caution when you buy. Know your risk tolerance and don't be controlled by greed.
马 到 功 成. Success is when the horses come. Success goes only to those who dare and act, it seldom goes to the timid. The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
Saturday, May 28, 2011
Thursday, May 26, 2011
Whistleblowers To Get Reward
America has decided to reward whistleblowers who raise red flags against frauds, cheating and other insidious crimes that are detrimental to the health and growth of stock exchanges. To promote integrity and transparency at Bursa and elsewhere, Malaysia should follow suit. Here's the story:
WASHINGTON (AP) -- Whistleblowers who report corporate fraud or other misconduct to the government could receive sizable cash awards under new rules adopted Wednesday by federal regulators.
Tipsters would be eligible if they give the Securities and Exchange Commission information that leads to an enforcement action resulting in more than $1 million in penalties. The SEC would pay up to 30 percent of the money it recovers from a company or person.
A divided SEC voted 3-2 to adopt the whistleblower program. The two Republican commissioners objected.
The new rules will take effect in about 60 days. Whistleblowers who provided information starting in July 2010, when the overhaul law was enacted, also would be eligible to receive awards.
The whistleblower program was mandated by the financial overhaul law enacted last year. It was contested by big U.S. companies, like AT&T Inc., Best Buy Co., FedEx Corp., Google Inc., Target Corp. and Verizon Communications Inc., in addition to the U.S. Chamber of Commerce.
They argued that whistleblowers should first have to tell their companies of misconduct and give them a chance to correct problems before informing the SEC. Otherwise, the corporations contend, it will take longer to address wrongdoing.
On the other side, advocates and lawyers for whistleblowers say they would be discouraged from reporting wrongdoing if required to inform company officials first.
The new rules would seek to discourage employees from bypassing their companies' compliance programs. Once employees report potential wrongdoing to their company, the SEC would officially designate them as whistleblowers, potentially eligible for awards -- provided they give the SEC the same information within 120 days.
In addition, the SEC will credit whistleblowers whose companies pass their information to the agency, even if the whistleblowers themselves do not. That way, whistleblowers could receive awards by reporting wrongdoing internally to their companies.
The new rules represent the first time that whistleblowers will be given a financial incentive to report misconduct to company authorities, SEC Chairman Mary Schapiro said before the vote.
Companies' internal compliance programs play "an extremely valuable role" in preventing fraud, Schapiro said. She said the new rules strike a balance between encouraging whistleblowers to pursue internal compliance when appropriate and giving them the option to go directly to the SEC.
"It is the whistleblower who is in the best position to know which route is best to pursue," she said.
Advocates of the new program say whistleblowers can be an effective line of defense against corporate wrongdoing. The SEC was embarrassed by its failure to halt Bernard Madoff's multibillion-dollar fraud over nearly two decades, despite red flags raised by whistleblowers.
The SEC has made few awards to whistleblowers under its bounty program. Until now, it's been limited to insider trading cases. And its system for processing tips from whistleblowers was criticized as chaotic.
Under the new program, if an insider at Goldman Sachs had given the SEC information leading to its $550 million civil fraud settlement with Goldman over its marketing of mortgage securities, that person could have collected up to $165 million.
"The SEC has chosen to put trial-lawyer profits ahead of effective compliance and corporate governance," the Chamber of Commerce said after the vote. "This rule will make it harder and slower to detect and stop corporate fraud, by undermining (internal) compliance systems."
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WASHINGTON (AP) -- Whistleblowers who report corporate fraud or other misconduct to the government could receive sizable cash awards under new rules adopted Wednesday by federal regulators.
Tipsters would be eligible if they give the Securities and Exchange Commission information that leads to an enforcement action resulting in more than $1 million in penalties. The SEC would pay up to 30 percent of the money it recovers from a company or person.
A divided SEC voted 3-2 to adopt the whistleblower program. The two Republican commissioners objected.
The new rules will take effect in about 60 days. Whistleblowers who provided information starting in July 2010, when the overhaul law was enacted, also would be eligible to receive awards.
The whistleblower program was mandated by the financial overhaul law enacted last year. It was contested by big U.S. companies, like AT&T Inc., Best Buy Co., FedEx Corp., Google Inc., Target Corp. and Verizon Communications Inc., in addition to the U.S. Chamber of Commerce.
They argued that whistleblowers should first have to tell their companies of misconduct and give them a chance to correct problems before informing the SEC. Otherwise, the corporations contend, it will take longer to address wrongdoing.
On the other side, advocates and lawyers for whistleblowers say they would be discouraged from reporting wrongdoing if required to inform company officials first.
The new rules would seek to discourage employees from bypassing their companies' compliance programs. Once employees report potential wrongdoing to their company, the SEC would officially designate them as whistleblowers, potentially eligible for awards -- provided they give the SEC the same information within 120 days.
In addition, the SEC will credit whistleblowers whose companies pass their information to the agency, even if the whistleblowers themselves do not. That way, whistleblowers could receive awards by reporting wrongdoing internally to their companies.
The new rules represent the first time that whistleblowers will be given a financial incentive to report misconduct to company authorities, SEC Chairman Mary Schapiro said before the vote.
Companies' internal compliance programs play "an extremely valuable role" in preventing fraud, Schapiro said. She said the new rules strike a balance between encouraging whistleblowers to pursue internal compliance when appropriate and giving them the option to go directly to the SEC.
"It is the whistleblower who is in the best position to know which route is best to pursue," she said.
Advocates of the new program say whistleblowers can be an effective line of defense against corporate wrongdoing. The SEC was embarrassed by its failure to halt Bernard Madoff's multibillion-dollar fraud over nearly two decades, despite red flags raised by whistleblowers.
The SEC has made few awards to whistleblowers under its bounty program. Until now, it's been limited to insider trading cases. And its system for processing tips from whistleblowers was criticized as chaotic.
Under the new program, if an insider at Goldman Sachs had given the SEC information leading to its $550 million civil fraud settlement with Goldman over its marketing of mortgage securities, that person could have collected up to $165 million.
"The SEC has chosen to put trial-lawyer profits ahead of effective compliance and corporate governance," the Chamber of Commerce said after the vote. "This rule will make it harder and slower to detect and stop corporate fraud, by undermining (internal) compliance systems."
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Saturday, May 21, 2011
The Red Collar Crime Wave
Before you invest in any Chinese stock listed in America, you are advised to read carefully the article appended below.
Better be knowledgeable than be sorry.
Joshua M Brown May 15th, 2011
We are under attack.
Chinese corporate criminals and their US-based enablers are committing Capital Genocide against American investors. We're not talking about "a few bad apples" or "a handful of exceptions", we're talking about a full-blown epidemic. Subterfuge and malicious avarice are simply the tools of the trade when many Chinese companies do business with outsiders.
This undeniable Red Collar Crime Wave is larger in scope and financial consequence than any other international criminal enterprise in the history of the world. We are talking about hundreds of millions of dollars, possibly billions should the Yahoo - Alibaba revelation prove itself to be a harbinger of shocks to come.
At the low end of the spectrum, corrupt representatives of sketchy or even non-existent Chinese companies are conniving their way onto US exchanges via backdoor IPOs, reverse mergers and SPACs. They are slithering through every exchange and regulatory loophole they can find to raise money and establish their fraudulent beachheads here. The penalties for Chinese nationals fudging numbers on a local exchange could range from exile to imprisonment to disappearance. The penalties they face for pulling that stuff here in the US? I don't know, a letter in the mail? "Don't ever do it again"?
Mainland Chinese fraudsters are untouchable, they can only be barred or banned from US exchanges once caught, and so they will get away with whatever they can as long as there are investors here who are stupid enough to capitalize them. And so the ownership of one factory in China becomes the ownership of three for the purposes of a quarterly balance sheet calculation. The ticker symbols will be cutesy and clever while the names of the companies will almost always include the word "China". After all, let's not forget that the name of this game is the exploitation of Americans who "want to play the growth".
It has become an absolute free-for-all.
For a nation that was so economically backwards and pathetic that it could barely feed itself 15 years ago, China's executives have certainly come a long way. They're employing every scam and dirty trick in the book against American corporations and investors while we say thank you and send even more opportunity and cash their way.
I've held my tongue for the last 9 months, watching one scam after another appear on our exchanges. I've said nothing as these financial landmines have been detonated beneath the feet of whichever unfortunate shareholders happened to find themselves in the wrong place at the wrong time. No longer.
We'll limit the scope of my rage here to corporate fraud. For the purposes of this post I'll leave out the Chinese poisoning of America-bound toothpaste, pet food and toys at their manufacturing operations. I'll also leave out the FoxConn factory at which all the Apple products are assembled, a workplace so abusive and abhorrent that the employees must take an oath that they won't kill themselves.
But no, let's not get distracted here, we should simply focus on the accounting chicanery and falsified filings with which Chinese companies are daily relieving US investors of their capital.
The reverse mergers are by far the most insidious manifestation of the contempt that Chinese companies have for our exchanges and rules. Working with American law firms and shameless stock promoters, these companies have found a financial engineering solution that lets them steal on our shores. They've been able to subvert the more highly scrutinized public offering process that would normally have weeded them out. By "cleaning up" shell companies, which should not be trading or available to begin with, the disease gets a foothold first on the pink sheets and then onto the American Stock Exchange where the real grifting can begin.
White Collar Crime columnist Walter Pavlo has collected a slew of recent examples on his blog at Forbes, including:
China Electric Motor – Shareholders lawsuit filed claiming underwriters violated federal securities laws by issuing materially false and misleading information.
China Natural Gas – Class action lawsuit alleges directors and officers issued materially false and misleading statements. CFO of company resigned in late 2010.
Duoyuan Printing – SEC investigating company for fraud, NYSE delisted April 4, 2011
China MediaExpress Holdings, Inc. – Deloitte quit as auditor because “no longer able to rely on the representations of management”. CFO resigned. Stock trading halted March 11
China Agritech – Shareholder lawsuit pending. Dismissed its auditor Ernst & Young.
China Sky One Medical – Under investigation by SEC.
Orient Paper, Inc. – Reauditing previous financials due to license issues with previous auditor (Davis Accounting Group)
The full list is actually quite larger, it includes some of the higher profile blow-ups you may remember with stocks like RINO International and China Green Agriculture - spectacular flame-outs complete with massive insider selling prior to the denouement.
Where are the regulators, you might ask? They are finally getting involved. The SEC's Mary Schapiro is aware of the epidemic and is now on the case...
From Barron's:
Since March 2011 alone, she noted, more than 24 China-based companies have disclosed auditor resignations, accounting problems or both – following the auditors' inability to confirm the amounts of cash or receivables shown on the companies' balance sheets. The SEC has recently suspended trading in three Chinese businesses that "reverse-merged" into U.S.-traded shell companies
The smarter thing to do would be to halt the entire shell company process in its entirety right this minute until we can get the rules up to a standard that will protect investors outright from these foreign liars and thieves. Capital formation can wait fifteen minutes while we get our act together and crack down on this disgusting shell syndicate.
An even more disturbing development of late is taking place in the large cap arena, in full view of the world's media and the global investor class. With the success of Baidu and Sina, Chinese technology companies are now finding themselves as the Belles of the Ball. In at least one case that we are aware of, they are also finding that they can easily mislead their Western partners and shareholders.
Here in the deep end of the pool, newly-minted billionaire Chinese executives are violating contract law, globally accepted corporate best practices and fiduciary responsibility to shareholders. They are disclosing things when and as they choose. They are "on the level" in their own government's eyes so long as they are playing fair with their fellow Chinese investors. This isn't a brand new phenomenon but as the companies involved get bigger, the danger grows.
This week's still-unfolding fiasco involving Yahoo being tricked out of their Alipay subsidiary by Alibaba, a company in which they hold a 43% stake, is just the latest and most outrageous example of what we're dealing with. Here's what Jacob S. Frenkel, a former SEC enforcement lawyer who is an expert in securities law matters and a partner at Shulman Rogers in Potomac, Maryland had to say (via iChinaStock):
"Yahoo! is a victim, plain and simple. With all the negative attention that US-listed Chinese companies, this action by Alibaba only makes worse an already difficult situation. It creates the unfortunate appearance that executives in China may totally disregard their contractual and fiduciary obligations to shareholders. The important message to US partners and owners is to review the effectiveness and enforceability of contracts under both US and Chinese law."
Yahoo will attempt to sue, but they have lost the asset at the end of the day, an asset whose potential was a big part of the investment thesis for the company to begin with. US shareholders were pummeled over something that took place in secret seven months ago, escaping everyone's notice. If major shareholders like Yahoo and Japan's Softbank can be scammed in front of everyone, what chance have any of us got?
The Red Collar crime wave is beguiling American investors both large and small. These crooks are laughing at our securities laws and manipulating their own. None of us are immune:
Not the savviest and most seasoned asset managers - see Glickenhaus & Co watch $4 million evaporate as China Agritech blows up. (Bloomberg)
Not Yahoo, a player in Asian web properties since the late 90's - listen as Alipay's Jack Ma regales us with his tale of how he bitch-slapped the "declining" web portal company. (iChinaStock)
Not even the diligent Warren Buffett can sleep soundly with his Chinese investments - see how the car company he invested in there (BYD) is essentially a counterfeiter playing games with the rules of the Chinese court system to get away with it. (Reuters)
Can American investors trade and hold Chinese stocks? I suppose they can...but they can also practice juggling with live hand grenades and roaring chainsaws...just because you can do something, doesn't mean you should.
I've disagreed with almost everything Donald Trump has had to say during his part-Presidential run, part final humiliation speech circuit this spring. But where Trump and I do find common ground is in our distaste with how the Chinese do business and the lack of regard they show our companies and investors from almost every perspective.
As long as Chinese corporate officers and executives are going to blow cigarette smoke in our faces as they take advantage both here and on their home turf, I'll gladly sit out. Until I get the sense that they have an ounce of respect for our investors, I'll watch the pickpocketing from the sidelines and focus my capital and attention elsewhere.
Better be knowledgeable than be sorry.
Joshua M Brown May 15th, 2011
We are under attack.
Chinese corporate criminals and their US-based enablers are committing Capital Genocide against American investors. We're not talking about "a few bad apples" or "a handful of exceptions", we're talking about a full-blown epidemic. Subterfuge and malicious avarice are simply the tools of the trade when many Chinese companies do business with outsiders.
