Wednesday, December 31, 2008

FCW Holdings Bhd ... Dec 08

It will scout aggressively for businesses that could fit in with the group to generate higher returns.

The company had the means to take on a new business venture but would not say what kind of business it was looking at as that would give away its intention and "limit our scope to look for businesses".

The group is financially quite strong and also have some cash reserve. So, it's possible for us to look at a business opportunity if it comes along.

As at Sept 30, 2008, the company had RM20.18 million in cash and cash equivalents, compared with RM7.03 million a year earlier.

On the company outlook, FCW expected its top and bottom lines to be affected in line with the impact of the global downturn on its main income earner Fujikura Federal Cables Sdn Bhd. It (Fujikura) had a very good year last year (2007). It has good sales locally as well as in the export markets. But given the current crisis, their sales will be slower, and anticipating a reduction in the contribution from the associate company next year.

FCW, which emerged from PN17 category in January 2008, posted RM23.84 million net profit for the financial year ended June 30, 2008 (FY08).

Fujikura, its 42.5%-owned joint venture company, contributed RM24 million in profit before tax in FY08.

FCW also trades in telecommunications equipment. The growth of its current business would be "flat" next year (2009).

The rental is quite fixed. Given the current economic situation, they do not foresee trading businesses to contribute significantly higher revenue than last year. So a lot will hinge on what new business they can bring in.

Tuesday, December 30, 2008

Magna Prima Bhd ... Dec 08

Developer plans RM300mil mid to high-end landed properties.

It plans to build mid to high-end landed properties with an estimated gross development value (GDV) of RM300mil in the next three years.

The move, a departure from Magna’s traditional high-rise housing market, is to meet the rising demand for super-link and semi-detached houses and bungalows based on the gated-and-guarded community concept.

The projects, in Bukit Jalil and Selayang, are expected to be launched by June 2009.

In addition, landed property gives them the flexibility to launch houses and construction by phases, relaxing our cashflow. The group is seeking a profit margin of 25% for the segment.

Magna expects the landed property market to contribute 25% to group revenue in 2009, which is targeted at RM400mil.

Magna Prima have been steadily building up our unbilled sales (RM230mil as at end-October 2008) to a comfortable level before the meltdown and they should not face any significant adverse impact on its revenue and profit margins.

The company is expected to finalise the acquisition of two pieces of land, with a total size of 35 acres, in two months. The plots of land are located in prime areas, he says, without revealing their locations.

Currently, Magna has a total of 39.2 acres in its land bank, with an estimated RM2bil in GDV.

Sunday, December 28, 2008

别每次都打满油!

在美國油站的每一支加油槍上,都有標示 DO NOT TOP OFF,意思是說,一般我們都會把加油槍,放進車子的加油孔,然後用扣環 hold 住,加滿的時候,扣環跳起來油槍自動會停住,這時候不要再硬加油到你車子裡。
但是在大马我们都會繼續加到整數,對吧?扣環跳起來以後,還是努力的按按按,用點放式的方法,努力的加到整數。

以後你去加油的時候,請不要這樣做了,因為你們都在花冤枉錢!
不要這樣做的理由我現在告訴你:

加油槍的設計是這樣的,你加滿油的時候扣環會跳起來,是因為有一個感應器在油槍前端的金屬部分,包在前面橡皮套裡面,在加油的同時,加油槍回收從你油箱回吐的油氣,當 hose 集滿了油氣之後,扣環會跳起來停止供油,這時候你的油箱已經加滿到一個安全的程度了。
而在這之後如果你繼續硬加的話,這時候的汽油並不是進到你的車子裡,而是跑回到 hose 裡面,你說這樣不是在花冤枉錢是什麼?
而加油站每個星期都需要 drain the hose,你會嚇一跳有多少汽油從裡面跑出來,有開車的朋友,下次加油的時候,記得別讓油桶加到滿,加到整數!
油池到加油機之間有二條看不見的管路,一條是油管──即車子加油時,「油」所走的管子;另一條是氣管──在車子加油時產生的油氣,回收進入油池的管子。

加油不應加滿的另一個真正原因是:
一般加油站都已經使用加裝油氣回收設備的油槍,在油槍加滿油自動跳停後,當我们將油槍提起、強迫加油時,造成油氣回收功能無法發揮,令人不舒服的油氣就會開始外洩,這就是我們經常在加油時所聞到的「汽油味」。
我們聞到的「汽油味」,是因為汽油揮發到空氣中,使空氣含有揮發性有機物 (VOCs),通稱為「油氣」;油氣的部分成分(例如:苯)已被證實有致癌性。

記住:除了不花冤枉錢外,為了保護自身的健康和減少污染空氣,當下一次加油时千万别加满。加到油槍跳停就好!!

Saturday, December 27, 2008

Strategy during crisis investment

Strategy during crisis investment by Ang Kok Heng

When market was high, many investors were careful and avoided jumping onto the bandwagon. Now that the market has fallen, and fallen sharply, many investors are still wary about investing. There is nothing wrong about being careful with one's hard-earned money. Not unless our interest rate falls to 1%, like in the case of US or close to zero in Japan.

The only problem with extremely cautious investors is that they kept their money in banks most of the time. They sighed with relief for not being caught by the market. While they escaped the bear, they also missed the bull. Many Malaysians witnessed the bear and bull during the ups and downs of the economy. Nothing happened to them as they did not suffer any losses and neither did they gain anything from these cycles.

No crystal ball

Many investors were cautious because they do not have a crystal ball to predict where the bottom of the market is. Unfortunately, there is no such thing as a crystal ball in the investment world.

Everyone is faced with the same dilemma. Even the professional investment fraternity cannot predict the market accurately. The only difference between a layman and a professional is that the latter is equipped with a bit more information and some knowledge about investing. But their vision is also limited.

They can only see a few feet ahead. Their vision becomes hazier further away from the target. Beyond certain circumference, they probably cannot predict what will happen. Whatever they forecast is purely based on a set of assumptions which may or may not be valid. As such, the predictions of many analysts and fund managers are nothing more than their own assumptions.

Travelling on rainy night

Investment is like travelling in the rain at night. Some may park their cars by the side of the road during thunderstorms while waiting for the rain to stop.

This is especially true for those with astigmatism and poor night vision. They know they can only travel on a rainy night if they have their vision corrected.

Some will drive very carefully in the downpour due to poor condition of their wipers. They know that they are not equipped to speed before changing the wipers.

For those who are well equipped and familiar with the road conditions including the bends and nooks, they can drive on with reasonable speed. Hence, they arrive home early and safe. Getting home safely is important, but getting home early is definitely an achievement. For those who are less equipped, it is better to get someone who knows how to drive to take over the wheel.
In investment, one must be equipped with the basic investment knowledge and familiar with the investment conditions. Otherwise, the road ahead could be treacherous.

Let the savings work

The ability to grow one's money is definitely crucial especially if we look at how inflation has eroded our savings over time. Gaining a higher return over one's savings not only can help overcome the erosion due to inflation, it also helps to build up a higher reserve for retirement.
Most financial planners encourage people to save and save early so that the compounded return on the savings can accumulate to a substantial amount leading to financial freedom.

While it is true that early compounding is crucial to amass a pile of wealth, having a higher average return from the investment allows us to achieve the target earlier. The question is how to get our savings to work harder for us.

Crisis means opportunities


The prevailing financial crisis in US may provide the much-desired opportunities. The Chinese character for crisis means danger and opportunity. These meanings must have been coined many years ago based on the Chinese' experience. The explanation can be seen as a clue and it has helped many successful people to make huge profit.

"Buy when markets hit the point of maximum pessimism." — Sir John Templeton

For those who have been keeping their savings in the bank, the opportunity arises during a crisis. Their patience eventually becomes fruition. The day of recognition finally arrives and their prayer is answered. Ironically, many who have patiently kept their savings in the safe cradles become more protective of their savings and they just stood by the sidelines, watching the crisis comes and goes. It happened in the past and it is happening now and it may also happen in the future.

Market chaser — a loser

On the contrary, there are also certain groups of investors who always chase the market. They get excited whenever the market runs. They are overwhelmed whenever the bull is in town and they tail behind the bull. When the bull is gone and the bear returns, they become fearful. They hide at home and cuddle whatever balance they have in their savings.

"The public buys the most at the top and the least at the bottom." — Bob Farrell's Rule No 5

As a whole they put in more money during the bull market than in the bear bottom. Some even cut lost after a substantial fall in prices. In a way they "buy high and sell low", whereas the basic rule of investment is to "buy low, then sell high" — a simple investment tenet understood by most people, but not being widely practised. Although we may not know where the bear bottom is, buying in a down market may still lead to losing money. This is definitely true. As long as the purchase is not at market bottom, it may still result in losses for the time being. This is likely to be a short-term loss but compensated by a probable long-term gain. Even if we cannot time the market perfectly, we are definitely better off to "buy low and sell high" then to "buy high and sell low".

Prices fell but value intact

Presently stock prices have fallen sharply. Banks are trading at 1x book value, property stocks sold at 50% discount from net asset value, utility stocks trading at single-digit price-earnings ratio providing an earnings yield of more than 10% net of tax and there are many good stocks trading at dividend yield of 2x bank interest rates.

While prices have fallen off the cliff, the values of these companies are still very much intact. The present financial tsunami in the US has its impact on many Malaysian companies. It will cause a slowdown in our economy and affect earnings over the next one to two years. But isn't this part of business risk? Established and proven companies have weathered this many times as in the past and they will eventually end up bigger and stronger.

Prices may fall but the value of a good company is still very much intact. The value of a company comprises the brand name, business contacts, the team of suppliers, the network of clienteles, the internal management control, the technical skills and etc.

Warren Buffett is busy buying

Warrant Buffett, the second richest man in the world who makes his fortune from stock investment, is busy buying undervalued companies. He sees the value and he also sees prices detaching away from the intrinsic values. He said: "I haven't the faintest idea as to whether stocks will be higher or lower a month — or a year — from now. What is likely, however, is that the market will move higher, perhaps substantially so, well before either sentiment or the economy turn up."

Although we may not be able to imitate exactly what he is doing, we can still follow some of his investment strategies. There are a few strategic moves that he has employed in the current financial crisis:-

• He is able to buy those shares which he likes in the past at a huge discount to the net worth, which means his safety margin at this point is very good.

• He aims to hold the investments for several years for huge profit margin as he is unlikely to sell for a small profit.

• He does not rush in to buy, he is very selective on the stocks he bought.

• He buys gradually. Thus far, he only uses about half of the cash balance in Berkshire Hathaway, his flagship company.

While others witness the collapse of banks in the US and wonder which one will be the next to fall, Buffett discovers many cheap buys. When Alan Greespan said this is a once-in-100-years financial crisis, Buffett believes this is a golden opportunity to accumulate undervalued stocks for his collection.

Catching a falling knife

Some may argue that buying now is like catching a falling knife. If you are not careful, you may be hurt and suffer more losses from falling stock prices. There is no doubt that we may incur short-term losses as long as we do not buy at the bottom. On the other hand, who can determine where and when is the bottom. As long as there are still unknown events or hidden problems, an apparent bottom now may not be the eventual bottom. Since we do not have all the information in the market, it is almost impossible to guess where the bottom will be.

In most cases, we only realise the bottom after it is over and by that time stock prices are running high with much improved market confidence. Market bottom could be there only for a short period. In most cases, market did not stay at the bottom waiting for investors. It will just move on.

Since market moves ahead of the economy by about six months, the market bottoms out when the economy is still gloomy, news are still negative, analysts are still calling underweights and most investors are staying at the sidelines.

