Sunday, October 31, 2010

Why PANTECH profit down ?

Pantech's profit down due to higher raw material costs and weak US dollar.

Summary of 2QFY2010 ended Aug 31, 2010.

Revenue - fell about 19% to RM97 million from RM119 million a year ago
Net Profit - down 37% to RM9.3 million or 2.49 sen per share
Dividend - good news is despite lower profit, Pantech declares 1.5 sen dividends per share (first interim single-tier
dividend of one sen per share and a special interim single-tier dividend of 0.5 sen)

For the cumulative six-month period ended Aug 31,

Revenue - fell 23% to RM187.45 million from RM243.29 million
Net Profit - down 37% to RM17.72 million from RM28.31 million
EPS - down to 4.74 sen from 7.57 sen
Net Assets per share unchanged at 66 sen per unit.

At the EGM, Pantech¡¯s shareholders approved the company¡¯s proposed a one-for-five bonus issue and a rights issue of up
to RM77.25 million of ICULS and 77.25 million warrants attached on the basis of one for every 10 ICULS subscribed.

They also nodded for the proposed waiver on the major shareholder CTL Capital Holding Sdn Bhd, which holds 13.75%
equity stake in Pantech, and several other parties from undertaking a mandatory takeover offer following the rights issue.

To hold or sell? Or wait for their bonus issue?
At the moment, probably will sell to swap with other stock.

What is your advise?

Thursday, October 28, 2010

Secrets of successful investing by former king of remisiers

Peter Lim, also know as former King of Remisier.

His secrets are...... Prospect, Patience and Invest for Long-Term.

He looks at sectors.

If palm oil is good, then invest in palm oil sector.

Another key reason for his success, according to him, is Patience.

He does not subscribe to buying one day and selling the next to cash in.

His advice is to invest with a longer-term mindset. Buy a good stock and leave it for 10 years, the return
can be many times.

His minimum length of investments are five to six years, or even 10 to 12 years.
Palm oil giant Wilmar International,, which he invested with US$10 millions in the early '90s. It is worth some US$700m now.

He is a Singaporean, and popularly known as the former king of remisiers, made his fortune as a successful stockbroker in Singapore in the 1980s..

Recently he made headline in UK football arena by offering to buy Liverpool football club which he failed. Subsequently the club was bought by American.

Sunday, October 24, 2010

PANTECH is coming......

Will PANTECH shares price move beyond RM1.00 and penetrate their year high of RM1.03?

Last week, the price moved from their usual range of RM0.80 to closed at RM0.91. Although volumn is not heavyly traded but is more than usual.

The price movement and volumn could be due to their bonus issue soon.

Let see what are there offer for the bonus issue package:

Bonus Issue = 1 bonus share for 5 existing ordinary share
ICUL = 2 ICULs (RM0.10 each) for 1 existing Pantech share
Warrant = 1 free warrant for 10 ICULs

if one has 5,000 units of Pantech share, after ex-date, it will become:

6,000 units Pantech Shares
10,000 units of ICUL
1,000 units of Warrant

Beside bonus issue, the company has been giving good dividends for last 2 years. It could be a good stock to hold, probably it will give you a handsome return for long term. (This is my own opinion, buy at your own risks).

Pantech recent financial results:
Pantech 3 years financial summary:

PANTECH is a supplier and stockist of carbon and stainless steel pipes and tubes, valves, flanges and other general hardware products for the oil and gas, petrochemical, marine, biodiesel, chemical, palm oil, power and pulp and paper industries.

Wednesday, October 20, 2010

Chen of Karambunai Corp Bhd

Low-profile Malaysian tycoon Tan Sri Dr Chen Lip Keong's Karambunai Corp Bhd shares are favourite to investors for last few days after the government announced plans on the Economic Transformation Programme for a proposed 500-acre "eco-nature" resort in Kota Kinabalu, Sabah.

Some brief story on Chen,

- born in Ipoh

- he graduated with Bachelor of Medicine and Surgery from University of Malaya

- mid 1970, he started out in property development

- year 1995, he founded NagaCorp, with the company he obtained a 70 years gaming license in Cambodia,
  the only one licensed casino in Phnom Penh

- year 2009, he was named Forbes Asia Malaysia's 40 richest

- his company NagaCorp Ltd was listed in Hong Kong in October 2006. It raised about HK$631 million
  from its IPO, surpassed target of HK$546 million.