This undeniable Red Collar Crime Wave is larger in scope and financial consequence than any other international criminal enterprise in the history of the world. We are talking about hundreds of millions of dollars, possibly billions should the Yahoo - Alibaba revelation prove itself to be a harbinger of shocks to come.
At the low end of the spectrum, corrupt representatives of sketchy or even non-existent Chinese companies are conniving their way onto US exchanges via backdoor IPOs, reverse mergers and SPACs. They are slithering through every exchange and regulatory loophole they can find to raise money and establish their fraudulent beachheads here. The penalties for Chinese nationals fudging numbers on a local exchange could range from exile to imprisonment to disappearance. The penalties they face for pulling that stuff here in the US? I don't know, a letter in the mail? "Don't ever do it again"?
Mainland Chinese fraudsters are untouchable, they can only be barred or banned from US exchanges once caught, and so they will get away with whatever they can as long as there are investors here who are stupid enough to capitalize them. And so the ownership of one factory in China becomes the ownership of three for the purposes of a quarterly balance sheet calculation. The ticker symbols will be cutesy and clever while the names of the companies will almost always include the word "China". After all, let's not forget that the name of this game is the exploitation of Americans who "want to play the growth".
It has become an absolute free-for-all.
For a nation that was so economically backwards and pathetic that it could barely feed itself 15 years ago, China's executives have certainly come a long way. They're employing every scam and dirty trick in the book against American corporations and investors while we say thank you and send even more opportunity and cash their way.
I've held my tongue for the last 9 months, watching one scam after another appear on our exchanges. I've said nothing as these financial landmines have been detonated beneath the feet of whichever unfortunate shareholders happened to find themselves in the wrong place at the wrong time. No longer.
We'll limit the scope of my rage here to corporate fraud. For the purposes of this post I'll leave out the Chinese poisoning of America-bound toothpaste, pet food and toys at their manufacturing operations. I'll also leave out the FoxConn factory at which all the Apple products are assembled, a workplace so abusive and abhorrent that the employees must take an oath that they won't kill themselves.
But no, let's not get distracted here, we should simply focus on the accounting chicanery and falsified filings with which Chinese companies are daily relieving US investors of their capital.
The reverse mergers are by far the most insidious manifestation of the contempt that Chinese companies have for our exchanges and rules. Working with American law firms and shameless stock promoters, these companies have found a financial engineering solution that lets them steal on our shores. They've been able to subvert the more highly scrutinized public offering process that would normally have weeded them out. By "cleaning up" shell companies, which should not be trading or available to begin with, the disease gets a foothold first on the pink sheets and then onto the American Stock Exchange where the real grifting can begin.
White Collar Crime columnist Walter Pavlo has collected a slew of recent examples on his blog at Forbes, including:
China Electric Motor – Shareholders lawsuit filed claiming underwriters violated federal securities laws by issuing materially false and misleading information.
China Natural Gas – Class action lawsuit alleges directors and officers issued materially false and misleading statements. CFO of company resigned in late 2010.
Duoyuan Printing – SEC investigating company for fraud, NYSE delisted April 4, 2011
China MediaExpress Holdings, Inc. – Deloitte quit as auditor because “no longer able to rely on the representations of management”. CFO resigned. Stock trading halted March 11
China Agritech – Shareholder lawsuit pending. Dismissed its auditor Ernst & Young.
China Sky One Medical – Under investigation by SEC.
Orient Paper, Inc. – Reauditing previous financials due to license issues with previous auditor (Davis Accounting Group)
The full list is actually quite larger, it includes some of the higher profile blow-ups you may remember with stocks like RINO International and China Green Agriculture - spectacular flame-outs complete with massive insider selling prior to the denouement.
Where are the regulators, you might ask? They are finally getting involved. The SEC's Mary Schapiro is aware of the epidemic and is now on the case...
From Barron's:
Since March 2011 alone, she noted, more than 24 China-based companies have disclosed auditor resignations, accounting problems or both – following the auditors' inability to confirm the amounts of cash or receivables shown on the companies' balance sheets. The SEC has recently suspended trading in three Chinese businesses that "reverse-merged" into U.S.-traded shell companies
The smarter thing to do would be to halt the entire shell company process in its entirety right this minute until we can get the rules up to a standard that will protect investors outright from these foreign liars and thieves. Capital formation can wait fifteen minutes while we get our act together and crack down on this disgusting shell syndicate.
An even more disturbing development of late is taking place in the large cap arena, in full view of the world's media and the global investor class. With the success of Baidu and Sina, Chinese technology companies are now finding themselves as the Belles of the Ball. In at least one case that we are aware of, they are also finding that they can easily mislead their Western partners and shareholders.
Here in the deep end of the pool, newly-minted billionaire Chinese executives are violating contract law, globally accepted corporate best practices and fiduciary responsibility to shareholders. They are disclosing things when and as they choose. They are "on the level" in their own government's eyes so long as they are playing fair with their fellow Chinese investors. This isn't a brand new phenomenon but as the companies involved get bigger, the danger grows.
This week's still-unfolding fiasco involving Yahoo being tricked out of their Alipay subsidiary by Alibaba, a company in which they hold a 43% stake, is just the latest and most outrageous example of what we're dealing with. Here's what Jacob S. Frenkel, a former SEC enforcement lawyer who is an expert in securities law matters and a partner at Shulman Rogers in Potomac, Maryland had to say (via iChinaStock):
"Yahoo! is a victim, plain and simple. With all the negative attention that US-listed Chinese companies, this action by Alibaba only makes worse an already difficult situation. It creates the unfortunate appearance that executives in China may totally disregard their contractual and fiduciary obligations to shareholders. The important message to US partners and owners is to review the effectiveness and enforceability of contracts under both US and Chinese law."
Yahoo will attempt to sue, but they have lost the asset at the end of the day, an asset whose potential was a big part of the investment thesis for the company to begin with. US shareholders were pummeled over something that took place in secret seven months ago, escaping everyone's notice. If major shareholders like Yahoo and Japan's Softbank can be scammed in front of everyone, what chance have any of us got?
The Red Collar crime wave is beguiling American investors both large and small. These crooks are laughing at our securities laws and manipulating their own. None of us are immune:
Not the savviest and most seasoned asset managers - see Glickenhaus & Co watch $4 million evaporate as China Agritech blows up. (Bloomberg)
Not Yahoo, a player in Asian web properties since the late 90's - listen as Alipay's Jack Ma regales us with his tale of how he bitch-slapped the "declining" web portal company. (iChinaStock)
Not even the diligent Warren Buffett can sleep soundly with his Chinese investments - see how the car company he invested in there (BYD) is essentially a counterfeiter playing games with the rules of the Chinese court system to get away with it. (Reuters)
Can American investors trade and hold Chinese stocks? I suppose they can...but they can also practice juggling with live hand grenades and roaring chainsaws...just because you can do something, doesn't mean you should.
I've disagreed with almost everything Donald Trump has had to say during his part-Presidential run, part final humiliation speech circuit this spring. But where Trump and I do find common ground is in our distaste with how the Chinese do business and the lack of regard they show our companies and investors from almost every perspective.
As long as Chinese corporate officers and executives are going to blow cigarette smoke in our faces as they take advantage both here and on their home turf, I'll gladly sit out. Until I get the sense that they have an ounce of respect for our investors, I'll watch the pickpocketing from the sidelines and focus my capital and attention elsewhere.
Friday, May 20, 2011
TDM on aggressive healthcare, oil palm drive
By Zaidi Isham Ismail
xydee@nstp.com.my
2011/05/20
KUALA TERENGGANU: TDM Bhd, one of Malaysia's smallest plantation and healthcare companies, is on an aggressive mode to expand its landbank by more than threefold to 100,000ha in eight years, and own more hospitals from four at present.
TDM chairman Datuk Roslan Awang Chik said the company plans to spend RM30 million to set up its first oil palm mill in Kalimantan, Indonesia, once its hectarage reaches 10,000ha in the next three years, from 3,000ha at present.
"Ultimately, we aim to own a total of 40,000ha in Indonesia in eight years and will need an oil palm mill for each 10,000ha. Each oil palm mill will cost RM30 million.
"We have spent RM44 million on our oil palm estates in Indonesia and the first batch will start to impact our earnings in 2013," Roslan told reporters after its annual general meeting here yesterday.
TDM, which is 70 per cent-owned by the Terengganu state government, has a total of 33,284ha and two mills in Malaysia.
It aims to own a total of 100,000ha of oil palm estates, of which 30,000ha will be in Malaysia and 40,000ha in Indonesia.
The location of the remaining 30,000ha has not been decided yet.
TDM chief executive officer Badrul Hisham Mahari said the firm, which has a warchest of RM208.7 million, plans to open estates in Cambodia and Papua New Guinea but it has to balance its growth with dividend payments, cash reserves and staff strength.
Badrul said it is also on the lookout to buy or build new hospitals when the opportunity arises.
"We want to grow both our plantations and healthcare businesses but plantations will always be our core business."
TDM's plantation division currently accounts for 90 per cent of its earnings, healthcare (9 per cent) and food (1 per cent).
It started construction of its RM120 million Kuantan medical centre last year, which is slated for completion by the first quarter of 2013.
TDM also owns and manages the Kuala Terengganu Specialist Hospital and Kelana Jaya Medical Centre. It acquired the Taman Desa Medical Centre for RM16.5 million last year.
"We plan to build a new medical centre in Kuala Terengganu to replace the current one for RM150 million with 150 rooms."
Roslan said TDM's growth prospects are good as crude palm oil prices are expected to remain above RM3,000 a tonne from last year's average of RM2,659 a tonne, and ride on good export of oil palm products.
The company also plans to build its second biofertiliser plant, which can give it a 15 per cent, or RM10 million, savings on chemical fertiliser purchase.
Roslan said the firm is still in the process of selling its poultry business to Vision Poultry Sdn Bhd for RM9 million. It will be completed in the next two to three weeks and the state government has no plans to divest its 70 per cent stake.
TDM has a dividend policy of paying at least 30 per cent of its annual net profit. It employs almost 3,000 workers and has total assets of RM965.6 million with almost zero gearing.
xydee@nstp.com.my
2011/05/20
KUALA TERENGGANU: TDM Bhd, one of Malaysia's smallest plantation and healthcare companies, is on an aggressive mode to expand its landbank by more than threefold to 100,000ha in eight years, and own more hospitals from four at present.
TDM chairman Datuk Roslan Awang Chik said the company plans to spend RM30 million to set up its first oil palm mill in Kalimantan, Indonesia, once its hectarage reaches 10,000ha in the next three years, from 3,000ha at present.
"Ultimately, we aim to own a total of 40,000ha in Indonesia in eight years and will need an oil palm mill for each 10,000ha. Each oil palm mill will cost RM30 million.
"We have spent RM44 million on our oil palm estates in Indonesia and the first batch will start to impact our earnings in 2013," Roslan told reporters after its annual general meeting here yesterday.
TDM, which is 70 per cent-owned by the Terengganu state government, has a total of 33,284ha and two mills in Malaysia.
It aims to own a total of 100,000ha of oil palm estates, of which 30,000ha will be in Malaysia and 40,000ha in Indonesia.
The location of the remaining 30,000ha has not been decided yet.
TDM chief executive officer Badrul Hisham Mahari said the firm, which has a warchest of RM208.7 million, plans to open estates in Cambodia and Papua New Guinea but it has to balance its growth with dividend payments, cash reserves and staff strength.
Badrul said it is also on the lookout to buy or build new hospitals when the opportunity arises.
"We want to grow both our plantations and healthcare businesses but plantations will always be our core business."
TDM's plantation division currently accounts for 90 per cent of its earnings, healthcare (9 per cent) and food (1 per cent).
It started construction of its RM120 million Kuantan medical centre last year, which is slated for completion by the first quarter of 2013.
TDM also owns and manages the Kuala Terengganu Specialist Hospital and Kelana Jaya Medical Centre. It acquired the Taman Desa Medical Centre for RM16.5 million last year.
"We plan to build a new medical centre in Kuala Terengganu to replace the current one for RM150 million with 150 rooms."
Roslan said TDM's growth prospects are good as crude palm oil prices are expected to remain above RM3,000 a tonne from last year's average of RM2,659 a tonne, and ride on good export of oil palm products.
The company also plans to build its second biofertiliser plant, which can give it a 15 per cent, or RM10 million, savings on chemical fertiliser purchase.
Roslan said the firm is still in the process of selling its poultry business to Vision Poultry Sdn Bhd for RM9 million. It will be completed in the next two to three weeks and the state government has no plans to divest its 70 per cent stake.
TDM has a dividend policy of paying at least 30 per cent of its annual net profit. It employs almost 3,000 workers and has total assets of RM965.6 million with almost zero gearing.
Monday, May 16, 2011
Rubbish Pork
Are you eating rubbish? Here's the story taken from theStar:
ABOUT 90% of pig farms sell low quality pork or “rubbish pork”.
The Malaysian Pork Sellers' Association claimed that this activity had been going on for over 10 years, reported Sin Chew Daily.
Association chairman Goh Chui Lai said rubbish pork was in abundance in Ipoh, Perak and in Tanjung Sepat, Selangor.
The sale of such meat, he said, became widespread after the Nipah virus outbreak.
“Some processed food operators also buy dead pigs for their products as it is cheaper,” he said.
Goh was commenting on a news report that low quality pork were used in the making of sausages, pork balls, dim sum and buns in the market.
However, Federation of Livestock Farmers Associations of Malaysia's pig unit chief Beh Kim Hee refuted Goh's claim.
He challenged Goh to lodge a police report, claiming that Goh had no evidence to support his claims.
He also accused Goh of trying to bring down the price of pork products “with his baseless claims”.
On Saturday, the Health Ministry and Agriculture and Agro-based Industries Ministry assured that it would conduct an investigation to ensure that pork-related products in the market were safe for consumption.
Since the issue was highlighted, Nanyang Siang Pau reported that sales of pork-based products were on the decline.
If you are not sure what is what, better avoid pork products, at least for now, than to fall sick.
ABOUT 90% of pig farms sell low quality pork or “rubbish pork”.
The Malaysian Pork Sellers' Association claimed that this activity had been going on for over 10 years, reported Sin Chew Daily.
Association chairman Goh Chui Lai said rubbish pork was in abundance in Ipoh, Perak and in Tanjung Sepat, Selangor.