In the absence of a crystal ball and in order not to miss the market bottom, it will be more profitable if we learn how to catch a falling knife. The good thing about a falling knife is that, we know it is a falling knife. So, we only need to use some precautionary measures to avoid being slashed by it. Handling something we know is definitely much easier than dealing with the unknown risks, something which hits from behind without warning. When we invest during a crisis we actually go in with our eyes open. We know it is definitely risky but we also know it could also be very profitable. If we can handle the risk, the risk-reward trade-off will be very rewarding.

Emphasise strategies

What we need is to buy near the bottom, not right at the bottom. Investors' frequent question now is when to buy, that is where is the bottom? Perhaps it is more intelligent to ask how much to buy now since nobody will be able to guess where is the market bottom. Even if someone provides advice for market timing on when to buy, how can we trust he knows the answer. He is probably doing it as a favour in order not to disappoint the enquirer with a negative answer — "I don't know" (which is a fact, unfortunately), or he is probably guessing based on some assumptions.

Staggered buying is preferred over bullet purchase which is taking the risk of timing the market bottom. In staggered buying, a pre-determined amount will be set aside for investment over time, say in 10 equal portions.

One common method of staggered investment is dollar cost averaging, an investment scheme made in equal portions periodically, either by a small amount monthly or larger amount quarterly. There are also several variations of staggered investment.

The investment portion can be modified to x percentage of cash balance, say 10% of available cash balance. An investment of RM100,000 will start off with RM10,000 in first purchase, then RM9,000 in second purchase (ie 10% of the RM90,000 cash balance) etc. This method will stretch the money over a longer period.

Other than equal interval investment outlay irrespective of how the market performs, timing of the next staggered investment will only be made if the market dips by say 5% or by 50 points.
For more aggressive investors, a 10-equal portion of investment could be finished before market hits the bottom. This could happen if the market takes longer-than-expected time to recover. On the other hand, a more conservative investor may be investing too slowly and the market may have rebounded before he or she has invested half of the money set aside for investment. This could happen if the market rebounds faster than expected.

Anyway, staggered purchase is a preferred method to avoid the anxiety of market timing and the mixed feeling of fear of further downside and worry of missing the market rebound. As long as the market is undervalued, the strategy of staggered investment ensures that investors are in and are benefiting from the undervalued market.

Ang has 20 years' experience in research and investment. He is currently the chief investment officer of Phillip Capital Management Sdn Bhd.

Friday, December 26, 2008

Why Gpacket is so aggressive lately?

Following are some related news to it:-
1. More than five foreign investors have expressed interest in taking up strategic
stakes in Green Packet Bhd;
2. The WiMAX in Penang ;
3. Proposed placement of 70.43 million new shares at 83 sen each;
4. It has proposed to subscribe for 1.05 million Islamic RCPS in its subsidiary
Packet One Networks ( Malaysia ) Sdn Bhd for RM200 million for working capital
purposes;
5. An IPO by Green Packet Bhd subsidiary Packet One Networks (M) Sdn Bhd (P1) is in
the cards;
6. Intel Capital, had invested RM50mil in Green Packet;
7. Green Packet Bhd will spend up to RM1bil for the development of WiMAX
infrastructure over the next four to five years.

Solution Engineering Holdings Bhd

The Mesdaq-listed Solution Engineering’s core business is designing and developing teaching equipment for engineering courses under the Solteq brand.Its teaching equipment are utilised in public and private universities, colleges, polytechnics, skilled training centres and technical institutions in Malaysia, the Middle East, Indonesia, Bangladesh, Australia, Pakistan and Vietnam.

Solution Engineering Holdings Bhd is teaming up with Universiti Putra Malaysia (UPM) to design and build a pilot plant for the production of environment-friendly bio-lubricant baseoil for use in the local market.

The RM4mil pilot plant, when operational by the first quarter next year (2009), could produce 700 tonnes of bio-lubricant baseoil per year.

Under the collaboration, UPM would provide some research and development, and laboratory services to Solution Engineering.

All local companies were currently importing the bio-lubricant baseoil feedstock for use in their lubricant blending plants as there were no baseoil plants in Malaysia so far.

For the first nine months ended Sept 30, the company posted a revenue of RM8.55mil compared with RM6.63mil in the previous corresponding period.

Thursday, December 25, 2008

Wednesday, December 24, 2008

KLK

KLK’s expansion plans in plantations would continue with a slight change in strategy. They will be more choosy. They pay attention only to the good and strategic green fields.

KLK’s existing expansion plans include the planting of 10,000 hectares (ha) of new oil palm every year in Indonesia. It now owns some 210,000ha of plantation land in Malaysia and Indonesia. Of its total acreage, some 170,000ha are planted.

KLK would look out for opportunities to take a meaningful stake in brown fields if they came along with attractive values.

Tuesday, December 23, 2008

Info: Tax reliefs for individuals before year ends.

In less than a month the year will come to end. If you have not use up your tax reliefs for 2008 you better act now to save your tax. Below is the tax reliefs for individuals (malaysian only), with applicable terms & conditions:-

1. RM1,000 for purchasing books, magazine, journal (except newspaper). If you dont read books then buy them as gift for others.

2. RM3,000 for computer purchase for every 3years only.

3. RM 300 for purchase of sports and exercise equipment such as all types of racquets and balls, treadmill, exercise bike and airwalker.
[ This is new to me ]

4. RM6,000 for both EPF & life insurance.

5. RM3,000 for education & medical insurance.

6. RM5,000 for medical checkup (RM500 max) & medical expenses to treat serious illness/disease for you, your spouse or kids. Both combined, limits to RM5,000.

7. RM5,000 for parents medical expenses includes (treatment, nursing & dental-subject to terms & condition).

8. RM5,000 for personal education (there is a limitation on type of education tho). Go upgrade yourself. Take advantage by paying the fees by 2008.

Act today to maximize your tax savings.

Hing Yiap Knitting Industries Bhd

Over the years, they have rebranded its range of products and are no longer involved in the export market. Upgrades in machinery enable them to produce higher-end quality apparels that they now sell at full price instead of at discounts.

They also consolidated a number of outlets and closed three unprofitable ones to concentrate more on urban and primary markets. This has greatly increased their efficiency.

HYKI makes its own house and international labels such as sports-inspired fashion, Antioni, casual wear collection, Bontton, Diesel, BUM Equipment and Unionbay.
HYKI has about 1,500 employees and its plant produces about 3.5 million pieces of garment per annum. HYKI’s marketing arm sells about seven million pieces of apparels annually. It also imports its products from China, while apparels are sold in about 700 outlets throughout Malaysia, Singapore and Brunei.

HYKI has also ventured into the food and beverage industry and its first two Theobroma Chocolate Lounge outlets in 1 Utama and Pavilion KL opened in July. A franchise from Australia, HYKI recently opened its latest Theobroma outlet in Bangsar Village, Kuala Lumpur.

HYKI aimed to open at least 24 Theobroma outlets in the next five years. The long-term goal was for the new venture to contribute around 30% of the group’s total revenue.

Monday, December 22, 2008

IPO: Tatt Giap Group

It has identified new industrial steel products to develop, in a move to tap new market segments. One of these products was electro galvanised (EG) steel coils, a secondary flat steel product. They have identified this segment for expansion because EG steel is a critical input for the electronic, electrical, automotive and office automation industries.

Consumption of EG steel coils in Malaysia for 2007 was about 324,000 tonnes, (of which) 97% was imported as there is only one local producer.

Its EG line had been set up near the company’s plant in Prai Industrial Estate and was likely to commence production next month (Jan 2009). The EG steel coil production facility is worth about RM100mil. It will have a production capacity of about 150,000 tonnes per annum.

The group had further invested in the production of stainless pipes of various diameters and identified downstream products such as stainless steel pipe fittings and metal parts for further expansion.

The other products we will be looking at in future are ‘butt weld fittings’, which consist of elbows, reducers, tee joints, caps and lapped joints. There is potential growth in this segment because pipe fittings are natural extensions of tubes and pipes which would complement our existing range of tube and pipe products. Butt weld fittings are highly in demand and command lucrative selling prices in the market.

The group started in 1978 with the founding of Tatt Giap Hardware Sdn Bhd as as an importer, exporter and stockist of stainless steel materials for distribution to a wide range of end-users from diverse industries.

Under the stewardship of the Siah family, Tatt Giap Hardware has grown in stature by diversifying its product range through active sourcing and strong networking with stainless steel producers in Japan, South Korea, Taiwan and Europe.

The group currently operates seven facilities in Penang, Selangor and Johor.

Sunday, December 21, 2008

洋葱葡萄酒(红酒)的惊人效果

作法简单 马上喝 马上有效

1) 每天喝少量葡萄酒, 对膝盖疼痛, 白内障, 老人痴呆症的治疗, 在日 本非常盛行, 而且效果相当惊人.
2) 吃了药也无法降下的高血压,喝了洋葱葡萄酒后血压正常且安定.
3) 无论用什么方法也无法减轻血糖的糖尿病者,喝了该葡萄酒后血糖即下降.
4) 喝了该酒后,轻微的老花眼可改善,看报刊杂志不用配戴老花眼镜.
5) 夜尿频繁的,喝了洋葱葡萄酒后,两天后既可止夜尿,真的不可思议.
6) 三年之间不吃安眠药不能入睡的不眠症,喝了葡萄酒后不眠症消除.
7) 每晚醒来,一直到天亮都不能入睡的不眠症,也能完全消除.
8) 几垺无法治疗的白尿症素(尿色混浊),喝了葡萄酒后尿色接近透明.
9) 视线常模糊不清的,或是慢性的眼睛疲劳,喝葡萄酒后,第二天就好了.
10)经常便秘,引至腹部胀痛,十分痛苦,喝了葡萄酒后,第二天既可正常排便.

制酒方法 :一枝红酒放入三粒大洋葱(红色)切片.
制作时间 : 要超过十天, 方可服用.
服用方法 : 每天晚饭后一小时服用.
服用份量 : 一至两大汤匙.

2008 Warren Buffett

I had the good fortune to attend the 2008-
Berkshire Hathaway Shareholders meeting at Omaha , Nebraska a few weeks
back.

It was a wonderful experience listening to and
learning from the Master Investor- Warren Buffett himself and all I can
say is that he stands alone as the reigning deity of financial world's
Mt Olympus!

The degree of humility and composure he
exhibited, although he is the richest and most well respected human is
stunning!

I tried to take some notes and would like to
share with you some of the best questions and answers which came across
during the conversation between we mortals and God.

Having read about him, observed him and
worshipped him for a few years now, I think it is reasonable to believe
that this guy is exactly what he seems: a plain-speaking, tee totalling
man of uncrackable integrity who works really, really hard and sticks to
his investing and management principles through boom and bust which
makes him a freak of nature since he is above normal human tendencies.
He is like a comet streaking through the heavens every 75 years or so.

The questions the shareholders threw at him for
7 continuous hours ranged from finances, life, religion, career,
politics, sports and several other streams. And he answered everything
with a Zen like calm and confidence.

Even if you are least bothered about investments
and finances, I insist, Please read on.

===========================================================

What does it take to become a successful
investor? Brilliance or Smartness?

Neither, Success in investing doesn't correlate with I.Q. Once you have ordinary intelligence, what you need is the temperament to control the urges that gets other people into trouble in investing.

When do you decide to invest in a firm?

The best thing that happens to us is when a great company gets into temporary trouble. We want to buy them when they're on the operating table. (Mr. Buffett bought Coke when it had its biggest fiasco after launching New Coke; he bought American Express when it went through a loss making phase in the early 60's)

What do you look for in people when they come to sell their firms to you?