- he is an official advisor to Hun Sen, the prime minister of Cambodia, and is credited with helping to revitalise  the country’s tourism industry following two decades of civil war.

Beside casino, he also committed US$1.3 billion to build a power station, sewage treatment and water
plants and property development projects. Many of these investments did not take off, partly due to
political issues.

Chen is president and director of Karambunai Corp Bhd and Petaling Tin Bhd. He is also an
executive director for FACB.

Tuesday, October 19, 2010

Citigroup is back !

Citigroup (C 4.17, +0.22) reported a better-than-expected quarterly profit yesterday as credit losses slowed and the bank set aside much less money to cover bad loans.
Citigroup not only posted bigger-than-expected bottom line results, but also reported reduced credit provisions. That, along with a good conference call, helped overshadow a light revenue figure.

Like stronger competitor JPMorgan, Citigroup beat 3Q earnings expectations in part by releasing money it had set aside to cover bad loans.

The third-largest US bank by assets posted a 3Q profit of US$2.2 billion (RM6.8 billion), or seven cents per share, compared with a year-earlier loss to shareholders of US$3.2 billion, or 27 cents per share.

On an ongoing basis, excluding an US$800 million pre-tax loss on the sale of its student lending operations, Citigroup earned US$2.6 billion, or eight cents per share. Revenue was the lowest of any quarter this year at US$20.7 billion. 

Monday, October 18, 2010

Stock of The Week : MULPHA International

Mulpha International  has been picked as stock to be focused on this week by KM Lee. Below is the company three years financial summary.

The price has been going up steadily and volumn also picking up. A stock to watch.........

The company three years financial summary shown below:

MULPHA International shares were on the rise for more than a month, climbing from the recent lows of 38.5 sen in late August to a high of 48 sen during intra-day session on Thursday amid fresh bargain hunting interest.

Yesterday, they re-tested the previous day’s peak again before paring gains to close flat at 47.5 sen. Based on the daily bar chart, prices are flirting just two ticks below the mid-term descending line of 28.5 sen and it looks like a major breakthrough may come about soon – because interest in this counter is growing.

As for the indicators, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum retained the buy signal at the bullish territory. Though the 14-day relative strength index had reached the overbought reading of 91 points, there was no sign of it tapering off just yet.

Elsewhere, the daily moving average convergence/divergence histogram continued to expand positively against the daily trigger line after issuing a buy on Sept 13.

The promising technical reading suggest a positive breakout may be on the card. Perhaps, investors can consider taking up a position, if one is optimistic of the trend going forward.

To the upside, a push above the relatively strong barrier of 52.5 sen will clear the way for a challenge of the previous rally peak of 62 sen, established in mid-June last year.

Support floor is pegged at the 44 sen mark. — By K.M. LEE

> The comments above do not represent a recommendation to buy or sell.

Sunday, October 17, 2010

Warisan Merdeka, a 100-storey landmark

Warisan Merdeka, a 100-storey high building was planned in budget 2011. A very ambitious idea but is it feasible?

It is a very tall building to build, and the project cost about RM5 billions, a lot of money to spend.

Why Government need another landmark ? Afterall the Twin Towers are good enough, do we really need another such a tall building in Kuala Lumpur. Anyway Kuala Lumpur is not a really big city. Maybe the Government is trying to fill up the KL skyline.

What is the purpose of this building? To be the tallest in the world? Or to replace Twin Towers as our new landmark in Kuala Lumpur or Malaysia. Only our Government know.

Hopefully our Government have a very good reason to have such a tall building again, otherwise it would be a waste of money and space.

Why not the Government use this money to revive some abandon projects in Kuala Lumpur.

One of the them is Plaza Rakyat, which is an eye-sore especially it located at strategy area, Puduraya bus station. There are plenty of foreigners using the bus station to travel, it is a bad impression to them on our country.

Anyway our Government know what there are doing, hope this money is well spent and the building will bring us prosperity and wealth.

Service Tax increased, no good

In the Budget 2011, the Government proposes that the service tax be increased from 5% to 6%. Definitely an unfavourable move by government.

With the increase, rakyat have to pay more to watch Astro because it will be imposed on paid TV broadcasting services too.

“At a time when the Government is introducing measures to help the rakyat, these moves are not positive,” said AmResearch Sdn Bhd senior economist Manokaran Mottain.