The sale of such meat, he said, became widespread after the Nipah virus outbreak.
“Some processed food operators also buy dead pigs for their products as it is cheaper,” he said.
Goh was commenting on a news report that low quality pork were used in the making of sausages, pork balls, dim sum and buns in the market.
However, Federation of Livestock Farmers Associations of Malaysia's pig unit chief Beh Kim Hee refuted Goh's claim.
He challenged Goh to lodge a police report, claiming that Goh had no evidence to support his claims.
He also accused Goh of trying to bring down the price of pork products “with his baseless claims”.
On Saturday, the Health Ministry and Agriculture and Agro-based Industries Ministry assured that it would conduct an investigation to ensure that pork-related products in the market were safe for consumption.
Since the issue was highlighted, Nanyang Siang Pau reported that sales of pork-based products were on the decline.
If you are not sure what is what, better avoid pork products, at least for now, than to fall sick.
Thursday, May 12, 2011
Malaysian Durians To Enter China
Over the years the planting of durians in Malaysia has been a fiasco. It takes at least 7 years for a durian tree to bear fruits. For some variety, it may take up to 10 years. Once a durian tree starts to bear fruits, great care must be taken to ensure that the tree remains healthy. The worst is the D24. Especially those in the low flat land, many will die after fruiting once.
Durian trees are easily diseased and need to be sprayed with insecticide and fungicide periodically. Fertilizer is also a must. All these and labor charges cost a lot of money. The price of durians should be not less than RM7 per kg when collected by durian agents for a durian farmer to have any chance to show a profit.
In Malaysia, there are many varieties. The most popular and expensive is the Raja Kunit which originated from Gua Musang in Kelantan. The fruit is also known as the Musang King.
Next in line are the D24, D2, D78, D88, D168, Red Prawn, Tekar and many other varieties.
Malaysian durians are definitely a class above those in Thailand. Whether in taste or in smell. they are better. Once you have tasted the Raja Kunit, you will never like Thailand durians again. However, taste is subjective. Thus some may disagree with me.
China has never allowed Malaysian durians to be imported into China. After the recent visit of the Chinese premier, Wen Jia Bao to Malaysia, things have changed. Among the many agreements between the two countries, China has agreed that Malaysian durians are now allowed to enter China. As China has a vast population that is likely to like durians, the demand and import of the fruits could be tremendous. This will jack up the price and will benefit durian farmers.
Durian is said to be a powerful aphrodisiac. "Sarongs go up when durians come down", is a popular saying among Malaysians.
Lands in Bentong and Raub are suitable for durians. The most popular varieties are the Raja Kunit and D24. Swiftlet farming is also popular in these two districts. If you are thinking of investing in any of the above two activities and need help, you may contact me for assistance. Be assured that I don't charge you anything.
Doing the right thing at the right time yields the most profit. The time to get involved with durians is now.
Durian trees are easily diseased and need to be sprayed with insecticide and fungicide periodically. Fertilizer is also a must. All these and labor charges cost a lot of money. The price of durians should be not less than RM7 per kg when collected by durian agents for a durian farmer to have any chance to show a profit.
In Malaysia, there are many varieties. The most popular and expensive is the Raja Kunit which originated from Gua Musang in Kelantan. The fruit is also known as the Musang King.
Next in line are the D24, D2, D78, D88, D168, Red Prawn, Tekar and many other varieties.
Malaysian durians are definitely a class above those in Thailand. Whether in taste or in smell. they are better. Once you have tasted the Raja Kunit, you will never like Thailand durians again. However, taste is subjective. Thus some may disagree with me.
China has never allowed Malaysian durians to be imported into China. After the recent visit of the Chinese premier, Wen Jia Bao to Malaysia, things have changed. Among the many agreements between the two countries, China has agreed that Malaysian durians are now allowed to enter China. As China has a vast population that is likely to like durians, the demand and import of the fruits could be tremendous. This will jack up the price and will benefit durian farmers.
Durian is said to be a powerful aphrodisiac. "Sarongs go up when durians come down", is a popular saying among Malaysians.
Lands in Bentong and Raub are suitable for durians. The most popular varieties are the Raja Kunit and D24. Swiftlet farming is also popular in these two districts. If you are thinking of investing in any of the above two activities and need help, you may contact me for assistance. Be assured that I don't charge you anything.
Doing the right thing at the right time yields the most profit. The time to get involved with durians is now.
Manager loses RM4,200 with just one mouse click
Thursday May 12, 2011 (From StarOnLine)
KUALA LUMPUR: Accounts manager Chua Ming Choo opened a message in her e-mail informing her that there was some irregular activity occurring in her account.
The e-mail told her to click a link to her bank’s website to update her particulars for safer online banking.
Less than five minutes later, the simple mouse click cost her RM4,200.
Chua, 35, from Port Dickson, said she received the e-mail last Thursday.
She added that about two minutes after she clicked on the bank’s website, she received an SMS requesting a Transaction Authorisation Code (TAC) number.
Chua realised that something could have happened to her account and she called her bank to inform them about it.
“They told me they would block my account and I was told to change my e-pin number,” she told a press conference at the MCA Public Services and Comp laints Department here yesterday.
Chua said she then went to the nearest ATM to check her account and discovered the money missing even though she did not key in her TAC number on the website.
She lodged a police report on the same day.
Another victim, Chong Wen Shan, 24, from Teluk Intan, Perak, said he received an e-mail on May 1 informing him that his online services account was about to expire due to a database update on the bank’s system.
Chong said he was asked to update his particulars and being new to e-banking, he thought it was a normal procedure and clicked on the link.
He also keyed in his TAC number when asked and discovered that RM5,000 had gone missing from his account a few hours later.
Department head Datuk Michael Chong said the two cases were the first that he had received so far this year.
He asked Bank Negara and banks to be on alert for such scams.
“I do not rule out an inside job. Otherwise, how do these criminals know our personal details?” he added.
KUALA LUMPUR: Accounts manager Chua Ming Choo opened a message in her e-mail informing her that there was some irregular activity occurring in her account.
The e-mail told her to click a link to her bank’s website to update her particulars for safer online banking.
Less than five minutes later, the simple mouse click cost her RM4,200.
Chua, 35, from Port Dickson, said she received the e-mail last Thursday.
She added that about two minutes after she clicked on the bank’s website, she received an SMS requesting a Transaction Authorisation Code (TAC) number.
Chua realised that something could have happened to her account and she called her bank to inform them about it.
“They told me they would block my account and I was told to change my e-pin number,” she told a press conference at the MCA Public Services and Comp laints Department here yesterday.
Chua said she then went to the nearest ATM to check her account and discovered the money missing even though she did not key in her TAC number on the website.
She lodged a police report on the same day.
Another victim, Chong Wen Shan, 24, from Teluk Intan, Perak, said he received an e-mail on May 1 informing him that his online services account was about to expire due to a database update on the bank’s system.
Chong said he was asked to update his particulars and being new to e-banking, he thought it was a normal procedure and clicked on the link.
He also keyed in his TAC number when asked and discovered that RM5,000 had gone missing from his account a few hours later.
Department head Datuk Michael Chong said the two cases were the first that he had received so far this year.
He asked Bank Negara and banks to be on alert for such scams.
“I do not rule out an inside job. Otherwise, how do these criminals know our personal details?” he added.
Wednesday, May 04, 2011
Oil Palm The Golden Crop
TDM is now a member of RSPO. It is committed to sustainable practices, balancing economic viability with environment and social respensibility. By end 2012, one of its mill complexes is expected to obtain certification. This is a positive reflection of TDM, going forward.
Sunday, May 01, 2011
TDM Good For Long-term Hold
It came like a bolt from the blue when TDM announced a single-tier first interim dividend of 3 sen for the financial year ended 31 Dec 2011. This together with the single-tier first and final dividend of 13.5 sen for the year 2010 means that for every 1000 shares you will get RM165 which is payable on the June 09, 2011. The x-date for the dividends is May 25, 2011. At RM3 per share, the dividend-yield works out to 5.5%. Considering that the interest rate of fixed deposits at banks is at 2.75% p.a. it is worthwhile to buy TDM now.
As reported in the just released annual report for TDM, the company has cash of RM176.7 million and almost zero gearing. The company is well managed with a strong balance sheet and good earnings per share of 41.49 sen for the year ended 31.12.2010.
The management of the group is confident that its business will continue to do well. It has a piece of very good land measuring 25,000 ha in East Kalimantan. I understand that 5000 ha have been planted with oil palm in 2007 and the remaining land is scheduled for planting of oil palm within the next 3 years. This ensure that the company will have good growth in the foreseeable future.
On its healthcare division, TDM has acquired TDMC Hospital Sdn. Bhd, a 128-bed hospital in Taman Desa. This acquisition is expected to contribute positively to the group in the coming years. This sector has already been doing well, and with the new hospital, more profit is expected to come in.
The food division of the group is the sore spot. It has not been doing well over the years. For 2010, the division still shows some losses. Management has the intention to dispose off the sector when someone suitable to take over comes along.
Action to take: Continue to hold on to your TDM or buy more for long-term hold.
As reported in the just released annual report for TDM, the company has cash of RM176.7 million and almost zero gearing. The company is well managed with a strong balance sheet and good earnings per share of 41.49 sen for the year ended 31.12.2010.
The management of the group is confident that its business will continue to do well. It has a piece of very good land measuring 25,000 ha in East Kalimantan. I understand that 5000 ha have been planted with oil palm in 2007 and the remaining land is scheduled for planting of oil palm within the next 3 years. This ensure that the company will have good growth in the foreseeable future.
On its healthcare division, TDM has acquired TDMC Hospital Sdn. Bhd, a 128-bed hospital in Taman Desa. This acquisition is expected to contribute positively to the group in the coming years. This sector has already been doing well, and with the new hospital, more profit is expected to come in.
The food division of the group is the sore spot. It has not been doing well over the years. For 2010, the division still shows some losses. Management has the intention to dispose off the sector when someone suitable to take over comes along.
Action to take: Continue to hold on to your TDM or buy more for long-term hold.
Monday, April 25, 2011
The Chinese are coming
The Chinese are coming because America does not want them.
Listings via RTO / merger have recently been suspended in the U.S. stock exchanges. This is due to lack of interest in such listings.
Many Chinese companies listed in the U.S. are now being sued by investors for fraud, inflated reporting and misleading statements. In the light of the present scenario, Bursa is likely to experience an influx of Chinese companies applying for listing in Bursa. A few Chinese stocks are already listed here. They are not well received and some are still below their IPO price.
Before a stock is allowed to get listed, a due diligence must be carried out. This means visiting its factories, testing and checking its products, talking to its CEO and workers and its customers as well. Bursa should have its own team of auditors to do this instead of depending too much on other auditors to ensure propriety. Does Bursa have the workforce to do this? If not, it should upgrade itself first.
Integrity, transparency and reliability must be implemented without compromise. Unless people feel safe to invest, they would rather leave their money in the banks.
Therefore if Bursa wants more activities in the stock market, it must do everything to ensure that it is a safe place to invest.
Most of our ACE counters are rubbish shares. Over the years, they show no growth, no dividend and no appreciation in their prices. They should be classified under a category called, "Useless". I wonder why anyone wants to invest in such counters.
Listings via RTO / merger have recently been suspended in the U.S. stock exchanges. This is due to lack of interest in such listings.
Many Chinese companies listed in the U.S. are now being sued by investors for fraud, inflated reporting and misleading statements. In the light of the present scenario, Bursa is likely to experience an influx of Chinese companies applying for listing in Bursa. A few Chinese stocks are already listed here. They are not well received and some are still below their IPO price.
Before a stock is allowed to get listed, a due diligence must be carried out. This means visiting its factories, testing and checking its products, talking to its CEO and workers and its customers as well. Bursa should have its own team of auditors to do this instead of depending too much on other auditors to ensure propriety. Does Bursa have the workforce to do this? If not, it should upgrade itself first.
Integrity, transparency and reliability must be implemented without compromise. Unless people feel safe to invest, they would rather leave their money in the banks.
Therefore if Bursa wants more activities in the stock market, it must do everything to ensure that it is a safe place to invest.
Most of our ACE counters are rubbish shares. Over the years, they show no growth, no dividend and no appreciation in their prices. They should be classified under a category called, "Useless". I wonder why anyone wants to invest in such counters.
Monday, April 18, 2011
Time for harsher penalties
There are many ways to destabilise or mismanage a company, and in Kenmark case, its top executive and directors from Taiwan went AWOL
There are many ways to destabilise or mismanage a company, and along the way, upset and annoy its minority shareholders.
In the case of Kenmark Industrial (M) Co Bhd, its top executive and directors from Taiwan went AWOL. The furniture maker's shares were sold down, losing some RM140 million of market value in a matter of days. The stock did bounce back, but not before a big damage was done and a new, "friendly" major shareholder was installed.
The latest file marked "How to upset your minority shareholders" involves Linear Corp Bhd. Initial company probe showed that one of its directors had used his autocratic rule to hand out RM36 million to a project owner/developer. The amount was an advance for a RM1.66 billion contract Perak Linear had secured from the developer, but appeared not viable.
Kenmark and Linear are among a list of listed companies that have run foul of corporate rules. Kimble Corp Bhd and Tat Sang Bhd are counted in the list, too.
Kimble, another Taiwan-owned furniture maker, breached a listing requirement in 2008 for failing to disclose in its fourth quarter 2007 results that it had made provision for doubtful debts of RM33.7 million.
Its managing director Datuk Yao Bor Bin and former executive director Yao Po Chen were fined by Bursa Malaysia a total of RM75,000 "for being ambiguous and inaccurate in the announcement". The company was delisted in April 2009.
Tat Sang, another furniture maker, shocked investors with its accounting irregularities and the disappearance of key management personnel back in 2002.
Its former managing director Lim Chai Hock was sentenced to five years' jail by the Sessions Court for making false statements to Bursa Malaysia. The sentence was revised by the High Court to a five months' jail and a fine of RM200,000 in default of two months' imprisonment.
Tat Sang was plagued with financial woes just a year after its listing in 2000. It was eventually delisted in 2003.
The point here is that once a corporate manipulator is caught and goes to court, make sure he (interestingly, women is almost or non-existent in the issue) is punished accordingly.
While our local stock market watchdogs, the Securities Commission particularly, may have been swift in their action, the punitive measures appear lenient on corporate manipulators.