I don't look for the usual credentials such as an MBA, a pedigree (Harvard, Wharton), or cash reserves or market cap of their firm. What I look for is just a passion in their eyes; I think that's the key. A person who is hungry will always do well. I prefer it when people even after selling stay on and work for the firm; they are people who can't wait to get off their bed to get to work. Passion is verything; there is no replacement for innate interest.

Mr. Buffett, you told us that Berkshire Hathaway has $ 45 Billion in cash. Why aren't you investing?

Up until a few years back I had more ideas than money. Now I have more money than ideas.

When do you plan to retire?

I love my job; I love it so much that I tap dance to work. Mrs. B, the founder of Nebraska Furniture Mark worked until she was 104, she died within 6 months of her retirement, that's a lesson to all my managers, don't retire! I personally am going to work 6-7 years after I die, probably that's what they mean when they say-
"Thinking out of the Box"!!

Why do stock market crashes happen?

Because of human nature for greed and insecurity. The 1970s were unbelievable. The world wasn't going to end, but businesses were being given away. Human nature has not changed. People will always behave in a manic-depressive way over time. They will
offer great values to you."

What are the things that are taught wrong in Business school and the corporate world?

I like such open ended questions, I think Business schools should refrain from teaching their wards about profit making and profit making alone, it gives a sense of 1 dimensional outlook to the young students that loss is a curse. In reality, in the corporate world, failure and loss making are inevitable. The capital market without loss is like Christianity without hell. I think they should teach the student on how to buy a business, how to value a business? Not just on how to determine the price of a business. Because price is what you pay, value is what you get.

Do you still hate Technology stocks?

With Coke I can come up with a very rational figure for the cash it will generate in the future. But with the top 10 Internet companies, how much cash will they produce over the next 25 years? If you say you don't know, then you don't know what it is worth and you are speculating, not investing. All I know is that I don't know,
and if I don't know, I don't invest."

How to think about Investing?

The first investment primer was written by Aesop in 600 B.C. He said, 'A bird in the hand is worth two in the bush.' Aesop forgot to say when you get the two in the bush and what interest rates are; investing is simply figuring out your cash outlay (the bird in the hand) and comparing it to how many birds are in the bush and when you get them."

How do you feel after donating $ 40 Billion to the Bill and Melinda Gates foundation? You are a hero to us!

I feel nothing. I haven't sacrificed anything in life. I have had a good life. I donated after I turned 75. I think I admire those people who sacrifice their time, share their food and home, as the people to be emulated not me. Besides, what is money before a man's life?

What do you think are the pitfalls in donation?

I have never donated a dime to churches or other such organizations; I need to believe in something before I end up doing that. I have been observing the Bill & Melinda Gates foundation for years now and I am confident they will do a fantastic job of making use of the money. I am a big believer in Outsourcing, others believed in me as an Investor and gave their hard earned money to invest. I believe in Bill Gates, he is a better donor than me.

Why do you work from Omaha and not Wall Street , New York ?

Wall Street is the only place where people alight from Rolls Royce to get advised by people who use the Public transportation system. ( ha ha !!)

You seem to be so well read, tell us how it all started.

My father was a stock broker, so we had all these financial books in our library. He introduced me to those classics and I got into them. I am lucky that my father was not a fan of Playboy! Reading is the best habit you can get. Well, you can learn from teachers too, and have mentors but there are so many constraints attached- they
will talk fast, talk slow, they might talk like a pro or they might be terrible communicators. Books are a different animal altogether, I love reading! The beauty about reading and learning is that the more you learn the more you want to learn.

People who join Berkshire Hathaway seldom leave.
How do you get along well with all your executives?

I try to get quality people. I always say - Hire someone in your organization who is better than you are. If you do that, you build a company of giants. If you get people worse than yourself, you build a company of dwarfs. And do not try to do everything yourself. Delegate the jobs and look out of the window. The results will come. That's how you build institutions. It happens only when you empower others, believe in others. Iam an investor, Iam very secured at that, I have no clue how to make Coca-Cola or how to dole out credit cards (Mr. Buffett owns 8% of Coca-Cola and 13 % of American Express). I understand the wisdom of the aphorism that you cannot please all the people all the time. Of Course, you will always find qualities that you don't like in people around you, but if you observe carefully the love of the work unites you both. There is no point in being obsessive about a bad quality in a person, whom you otherwise respect.

I am a small time businessman from Dallas , Texas , what do I need to do to hit big time?

Be patient, Achieving your financial goals and dreams will not happen overnight. As much as we would all really love to accomplish our goals in a few years, this is an ongoing process. Defining your financial goals is not a one-time task; you need to keep adding new plans at different stages in your life. We all admire the skills of Olympic ice skaters, pro golfers, and concert pianists. But do we remember that they didn't acquire their skills overnight? They had to practice hours on end for years to achieve their dreams. The key to success is to continue learning throughout your life with a voracious appetite.

I think it is marvelous that you have had a golden run with investing, how did you do that?

My rule is to be fearful when others are greedy, and be greedy when others are fearful. Besides, I call investing the greatest job in the world because you never have to swing. You stand at the plate; the pitcher throws you General Motors at 47! U.S. Steel at 39! And nobody calls a strike on you. There's no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it. Stay dispassionate and be patient. You're dealing with a lot of silly people in the marketplace; it's like a great big casino and everyone else is boozing. If you can stick with drinking Coke, you should be OK. First the crowd is boozy on optimism and buying every new issue in sight. The next moment it is boozy on pessimism, buying gold bars and predicting another Great
Depression, most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.

Mr. Buffett you have seen so many crashes and recessions, your take on facing recessions and stock market crashes?

If past history was all there was to the game, the richest people would be librarians. Every scenario is different. But always remember, Tough times do not last. Tough people do.

What is the 1 biggest advice you would impart to a young investor like me?

Think for a moment that you are given a car and told this is the only car you would get for the rest of your life. Then you would make sure that you car is taken care of well, it is oiled and detailed every now and then. You would make sure that it never gets rusted, and you would garage it. Think of yourself as that car. You just
get 1 body, 1 mind and 1 soul. Take care of it well. Invest in yourself that would be my advice.

You personally know many of the Financial executives who are engineers of the current turmoil in the financial world, surprisingly even after record losses, those executives receive astronomical salaries and bonuses and arrogantly declare that they
deserve it, why dint you advice them from making such decisions and what's your view on their justification for their pay?

I like sharing my ideas but don't like imposing my ideas on anybody. It doesn't make sense and is a waste of time. If somebody has decided that they know everything that is there to know, nobody can help them. The best way to learn and succeed is to know that we know nothing. There is an entire universe out there and still some of
us think we can know everything. In the world of investing a few people after making some money tend to imagine they are invincible and great. This is the worst thing that could happen to any investor, because it surely means that the investor will end up taking unnecessary risks and end up losing everything - arrogance, ego and overconfidence are very lethal. Personally I don't feel too comfortable with too much
extravagance, because I always think like an investor. My thought process doesn't see a lot of value in a fancy car or a designer suit. Thinking like an investor always is very important to bring in a sense of discipline and focus. Before reading balance sheets and investing you need to make sure your outlook and mindset is that of an investor. Never let ego, arrogance and over-confidence control you - not just as an investor but also as a human being. You will never have internal peace if you are unable to look at everybody around you with love, compassion and understanding. Irrespective of who the person is, he or she can teach you something you don't know. I have learnt so much from people all around me and I wouldn't have been able to learn all these wonderful things if I had not spoken to them with a smile. To quote Sir Isaac Newton- If I have seen farther than others, it is because I have stood
on the shoulders of giants.

Saturday, December 20, 2008

Be An Optimist at All Times

Everyone wants to be physically healthy. You want to be mentally healthy as well. The true measure of "mental fitness" is how optimistic you are about yourself and your life.

In this newsletter, you learn how to control your thinking in very specific ways so that you feel terrific about yourself and your situation, no matter what happens.

Control Your Reactions and Responses
There are three basic differences in the reactions of optimists and pessimists. The first difference is that the optimist sees a setback as temporary, while the pessimist sees it as permanent. The optimist sees an unfortunate event, such as an order that falls through or a sales call that fails, as a temporary event, something that is limited in time and that has no real impact on the future. The pessimist, on the other hand, sees negative events as permanent, as part of life and destiny.

Isolate the Incident
The second difference between the optimist and the pessimist is that the optimist sees difficulties as specific, while the pessimist sees them as pervasive. This means that when things go wrong for the optimist, he looks at the event as an isolated incident largely disconnected from other things that are going on in his life.

See Setbacks as Temporary Events
For example, if something you were counting on failed to materialize and you interpreted it to yourself as being an unfortunate event, but something that happens in the course of life and business, you would be reacting like an optimist. The pessimist, on the other hand, sees disappointments as being pervasive. That is, to him they are indications of a problem or shortcoming that pervades every area of life.

Don't Take Failure Personally
The third difference between optimists and pessimists is that optimists see events as external, while pessimists interpret events as personal. When things go wrong, the optimist will tend to see the setback as resulting from external factors over which one has little control.

If the optimist is cut off in traffic, for example, instead of getting angry or upset, he will simply downgrade the importance of the event by saying something like, "Oh, well, I guess that person is just having a bad day."

The pessimist on the other hand, has a tendency to take everything personally. If the pessimist is cut off in traffic, he will react as though the other driver has deliberately acted to upset and frustrate him.

Remain Calm and Objective
The hallmark of the fully mature, fully functioning, self-actualizing personality is the ability to be objective and unemotional when caught up in the inevitable storms of daily life. The superior person has the ability to continue talking to himself in a positive and optimistic way, keeping his mind calm, clear and completely under control. The mature personality is more relaxed and aware and capable of interpreting events more realistically and less emotionally than is the immature personality. As a result, the mature person exerts a far greater sense of control and influence over his environment, and is far less likely to be angry, upset, or distracted.

Take the Long View
Look upon the inevitable setbacks that you face as being temporary, specific and external. View the negative situation as a single event that is not connected to other potential events and that is caused largely by external factors over which you can have little control. Simply refuse to see the event as being in any way permanent, pervasive or indicative of personal incompetence of inability.

Resolve to think like an optimist, no matter what happens. You may not be able to control events but you can control the way you react to them.

Action Exercises
Now, here are three actions you can take immediately to put these ideas into action.

First, remind yourself continually that setbacks are only temporary, they will soon be past and nothing is as serious as you think it is.

Second, look upon each problem as a specific event, not connected to other events and not indicative of a pattern of any kind. Deal with it and get on with your life.

Third, recognize that when things go wrong, they are usually caused by a variety of external events. Say to yourself, "What can't be cured must be endured," and then get back to thinking about your goals.

