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


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。


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!

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。


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
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’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


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.

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

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

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


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

Thursday, December 18, 2008

名家预测 八大惊吓































Wednesday, December 17, 2008

The Gem Of Life 珠光寶氣

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


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,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...


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

How about ACHIEVING 101%?

What equals 100% in life?

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


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.

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

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

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


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.

-> 100% Paka Power Plant, Terengganu 808MW
-> 100% Pasir gudang Power Plant, Johor 404MW
-> 35% Jawa Power 1220MW
-> 33.5% Electranet (Transmission service provider)
-> 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


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






  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。








  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。












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:

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
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......


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.