Some have said in jest (or are they not kidding?) that our corporate punishments are the laughing stock among foreigners. Swindle loads of money from your company and leave the country, you can then come back and face the low-decibel music.
We may have read that a man was sentenced to 25 weeks in jail for stealing 80 pairs of women's panties. For mismanaging or embezzling millions of ringgit or causing hurt and grievance to many investors, you just get a fine or a brief spell in prison. Some balance in blue and white collar crimes, right? Is there a very fine line in steal, cheat or lie between a corporate man and an ordinary Joe?
In February 2006, it was reported that Fountain View Development Bhd former director Datuk Chin Chan Leong and ex-remisier were found guilty of share manipulation.
Chin was fined RM1.3 million or in default of 13 months' jail as well as sentenced to serve one day in prison for manipulating its share price seven years before.
Hiew Yoke Lan, a former Avenue Securities Sdn Bhd remisier, was fined RM1 million or 10 months default jail sentence for abetting Chin in the offence.
The offence was committed between November 18 2003 and January 20 2004. During this period, Fountain View stock had a low of RM1.99 and a high of RM6.15.
Back in November 2003, at a low of RM1.99, Fountain View carried a market capitalisation of RM885 million. At the peak of the share manipulation of around RM6.15, Fountain View carried a market capitalisation of RM2.73 billion!
If Datuk Seri Idris Jala can overhaul the various subsidies enjoyed by us, how hard can it be to review and slap the harshest possible punishment on corporate manipulators?
The above article is written by Zuraimi Abdullah of Business Times
There are many ways to destabilise or mismanage a company, and along the way, upset and annoy its minority shareholders.
In the case of Kenmark Industrial (M) Co Bhd, its top executive and directors from Taiwan went AWOL. The furniture maker's shares were sold down, losing some RM140 million of market value in a matter of days. The stock did bounce back, but not before a big damage was done and a new, "friendly" major shareholder was installed.
The latest file marked "How to upset your minority shareholders" involves Linear Corp Bhd. Initial company probe showed that one of its directors had used his autocratic rule to hand out RM36 million to a project owner/developer. The amount was an advance for a RM1.66 billion contract Perak Linear had secured from the developer, but appeared not viable.
Kenmark and Linear are among a list of listed companies that have run foul of corporate rules. Kimble Corp Bhd and Tat Sang Bhd are counted in the list, too.
Kimble, another Taiwan-owned furniture maker, breached a listing requirement in 2008 for failing to disclose in its fourth quarter 2007 results that it had made provision for doubtful debts of RM33.7 million.
Its managing director Datuk Yao Bor Bin and former executive director Yao Po Chen were fined by Bursa Malaysia a total of RM75,000 "for being ambiguous and inaccurate in the announcement". The company was delisted in April 2009.
Tat Sang, another furniture maker, shocked investors with its accounting irregularities and the disappearance of key management personnel back in 2002.
Its former managing director Lim Chai Hock was sentenced to five years' jail by the Sessions Court for making false statements to Bursa Malaysia. The sentence was revised by the High Court to a five months' jail and a fine of RM200,000 in default of two months' imprisonment.
Tat Sang was plagued with financial woes just a year after its listing in 2000. It was eventually delisted in 2003.
The point here is that once a corporate manipulator is caught and goes to court, make sure he (interestingly, women is almost or non-existent in the issue) is punished accordingly.
While our local stock market watchdogs, the Securities Commission particularly, may have been swift in their action, the punitive measures appear lenient on corporate manipulators.
Some have said in jest (or are they not kidding?) that our corporate punishments are the laughing stock among foreigners. Swindle loads of money from your company and leave the country, you can then come back and face the low-decibel music.
We may have read that a man was sentenced to 25 weeks in jail for stealing 80 pairs of women's panties. For mismanaging or embezzling millions of ringgit or causing hurt and grievance to many investors, you just get a fine or a brief spell in prison. Some balance in blue and white collar crimes, right? Is there a very fine line in steal, cheat or lie between a corporate man and an ordinary Joe?
In February 2006, it was reported that Fountain View Development Bhd former director Datuk Chin Chan Leong and ex-remisier were found guilty of share manipulation.
Chin was fined RM1.3 million or in default of 13 months' jail as well as sentenced to serve one day in prison for manipulating its share price seven years before.
Hiew Yoke Lan, a former Avenue Securities Sdn Bhd remisier, was fined RM1 million or 10 months default jail sentence for abetting Chin in the offence.
The offence was committed between November 18 2003 and January 20 2004. During this period, Fountain View stock had a low of RM1.99 and a high of RM6.15.
Back in November 2003, at a low of RM1.99, Fountain View carried a market capitalisation of RM885 million. At the peak of the share manipulation of around RM6.15, Fountain View carried a market capitalisation of RM2.73 billion!
If Datuk Seri Idris Jala can overhaul the various subsidies enjoyed by us, how hard can it be to review and slap the harshest possible punishment on corporate manipulators?
The above article is written by Zuraimi Abdullah of Business Times
Thursday, April 14, 2011
Gaming for Gambling, the only winner is the House
The only winner in the casino or lottery game is the house or the banker. When odds are not in your favor, over time, you are bound to lose. Unfortunately many people do not realize this. It’s okay if you bet what you can comfortably lose and get some excitement out of it once in awhile. But to bet the farm, you must be out of your mind.
Don’t ever think you can beat the house, whether it gaming or gambling. Read more here.
Don’t ever think you can beat the house, whether it gaming or gambling. Read more here.
Saturday, April 09, 2011
Chinese Products How Scary
Tainted milk, fake eggs, contaminated red wine, bleached mushrooms, fake tofu, recycled edible oil & clenbuterol-added pork products. All these items come from China. Be careful; read more here.
Saturday, April 02, 2011
Short Attack in America
In the U.S. shorting in the stock market is legal. Shorting means selling stocks you do not own. The idea is to short, smear and cover. Many Chinese U.S.-listed stocks are the subjects being utilized this way. The latest is a company known as Advanced Battery Technologies (ABAT).
Many bullish articles have been written about ABAT before a negative one brought it down 42.7% in one trading session. This means that if you have $100,000 invested in the stock, you lose $42,700 overnight. Whether anyone of those bullish articles has anything to do with the negative one is anybody's guess. But one thing is certain. I will never read any article without skepticism, even though it is written by a reputable analyst.
ABAT was doing pretty well. Its price was hovering at around $3.75. As soon as the smear-campaign article was published at : http://seekingalpha.com/article/260883-advanced-battery-technologies-an-egregious-chinese-rto, on 30th March 2011, the price commenced to slide rapidly. At the end of the day, it closed at $2.01 for a lost of 42.7%! This is indeed frightening.
The next day, it plummeted again hitting a low of $1.51! At the time of this post, the stock managed to hold at $2.07.
At Bursa we have what we called "Circuit Break". This means whenever we have a drastic drop of 30% in price, the underlining stock will be immediately suspended pending investigation.
In the U.S., they don't have such a system in place.
Well, such is the scenario there. If you can't stand the heat, please get out of the kitchen.
Talking about short attacks, some stocks quickly come to mind. They are: CEU, CCME and
Yongye. All these companies are small-cap Chinese stocks listed in the U.S.
My advice: Don't invest in Chinese stocks listed in the U.S. unless you have money you want to lose or the skill to match the shorts. Swimming in shark-infested water is dangerous.
Many bullish articles have been written about ABAT before a negative one brought it down 42.7% in one trading session. This means that if you have $100,000 invested in the stock, you lose $42,700 overnight. Whether anyone of those bullish articles has anything to do with the negative one is anybody's guess. But one thing is certain. I will never read any article without skepticism, even though it is written by a reputable analyst.
ABAT was doing pretty well. Its price was hovering at around $3.75. As soon as the smear-campaign article was published at : http://seekingalpha.com/article/260883-advanced-battery-technologies-an-egregious-chinese-rto, on 30th March 2011, the price commenced to slide rapidly. At the end of the day, it closed at $2.01 for a lost of 42.7%! This is indeed frightening.
The next day, it plummeted again hitting a low of $1.51! At the time of this post, the stock managed to hold at $2.07.
At Bursa we have what we called "Circuit Break". This means whenever we have a drastic drop of 30% in price, the underlining stock will be immediately suspended pending investigation.
In the U.S., they don't have such a system in place.
Well, such is the scenario there. If you can't stand the heat, please get out of the kitchen.
Talking about short attacks, some stocks quickly come to mind. They are: CEU, CCME and
Yongye. All these companies are small-cap Chinese stocks listed in the U.S.
My advice: Don't invest in Chinese stocks listed in the U.S. unless you have money you want to lose or the skill to match the shorts. Swimming in shark-infested water is dangerous.
Friday, April 01, 2011
20% Rule For Big Profits
Investor's Corner: Use 20% Rule For Big Profits
By VINCENT MAO, INVESTOR'S BUSINESS DAILY
You'll never know for sure if a stock is going to be a huge winner if you sell it too soon. So if the stock you just bought makes a big jump right away, resist the urge to take the money and run.
Watching a stock go up after you sell it can be truly frustrating. That's where the eight-week rule comes in. The rule states that if a stock breaks out from a proper base and gains 20% or more in three weeks or less, you should hold it for at least eight weeks.
It's normal for a stock to pull back after breaking out, so don't panic unless the stock starts to give back the bulk of its gains. Only then should you sell. You never should turn a good profit into a loss.
Stocks that gain 20% or more soon after the breakout are showing you unusual power. These have the potential of doubling, tripling or more.
The eight-week rule is designed to help you avoid the heartache of missing out on what could be a monster winner. Stocks that surge hundreds of percentage points will seldom do so in a short period of time. Big gains need time to brew.
In "How To Make Money In Stocks," IBD founder and Chairman William O'Neil wrote, "Your objective is not just to be right but to make big money when you are right."
If you bought a stock with great earnings and sales growth, healthy margins and institutional sponsorship as it just cleared a base, you have to give it time to do its thing. In investing, patience is a virtue.
Avoid thinking too much once you're in the stock. You don't have to watch every tick. Doing so can cause you to get shaken out. But be aware of signs of weak action and act if they appear.
By VINCENT MAO, INVESTOR'S BUSINESS DAILY
You'll never know for sure if a stock is going to be a huge winner if you sell it too soon. So if the stock you just bought makes a big jump right away, resist the urge to take the money and run.
Watching a stock go up after you sell it can be truly frustrating. That's where the eight-week rule comes in. The rule states that if a stock breaks out from a proper base and gains 20% or more in three weeks or less, you should hold it for at least eight weeks.
It's normal for a stock to pull back after breaking out, so don't panic unless the stock starts to give back the bulk of its gains. Only then should you sell. You never should turn a good profit into a loss.
Stocks that gain 20% or more soon after the breakout are showing you unusual power. These have the potential of doubling, tripling or more.
The eight-week rule is designed to help you avoid the heartache of missing out on what could be a monster winner. Stocks that surge hundreds of percentage points will seldom do so in a short period of time. Big gains need time to brew.
In "How To Make Money In Stocks," IBD founder and Chairman William O'Neil wrote, "Your objective is not just to be right but to make big money when you are right."
If you bought a stock with great earnings and sales growth, healthy margins and institutional sponsorship as it just cleared a base, you have to give it time to do its thing. In investing, patience is a virtue.
Avoid thinking too much once you're in the stock. You don't have to watch every tick. Doing so can cause you to get shaken out. But be aware of signs of weak action and act if they appear.
Wednesday, March 30, 2011
Palm Oil is Safe, Inexpensive and Healthy
Feeding the world in the 21st century
Published: 27/12/2010 at 12:00 AM
Newspaper section: Business
One of the biggest challenges the world faces over the next half century is how to feed a global population that is rapidly increasing. Some estimates have world population topping out at nine billion by mid-century, a near 50% increase.
World demand for calorie-rich, nutritious fare is starting to jump. Feeding so many hungry mouths is a complex task. But it will never happen unless we substantially increase food yields, especially the yields of staple foods such as palm oil which is already used by over one billion consumers around the world.
The good news is that our industry has the potential to meet the rising demand. We have invested in productivity-enhancing technology to boost yields. And we have done this while protecting the global environment. Palm oil is the world's most sustainable vegetable oil as it produces significantly more calories per acre than competing products. Thus our industry contributes safe food products to enhance global food security; protects valuable natural resources such as forests; and provides good jobs and careers for an aspirational middle class.
But there are potential roadblocks to feeding the world's billions. Those obstacles come from a small but loud minority of misguided policymakers and activists who wish to put parochial interests ahead of the broader public interest.
Take for example the World Bank, for many years they supported palm oil development and other plantation agriculture projects in poorer, less developed countries. The Bank's mission is to help kick-start economic growth. So supporting plantation agriculture was long viewed as a worthy goal.
But now the Bank has bowed to the wishes of a few environmental groups that have pressured the Bank to halt funding for plantation agriculture in the developing world and impose far-reaching regulations that will stifle the future of the industry. Environmental groups claim palm oil harms forests and wildlife. Knowledgeable observers have pointed out that this isn't true; and that it is likely that these Western-based environmental groups are instead trying to help Western agriculture interests.
Whatever the reason for the NGO opposition, it is worrisome that the Bank would bend under pressure from activist groups. It is especially troubling when the need to feed three billion more people around the globe is just over the horizon.
Most worrisome of all, the World Bank is not alone. Regulators throughout the West are starting to question the industrial practices of companies in tropical Asia. Their criticism is tinged with irony. After all, Western nations harnessed their natural resources and endowments on their path to becoming wealthy and developed. Asian nations are simply following this time-honored path to success.
Either way, it is important that all stakeholders keep their eyes set firmly on what's most important - the pressing need to feed the billions of people who currently live on less than $2.00 per day, as well as the billions more that will need to be fed in the coming decades. To do that we must produce food that is safe, inexpensive and sustainable. Palm oil is the anchor of that global strategy.
The author is the chief executive officer of the Malaysian Palm Oil Council, Tan Sri Dr Yuson Basiron.
Published: 27/12/2010 at 12:00 AM
Newspaper section: Business
One of the biggest challenges the world faces over the next half century is how to feed a global population that is rapidly increasing. Some estimates have world population topping out at nine billion by mid-century, a near 50% increase.