By: Brian Tracy

Friday, December 19, 2008

中国警告美国若不改革经济将停购其国债

漫画:美国发行550亿美元国债为救市筹措资金。 中新社发 宋学海 作
据法新社17日报道,中国周三对美国提出警告,如果美国不抓住时机进行必要的经济改革,中国可能会停止继续购买美国国债。
报道说,据周二公布的数据,截至10月底,中国拥有6529亿美元的国债,与9月相比增长了11.2%,而就在9月中国超过日本成为美国最大债权国。该报道援引中国媒体的话说,当中国与其他国家帮助美国维持经济增长时,美国应该抓住这个窗口机会对经济进行必要的改革。(来源:环球时报)

Thursday, December 18, 2008

名家预测 八大惊吓

(纽约12日讯)2008年快过去,《财富》杂志访问当今全球金融界8位名宿,为2009年全球把脉,结果都是“惊吓预测”,“商品大王”罗杰斯认为,道指要下跌至4000点以下才具吸引力。纽约大学经济学教授鲁比尼更坦言未来一年不会沾手股市、商品及一般信贷投资产品。

鲁比尼:美经济无底洞

“新末日博士”、纽约大学经济学教授鲁比尼认为,美国50年来最严重的经济衰退在2009年会持续,信贷泡沫爆破正将经济推向无底深谷,在美国经济硬着陆之际,中国等新兴经济将出现倒退,全球经济萧条较之前更严重。

2009年美国经济出现负增长是不争事实,2010及2011年美国经济只会有1至1.5%增长,美国楼价在2010年会再跌15%,失业率则维持9%水平。

在经济前景阴霾未散情况下,未来12个月不会沾手股市、商品及一般信贷投资产品,只会持有现金或政府债券,简单而言,保本就是目前的投资策略,选择持有低风险的低回报投资,总较财富被蒸发50%为佳。

贝尔:投资理念改变

联邦存款保险公司(FDIC)主席贝尔认为,当前的危机使大家重新认识“购买和持有”的传统投资智慧,非透过不停买卖来寻求回报,投资者所作的决定,必须是以基本因素为依归。

作为政府部门,最重要的工作是重建大众对金融体系的信心,银行及金融机构则重回基本,以长远经济条件来处理贷款与融资,将是最重要课题。

罗斯:楼市重创经济

“华尔街公司医生”罗斯认为,目前美国经济明显已陷入衰退,虽然政府积极采取各种措施扭转局面,但因最初低估次按危机,造成美国业主损失5兆美元(17.7兆令吉),以及1200万个家庭的按揭还款已超过住房的价值,除非楼市恢复正常,以及按揭市场重新放宽,否则经济不可能回复稳定。

奥巴马政府必须透过为银行放贷提供担保,使信贷市场恢复正常运作,并借向银行收取保费扩大担保范围,避免纳税人因而负上更大的税务负担,同时政府有必要尽快解决失业率高企的问题,建议投入更多资源发展及援助基建项目,创造直接的就业机会。

惠特妮:银行体系变天

凯万(Oppenheimer&Co)董事总经理惠特妮认为,投资者每每为政府提出的救市方案感振奋,但所有已公布的拯救方案,只能够止血,不能改变根本面貌,例如不良资产纾困方案(TARP)经多次修改至第三个版本,相信未来一定会出现第四、第五甚至第六个版本,陷入财困的公司依然无法募集所需资金,意味最终还是要由政府“结账”。

现时难以预测明年会发生甚么事情,但相信大部分银行会回到市场集资,明年底整个银行体系会重组,届时银行业有的规模缩小,有的会整固,有的会离开市场,但同时会有更多新银行出现。

罗杰斯:进入破产年代

“商品大王”罗杰斯认为,无可否认经济进入破产年代,在过去的150年,这种情况只发生过8至9次,在当前情况下,大家只会选择具备基本因素支持的投资,目前合乎这种要求的工具,就只有商品,主要原因是信贷危机会使商品产量直接下降,并为未来商品价格带来支持,情况就如70年代商品价格能逆市向好的主因。

除商品外,罗杰斯之前已公开表示正吸纳美国的长期国债,以及中资股及台股。

不过,他对于美国股市依然看淡,按美国企业的收益及回报率推算,道指要下跌至4000点以下才具吸引力,而保留实力将会有利投资者把握入市时机。

格罗斯:复苏路更危险

“债券大王”格罗斯认为,2008年最为人熟悉是全球股市急跌一半,但更令人关心的是股市、楼市、商品及高息票据价格下跌,已蒸发30兆美元(106.2兆令吉)财富,将所有问题都归咎于次按危机,就只是对市场过度倚赖杠杆投资的事实视而不见。

2008年即将过去,迫使大家面对经济放缓后,全球经济出现衰退的现实。

美国经济当前路向,非常视乎奥巴马上台后,能否以亚当史密斯所倡导的“无形之手”,重振资本主义所应有的活力。

增加政府开支及提供数以万亿美元的信贷担保,只能纾解一时的资金紧绌,而金融机构愿意承担借贷及投资风险,才能根本解决当前问题,但在未来十二个月,新政府不可能根治过去过度倚赖信贷所产生的恶果,投资者必须体认投资市场及公共政策所出现的变化,预期未来数年只会取得单位数字的投资回报,较值得留意的高评级的企业债券,以及获政府出手拯救的金融机构股份,并且谨记经济复兴之路是充满危险。

席勒:美股还会下跌

耶鲁大学经济学家席勒认为,目前失业未到30年代水平,但无可否认当前情况与大萧条有不少相似之处,例如美国出现自40年代以来首次负利率,即使未陷入全面衰退,消费信心已备受打击,特别是今年10月份消费信心下跌的情况,创38年以来新高。

虽然有信心各界对经济危机的处理手法,会较之前做得更好,但无可否认信心是非常脆弱,而只有信心恢复,联储局的减息及回购证券资产计划才会产生真正作用。

至于股市方面,虽然目前美股的本益比已跌至13倍,但以1929年股灾,美股本益比只有6倍来说,美股仍有再下挫危机。

特雷恩:通胀危机重临

《股市大亨》作者特雷恩认为,经济明显放缓,未必会引发全面衰退,而且有关方面已采取适当的对应措施,政府正寻求以赤字来减慢最坏情况的发生,这意味通胀无可避免,而债券难以提供吸引的回报。

目前较值得投资者留意的是,考虑购入强生一类收益稳定企业,以及苹果、微软、思科等持巨额现金企业的股份,当大家认同大市跌至谷底时,就是投资者吸纳这类股份的时机。

Wednesday, December 17, 2008

The Gem Of Life 珠光寶氣

Yesterday, discover a Chinese series, 珠光寶氣, available in internet.

Enjoy!!!

珠光寶氣 Episode 1
珠光寶氣 Episode 2
珠光寶氣 Episode 3
珠光寶氣 Episode 4
珠光寶氣 Episode 5
珠光寶氣 Episode 6
珠光寶氣 Episode 7
珠光寶氣 Episode 8
珠光寶氣 Episode 9
珠光寶氣 Episode 10
珠光寶氣 Episode 11
珠光寶氣 Episode 12
珠光寶氣 Episode 13
珠光寶氣 Episode 14
珠光寶氣 Episode 15
珠光寶氣 Episode 16
珠光寶氣 Episode 17
珠光寶氣 Episode 18
珠光寶氣 Episode 19
珠光寶氣 Episode 20
珠光寶氣 Episode 21
珠光寶氣 Episode 22
珠光寶氣 Episode 23
珠光寶氣 Episode 24
珠光寶氣 Episode 25
珠光寶氣 Episode 26
珠光寶氣 Episode 27
珠光寶氣 Episode 28
珠光寶氣 Episode 29
珠光寶氣 Episode 30
珠光寶氣 Episode 31
珠光寶氣 Episode 32
珠光寶氣 Episode 33
珠光寶氣 Episode 34
珠光寶氣 Episode 35
珠光寶氣 Episode 36
珠光寶氣 Episode 37
珠光寶氣 Episode 38
珠光寶氣 Episode 39
珠光寶氣 Episode 40

Stay tune for other Episode.
珠光寶氣 Episode 41
珠光寶氣 Episode 42
珠光寶氣 Episode 43
珠光寶氣 Episode 44
珠光寶氣 Episode ......

Hunza Properties Bhd

Hunza Properties Bhd has deferred its RM400 million Gurney Paragon Mall project, the construction of which was earlier scheduled to start September 2008.

Meanwhile, 60% of Hunza Properties’ 119 residential units of the luxurious Infinity project in Tanjung Bungah have been sold and 50% of the project, which is targeted for completion by August next year, has been bought by foreigners under the Malaysia My Second Home (MM2H) programme.

Hunza was also on the prowl to increase its landbank on Penang Island and in the Klang Valley. It will embark on acquiring land in prime areas in Penang, focusing on the areas from Jalan Sultan Ahmad Shah to Batu Ferringhi.

Currently, Hunza’s landbank consists of 500 acres in Bertam, 300 acres in Sungai Petani, 40 acres in Juru, six acres in Segambut, 10 acres of Alila Two site and another 60,000 sq ft near Marina Bay.

Tuesday, December 16, 2008

Mycron Steel Bhd

It is looking to expand the revenue contribution from its overseas market to about 15% over the next three years, boosted by growing requests for cold-rolled coils (CRC) from abroad.

It hopes of diversifying the company’s customer base as the domestic market currently contributed about 97% to its revenue. They are now exporting CRC in small volumes to Sri Lanka, Vietnam and Indonesia.

Following the global financial crisis, the regional market price for hot-rolled coils (HRC), the base raw material for the manufacture of CRC, had tumbled from US$1,100 per tonne to US$600 per tonne in September 2008. The regional price for CRC has followed suit, falling from US$1,250 to US$750 per tonne.

Due to this, the margin or spread between international HRC and CRC prices had been consistent and healthy, ranging from US$100 to US$120 per tonne.

Also, with lower prices for HRC and CRC, the company would be enjoying the benefits of having less money tied up in inventory and debtors, hence improved cash position, while enjoying the same gross profit margins as before.

Mycron currently supplies 12% of Proton’s CRC needs and plans to increase this to 15% in view of the national carmaker’s major localisation plan to reduce CRC imports.

Monday, December 15, 2008

GDEX

GDEX,which is engaged in express delivery services, is strengthening its cash position to tide over the next few years in view of the worsening economy.

As at the end of its first quarter ended Sept 30, 2008 GDEX’s cash reserve stood at RM7.7 million, up 26% from RM6.1 million as at end-FY08. One of the ways to build a stronger cash position was to reduce its borrowings. As at end of 1QFY09, its total borrowings stood at RM8.9 million, which was 5% lower from RM9.4 million in FY08.

It would also build on its high-value customers. These are the big customers who are very good paymasters. As for its low-value customers, it would encourage them to use its online services, which requires less management.

The company has also outlined a debt recovery procedure and introduced a prompt payment rebate for payment made within 60 days.

Financial Results …

In 1QFY09, GDEX’s net profit rose 15.7% year-on-year to RM900,000 on the back of 26.2% rise in revenue to RM20 million. Its net profit for FY08 soared 42.6% to RM2.98 million from the previous year, while revenue rose 18.7% to RM68 million.

It would make use of the global economic crisis (2008) to build up its strength and look at ways to expand into the Asean region. GDEX currently has operations in Malaysia and Singapore.

Sunday, December 14, 2008

Beauty of Mathematics!!

Absolutely amazing!

1 x 8 + 1 = 9
12 x 8 + 2 = 98
123 x 8 + 3 = 987
1234 x 8 + 4 = 9876
12345 x 8 + 5 = 98765
123456 x 8 + 6 = 987654
1234567 x 8 + 7 = 9876543
12345678 x 8 + 8 = 98765432
123456789 x 8 + 9 = 987654321

1 x 9 + 2 = 11
12 x 9 + 3 = 111
123 x 9 + 4 = 1111
1234 x 9 + 5 = 11111
12345 x 9 + 6 = 111111
123456 x 9 + 7 = 1111111
1234567 x 9 + 8 = 11111111
12345678 x 9 + 9 = 111111111
123456789 x 9 +10= 1111111111

9 x 9 + 7 = 88
98 x 9 + 6 = 888
987 x 9 + 5 = 8888
9876 x 9 + 4 = 88888
98765 x 9 + 3 = 888888
987654 x 9 + 2 = 8888888
9876543 x 9 + 1 = 88888888
98765432 x 9 + 0 = 888888888

Brilliant, isn't it?