World demand for calorie-rich, nutritious fare is starting to jump. Feeding so many hungry mouths is a complex task. But it will never happen unless we substantially increase food yields, especially the yields of staple foods such as palm oil which is already used by over one billion consumers around the world.
The good news is that our industry has the potential to meet the rising demand. We have invested in productivity-enhancing technology to boost yields. And we have done this while protecting the global environment. Palm oil is the world's most sustainable vegetable oil as it produces significantly more calories per acre than competing products. Thus our industry contributes safe food products to enhance global food security; protects valuable natural resources such as forests; and provides good jobs and careers for an aspirational middle class.
But there are potential roadblocks to feeding the world's billions. Those obstacles come from a small but loud minority of misguided policymakers and activists who wish to put parochial interests ahead of the broader public interest.
Take for example the World Bank, for many years they supported palm oil development and other plantation agriculture projects in poorer, less developed countries. The Bank's mission is to help kick-start economic growth. So supporting plantation agriculture was long viewed as a worthy goal.
But now the Bank has bowed to the wishes of a few environmental groups that have pressured the Bank to halt funding for plantation agriculture in the developing world and impose far-reaching regulations that will stifle the future of the industry. Environmental groups claim palm oil harms forests and wildlife. Knowledgeable observers have pointed out that this isn't true; and that it is likely that these Western-based environmental groups are instead trying to help Western agriculture interests.
Whatever the reason for the NGO opposition, it is worrisome that the Bank would bend under pressure from activist groups. It is especially troubling when the need to feed three billion more people around the globe is just over the horizon.
Most worrisome of all, the World Bank is not alone. Regulators throughout the West are starting to question the industrial practices of companies in tropical Asia. Their criticism is tinged with irony. After all, Western nations harnessed their natural resources and endowments on their path to becoming wealthy and developed. Asian nations are simply following this time-honored path to success.
Either way, it is important that all stakeholders keep their eyes set firmly on what's most important - the pressing need to feed the billions of people who currently live on less than $2.00 per day, as well as the billions more that will need to be fed in the coming decades. To do that we must produce food that is safe, inexpensive and sustainable. Palm oil is the anchor of that global strategy.
The author is the chief executive officer of the Malaysian Palm Oil Council, Tan Sri Dr Yuson Basiron.
Monday, March 28, 2011
Some Wisdom Worth Remembering
01) Always keep your words soft and tender because you may have to eat them someday.
02) Advice is best given when it is requested or in a life-threatening situation.
03) If you work too hard, you have no time to make money.
04) Man should be taught as if you taught them not.
05) Being kind is more important that being right.
06) A smile is an inexpensive way to improve your looks.
07) All who you know deserves to be greeted with a smile when you meet them.
08) When you harbor bitterness, happiness will dock somewhere.
09) Take good care of the pounds; let the pennies take care of themselves.
10) To be successful, mix with successful people.
11) Kind acts are worth more than kind words.
12) Be aware that everyone is hungry for appreciation, respect and love.
13) Being understanding is more important than being understood.
14) Opportunities are never lost. Someone will take the ones you missed.
15) Discretion is the better part of valor.
16) Love, not time, heals all wounds.
17) Seek excellence, not perfection.
18) If you can't beat them, join them; if you can't join them, leave them.
19) To overcome the odds of losing, you must learn the knowledge of winning.
20) Success is getting what you want; happiness is wanting what you get.
02) Advice is best given when it is requested or in a life-threatening situation.
03) If you work too hard, you have no time to make money.
04) Man should be taught as if you taught them not.
05) Being kind is more important that being right.
06) A smile is an inexpensive way to improve your looks.
07) All who you know deserves to be greeted with a smile when you meet them.
08) When you harbor bitterness, happiness will dock somewhere.
09) Take good care of the pounds; let the pennies take care of themselves.
10) To be successful, mix with successful people.
11) Kind acts are worth more than kind words.
12) Be aware that everyone is hungry for appreciation, respect and love.
13) Being understanding is more important than being understood.
14) Opportunities are never lost. Someone will take the ones you missed.
15) Discretion is the better part of valor.
16) Love, not time, heals all wounds.
17) Seek excellence, not perfection.
18) If you can't beat them, join them; if you can't join them, leave them.
19) To overcome the odds of losing, you must learn the knowledge of winning.
20) Success is getting what you want; happiness is wanting what you get.
Saturday, March 26, 2011
About ECS ICT Berhad
ECS ICT Berhad (“ECSB”), an MSC-status company, and its group of subsidiaries started in 1985 with the establishment of ECS KU Sdn. Bhd. Today, the Group is a leading distribution hub for Information & Communications Technology (“ICT”) products in Malaysia via ECS ASTAR Sdn. Bhd. and ECS PERICOMP Sdn. Bhd. Listed on the Main Market of Bursa Malaysia Securities Berhad on 15 April 2010, ECSB is an associate company of ECS Holdings Limited, a Singapore Exchange main board company which is one of the leading ICT distributors in Asia Pacific, accessing to a network of more than 21,000 channel partners across China, Thailand, Malaysia, Singapore, Indonesia and the Philippines.
ECSB distributes a comprehensive range of ICT products comprising notebooks, desktop computers, printers, software, network and communication infrastructure, servers, and enterprise software from more than 30 leading principals like Hewlett Packard, IBM, Cisco, Microsoft, Apple, Oracle, Epson, Samsung, Buffalo, Adobe, Juniper, Blue Coat, VMWare and Google.
With a nationwide channel network of more than 2,500 resellers comprising retailers, system integrators and corporate dealers, ECSB also provides value-added product support and technical services. In 2009, ECSB’s revenue surpassed RM1.3 billion with a compounded annual growth rate of 24.5% for the past 5 years.
For more information, please visit www.ecsm.com.my.
The above is an excerpt from the press.
Last Friday the counter was in great demand. Its price shot through the overhead resistance level. Better days are ahead for this counter. Go for it? Do so at your own risk.
ECSB distributes a comprehensive range of ICT products comprising notebooks, desktop computers, printers, software, network and communication infrastructure, servers, and enterprise software from more than 30 leading principals like Hewlett Packard, IBM, Cisco, Microsoft, Apple, Oracle, Epson, Samsung, Buffalo, Adobe, Juniper, Blue Coat, VMWare and Google.
With a nationwide channel network of more than 2,500 resellers comprising retailers, system integrators and corporate dealers, ECSB also provides value-added product support and technical services. In 2009, ECSB’s revenue surpassed RM1.3 billion with a compounded annual growth rate of 24.5% for the past 5 years.
For more information, please visit www.ecsm.com.my.
The above is an excerpt from the press.
Last Friday the counter was in great demand. Its price shot through the overhead resistance level. Better days are ahead for this counter. Go for it? Do so at your own risk.
Wednesday, March 16, 2011
The only thing we have to fear is fear itself
Content Provided by Zacks.com
Analyst Blog
The Only Thing We Have to Fear Is Fear Itself
By: Steve Reitmeister
March 15, 2011 | Comments: 1
Recommended this article (2)
SPX | QQQ | TBT | TLT
The world media has done wonders to stir fears about potential nuclear meltdowns in Japan. Yes, it is a real possibility. Just not as likely as the headlines or glorified reporting would suggest. More importantly, its economic impact on every part of the globe outside of Japan is negligible. Maybe even a net positive as Japan would need a large stimulus plan to rebuild parts of the country. Please note that I’m not trying to be callous about the personal devastation caused in Japan to date or the potential for more to come. But as an investor I need to cut through the panicked market reaction to assess the underlying dynamics. For me, it is clear that the sell-off is already overdone based upon the fundamentals. Yet still the downward pressure may linger a bit longer because fear is such a strong emotion. So why are world markets selling off this morning? Because a rise in fear begets a decrease in risk-taking. This leads to stocks getting dumped in exchange for larger cash and government bond holdings. That is the short-term picture. Over the long haul stocks will trade based upon their ability to generate earnings. So let’s reflect on how even the worst case scenarios in Japan would cause the lowering of earnings power for US companies. Yes there are some insurance firms who will be hurt in paying out extra claims. And yes, some specific companies may have their supply chains disrupted if they get goods from the affected areas. Overall, the toll on US companies in the short run is very limited. The further out you look, the more potential positives will emerge for US companies, as Japan will need to spend massive amounts of money to rebuild their infrastructure. This stimulus spending will have wide-spread benefits within Japan and for their major trading partners: US, China and South Korea. So how long will the fear stay in place and risk-taking assets remain under pressure because of events in Japan? That is unknown and unknowable. But if I had to make a guess, it will only be a couple more weeks. Maybe less. What is the best strategy for investors who already have hefty stock positions? Given that the positive long-term picture for US company earnings is unchanged or maybe even improved, then I say sit tight. Yes, that means the beatings may continue in the short run, especially for smaller cap or higher beta positions. But at some date in the near future stocks will rebound and head back towards the recent highs at 12,400 and hopefully beyond. When that happens, then these same stocks that took the biggest losses will now reverse course and gain the most. So you don’t want to shed them just when they are about to do you the most good. If you have a fair amount of cash on the sidelines, then indeed this is presenting a great buying opportunity for you. Just make a list of your favorite stocks (hopefully Zacks #1 Ranks) and look to buy them on these dips. I know that these are the hardest times in which to enact these strategies. Yet these are exactly the moments that make or break the year. Weak hands get tossed off the bull. Don’t be one of them. Just keep your eye on the clearer horizon, which bodes well for the US economy and stocks.
Analyst Blog
The Only Thing We Have to Fear Is Fear Itself
By: Steve Reitmeister
March 15, 2011 | Comments: 1
Recommended this article (2)
SPX | QQQ | TBT | TLT
The world media has done wonders to stir fears about potential nuclear meltdowns in Japan. Yes, it is a real possibility. Just not as likely as the headlines or glorified reporting would suggest. More importantly, its economic impact on every part of the globe outside of Japan is negligible. Maybe even a net positive as Japan would need a large stimulus plan to rebuild parts of the country. Please note that I’m not trying to be callous about the personal devastation caused in Japan to date or the potential for more to come. But as an investor I need to cut through the panicked market reaction to assess the underlying dynamics. For me, it is clear that the sell-off is already overdone based upon the fundamentals. Yet still the downward pressure may linger a bit longer because fear is such a strong emotion. So why are world markets selling off this morning? Because a rise in fear begets a decrease in risk-taking. This leads to stocks getting dumped in exchange for larger cash and government bond holdings. That is the short-term picture. Over the long haul stocks will trade based upon their ability to generate earnings. So let’s reflect on how even the worst case scenarios in Japan would cause the lowering of earnings power for US companies. Yes there are some insurance firms who will be hurt in paying out extra claims. And yes, some specific companies may have their supply chains disrupted if they get goods from the affected areas. Overall, the toll on US companies in the short run is very limited. The further out you look, the more potential positives will emerge for US companies, as Japan will need to spend massive amounts of money to rebuild their infrastructure. This stimulus spending will have wide-spread benefits within Japan and for their major trading partners: US, China and South Korea. So how long will the fear stay in place and risk-taking assets remain under pressure because of events in Japan? That is unknown and unknowable. But if I had to make a guess, it will only be a couple more weeks. Maybe less. What is the best strategy for investors who already have hefty stock positions? Given that the positive long-term picture for US company earnings is unchanged or maybe even improved, then I say sit tight. Yes, that means the beatings may continue in the short run, especially for smaller cap or higher beta positions. But at some date in the near future stocks will rebound and head back towards the recent highs at 12,400 and hopefully beyond. When that happens, then these same stocks that took the biggest losses will now reverse course and gain the most. So you don’t want to shed them just when they are about to do you the most good. If you have a fair amount of cash on the sidelines, then indeed this is presenting a great buying opportunity for you. Just make a list of your favorite stocks (hopefully Zacks #1 Ranks) and look to buy them on these dips. I know that these are the hardest times in which to enact these strategies. Yet these are exactly the moments that make or break the year. Weak hands get tossed off the bull. Don’t be one of them. Just keep your eye on the clearer horizon, which bodes well for the US economy and stocks.
Sunday, March 13, 2011
The Rule of 3
In the stock market: We talk of Fear, Greed and Hope.
Buy, hold and monitor. Warren Buffett said, "Don't lose money."
At road junctions, we can see the sign: Stop, Look, Go.
For health advice, we have: Be wise, Be healthy, Be a non-smoker.
When it comes to investment in property, it's Location, Location, Location.
In priorities. Tony Blair said, Education, Education, Education.
For survival, you can live only 3 minutes without air, 3 days without water, and 3 weeks without food.
In school, we have 3 terms,
In a day we have morning, afternoon, and night.
In meals, we have breakfast, lunch, and dinner.
In sports, competitors are given 3 attempts.
In fables and movies, we have the 3 Musketeers; the 3 Stooges; and the 3 Blind Mice.
At CNN, we have: Go Beyond Boarders.
In religion, Jesus rises on the third day.
In hard time: Pull up your socks; Roll up your sleeve, and Let your hairs down.
When you forget your password, you are only given 3 attempts to get it right.
Popular phrases in threes include the following:
I came, I saw, I conquered.
I speak, the truth, the whole truth, and nothing but the truth.
Fathers, sons, and holy spirits
Friends, Romans, Countrymen
Blood, Sweat and Tears
Lock, Stock and Barrel
Line, Hook and Sinker
Drink, Eat, and be Merry
Do no evil, Think no evil, Speak no evil
The Government of the people, by the people, and for the people
Three simply has its magic. So if you failed twice, don't give up.
You could be third time lucky.
Buy, hold and monitor. Warren Buffett said, "Don't lose money."
At road junctions, we can see the sign: Stop, Look, Go.
For health advice, we have: Be wise, Be healthy, Be a non-smoker.
When it comes to investment in property, it's Location, Location, Location.
In priorities. Tony Blair said, Education, Education, Education.
For survival, you can live only 3 minutes without air, 3 days without water, and 3 weeks without food.
In school, we have 3 terms,
In a day we have morning, afternoon, and night.
In meals, we have breakfast, lunch, and dinner.
In sports, competitors are given 3 attempts.
In fables and movies, we have the 3 Musketeers; the 3 Stooges; and the 3 Blind Mice.
At CNN, we have: Go Beyond Boarders.
In religion, Jesus rises on the third day.
In hard time: Pull up your socks; Roll up your sleeve, and Let your hairs down.
When you forget your password, you are only given 3 attempts to get it right.
Popular phrases in threes include the following:
I came, I saw, I conquered.
I speak, the truth, the whole truth, and nothing but the truth.
Fathers, sons, and holy spirits
Friends, Romans, Countrymen
Blood, Sweat and Tears
Lock, Stock and Barrel
Line, Hook and Sinker
Drink, Eat, and be Merry
Do no evil, Think no evil, Speak no evil
The Government of the people, by the people, and for the people
Three simply has its magic. So if you failed twice, don't give up.
You could be third time lucky.
Thursday, March 10, 2011
Some tips for thoughts
1) Don't buy what you don't understand.
2) Never overpay for a stock no matter what.
3) Buying at major support with strong fundamentals is generally safe.
4) Buying in a downtrend is foolish.
5) Stocks with high debts, low or negative earnings, and no dividends are
somebody's problems. Don't make them yours.
6) Averaging up is better than averaging down. Follow strength, not weakness.
7) Don't be lured into buying a stock because of great promises and some rosy pictures.
8) Times of extreme pessimism are the best times to buy.
9) When prices are moving fast, from strength to strength, pay close attention to your charts.
Sell as soon as the exaggerated uptrend line is breached even amid bullish news.
10. Everyone has the right to wait for the best opportunity. Patience is a must if you want to win.
2) Never overpay for a stock no matter what.
3) Buying at major support with strong fundamentals is generally safe.
4) Buying in a downtrend is foolish.
5) Stocks with high debts, low or negative earnings, and no dividends are
somebody's problems. Don't make them yours.
6) Averaging up is better than averaging down. Follow strength, not weakness.
7) Don't be lured into buying a stock because of great promises and some rosy pictures.
8) Times of extreme pessimism are the best times to buy.
9) When prices are moving fast, from strength to strength, pay close attention to your charts.
Sell as soon as the exaggerated uptrend line is breached even amid bullish news.
10. Everyone has the right to wait for the best opportunity. Patience is a must if you want to win.
Sunday, March 06, 2011
Yongye International CEO Wu Zishen
"If you invest 40 yuan in one mu of land, I promise you can earn more than 400 yuan, but in reality it is likely to be 3,000 to 4,000 yuan; If you invest 100 to 200 yuan in a cow, I promise you can earn 2,000 yuan and it might exceed 10,000 yuan," Wu said.
The wonder of Shengmingsu: Read more.
Yongye is one of the fastest growth stock in China. Its 1 year target price is 14.67. The stock is listed in Nasdaq and is lasted traded at 6.83.
May God bless your every trade.
Sunday, February 27, 2011
Vincent Tan to donate half of this wealth
Vincent Tan pledges to donate half of this wealth.
Wow! that's great! May god bless him.
Bill gates and his wife Melinda and Warren Buffett initiated "The Giving Pledge". For Vincent to join them is indeed an honor for Malaysia.
According to Bernama, Vincent has RM2.43 billion, and is ranked the 12th richest man in the nation. Read the full article here.
The catalyst that triggers Vincent to such an adorable act is hard to fathom. An article about it will surely be interesting.
Vincent, by an act of great generosity, has propelled himself to the top in the list of philanthropists in the country.
I hope other tycoons will join *The Giving Pledge" and make the world a better place.
To Bill Gates, Melinda, Warren Buffett and Vincent Tan, I salute you.
Wow! that's great! May god bless him.
Bill gates and his wife Melinda and Warren Buffett initiated "The Giving Pledge". For Vincent to join them is indeed an honor for Malaysia.
According to Bernama, Vincent has RM2.43 billion, and is ranked the 12th richest man in the nation. Read the full article here.
The catalyst that triggers Vincent to such an adorable act is hard to fathom. An article about it will surely be interesting.
Vincent, by an act of great generosity, has propelled himself to the top in the list of philanthropists in the country.
I hope other tycoons will join *The Giving Pledge" and make the world a better place.
To Bill Gates, Melinda, Warren Buffett and Vincent Tan, I salute you.
Friday, February 25, 2011
Outlook for 12 animals
By Sherry Koh | Jan 13, 2011
Feng Shui 2011: Outlook for 12 animals
Feng Shui master Prof Joe Choo shares the overall outlook for the 12 animals in the Chinese calendar. How will your year be? Find out below!
Rat
Good news for singles − you will have opportunity to meet your life partner this year. Although there are gossips, you have to take it lightly because you know what you are doing. Money luck is strong during the seventh Chinese month and those born in 1948 are the luckiest among all.
Ox
Don’t have to worry over the situation. You have guardian angels with you throughout the year to lift you up and help you solve problems. Those born in 1985, your money luck is exceptionally good; but those born in 1961, you have to watch your health. Don’t overlook it and let it become a serious issue during the first and second Chinese months.
Tiger
This is a lovely year for tigers; a better year than last year. Guardian angels stand by you throughout the year. Money luck is good during the first Chinese month, but after this period, it will be slow. Therefore, you must have a budget plan, especially while you are travelling. Among the tigers, the luckiest is the 1950’s tiger.
Rabbit
You will be given a special task or project to lead. Complete it without expectation of returns, other than words of appreciation. Those born in 1975 and 1963, your career is good and you will do well financially. It is a good year to learn new knowledge or skills and there are opportunities to push you to do it.
Dragon
It is a peaceful year, with no major ups and downs. Dragons of 1976 must take care of health and don’t over-stretch yourself. Your money luck is good during the seventh Chinese month.
Snake
You are very lucky. Guardian angels always show up when you need help. Those born in 1977 will do well in both career and finance. Friends of opposite sex will bring you opportunities. Money luck is good during the third Chinese month.
Horse
The year starts with good news, but you must pace yourself to ensure that your energy lasts throughout the year. Whenever you have problems, remember to go back to your family, as they will give you love and support this year. Those born in 1990 will have travelling luck, but do be careful. You will have extra financial gains in the fourth Chinese month.
Goat
There are guardian angels around to help you, so take up a special job or project and show your ability. Your career line is going upward, not in terms of money, but it will make you happy. Life will be smoother after the fifth Chinese month, so just hold on to what you want to do.
Monkey
Your career is going on an up-curve but not for your finances. Despite this, you will end your year with some celebration. You can avoid financial issues, if you have a plan to follow while you are travelling. Those born in 1968 are going to pick up new knowledge, but do it at your own pace. Your money luck is good in the seventh Chinese month.
Rooster
One after another good news will come to you. You may get a promotion and a good increment. You have guardian angels helping you in the beginning of the year, and in the second half of the year, you will have good financial income.
Dog
Good news for the singles! You have extra financial gain during the fourth Chinese month. Those born in 1958 and 1946, you must take care of your health, especially during the fifth Chinese month.
Pig
It may sound difficult to work and study at the same time, but go ahead and do it. There are plenty of guardian angels to lift you up. This will help to elevate your career to a higher level. For those born in 1947, you must take care while you are travelling in the first Chinese month. Everything will move smoothly after the fourth Chinese month.
Feng Shui 2011: Outlook for 12 animals
Feng Shui master Prof Joe Choo shares the overall outlook for the 12 animals in the Chinese calendar. How will your year be? Find out below!
Rat
Good news for singles − you will have opportunity to meet your life partner this year. Although there are gossips, you have to take it lightly because you know what you are doing. Money luck is strong during the seventh Chinese month and those born in 1948 are the luckiest among all.
Ox
Don’t have to worry over the situation. You have guardian angels with you throughout the year to lift you up and help you solve problems. Those born in 1985, your money luck is exceptionally good; but those born in 1961, you have to watch your health. Don’t overlook it and let it become a serious issue during the first and second Chinese months.
Tiger
This is a lovely year for tigers; a better year than last year. Guardian angels stand by you throughout the year. Money luck is good during the first Chinese month, but after this period, it will be slow. Therefore, you must have a budget plan, especially while you are travelling. Among the tigers, the luckiest is the 1950’s tiger.
Rabbit
You will be given a special task or project to lead. Complete it without expectation of returns, other than words of appreciation. Those born in 1975 and 1963, your career is good and you will do well financially. It is a good year to learn new knowledge or skills and there are opportunities to push you to do it.
Dragon
It is a peaceful year, with no major ups and downs. Dragons of 1976 must take care of health and don’t over-stretch yourself. Your money luck is good during the seventh Chinese month.
Snake
You are very lucky. Guardian angels always show up when you need help. Those born in 1977 will do well in both career and finance. Friends of opposite sex will bring you opportunities. Money luck is good during the third Chinese month.
Horse
The year starts with good news, but you must pace yourself to ensure that your energy lasts throughout the year. Whenever you have problems, remember to go back to your family, as they will give you love and support this year. Those born in 1990 will have travelling luck, but do be careful. You will have extra financial gains in the fourth Chinese month.
Goat
There are guardian angels around to help you, so take up a special job or project and show your ability. Your career line is going upward, not in terms of money, but it will make you happy. Life will be smoother after the fifth Chinese month, so just hold on to what you want to do.
Monkey
Your career is going on an up-curve but not for your finances. Despite this, you will end your year with some celebration. You can avoid financial issues, if you have a plan to follow while you are travelling. Those born in 1968 are going to pick up new knowledge, but do it at your own pace. Your money luck is good in the seventh Chinese month.
Rooster
One after another good news will come to you. You may get a promotion and a good increment. You have guardian angels helping you in the beginning of the year, and in the second half of the year, you will have good financial income.
Dog
Good news for the singles! You have extra financial gain during the fourth Chinese month. Those born in 1958 and 1946, you must take care of your health, especially during the fifth Chinese month.
Pig
It may sound difficult to work and study at the same time, but go ahead and do it. There are plenty of guardian angels to lift you up. This will help to elevate your career to a higher level. For those born in 1947, you must take care while you are travelling in the first Chinese month. Everything will move smoothly after the fourth Chinese month.
Triggers of heart attacks
Air pollution triggers more heart attacks than using cocaine and poses as high a risk of sparking a heart attack as alcohol, coffee and physical exertion, scientists said on Thursday. Read more.
Wednesday, February 23, 2011
Panic Over Chinese Stocks Just a Matter of Accounting
Panic Over Chinese Stocks Just a Matter of Accounting
Wednesday - November 03, 2010 4:35pm
By Crocker Coulson
FOR CHINA DAILY
The summer of 2010 was a miserable time for investors who favored Chinese stocks listed in the United States markets. Despite generally reporting excellent earnings, smaller Chinese equities were crushed by a wave of scandals, short-selling and suspicion. Major financial journals and investing websites wrote about widespread fraud in Chinese accounting practices.
Previously unknown “analysts” published exposé-style reports insinuating all kinds of wrongdoings, including chairmen who stole money from their shareholders, inflated their revenues and skimmed profits from supplier contracts.
As a result, retail and institutional investors fled these stocks in a panic, driving down valuations to low levels. There is a famous saying that Wall Street knows only two emotions: greed and fear. In this simmering summer of 2010, fears about China burned up investors’ holdings, leaving many high-growth companies in ashes.
What led to this sudden explosion of panic about Chinese companies? It wasn’t the economy. China’s economic growth has trounced every developed country and moved to No 2 GDP position in the world. Instead, a few high-profile accounting scandals and massive restatements by prominent US-listed Chinese companies sparked fear that there was a systemic accounting problem in China.
Bearish market commentators such as James Chanos went so far as to say that China’s entire economy is a fraud, and that the books are cooked at almost every Chinese company his firm has researched, making it a “short seller’s dream”.
In an article entitled Beware This Chinese Export, the financial newspaper Barron’s said US investors should shun investing in any small Chinese companies, showing a systemic bias against companies from the fastest-growing economy on the globe.
These articles were even picked up and repeated in the Chinese media. Suddenly every Chinese company was guilty until proven innocent.
This environment of fear created a playground for short sellers and their cronies, amateur analysts and media, who could concoct almost any allegations based on snippets of information and heavy helpings of speculation.
Even flimsy “short” reports could drive down stocks values by 30 percent to 70 percent overnight, making huge profits for the hedge funds that sponsored these articles.
As a result many fine Chinese companies were sucked into a vortex of attacks from all sides, forced to defend themselves against rampant rumors and whisper campaigns.
What has driven this storm of anti-China sentiment in the US equity markets? Some Chinese companies have had very serious problems, including one whose chairman was sentenced to death for corruption, another which restated its earnings by 50 percent, and third which saw its auditor, audit chairman, CEO and CFO all resign in one day.
Every time there is a major stock meltdown, it drags down the value of all the other Chinese companies. Too many of these explosions, and investors start to think that Chinese accounting is synonymous with fiction.
Many Chinese Companies also filed reports to the local administration for industry and commerce offices that vastly understated their revenues and profits, giving short sellers the chance to claim that they fabricated the figures in their US financial filings.
The accounting oversight board in the US, the PCAOB, has been turning up the heat on smaller audit firms that have “outsourced” their responsibilities to local consultants. And the SEC has launched a number of investigations of Chinese issuers.
If Chinese equities have been a “short sellers dream,” the situation has been a nightmare for Chinese management and for US retail investors, many of whom have lost large parts of their savings due to the unscrupulous market manipulation of these funds and the unbridled China-bashing financial media outlets like Barron’s.
Dozens of shareholder lawsuits have been launched by ambulance-chasing law firms. Many mainland companies that are growing at 25 percent or 100 percent a year are now trading at under seven times this year’s earnings, a huge discount to comparable American companies or mainland companies traded in Hong Kong.
This has even led to talk of a “return to the mainland” in which mainland companies would delist from the US and Hong Kong and try their chances for an A-share IPO on the mainland.
In recent weeks it appears the tide has begun to turn and smaller Chinese stocks have been on a tear, bouncing back from extremely depressed levels. Why?
First, China is just too big to ignore and investors who like growth companies are finding slim pickings in the anemic recovery in North America, Japan and Europe.
Second, private equity funds are now on the prowl to buy out these undervalued companies. Baring Private Equity and Goldman Sachs recently teamed up to snap up the public shares of Nasdaq-listed Harbin Electric at a 20 percent premium to its trading price in a $750 million deal.
Several other such deals are reputedly in discussion stages, showing that big money recognizes the value of Chinese small caps.
Third, Chinese IPOs in the US have been the best-performing stocks in the US markets in the past few months.
But for this rally in China small caps to be sustained, Chinese management will need to raise their game to attract international capital and play on a global stage. Larger, reputable auditors have now become a requirement for many fund managers, who don’t want to be blindsided by the next China stock scandal.