And look at this symmetry:

1 x 1 = 1
11 x 11 = 121
111 x 111 = 12321
1111 x 1111 = 1234321
11111 x 11111 = 123454321
111111 x 111111 = 12345654321
1111111 x 1111111 = 1234567654321

11111111 x 11111111 = 123456787654321
111111111 x 111111111 = 12345678987654321

Now, take a look at this...

101%

From a strictly mathematical viewpoint:

What Equals 100%?
What does it mean to give MORE than 100%?

Ever wonder about those people who say they are giving more than 100%?

We have all been in situations where someone wants you to
GIVE OVER 100%.

How about ACHIEVING 101%?

What equals 100% in life?

Here's a little mathematical formula that might help
answer these questions:

If:
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Is represented as:
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26.

If:
H-A-R-D-W-O- R- K
8+1+18+4+23+ 15+18+11 = 98%

And:
K-N-O-W-L-E- D-G-E
11+14+15+23+ 12+5+4+7+ 5 = 96%

But:
A-T-T-I-T-U- D-E
1+20+20+9+20+ 21+4+5 = 100%

THEN, look how far the love of God will take you:

L-O-V-E-O-F- G-O-D
12+15+22+5+15+ 6+7+15+4 = 101%

Therefore, one can conclude with mathematical certainty that:

While Hard Work and Knowledge will get you close, and Attitude will
get you there, It's the Love of God that will put you over the top!

It's up to you if you share this with your friends & loved ones just
the way I did..

Have a nice day & God bless!!

Saturday, December 13, 2008

Q & A

Friday, December 12, 2008

KNM Group Bhd

It has terminated plans to buy Belgium-based Ellimetal NV for €20 million (RM91.7 million) after the vendor was unable to fulfil one of the conditions in the master agreement signed in January this year (2008).

The key objective for KNM in most acquisitions is to acquire the expertise of the target companies. In this case, the owner and the key management team are not staying in the company after KNM’s take over. The owner wanted to retire because of old age and the rest of the key personnel were reluctant to continue under a different owner.

This is not the first time KNM scrapped plans to buy companyies. In May 2008, KNM did not proceed with the purchase of Pisces Engineering Sdn Bhd for RM50 million. Last year (2007), KNM aborted a deal to acquire a 90% equity interest in Virgo Pulse Sdn Bhd for RM27.5 million cash.

However, KNM would discuss with Ellimetal to enter into a commercial co-operation agreement following the failed acquisition.

Going Forward …

The company had guided for lower earnings for FY2008 and FY2009 after taking into account a one-off facility fee, the aborted purchase of Ellimetal and delay in capacity expansion plans.

KNM’s management has revised downwards its earnings guidance for FY2008 net profit to RM400 million from RM430 million previously and FY2009 net profit to RM650 million from RM700 million.

FY2008 earnings were revised downwards due to the one-off facility fee on its Maybank loan while FY2009 earnings were lowered after removing Ellimetal’s contribution and not taking into account the proposed capacity expansion by an additional 10,000 tonnes capacity at its Canada plant. The proposed capacity expansion at its Canada plant was to cater for oil sands development, which essentially is extraction of oil from sand.

Thursday, December 11, 2008

YTLPOWER

The group has journeyed to faraway markets for opportunities, enabling it to expand its business to Britain , Australia and Indonesia . That also led it to broaden its business base to include water supply and sewerage services, and power transmission.

It had last made an acquisition many years ago, tending to acquire utility assets only from distressed sellers. Besides aiming to acquire good assets at relatively low prices, the group also has an excellent track record in managing organic growth of the businesses acquired.

Hence, starting from a business base of two power stations in Malaysia , it expanded that to include water and sewerage services in Britain from which it earns more profits than at its home base.

YTL Power last reported it held gross cash of over RM9bil that it could use to acquire more assets. It would seem obvious that it would make a major acquisition of a utility in this cycle of widespread distress. It has a large enough war chest for that, and it has waited many years for such times of desolation.

Besides its own internally-generated funds, it had wisely raised US$250mil through an exchangeable bond at a time when credit markets were easy and interest rates were lower. The cash from the bond issue is being held for investments in utility assets.

At this time of credit crunch, it will be difficult to obtain financing for acquisitions even when attractive utility assets are available. Hence, the fund raising ahead of a turn in the credit cycle was an act of foresight. Berkshire Hathaway Inc, managed by Warren Buffett, is also known to raise funds when terms are easy even when there are no immediate use of the funds.

YTL Power, which has fairly stable earnings from its utility businesses, offers a yield of over 6% and, including distribution of free treasury shares, the yield can be as high as 10%.

When the group makes its move, it can be anticipated that the acquired asset will not only be enhancing to its earnings but also a new base from which it can grow a new asset.

Its other overseas assets in utilities are Indonesia based PT Jawa Power, UK based Wesses Water and ElectraNet in Australia .

Meanwhile the cash-rich YTL group made its second major deal in Singapore in a six-week span, as it bought 100% of the island’s second largest independent power company.

YTL Power International Bhd entered into an agreement with Singapore ’s Temasek Holdings Ltd to buy PowerSeraya Ltd for S$3.8bil, which included S$200mil in debt.

Singapore’s largest bank, DBS Bank Ltd, partially funded the deal by providing YTL Corp Bhd a S$2.25bil loan.

YTL Power is a 52.8% subsidiary of YTL Corp.

The 3,100 MW (megawatts) of licensed capacity operated by PowerSeraya will give them significant participation in the Singapore energy market. The attraction of PowerSeraya lay in its strong position in the energy market and multi-utility businesses.

The acquisition is expected to be completed by end-February 2009.

Its participation in the Singapore electricity market would put it in a prime position to contribute towards the liberalisation of the Malaysian electricity market, currently under study by the Malaysian Government.

PowerSeraya, which is also involved in oil trading, is the third and last of the three power generating companies (gencos) that Temasek put up for sale under its planned divestment of the gencos.

It has a licensed capacity of 3,100 MW, representing 25% of Singapore ’s total licensed generation capacity.

YTL Power was an established industry player with a strong track record in power investments and Temasek was confident YTL Power’s expertise and experience would add significant value to Singapore ’s electricity market and PowerSeraya in particular.

Singapore operates a liberalised electricity market, Asia ’s first such market.

Electricity generated from gencos is sold into the Singapore Electricity Pool, a competitive wholesale market operated and administered by Energy Market Co Pte Ltd.

Electricity is sold to retail customers by retail energy suppliers, of which Seraya Energy Pte Ltd, a 100% subsidiary of PowerSeraya, is the leading power supplier with 18% total market share in 2007.

Malaysia
-> 100% Paka Power Plant, Terengganu 808MW
-> 100% Pasir gudang Power Plant, Johor 404MW
Indonesia
-> 35% Jawa Power 1220MW
Australia
-> 33.5% Electranet (Transmission service provider)
Singapore
-> 100% PowerSeraya Ltd 3100MW

In addition, the Singapore government-owned investment firm Temasek Holdings Pte Ltd has shortlisted around five companies from preliminary bidding for its sale of Senoko Power Ltd.

France's GDF Suez, Japan's Marubeni Corp, India's Tata Power Co Ltd, YTL Power Bhd, and the OneEnergy Ltd tie-up between Hong Kong's CLP Holdings and Japan's Mitsubishi Corp are the shortlisted bidders, bankers told Reuters Basis Point, in a deal that market players have said could fetch about US$3 billion (RM10 billion).

Other firms that were understood to have submitted last week non-binding expressions of interest included Bahrain investment bank Arcapita Inc, Singapore 's Keppel Corp and Sembcorp Industries Ltd.

The shortlisted candidates will be allowed to conduct due diligence around next month (Sept 2008).

Wednesday, December 10, 2008

IPO: Asia Bioenergy

Its primary role is that of a strategic advisory group with focus on companies from the biotechnology and biofuels sector.

It raised Rm12.9 million from its listing exercise, the bulk of which – rm8 million – the company plans to park in a technology incubation fund.

This fund will be sued for its existing incubatee companies and new investments, which primarily target early stage investments in the bioenergy industry. The incubation programme involves nurturing and assisting start ups to grow in the marketplace and will include but not be limited to providing financing, value added services, infrastructure and other support services.

From the remaining amount, rm2 million has been earmarked for R&D and related activities as well as capital expenditure, while rm1.4 million is for working capital. Some rm1.5 million will be used to settle estimated listing expenses.

Its major investment projects include Crand Inizhio Sdn Bhd, ECO Sponge Sdn Bhd, Nexfuel Sdn Bhd and Platinum Energy.

However, among the risks it faces going forward are its dependence on its incubatee companies and the bioenergy industry as well as its limited operating history. Net profit from its associates accounts for the bulk of the company’s net profit.

Investments in start-ups and companies in the early stages of development in new and rapidly evolving technologies or industries carry a higher degree risk.

Also, given the focus of its incubatee companues, the company admits that its fate is tied to the prospects of the biofuel and biodiesel industry.

In order to mitigate this, it may in future diversify its investments into other industries to less reliant on the risk of a single industry.

Listing on 12/Dec/2008.

Tuesday, December 9, 2008

Airasia

Its proposed privatisation is not taking off as its major shareholder Tune Air Sdn Bhd has been hampered by limited financing options due to the global credit crunch.

Sources said that the global credit crunch and economic slowdown, which have seen most of the developed world slipping into recession, had made it difficult for Tune Air to raise money for the purpose.

It is learnt that certain investors who were initially keen to take part in the proposed privatisation of the low-cost carrier had also turned bearish, deciding now not to proceed with it.

As recently as Nov 25 2008, AirAsia chief executive Datuk Seri Tony Fernandes still considered the privatisation of the carrier “definitely an option”.

It had been reported that the privatisation would have cost Tune Air up to RM2.2 billion. Tune Air has a 30.72% stake in AirAsia. The Employees Provident Fund has a direct 8.92% stake in AirAsia (211.71 million shares) and an indrect stake of 0.04% (one million shares). Its other substantial shareholders are T Rowe Price Associates with 6.01% (142.79 million shares) and Nomad Investment Partners 5.83% (138.4 million shares).

On Nov 17 2008, AirAsia said Tune Air was still in the midst of negotiating the terms and conditions with financial institutions and other potential investors to fund the privatisation of the carrier.

In a deviation from the norm and in a rare display of transparency among Malaysian corporates, AirAsia caused a stir when it first announced on Oct 10 2008 that Tune Air was mulling the option of privatising the carrier at an indicative price of about RM1.35 per share. AirAsia had cautioned that the option was “subject to the availability of financing on acceptable terms from financial institutions and other potential investors in these challenging times, as well as a conducive market and industry conditions”.

Despite encountering slowing global demand for air traffic, AirAsia has been expanding its flights and extending its reach regionally, as part of its strategy to garner market share that will put it in good stead over the longer term. A saving grace has been the drastic decline in global oil prices.

Financial Results …

Airasia posted net loss of RM465.53mil due to translation losses and exceptional items.
Airlines were affected by the surge in fuel prices during the third quarter ended Sept 30, where jet fuel averaged US$160 per barrel against US$91 in the previous corresponding period.

AirAsia meanwhile recorded revenue of RM658.48mil in the third quarter 2008 against RM461.59mil previously. It reported a core operating loss of RM76mil against a core operating profit of RM48mil a year ago. The ringgit weakened against the US dollar and this resulted in a translation loss of RM213mil.

The exceptional item amounting to RM215mil relates to the provisions for unwinding our derivatives structures and likely non-recovery of collateral for trades held by Lehman Brothers Commodity Services Inc.

Due to these charges, AirAsia posted a loss after tax of RM466mil after accounting for deferred taxation.

For the nine months ended Sept 30 2008, it posted a net loss of RM294.8mil compared with net profit of RM451.9mil in the previous corresponding period. Revenue increased to RM1.8bil from RM1.3bil a year ago.

Essentially, Airasia settled its fuel hedges in view of the falling fuel prices and took a one off hit in its books. As for its translation losses, it had to book in losses when the ringgit weakened significantly against the US dollar.

Its initially view was that oil prices would stay at US$70 per barrel and it had hedged its fuel based on this parameter. But this view has changed with the eruption of the global financial crisis. Due to the falling and extreme volatile fuel prices, the group has decided to unwind its fuel hedging and limit its losses.

Nevertheless, for its 4QFy2008 it will continue to make provisions in relation to oil contracts but these will not be significant. However, it is confident the airline will be able to recover the cost of unwinding in less than three months.

Airasia is paying spot prices now (Nov 2008) and will likely hedge its fuel requirement when oil prices fall to around US$55 per barrel as the forward contract for oil is currently (Nov 2008) at US$61 per barrel.

Monday, December 8, 2008

如何防蚊虫叮咬呢?

美国科学家研究发现,人体排出的二氧化碳、汗液里的乳酸以及香水、发油和除臭剂等散发出的芳香气味,都受蚊子“青睐”。据当地媒体报道,美国农业部化学专家乌尔里克·伯尼尔等人正在进行一项研究,了解人体皮肤表面1000多种化学物质中哪些物质“吸引”蚊子,以便开发出有效的灭蚊剂。

  在佛罗里达州的盖恩斯维尔实验室,伯尼尔发现人体排出的二氧化碳、汗液里的乳酸以及香水、发油和除臭剂等散发出的芳香气味都招惹蚊子,而且穿黑色衣服也招蚊子。另外,伯尼尔还发现,人体皮肤表面一些化学物质是蚊子讨厌的,但伯尼尔没有详细说明是什么物质。由于每个人身体散发出的体味不同,蚊子叮人因人而异。另外,蚊子本身也有自己的“喜恶”。伯尼尔等人目前正在对此进行研究。

  有些人认为食用酿啤酒用的酵母、大蒜或维生素B12可以不招蚊子咬,但研究人员说,这些土方法其实没多大用。伯尼尔指出,具体吃什么才能不招蚊子叮,还需要进行专门研究。保持居住环境清洁干净防止蚊子滋生,才是防止蚊咬的关键。

  公蚊子不吸血,只吸食植物的汁液,所以它们一般不进屋。只有秋后天气冷了才会跑进室内避寒。吸血的都是母蚊子,吸血是为了增加营养繁殖后代,吸饱了就找有水的地方产卵去了。

  它们一般5月开始出动,至8月中下旬达到活动高峰。秋天气候变冷温度降到 10摄氏度以下时,它们就会停止繁殖,不食不动进入冬眠,直到第二年春天激醒后又出来。它们最喜欢的温度是30摄氏度左右,太高了也受不了。它们的生存繁殖环境必须有水,因此地面积水、臭水沟、下水道、人们扔掉的易拉罐、矿泉水瓶等都是它们的理想家园。

  科学家研究表明,蚊子叮人是有选择的,能为蚊子带来丰富胆固醇和维生素B的人最受蚊子青睐。蚊子利用气味从人群中发现最适合它们“胃口”的对象。胆固醇和维生素B这两种物质是蚊子等令人讨厌的昆虫生存所必需、而它们自己又不能产生的营养。

  蚊子具有很强的嗅觉能力。当人类呼出二氧化碳和其他气味时,这些气味会在空气中扩散,而这些气味好比是开饭的铃声,告诉蚊子一顿美餐就在眼前。蚊子跟踪它的目标时,总是随着人呼出的气味曲折前进直到接触到目标为止,然后就落到皮肤上耐心寻找“突破口”,最后才把“针管”直接插入皮肤里吸血8-10秒钟。

  大多数化妆品中都含有硬脂酸(脂肪酸的一种),所以化妆的人比不化妆的人更受蚊子“欢迎”。至于一个人的胆固醇水平,倒不会左右蚊子的判断力,除非有足够胆固醇贮存在离表皮很近的地方。当然也有一些气味是蚊子所讨厌的,如月桂叶、柠檬草油、香茅、大蒜和香叶醇的气味。

  另有一项研究显示,孕妇遭蚊咬的机会比未怀孕的女性高出1倍。研究人员认为:妇女在怀孕期间所呼出的气体含有多种不同的化学物质,因而成为疟蚊的叮咬目标。此外,孕妇体温较高,出汗也多,是皮肤细菌滋生的良好基地。这两个原因使孕妇比其他妇女更易惹蚊子“光顾”。

  其中以“血型说”的流行指数颇高。就此问题采访华南农业大学昆虫毒理研究室主任徐汉虹教授时,A型血的记者被研究室饲养的实验用蚊子大肆围攻,一个小时内就收获了八九个大“红包”,而一旁O型血的徐教授却毫发无损。这似乎印证了“血型说”“性别说”的结论。

  然而,徐教授指出,蚊子爱叮什么人与血型、性别、性感并无直接联系,而主要看人体向蚊子发“信号”的能力强弱与否,强烈的“信号”通过空气传播,能够引导它便捷地找到食物。

  穿深色斜纹牛仔裤易挨咬

  对蚊子来说,人体排出的二氧化碳、汗液都是引导它找到猎物的有效信息。它寻找目标主要依*嗅觉器官,也就是头上一对角,来感知空气中传来的人体 “信息”,并循迹而去。别小看身长不过一厘米的蚊子,它的搜索能力很强,搜索的最远距离可达60公里。在此范围内,“信号”越强的目标,自然也越容易被它们锁定。

  二氧化碳排得多的人,由于周围二氧化碳的浓度相对较高,在蚊子的视野中所呈现的“图像”比较清晰,便于蚊子进行定向追踪。因此,在一个群体中,肺活量大的人、胖人、呼吸沉重的人更容易被蚊子叮咬,孕妇因新陈代谢活跃,呼出的二氧化碳也较高。

  人体排出的汗液在空气中挥发,也能向蚊子发出“信号”。通常汗量多、易出汗的人受蚊子攻击的机会更大,这足以解释为何我们常在运动后,发现身上神不知鬼不觉地多出了几个大“红包”。蚊子爱叮咬皮肤粗糙、毛孔粗大的人,通常是因为这类人往往汗腺发达或者排出的汗液等分泌物较多。因此,有时男人比女人、青年比老人更招蚊子。

  有人发现,女性在月经期间或者妊娠期间格外“招”蚊子,认为这可能和性激素分泌水平高有关,以此得出“蚊子喜欢叮性感的人”。徐教授指出,这其实是因为上述阶段的女性内分泌发生改变,新陈代谢加快,排汗量往往更多,对蚊子的刺激和引导更强。出于同样的道理,处于发育期的青少年也容易“招”蚊子。

  一项数据表明,孕妇临产前,呼气量比没有怀孕的女性大21%,呼出的潮湿气体与二氧化碳对蚊子具有相当的吸引力。此外,和没有怀孕的女性相比,孕妇的腹部温度要高0.7倍,而体温越高,皮肤表面的挥发性物质就越多。

  穿衣打扮不当,会招来蚊子。原来,蚊子怕光但又不喜欢光线太暗,最喜欢在弱光环境下吸血。白天,当人们穿着深色衣服时,反射的光线较暗,恰恰投其所好。另外,蚊子喜欢叮咬体温较高的人,而深色衣服的吸热能力强。几种因素相加,自然使得深色衣服的诱蚊指数大涨。人们常认为黑色衣服最招蚊子,而据徐教授介绍,其实身着深色斜纹牛仔裤反而最容易被蚊子叮咬。

  香水发胶面霜招惹蚊子

  化妆打扮过火,也会挨蚊子咬。使用香水、发胶、面霜等带花香味的化妆品以及火局油膏,被蚊子叮咬的几率都会增加。有人认为,大多数化妆品都含有可吸引蚊子的化学成分。所以化妆的女士比素面朝天者更受蚊子“追捧”。夏天洗澡也不宜使用香味过浓的香皂和沐浴液。

  不过,并非所有的香味都会招惹蚊子,例如香茅油、桉叶油气味,反而是驱蚊的良品。

  驱蚊水不宜和防晒霜共用

  对于容易挨蚊子咬的人来说,驱蚊水无异于救命的稻草。但是,如何才能把驱蚊水的功效发挥到最大呢?徐教授提醒,驱蚊水不宜和防晒霜以及其他香水混用。因为驱蚊水的成分主要是驱蚊胺和酒精,混用会降低甚至完全抵消驱蚊效果。

  一些女士既怕被蚊子叮咬又怕被烈日晒黑,索性每天出门前把驱蚊水和防晒霜各涂一遍。这样不仅降低了驱蚊的效果,在高热天气下,其中的成分更可能发生化学反应,造成皮肤炎症。

Sunday, December 7, 2008

A Date!

After 21 years of marriage, my wife wanted me to take another woman out to dinner and a movie.

She said I love you but I know this other woman loves you and would love to spend some time with you.

The other woman that my wife wanted me to visit was my MOTHER, who has been a widow for 19 years, but the demands of my work and my three children had made it possible to visit her only occasionally.

That night I called to invite her to go out for dinner and a movie.

"What's wrong, are you well," she asked? My mother is the type of woman who suspects that a late night call or a surprise invitation is a sign of bad news.

"I thought that it would be pleasant to be with you," I responded. "Just the two of us."

She thought about it for a moment, and then said, "I would like that very much."

That Friday after work, as I drove over to pick her up I was a bit nervous. When I arrived at her house, I noticed that she, too, seemed to be nervous about our date. She waited in the door with her coat on. She had curled her hair and was wearing the dress that she had worn to celebrate her last wedding anniversary.

She smiled from a face that was as radiant as an angel's.

"I told my friends that I was going to go out with my son, and they were impressed, "she said, as she got into the car. "They can't wait to hear about our meeting".

We went to a restaurant that, although not elegant, was very nice and cozy. My mother took my arm as if she were the First Lady. After we sat down,

I had to read the menu. Large print. Half way through the entries, I lifted my eyes and saw Mom sitting there staring at me. A nostalgic smile was on her lips.

"It was I who used to have to read the menu when you were small," she said.

"Then it's time that you relax and let me return the favor," I responded.

During the dinner, we had an agreeable conversation - nothing extraordinary, but catching up on recent events of each other's life. We talked so much that we missed the movie.

As we arrived at her house later, she said, "I'll go out with you again, but only if you let me invite you." I agreed.

"How was your dinner date?" asked my wife when I got home. "Very nice. Much more so than I could have imagined," I answered.

A few days later, my mother died of a massive heart attack. It happened so suddenly that I did to do anything for her.

Some time later, I received an envelope with a copy of a restaurant receipt from the same place mother and I had dined.

An attached note said: "I paid this bill in advance. I wasn't sure that I could be there; but nevertheless, I paid for two plates - one for you and the other for your wife. You will never know what that night meant for me. I love you, son."

At that moment, I understood the importance of saying in time: "I LOVE YOU!" and to give our loved ones the time that they deserve.

Nothing in life is more important than God and your family. Give them the time they deserve, because these things cannot be put off till "some other time."