Investors want to see a board of directors that is truly independent and providing constructive oversight to management. Insider transactions and family members in the executive ranks are going to be highly scrutinized.
From this summer of misery, good things will come. The best Chinese companies will raise their standards
of accounting and corporate governance and come out stronger.
Auditors and board members will take their oversight function more seriously.
The weak companies will wither and the strong will flourish. And those who had the nerve to invest
when panic was running wild in the streets will draw a rich harvest from China’s ongoing economic miracle.
Crocker Coulson is the president of CCG Investor Relations, a leading adviser to Chinese mainland companies listed in the US and Hong Kong.
Wednesday - November 03, 2010 4:35pm
By Crocker Coulson
FOR CHINA DAILY
The summer of 2010 was a miserable time for investors who favored Chinese stocks listed in the United States markets. Despite generally reporting excellent earnings, smaller Chinese equities were crushed by a wave of scandals, short-selling and suspicion. Major financial journals and investing websites wrote about widespread fraud in Chinese accounting practices.
Previously unknown “analysts” published exposé-style reports insinuating all kinds of wrongdoings, including chairmen who stole money from their shareholders, inflated their revenues and skimmed profits from supplier contracts.
As a result, retail and institutional investors fled these stocks in a panic, driving down valuations to low levels. There is a famous saying that Wall Street knows only two emotions: greed and fear. In this simmering summer of 2010, fears about China burned up investors’ holdings, leaving many high-growth companies in ashes.
What led to this sudden explosion of panic about Chinese companies? It wasn’t the economy. China’s economic growth has trounced every developed country and moved to No 2 GDP position in the world. Instead, a few high-profile accounting scandals and massive restatements by prominent US-listed Chinese companies sparked fear that there was a systemic accounting problem in China.
Bearish market commentators such as James Chanos went so far as to say that China’s entire economy is a fraud, and that the books are cooked at almost every Chinese company his firm has researched, making it a “short seller’s dream”.
In an article entitled Beware This Chinese Export, the financial newspaper Barron’s said US investors should shun investing in any small Chinese companies, showing a systemic bias against companies from the fastest-growing economy on the globe.
These articles were even picked up and repeated in the Chinese media. Suddenly every Chinese company was guilty until proven innocent.
This environment of fear created a playground for short sellers and their cronies, amateur analysts and media, who could concoct almost any allegations based on snippets of information and heavy helpings of speculation.
Even flimsy “short” reports could drive down stocks values by 30 percent to 70 percent overnight, making huge profits for the hedge funds that sponsored these articles.
As a result many fine Chinese companies were sucked into a vortex of attacks from all sides, forced to defend themselves against rampant rumors and whisper campaigns.
What has driven this storm of anti-China sentiment in the US equity markets? Some Chinese companies have had very serious problems, including one whose chairman was sentenced to death for corruption, another which restated its earnings by 50 percent, and third which saw its auditor, audit chairman, CEO and CFO all resign in one day.
Every time there is a major stock meltdown, it drags down the value of all the other Chinese companies. Too many of these explosions, and investors start to think that Chinese accounting is synonymous with fiction.
Many Chinese Companies also filed reports to the local administration for industry and commerce offices that vastly understated their revenues and profits, giving short sellers the chance to claim that they fabricated the figures in their US financial filings.
The accounting oversight board in the US, the PCAOB, has been turning up the heat on smaller audit firms that have “outsourced” their responsibilities to local consultants. And the SEC has launched a number of investigations of Chinese issuers.
If Chinese equities have been a “short sellers dream,” the situation has been a nightmare for Chinese management and for US retail investors, many of whom have lost large parts of their savings due to the unscrupulous market manipulation of these funds and the unbridled China-bashing financial media outlets like Barron’s.
Dozens of shareholder lawsuits have been launched by ambulance-chasing law firms. Many mainland companies that are growing at 25 percent or 100 percent a year are now trading at under seven times this year’s earnings, a huge discount to comparable American companies or mainland companies traded in Hong Kong.
This has even led to talk of a “return to the mainland” in which mainland companies would delist from the US and Hong Kong and try their chances for an A-share IPO on the mainland.
In recent weeks it appears the tide has begun to turn and smaller Chinese stocks have been on a tear, bouncing back from extremely depressed levels. Why?
First, China is just too big to ignore and investors who like growth companies are finding slim pickings in the anemic recovery in North America, Japan and Europe.
Second, private equity funds are now on the prowl to buy out these undervalued companies. Baring Private Equity and Goldman Sachs recently teamed up to snap up the public shares of Nasdaq-listed Harbin Electric at a 20 percent premium to its trading price in a $750 million deal.
Several other such deals are reputedly in discussion stages, showing that big money recognizes the value of Chinese small caps.
Third, Chinese IPOs in the US have been the best-performing stocks in the US markets in the past few months.
But for this rally in China small caps to be sustained, Chinese management will need to raise their game to attract international capital and play on a global stage. Larger, reputable auditors have now become a requirement for many fund managers, who don’t want to be blindsided by the next China stock scandal.
Investors want to see a board of directors that is truly independent and providing constructive oversight to management. Insider transactions and family members in the executive ranks are going to be highly scrutinized.
From this summer of misery, good things will come. The best Chinese companies will raise their standards
of accounting and corporate governance and come out stronger.
Auditors and board members will take their oversight function more seriously.
The weak companies will wither and the strong will flourish. And those who had the nerve to invest
when panic was running wild in the streets will draw a rich harvest from China’s ongoing economic miracle.
Crocker Coulson is the president of CCG Investor Relations, a leading adviser to Chinese mainland companies listed in the US and Hong Kong.
Tuesday, February 22, 2011
Wednesday, February 16, 2011
Score Cards Explained
What are Score Cards?
Score Cards are an experiment! The idea is to provide all of the most relevant financial data for a growth stock in a quick overview and to compute an automatic Score based on this data. Our theory is that stocks with a high score (8 or higher) will outperform, and those with a low score (0 or lower) will underperform.
IMPORTANT: The Score is automatically generated, no human input is involved. The Score Cards incl. Score are designed to be a starting point for your own research, not to replace it. There are many decisive factors for the valuation of a growth stock that can not and are not reflected in the Score Cards. There can be company-specific reasons why a stock with a very high score is traing at a very low price.
Investing in microcaps, sub-$5 stocks, OTC/BB or Pink Sheets stocks, generally small capitalized stocks without significant institutional backing and especially also U.S.-listed China small caps always comes with a high degree of risk! You should NEVER invest in a stock based on the Score Cards alone, and if you get interested in a stock with a high Score you must dig deeper into the story yourself, look out for other sources, read the company's SEC filings and look at metrics as liquidity and ownership.
The Score is automatically generated and should not be seen as a recommendation to buy or sell a security. The ratings (Buy, Hold, Sell) that are posted next to the Score are also automatically generated and should be interpreted according to the metrics that are used for calculating the Score only! Based on those metrics alone the system says the stock is rated "Buy" or "Sell", but there are many other metrics that are not based on financial data which always have to be considered before making an investment decision.
How is the Score Generated? Click for details here.
Score Cards are an experiment! The idea is to provide all of the most relevant financial data for a growth stock in a quick overview and to compute an automatic Score based on this data. Our theory is that stocks with a high score (8 or higher) will outperform, and those with a low score (0 or lower) will underperform.
IMPORTANT: The Score is automatically generated, no human input is involved. The Score Cards incl. Score are designed to be a starting point for your own research, not to replace it. There are many decisive factors for the valuation of a growth stock that can not and are not reflected in the Score Cards. There can be company-specific reasons why a stock with a very high score is traing at a very low price.
Investing in microcaps, sub-$5 stocks, OTC/BB or Pink Sheets stocks, generally small capitalized stocks without significant institutional backing and especially also U.S.-listed China small caps always comes with a high degree of risk! You should NEVER invest in a stock based on the Score Cards alone, and if you get interested in a stock with a high Score you must dig deeper into the story yourself, look out for other sources, read the company's SEC filings and look at metrics as liquidity and ownership.
The Score is automatically generated and should not be seen as a recommendation to buy or sell a security. The ratings (Buy, Hold, Sell) that are posted next to the Score are also automatically generated and should be interpreted according to the metrics that are used for calculating the Score only! Based on those metrics alone the system says the stock is rated "Buy" or "Sell", but there are many other metrics that are not based on financial data which always have to be considered before making an investment decision.
How is the Score Generated? Click for details here.
Tuesday, February 15, 2011
BioStar Pharma Tech
China is too big to ignore. Its growth has been fantastic, so is its inflation which it has been trying to curb.
In Jan, 2011, its imports have gone up by 50% while its exports have gone up by 38% compared to the corresponding period a year ago. It has now overtaken Japan as the 2nd largest economy in the world as reported in the media.
If you are interested to invest in small-cap Chinese stocks that are listed in the NYSE or Nasdaq, be wary that China is infamously popular for fraudulent accounting. In this respect, you have therefore to be particularly careful. To mitigate this risk, do not invest in any company that has high debt, poor cash flow and low earnings. Another factor worthwhile remembering is that growth is of utmost importance. Without growth, a company is best avoided.
One company that I like is BioStar Pharmaceutical (BSPM). The stock is lasted traded at $2.47.
An excerpt: The Company's most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, Biostar currently manufactures two broad-based OTC products, two prescription-based pharmaceuticals, one medical device and five health supplements. Read more here.
Ronghua is the CEO of BSPM. He is a member of President Hu Jintao's economic advisory group and a representative of medicine. This is a competitive advantage for the company.
For the first 11 months of 2010, the company has shown tremendous growth. Its rural distribution network has surpassed 9500 locations. Going by the numbers, BSPM is a fast-growth stock, probably among the fastest in China. If there is no hanky-panky in the accounts, this one is worth going after. At $2.47, the PE (ttm) is 6.53, and its forward PE for Dec 31, 2011 is estimated to be 3.17. The company has no debt.
In the stock market, risk is always there. If you want the tiger calves, you have to go into the tiger's den.
Nothing Venture, Nothing Gain.
In Jan, 2011, its imports have gone up by 50% while its exports have gone up by 38% compared to the corresponding period a year ago. It has now overtaken Japan as the 2nd largest economy in the world as reported in the media.
If you are interested to invest in small-cap Chinese stocks that are listed in the NYSE or Nasdaq, be wary that China is infamously popular for fraudulent accounting. In this respect, you have therefore to be particularly careful. To mitigate this risk, do not invest in any company that has high debt, poor cash flow and low earnings. Another factor worthwhile remembering is that growth is of utmost importance. Without growth, a company is best avoided.
One company that I like is BioStar Pharmaceutical (BSPM). The stock is lasted traded at $2.47.
An excerpt: The Company's most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter ("OTC") medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, Biostar currently manufactures two broad-based OTC products, two prescription-based pharmaceuticals, one medical device and five health supplements. Read more here.
Ronghua is the CEO of BSPM. He is a member of President Hu Jintao's economic advisory group and a representative of medicine. This is a competitive advantage for the company.
For the first 11 months of 2010, the company has shown tremendous growth. Its rural distribution network has surpassed 9500 locations. Going by the numbers, BSPM is a fast-growth stock, probably among the fastest in China. If there is no hanky-panky in the accounts, this one is worth going after. At $2.47, the PE (ttm) is 6.53, and its forward PE for Dec 31, 2011 is estimated to be 3.17. The company has no debt.
In the stock market, risk is always there. If you want the tiger calves, you have to go into the tiger's den.
Nothing Venture, Nothing Gain.
Sunday, February 13, 2011
Wednesday, February 09, 2011
Tuesday, February 08, 2011
Terengganu geared for growth
Under the East Coast Economic Region program, the establishment of Kuala Terengganu City Centre will help turn Kuala Terengganu (KT) into a vibrant Heritage Waterfront City and an international tourism gateway to the East Coast. Accordingly to the MB of KT, there are 38 projects approved for implementation under the 9th Malaysia plan. To read more about these developments, click here.
Two companies that stand to benefit from any development in KT are EPIC & TDM which are my favorites for investment in 2011.
At the present price of 2.40 and 3.16 respectively, they are value for money.
Two companies that stand to benefit from any development in KT are EPIC & TDM which are my favorites for investment in 2011.
At the present price of 2.40 and 3.16 respectively, they are value for money.
Tuesday, February 01, 2011
Sunday, January 30, 2011
Long Piau Piau Gongxi Gongxi
The lunar year of the rabbit 2011, commences on the 3rd February, 2011. Celebration normally last 15 days. The Hokkiens consider the 9th day as the most important day when offerings are made to the "Sky God". To Penangnites, they celebrate the 15th day, Chap Goh Mei, grandly. A maiden who wishes to get a good husband should throw mandarin oranges into a river.
This belief has existed over the years. Believe it or not, that's up to you.
Well ladies, if you want to get a good husband, don't forget to throw some mandarin oranges into a river.
Good luck and Happy New Year to all and sundry!
Thursday, January 27, 2011
The manipulation of silver is about to end
The price of silver is manipulated. The price of silver is intentionally kept low. While this is criminal, it's not illegal. Yet for decades, COMEX, the commodities exchange, has been in cahoots with the biggest silver investors at the expense of the little silver investor. This is about to end, thanks to some regulatory changes that may offer the biggest opportunity for silver investors between January and March of 2011.
What has changed?
Rumors are flying that more than 25 lawsuits have been filed against commercial investors such as JP Morgan and HSBC, accusing them of price manipulation to keep the price of silver artificially low.
The Commodities Futures Trading Commission (CFTC), which is to the COMEX what the SEC is to the New York Stock Exchange, has passed a new law which will force COMEX to play fair, forbidding such massive short positions on silver.. The actions of the CFTC are one more reason for last November's 14 percent price rise in silver. The price manipulation of silver is about to end.
Read more.
What has changed?
Rumors are flying that more than 25 lawsuits have been filed against commercial investors such as JP Morgan and HSBC, accusing them of price manipulation to keep the price of silver artificially low.
The Commodities Futures Trading Commission (CFTC), which is to the COMEX what the SEC is to the New York Stock Exchange, has passed a new law which will force COMEX to play fair, forbidding such massive short positions on silver.. The actions of the CFTC are one more reason for last November's 14 percent price rise in silver. The price manipulation of silver is about to end.
Read more.