Saturday, December 6, 2008

Friday, December 5, 2008

Fibon Bhd ... IPO

Fibon Bhd is the investment holding company of Hexa Analisa Sdn Bhd which was incorporated in 2003. Pang founded the insulation materials production business in 1992 under CPC Polyply. Its clients include Schneider Electric, Siemens and Terasaki Electric Co Ltd.

Fibon Bhd, formulator of advanced composite materials and manufacturer of electrical insulators, is seeking Mesdaq Market listing to expand its overseas market share despite global economic uncertainties.

RM1.18 million of the RM9.14 million gross proceeds would go towards setting up sales offices in Australia, the United Arab Emirates and the United Kingdom over the next three years.

The overseas market contributed about RM11.91 million or 83% of the company’s RM14.31 million revenue in its financial year ended May 31, 2008 (FY08), with Singapore accounting for half the export revenue. Its other markets include Australia, Thailand, Indonesia, South Africa and Vietnam.

Market capitalisation upon listing on Dec 18 2008 is expected to be RM8.33 million.
The group’s pro forma revenue stood at RM14.31 million and net profit of RM7.85 million for FY08. Based on a net earnings per share of 29.06 sen and its offer price of RM2.73, the price earnings multiple amounts to 9.4 times.

Apart from geographical expansion, Fibon Bhd intends to use the proceeds to enhance research and development, purchase new machineries, finance its working capital and to defray listing expenses.

Technology companies would need to upgrade their switchboard systems. Their products are “a necessity for security, not a luxury product”.

Post listing, Pang will hold 25.89% of the company, while his wife Lim Wai Kiew will hold 8.11%. His brother and Fibon’s executive chairman Pang Chee Khiong will hold a 15.12% stake.

Thursday, December 4, 2008

YNHP Property Bhd

YNH Property Bhd is targeting to officially launch its RM1bil Kiara 163 suites, a mixed development project in Mont’ Kiara, Kuala Lumpur, next month (Dec 2008). The project comprises a 23-storey office tower (175,000 sq ft), two 42-storey serviced apartment blocks (595,000 sq ft), retail podium (142,000 sq ft), and an auditorium (175,000 sq ft). They have secured about RM260mil in sales for the office and retail space to-date.

The group’s other mixed-development projects, Duta Kiara 1, Duta Kiara 2, Duta Kiara 3, Duta Kiara 5, Duta Kiara 6 and Project 3KL, located in Mont’ Kiara, Hartamas and Kuala Lumpur city centre, would be launched over the next two years. These projects have a total gross development value (GDV) of about RM2bil.

Its projects in KL and Mont’ Kiara, such as the Fraser Place KL and Ceriaan Kiara, have been well received with Fraser Place KL achieving sales of about 99% and Ceriaan Kiara 87% to-date. Fraser Place KL is scheduled for completion soon, while Ceriaan Kiara will be ready by end-2009.

On the status of Menara YNH, the group had accepted Kuwait Finance House’s offer to buy 50% of the iconic “Grade A” office tower in January 2008. This property, located in the central business district, is designed by a world-renowned architect firm, Fosters and Partners. They are not in a rush to sell the second block.

The company’s dividend policy was at least 30% of profits but the group had paid a higher rate in the past few years.

Wednesday, December 3, 2008

EPF better than stock market?



IN general, most people have the impression that the money placed in the Employees Provident Fund (EPF) always generates lower returns compared with the returns from their own investments.

In this article, we will look into the returns from EPF versus returns from the KL Composite Index (KLCI). We assume that investors are able to generate their own returns equivalent to the returns from the KLCI.

Based on our 23 years of data compilation, it is generally true that the average returns generated from EPF are lower than KLCI returns. From 1986 to 2008, the average return of EPF was 6.7%, 2.3 percentage points lower than the average return of 9% from the KLCI (see table).

However, most people do not understand the risks they need to undertake when they invest by themselves. The standard deviation of EPF is only 1.5%, 22.2 percentage points lower than the standard deviation of 23.7% from the KLCI.

We use standard deviation to measure risks. Most investors only look at how to generate the extra 2.3 percentage point returns, forgetting that they need to undertake a much higher risk to generate the extra returns. The extra return is unable to compensate for the extra risks that investors need to take.

Let’s assume one investor invested RM10,000 in the EPF and the KLCI respectively at the beginning of 1986. Logically with the average KLCI return higher than the average EPF return, the fund in KLCI should be higher than the fund in EPF in most periods.

However, as the table shows, by the end of 2008 (we assume that EPF will only be able to generate a return of 4.25%), the fund placed in KLCI would have reached RM40,000 versus RM43,946 generated by EPF, a shortfall of RM3,946.

The main reason behind this shortfall is that the EPF never gives negative returns whereas the KLCI generated negative returns eight times over the past 23 years.

There is a market saying that out of 10 people who invest in the stock market, only one can make money, the others will lose money. Warren Buffett says if you want to win, you don’t lose. Hence, we disagree with some people who advise others not to place money in EPF because it generates lower returns.

In most periods, the money in EPF gets lower return than the money placed in KLCI. However, the main reason for the lower fund value in KLCI by the end of 2008 was the market crash during 1998.

The money in KLCI dropped by 47.1% to RM18,105 in 1998 from RM34,246 in 1997 whereas the money placed in EPF increased further to RM26,594 in 1998 from RM24,924 in 1997. After 1998, it took nine years for KLCI to catch up with the fund value in EPF.

Last year the fund value in KLCI (RM46,000) finally surpassed the fund value in EPF (RM42,154). However, as a result of the recent market crashes, we are anticipating the fund value in EPF to overtake KLCI again this year.

It will take a few years from now for the KLCI to catch up with the EPF again. Unless investors are constantly monitoring their own investments and are able to avoid most of the negative returns, we think it is safer to put money in the EPF rather than withdraw it for their own investments.

My E.G. Services Bhd

Electronic government services provider My E.G. Services Bhd’s (MyEG) shares slumped 7.6 on news that three other companies have been given the green light by the Government to provide electronic transaction services to the Road Transport Department (JPJ).

Electronic transactions for the JPJ are currently (Nov2008) handled by MyEG.
MyEG’s earnings going forward would definitely be affected as the bulk of its revenue was derived from providing electronic transaction services to the Government, especially the Government Enterprise Solution (GES) and Government to Citizen (G2C) services. GES and G2C services contributed over 90% to MyEG’s revenue.

MyEg was the exclusive service provider then but now (Nov2008) it has to share its core business with three other competitors.

The Government’s move to allow more players to service E-businesses will break the monopoly and hopefully promote healthy competition among players to drive down cost and improve efficiency of the services.

However, the move to break the monopoly would not augur well for MyEG as its non-core businesses were still at a growing stage and were yet to contribute significantly to the group revenue

In October 2007, MyEG acquired Fidelity Radiance Sdn Bhd as part of plans to diversify and move away from government projects.

Financial Results …

For financial year 2008, MyEG posted a net profit of RM14.78mil on revenue of RM49.27mil.

Its net profit (MYEG) jumped 51.2% to RM4.16 million in its first quarter (1Q) ended Sept 30, 2008 from RM2.75 million a year earlier on the back of a growing acceptance of its online road tax renewal service launched last April.

The e-government services concessionaire’s revenue rose 35.7% year-on-year to RM12.24 million from RM9.02 million previously. Basic earnings per share fell to 1.6 sen from 2.2 sen.

It declared an interim tax exempt dividend of 0.455 sen per share payable on Feb 23, 2009, upon completion of a bonus issue of 327.85 million new MYEG shares to be credited as fully paid-up on the basis of six shares for every five shares held.
The group also saw growing revenue contributions from the Highway Code theory test-taking in the first quarter.

The healthy growth achieved in the first quarter — typically a cyclically weak quarter for the group — is indeed an encouraging trend. This shows the increased awareness and adoption of its services among the general public.

Tuesday, December 2, 2008

Open an ASM (Amanah Saham Malaysia) account



One billion ASM units on offer was started yesterday 1/December. Today went to the agent office (Maybank) to check whether it is still available, the officer told me it is still available. Finally, open an ASM account today.

Just curious what are the return of those funds that launch by PNB (Permodalan Nasional Berhad), above attached are the 3 years average return.

ASW2020, still the highest!

Information extract from: http://www.asnb.com.my/

Bonia Corp Bhd

It is reviewing its business expansion strategy in Malaysia but is continuing its expansion plans in the Middle East despite the current economic slowdown.

The Malaysian business expansion depends very much on Christmas (2008) and Chinese New Year (2009). If market is really low after that, then it will apply a different strategy.

They are consolidating its outlets.

The company has three brands, Bonia, Sembonia and Carlo Rino, and each carries a different price range. If its customers shift from higher-end price range to the middle-low, they are also there. Based on the sales turnover, they have been getting positive feedback on Sembonia and Carlo Rino brands. Bonia contributed about 40% to the group’s revenue while both Carlo Rino and Sembonia contributed about 30% each.

Financial Results …

For financial year ended June 30, 2008, the group recorded a lower net profit of RM27.9 million from RM28.2 million previously.

Revenue rose 21.9% to RM300.2 million from RM246.3 million due to nationwide Mega Sales and major festive seasons. Its overseas sales accelerated by 22% to RM96 million from RM78 million in 2007, representing 32% of its total revenue.

Currently (2008) they have presence in Saudi Arabia and hope to expand its presence to the rest of the Gulf Countries in the next six months (Jan – June 2009). Revenue contribution from the new markets in the Middle East may not significantly impact the group’s revenue in the first year.

For its first quarter ended Sept 30 2008, Bonia’s net profit fell 31% year-on-year to RM5.9 million from RM8.6 million while revenue rose 26% to RM89.1 million from RM70.6 million. The growth was mainly attributed to higher sales achieved from Mega Sales and Hari Raya festive season. Revenue generated from overseas rose to RM10.5 million from RM8.6 million.

Monday, December 1, 2008

Open an account in ptptn.

Last week, open an saving SSPN (SKIM SIMPANAN PENDIDIKAN NASIONAL) account in ptptn collection agent - Maybank for my child.

My previous post here.

Following are the documents required:-
- SSPN form. (can download in http://www.ptptn.gov.my/web/guest/simpanan/borangSSPN)
print and fill in.
- photocopy & original IC.
- photocopy & original child birthcert.
- Bank deposit form.

Account is opened. The account number conversion is + .
Eg: your first child account will be 01

Surprisingly, I asked the agent what kind of document I will get, they are not sure, they push everything to the PTPTN.

I went to PTPTN office to ask, they told me, a certificate will be issued/post to me. After that, I asked how can I process for my income tax rebate....they errr...ahh....also not sure, and later told me, I can print the statement from the ptptn website, but I must wait for the opened account certification first.

Let's see how soon I can get the certification from ptptn and what is next.

Stay tune......

MNRB

Financial Results …

Reinsurer MNRB Holdings Bhd was knocked by higher claims that could not be offset by a lower investment income in its second quarter.

The group reported a net loss of RM13.3mil in its quarter ended Sept 30 2008, compared with a net profit of RM25.4mil in the previous corresponding quarter.

MNRB experienced a combined claims ratio of 102.5% in the quarter as against a ratio of 92.9% previously. That stemmed from large reinsurance claims for damages to local properties from fire and natural disasters overseas. There was, in particular, a Slovenian hail storm in August 2008.