Wednesday, January 19, 2011
Tri-Technology (Nasdaq: TRIT)
Accordingly to the World Bank, 90% of the rivers and lakes in China are heavily polluted. Because of urbanization and industrialization, tons of toxin waste are discharged into these waterways yearly. This is a huge problem for China and a great opportunity for companies that have the technology to help the government mitigate this problem.
TRIT is one of these companies. It is a small company based in Beijing. As at 30.9.2010, the total number of shares issued was only 8.03 million. The company is growing very fast. In 2007, its revenue was $4.7 million; in 2008, it was $8.4 million, and for the 12 months ended 30.9.2010, it reached 35.1 million. The company has cash of $29m and very little debt.
Click here for more.
TRIT is one of these companies. It is a small company based in Beijing. As at 30.9.2010, the total number of shares issued was only 8.03 million. The company is growing very fast. In 2007, its revenue was $4.7 million; in 2008, it was $8.4 million, and for the 12 months ended 30.9.2010, it reached 35.1 million. The company has cash of $29m and very little debt.
Click here for more.
Friday, January 14, 2011
Today's Denial Could Be Tomorrow's Reality
Someone says that in China there are two types of companies. The ones with the government as an important shareholder and the ones that fail. What about Malaysia? In the past, it's probably the other way round. But things have changed. Look at KPJ, Kulim, Telekom, TDM and EPIC. Did they not benefit from their connections with the government?
EPIC is now given the exclusive rights to build, manage and operate a duty-free shopping complex in Tasik Kenyir. Why do you think that they give it to EPIC? The answer is obvious. Because, the Trengganu State Government (TSG) is its major shareholder.
Not long ago, Ahmad Zaki Resources' stake of 20% in EPIC was bought over by TSG for about RM3 per share. TSG now controls over 60% of EPIC.
I am intrigued as to why EPIC is not mentioned when people talk about oil and gas. Actually, it is a specialist in this sector. Its services include: fabrication, engineering works, manufacturing & assembly, wire line & rigging, and testing & inspection of equipments, warehousing. etc.
EPIC owns the Kemaman Supply Base (KSB) which caters to the needs of over 250 companies supporting the petroleum industry. Major companies already operating in the area are: Petronas, Esso, Cari Gali Hess, Talisman, Petrofac, Newfield and Murphy. Later this year, some 50 more companies will be added to the list of clients when its expansion plan is completed.
EPIC's other core business is in the management and operation of the Kemaman Port which is one of the deepest ports in Malaysia. Other positive attributes of the company is its strong balance sheet.
As at Sep 2010, it has RM97,275,000 cash in its coffer. Its debit/equity ratio is only 0.063, and its current ratio is 3.88. On top of all these, its barrier of entry is extremely high.
For the year ended Dec 31, 2010, EPS is forecasted to be not less than 30 sen. In view of the present bullish market, and looking at other counters, a PE of 12 for EPIC is not illogical. This works out to RM3.60 per share.
Is privatization on the card for EPIC? TSG says no. But, often today's denial is tomorrow's reality. Only time will tell.
An excerpt from Bursa reads as follows:
Review of performance
The Group achieved revenue of RM72.85 million in the third quarter under review, an increase of RM29.10 million or 67% compared to RM43.75 million reported in the same quarter in the preceding year. The Group recorded profit before tax of RM20.84 million, an increase of 45% compared to RM14.36 million achieved in the same quarter in the preceding year.
For the nine months ended 30 September 2010, the Group generated revenue of RM181.83 million, an increase of RM47.91 million or 36% compared to RM133.92 million achieved in the same period in the preceding year. The Group recorded profit before tax of RM57.27 million, increase by 36% compared to RM42.19 million achieved in the same period in the preceding year.
The increase in revenue and profit before tax was mainly due to increase in port operations and oil and gas activities.
I like this stock and I am presently heavily invested in it.
AS USUAL, YOU BUY, SELL OR HOLD AT YOUR OWN RISK ABSOLUTELY.
EPIC is now given the exclusive rights to build, manage and operate a duty-free shopping complex in Tasik Kenyir. Why do you think that they give it to EPIC? The answer is obvious. Because, the Trengganu State Government (TSG) is its major shareholder.
Not long ago, Ahmad Zaki Resources' stake of 20% in EPIC was bought over by TSG for about RM3 per share. TSG now controls over 60% of EPIC.
I am intrigued as to why EPIC is not mentioned when people talk about oil and gas. Actually, it is a specialist in this sector. Its services include: fabrication, engineering works, manufacturing & assembly, wire line & rigging, and testing & inspection of equipments, warehousing. etc.
EPIC owns the Kemaman Supply Base (KSB) which caters to the needs of over 250 companies supporting the petroleum industry. Major companies already operating in the area are: Petronas, Esso, Cari Gali Hess, Talisman, Petrofac, Newfield and Murphy. Later this year, some 50 more companies will be added to the list of clients when its expansion plan is completed.
EPIC's other core business is in the management and operation of the Kemaman Port which is one of the deepest ports in Malaysia. Other positive attributes of the company is its strong balance sheet.
As at Sep 2010, it has RM97,275,000 cash in its coffer. Its debit/equity ratio is only 0.063, and its current ratio is 3.88. On top of all these, its barrier of entry is extremely high.
For the year ended Dec 31, 2010, EPS is forecasted to be not less than 30 sen. In view of the present bullish market, and looking at other counters, a PE of 12 for EPIC is not illogical. This works out to RM3.60 per share.
Is privatization on the card for EPIC? TSG says no. But, often today's denial is tomorrow's reality. Only time will tell.
An excerpt from Bursa reads as follows:
Review of performance
The Group achieved revenue of RM72.85 million in the third quarter under review, an increase of RM29.10 million or 67% compared to RM43.75 million reported in the same quarter in the preceding year. The Group recorded profit before tax of RM20.84 million, an increase of 45% compared to RM14.36 million achieved in the same quarter in the preceding year.
For the nine months ended 30 September 2010, the Group generated revenue of RM181.83 million, an increase of RM47.91 million or 36% compared to RM133.92 million achieved in the same period in the preceding year. The Group recorded profit before tax of RM57.27 million, increase by 36% compared to RM42.19 million achieved in the same period in the preceding year.
The increase in revenue and profit before tax was mainly due to increase in port operations and oil and gas activities.
I like this stock and I am presently heavily invested in it.
AS USUAL, YOU BUY, SELL OR HOLD AT YOUR OWN RISK ABSOLUTELY.
Tuesday, January 11, 2011
Have a way with Sleeping Beauties and grow rich
Keeping concubines is expensive. But keeping Sleeping Beauties (SB) is a sure way to wealth. In stock-market lingo, SB are undervalued stocks with great potentials, lots of cash, and great assets. They are prime targets for takeovers.
Generally SB are illiquid, unloved and undiscovered. Mutual funds, hedge funds and analysts are not interested in them. Traders are not interested in them as well. Once identified and awakened, they become the darlings of the market. Their prices will sky rocket, and those having them can laugh all the way to the bank.
Those who wish to keep SB must have the knowledge to identify them, cash to buy and hold, the time to monitor, and the patience to wait. If you have idle cash, you should start looking for SB. One thing good about them is that they will pay you fairly well while you wait.
I love SB. They are unexciting but they make lots of money for you. And that's what you want. Right?
Don't get married to SB. Once they are overvalued, they should be sold.
You work hard for your money. Make sure they work smart for you.
Generally SB are illiquid, unloved and undiscovered. Mutual funds, hedge funds and analysts are not interested in them. Traders are not interested in them as well. Once identified and awakened, they become the darlings of the market. Their prices will sky rocket, and those having them can laugh all the way to the bank.
Those who wish to keep SB must have the knowledge to identify them, cash to buy and hold, the time to monitor, and the patience to wait. If you have idle cash, you should start looking for SB. One thing good about them is that they will pay you fairly well while you wait.
I love SB. They are unexciting but they make lots of money for you. And that's what you want. Right?
Don't get married to SB. Once they are overvalued, they should be sold.
You work hard for your money. Make sure they work smart for you.
Monday, January 10, 2011
Mitra Jaya
Mitra Warrants: Expiry date: Feb 11,2011; Exercise price: 1.80; Last traded at 0.13
Mitra has been in the news lately. Since the announcement of procuring a contract valued at RM53,500,000 to be completed in 10 months time, effective from Jan 01, 2011, the stock price has been moving up. At the time of posting this post, it is done at 1.75.
It is rumored that the price will be pushed up to RM2.00 before the expiry date of the warrants to encourage the conversion of the warrants into ordinary shares. Does this make sense to you? Think about it.
Mitra has been in the news lately. Since the announcement of procuring a contract valued at RM53,500,000 to be completed in 10 months time, effective from Jan 01, 2011, the stock price has been moving up. At the time of posting this post, it is done at 1.75.
It is rumored that the price will be pushed up to RM2.00 before the expiry date of the warrants to encourage the conversion of the warrants into ordinary shares. Does this make sense to you? Think about it.
Saturday, January 08, 2011
Protasco
Activity at Protasco has improved. As shown in the weekly chart above, the stock is now well on track to move higher. Buy some and get some new year angpows.
Best of luck, and as usual, you buy at your own risk absolutely.
Thursday, January 06, 2011
Tuesday, January 04, 2011
What to expect in 2011
Expectation of a general election is the catalyst to a bullish 2011. Small-cap and mid-cap stocks are likely to narrow the gap of price between them and the big-cap blue chips.
The Government Transformation Plan (GTP) to mitigate corruption and crime is of prime importance. If this major plan can be carried out with firmness, fairness and transparency, much can be achieved. Foreign funds are more likely to come in and keep on coming in.
The other major plan is the Economic Transformation Plan (ETP) which is meant to boost private sector investment and transform Malaysia into a high-income country. The success of the ETP depends on how well the GTP is implemented.
Corruption in any country is hard to curb; crime is in the same category. If the GTP is successfully carried out, undesirable activities, such as illegal gambling, gangsterism snatch thieves and prostitution will be greatly curtailed. This will create a clean and peaceful environment for the country that is a priority to conducive to good living.
Merger and Acquisition (M&A) is the other catalyst that is likely to spur the market to greater heights. The government is encouraging this. Expectation is high in this activity and many M&As will come on stream as the year progresses.
Malaysia is lucky that it is relatively safe from natural disaster. It is also endowed by Mother Nature with abundance of fresh water, clean air, arable lands and useful commodities.
There is no reason why it can't be as prosperous as Singapore. With the right approach, 2011 should turn out to be a Super Bull in motion.
The Government Transformation Plan (GTP) to mitigate corruption and crime is of prime importance. If this major plan can be carried out with firmness, fairness and transparency, much can be achieved. Foreign funds are more likely to come in and keep on coming in.
The other major plan is the Economic Transformation Plan (ETP) which is meant to boost private sector investment and transform Malaysia into a high-income country. The success of the ETP depends on how well the GTP is implemented.
Corruption in any country is hard to curb; crime is in the same category. If the GTP is successfully carried out, undesirable activities, such as illegal gambling, gangsterism snatch thieves and prostitution will be greatly curtailed. This will create a clean and peaceful environment for the country that is a priority to conducive to good living.
Merger and Acquisition (M&A) is the other catalyst that is likely to spur the market to greater heights. The government is encouraging this. Expectation is high in this activity and many M&As will come on stream as the year progresses.
Malaysia is lucky that it is relatively safe from natural disaster. It is also endowed by Mother Nature with abundance of fresh water, clean air, arable lands and useful commodities.
There is no reason why it can't be as prosperous as Singapore. With the right approach, 2011 should turn out to be a Super Bull in motion.
Foreigners More Active than Locals
According to Bursa, foreigners bought Rm11 billion and sold RM8.4 billion of stocks in December, 2010. This means an inflow of RM2.6 billion of foreign money.
The total trade for the month was RM35.7 billion. Thus it can be seen that foreigners were more active and traded more than the locals.
Some analysts say that foreign funds inflow has slowed down since some 3 months ago. If this trend were to continue, then probably, foreign funds may come to a trickle by the end of the 2nd quarter when the QE2 easing comes to an end.
To read more, click here.
The total trade for the month was RM35.7 billion. Thus it can be seen that foreigners were more active and traded more than the locals.
Some analysts say that foreign funds inflow has slowed down since some 3 months ago. If this trend were to continue, then probably, foreign funds may come to a trickle by the end of the 2nd quarter when the QE2 easing comes to an end.
To read more, click here.
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.
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
FimaCorp
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."
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.
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.
Friday, December 10, 2010
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.
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
冰箱門上勿貼磁鐵
Remove any decorative magnet from refrigerators
有趣，但是非常重要的發現！
一群普林斯頓大學的研究人員發現了可怕的事！
幾個月來，他們餵養兩組老鼠：第一組的食物存放在冰箱，第二組的食物也存放在冰箱，不同之處在於冰箱門上貼了一些裝飾磁鐵。
這項實驗的目的是要看看電磁輻射（門上的裝飾磁鐵所產生）對食物的影響。
令人驚訝的是，嚴格的臨床研究指出，吃“輻射”食物的這組老鼠比另一組老鼠致癌機率高出87％。
更令人費解的是，沒有任何政府或衛生機構在此事件上做出的任何聲明。不過，還是建議把任何磁鐵裝飾從冰箱門上拿掉，遠離食物，以防萬一。
Remove any decorative magnet from refrigerators,
and put it far away from any food.
IMPORTANT ~
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.)
Remove any decorative magnet from refrigerators
有趣，但是非常重要的發現！
一群普林斯頓大學的研究人員發現了可怕的事！
幾個月來，他們餵養兩組老鼠：第一組的食物存放在冰箱，第二組的食物也存放在冰箱，不同之處在於冰箱門上貼了一些裝飾磁鐵。
這項實驗的目的是要看看電磁輻射（門上的裝飾磁鐵所產生）對食物的影響。
令人驚訝的是，嚴格的臨床研究指出，吃“輻射”食物的這組老鼠比另一組老鼠致癌機率高出87％。
更令人費解的是，沒有任何政府或衛生機構在此事件上做出的任何聲明。不過，還是建議把任何磁鐵裝飾從冰箱門上拿掉，遠離食物，以防萬一。
Remove any decorative magnet from refrigerators,
and put it far away from any food.
IMPORTANT ~
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.)
Wednesday, December 08, 2010
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?
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.
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.
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