While there were more natural disasters that involved MNRB earlier in the year, “there is a time lag between the event and claims”. Hence, some provisions had to be made in the quarter even though some of the disasters, like the earthquake in Sichuan, China, had occurred in January 2008

Malaysian Reinsurance Bhd (Malaysian Re), the group’s biggest subsidiary, reported a lower investment income of RM24.8mil for the first half of the current financial year compared with RM33.3mil in the corresponding period last year.

Its net profit amounted to RM10.5mil in the period against RM45.3mil previously.
Labuan Reinsurance (L) Ltd, in which MNRB has a stake of 20%, showed a loss of RM10.6mil in the group’s half-year results.

Going Forward …

MNRB, an investment holding company, has exposure to overseas risks through Malaysian Re and Labuan Reinsurance.

As MNRB would some day lose its captive cessions of business from local insurers, it decided to venture cautiously overseas so as to maintain its level of revenue. Presently (Nov 2008), the domestic captive cessions account for about 50% of MNRB’s total revenue.

The cession contracts with local insurers end in 2010 and it is uncertain if that will be renewed as Bank Negara had said the mandatory reinsurance from local insurers with Malaysian Re would eventually be liberablised.

Sunday, November 30, 2008

才知道

1.到了中國,才知道只生一個孩子好。

2.到了臺灣,才知道罵祖宗還可以面帶微笑。

3.到了香港,才知道明星都戴著口罩。

4.到了日本,才知道死不認帳的人有時候還會很有禮貌。

5.到了韓國,才知道亞洲足球使上帝都差點瘋掉。

6.到了泰國,才知道看見漂亮妹妹先別慌著擁抱。

7.到了新加坡,才知道為什麼四面都是水,還向別人要。

8.到了印度,才知道多貴重的人都得給牛讓道。

9.到了印尼,才知道為什麼華人夜裏睡不著覺。

10.到了阿拉伯,才知道做男人是多麼的驕傲。

11.到了法國,才知道被人調戲還會很有情調。

12.到了西班牙,才知道被牛拱到天上還可以哈哈大笑。

13.到了南斯拉夫,才知道為什麼有人不願回到祖國的懷抱。

14.到了奧地利,才知道是個乞丐都能彈上一支小調。

15.到了瑞士,才知道開個銀行帳戶沒有十萬會被人恥笑。

16.到了丹麥,才知道寫個童話其實可以不打草稿。

17.到了義大利,才知道天天吃比薩臉上都可以不長膿包。

18.到了希臘,才知道迷人的地方其實都是破廟。

19.到了梵蒂岡,才知道在其境內任何地方開槍都可以打著羅馬的鳥。

20.到了美國,才知道不管是誰,亂嚷嚷都會中炮。

21.到了加拿大,才知道面積比中國還大的地方,人比北京還少。

22.到了巴拿馬,才知道一條河也代表了主權的重要。

23.到了巴西,才知道衣服穿得很少也用不著害臊。

24.到了智利,才知道火車在境內拐個彎也很難辦到。

25.到了阿根廷,才知道不懂足球會讓人暈倒。

26.到了南非,才知道隨時會被愛滋吻到。

27.到了撒哈拉,才知道節約用水的重要。

28.走遍非洲,才知道人吃人有時候也是一種需要...。

到了马来西亚,才知道牵手也会接传票!

Saturday, November 29, 2008

Timely Tip ––“Simple Tips For Success”“Success”

Are you “All Ears” for this advice? Why is listening so difficult? Some say it’s because we think much faster than we talk. As a result, when we listen, we must continually remind our brains to slow down to an unnatural pace. Here are some exercises to try to help you focus on the message you are receiving:

•Work to anticipate what conclusions the speaker will draw based on what the personis saying.

•Review and mentally summarizethe points the person talking has already made.

•Listen BETWEEN the lines in search of greater meaning. For example, notice how nonverbalcommunication, such as tone of voice, adds to the meaning of what the person is saying.

Have you ever wondered why some people consistently accomplish more than you? Every person has the same 24 hours in a day, yet some seem to have more time and fewer excuses for not accomplishing enough. What separates winners from whiners? It’s their willingness to invest in their own success.Use these tips to move AHEAD of the pack: Emulate those ahead of you. Seek out the toppeople in your field and askthem “What do you read…watch on TV? What advice can you give me?” You’ll be surprised at how happy top performers are to help you. Write down what they tell you, analyze how you can adapt it to your own business life and then implement some of their secrets.

Fly with the eagles. A recent Harvard study found that if you associate with people, friends, co-workers, family members, who are not success oriented, you greatly diminish your chances for success in your own life. We are either raised up orpulled down by the people who surround us. You don’t have to be a snob, but if you feel you aren’t surrounded by “winners,” take steps to change. Join professional associations. Take continuing education courses.

COMMUNICATE CONVICTION. By changing a few bad habits, you can communicate with strengthand conviction.
Uncertainty. Phrases such as “kind of” and “sort of” communicate uncertaintyand inability to form clear thoughts. Replace “I kind of have a problem with your idea” with “I have concerns about your suggestion. Can you please tell me more?”

Wishy-Washiness. When you say “I will try to…” you are less often describing a commitment you are willing to make than expressing your doubts or unwillingness to see an action or planthrough. Use a more active voice to convey your plans. Say “I will call you by Wednesday, and we can discuss the situation further at that time.”

Friday, November 28, 2008

UEM Land ... Nov 2008

Sources say Iskandar Investment Bhd (IIB), the promoter of the IDR is in talks with two operators to set up separate theme parks.

Besides Lego AS, which was reported to be in talks to set up a theme park, IIB is undestood to be in negotiations with Dubai-based Space Investment Co LLC (SIC). SIC is in the midst of setting up SpaceWorld UAE, which is slated to be opened in about a year or two in the Middle East.

SpaceWorld UAE is being developed by SIC with US Space and Rocket Centre as its partner. USSRC, meanwhile, operates as a space-based theme park in Huntsville Alabama.

The plan is to bring in a few small operators and set them up in an area as opposed to having one large player such as Disney or Universal having the whole pie.

While Lego’s investment is understood to be in the region of RM800 million over the next five years, SIC is understood to still be at the negotiating table. Sources say Lego could sign a deal soon, and undertake by March 2009 to commence construction on the theme park by June 2009.

Privately held Lego has other theme parks in Billund in Denmark, Winsor in England, Carlsbad in Carlifornia and Gunzburg in Germany. It is noteworthy that in 2005, Lego sold 70% in Legoland Parks, the operator of the theme parks, to Blackstone Group LP. It is not known if Balckstone is involved in these negotiations.

SIC, meanwhile, has little to show as yet but officials have outlined plans to set up parks in North Africa and the Indian Subcontinent.

Lego’s development will likely be on a 400 acre plot of land off Danga Bay. Khazanah Nasional Bhd has set aside around 3000 acres for the development of theme parks and related businesses. It is not clear how large a site SIC is looking at taking for its intended development.

Previously, IIB and its parent, Khazanah Nasional, had negotiated with Oriental Land Co Ltd, the operators of Disneyland in Japan, and Universal Studios, but these talks fell through.

SIC’s interest comes on the back of similar initiatives by other Middle Eastern companies in Islandar Malaysia. Companies from the Middle East have already come in, tying up with UEM Land Holdings Bhd or buying plots of land for development. UEM Land is a 77% owned unit of Khazanah Nasional.

Thursday, November 27, 2008

Kian Joo ... Nov 2008

The strategic block of 34.64% in can manufacturer Kian Joo Can Factory (KJCF) has yet to attract a buyer despite it having been put up for sale since August 2008.

A strategic partner was crucial for KJCF as it would not only put a halt to years of family dispute in the company but also boost its earnings and market share. This is the third time that the block has been put up for sale.

Sources have indicated that there have been issues relating to the price. It is learnt that the deadline for the sale is Nov 27 2008.

KPMG Advisory Services Sdn Bhd, which is the liquidator of the block of shares, declined to comment.

There are a lot of potential buyers but the (See) brothers are unable to agree on the price, among others.

Based on yesterday’s price of RM1.03 per share, the block of 153.86 million shares is valued at RM158.5mil.

Latest filings to Bursa Malaysia show that Teow Chuan owns a direct stake of 2.97%, or 13.18 million shares, in KJCF. His indirect stake stands at 35.2% or 156.37 million shares.

As at May 2008, KJCF’s market share of the aluminium can business in Malaysia was about 70%. It had an estimated 50% market share of the tin can market, 10% to 15% of the corrugated carton market and about 30% of the market for polyethylene terephthalate bottles.

Among the companies that had submitted bids for the stake included Can-One Bhd.

Wednesday, November 26, 2008

Airasia ... Nov 2008

AirAsia Bhd has secured financing totalling US$336 million (RM1.21 billion) for the purchase of up to eight Airbus 320-200 aircraft, in the first Islamic French-Malaysian lease agreement.

BNP Paribas and Natixis Transport Finance acted as the lead arrangers, global coordinators and book runners for the syariah-compliant French single investor Ijarah.
Landesbank Hessen-Thuringen Girozentrale, Irish Branch (Helaba) acted as mandated lead arranger, RHB Islamic Bank Bhd as arranger, and Bank Rakyat as mandated lead arranger of the commodity Murabaha. The banks were advised by Norton Rose together with Wong and Partners in Malaysia and AirAsia by Freshfields Bruckhaus Deringer.

CEO Datuk Kamarudin Meranun said it had secured the financing at a pricing that was “comparable” to its previous aircraft financing deals before the global financial crisis as it had locked in the deal when BNP Paribas and Natixis first arranged financing for the carrier.

Earlier this year (2008), Airasia decided that this year (2008) is the best time for Airasia to arrange financing for 2009 and 2010. They locked in the financing in 2005, so now (Nov 2008) there are just some minor adjustments.

This financing for AirAsia is very important for them for the next two years (2009-2010). It will be in a comfortable position. It ensures that it can take delivery of its aircraft. It is lease payment but it still have the ownership. So, Airasia are able to get capital allowance.

The Islamic Ijarah, above a cost-efficient 100% financing structure, ensured that AirAsia’s capital and investment allowances were preserved.

AirAsia had in several stages placed firm orders of a total of 175 A320 aircraft, with an option of 50 more. It has so far taken delivery of 53 A320s, of which 43 are for Malaysia’s operations, while eight and two are for Thai AirAsia and Indonesia AirAsia, respectively.


Tune Air Sdn Bhd is still in negotiations with financial institutions and prospective investors to fund the potential privatisation of AirAsia Bhd.

AirAsia said Tune Air was still negotiating the terms and conditions with the institutions and investors and would make an appropriate announcement when Tune Air had formed a firm intention on whether to proceed or not with the privatisation.

Tune Air was considering taking the carrier private at an indicative price of about RM1.35 per share, subject to change depending on the market conditions at the point of decision.

The options of how best to optimise and expand its operations were being developed and the privatisation option was subject to the availability of financing on acceptable terms from financial institutions and other potential investors, as well as conducive market and industry conditions.

BNP Paribas and Natixis Transport Finance have closed for AirAsia Bhd a US$336mil Sharia-compliant financing for up eight Airbus 320-200 aircraft.
BNP Paribas and Natixis Transport Finance are the lead arrangers, global coordinators and book runners for the financing.

This Sharia-compliant French Single Investor Ijarah is the first Islamic French-Malaysian optimised transaction of this kind. Above a cost efficient 100% financing structure, the Islamic Ijarah ensures that AirAsia’s capital and investment allowances are preserved.

Purchase of each aircraft is through a mix of euro-denominated equity, a US dollar denominated investment agency agreement – Wakala from Islamic financiers and a US dollar-denominated Wakala granted by AirAsia and refinanced by a ringgit denominated Commodity – Murabaha.