“We’re not sure how much the Government will receive in revenue from these moves. Although we do not view this positively, the impact on the rakyat is expected to be minimal,” he said.

Anyway this move will definitely help Government to reduce its fiscal deficit but not rakyat pocket.

In fact, the Government should reduce personal tax to counter the above increase. To bad it does not materialise.

I guess this increase could be the transition to GST soon.

Friday, October 15, 2010

Is property really a good investment?

"Is property a good investment?”

I get this question all the time. To be kind, I would smile and nod approvingly. “Of course!”

But deep in my heart, I know that while the answer is correct, it is not complete. Of course properties make good investments. But then, the same thing can be said about stocks, unit trusts, gold and a couple of others as well. While they are all good investments does not mean anyone can make money from them. Buying the first house you see or the stock that takes your fancy is a sure recipe for disaster and a guaranteed formula for losing your hard earned money.

Further, the house is the most expensive purchase most of us will make in our lifetime. And it also forms our highest debt and lasts for the longest time – often lasting 20 years or longer.

That being the case, doesn’t it make sense for us to do a little bit (or better, a lot) of homework before parting with our money? Doesn’t it make sense to tread very carefully before buying a property? Obviously, the answer is ‘yes’.

As an example of careful trading, a colleague of mine viewed the plot that he wanted to buy three times: once in the morning, once in the afternoon and once at night – all on different days. Mind you, it was only a plot of land at that time as the house was not up yet. Now some people may think that may be overkill, but his answer was spot on: “Before paying RM810,000 for anything, I want to be sure that everything is right and in order first.” I totally agree.

And oh yes, he sold the house when it was completed two years later for RM1.1 million. Even taking into account that he had to pay RPGT (that was still applicable then), real estate agent’s commission, legal fees and all, he still pocketed a tidy sum of money. I’d say the three trips was certainly worth the RM200,000 plus – don’t you agree?

But I have seen people buying houses on the spur of the moment. I have seen people rushing to buy properties as if they were buying groceries. For their sake, I sure hope that they have done the homework beforehand though my heart tells me something else.

Buying a property is easy. All you need is a little bit of money and sign some papers. The question is, “Can you sell the property for a profit later on (hopefully not too later on)?” Or in other words, can you make money from the property in the near future? As you can see, the answer is not so easy.

So this will mean that you will need to do your homework when investing in properties. This will include reading books, magazines, articles, observing and yes, learning from the experts. Of course, this will require time, effort and yes, even money. But all that effort is peanuts compared to the reward that awaits you. And yes, the price is miniscule compared to the problems that can happen if you bought wrongly. (Just ask the unfortunate people who bought houses in flood prone areas. Worse, they have to bear the brunt of listening to jokes about water proof furniture and getting free boats from the developer.)

Tuesday, October 12, 2010

No big deal to recall PROTON car

PROTON, no big deal to recall cars because you are not the first one.

Nowaday it is uncommon to hear "recalling car" by manufacturer. Proton followed other big players from the world, by recalling their cars, Satria Neo and Gen2 (2004 - 2008).

The problem has been identified, a clock spring malfunction. Bravo job well done by Proton, which found the fault before any untoward incident happen.

The Clock Spring connects the switches and airbag in the steering wheel to the radio, horn and cruise control.

According to Proton's MD, Datuk Syed Zainal Abidin Syed Mohamed Tahir, the actual number of cars being recalled is small - 15,911 units, or 2%, of the 660,000 cars produced during the 4-year period.

He said, "Although the number is small, the safety of our customers is paramount and we apologize for any inconvenience caused,” and asked for customers' understanding that the recall is necessary to ensure their continue confidence in the safety and performance of their cars.

Financial wise, according to OSK Research said assuming that all the cars were affected, the repairs, which would involve replacement of the driver’s side airbags, would cost RM300 to RM400 per car.

“Assuming a worse-case scenario that would affect all 15,911 cars relating to deployment of the driver’s side airbags, this could see the total costs of the recall hovering between RM4mil and RM5mil, which is 1.4% of our financial year 2011 (net profit) forecast.” Proton shareholders would be relieved to hear it.

What do you need to know?

Recent inspections by PROTON engineers have revealed irregular performance in Clock Spring components of the Proton Gen.2 1.6 A/T and Satria Neo 1.6 A/T models equipped with the auto-cruise function, manufactured between April, 2004 to June, 2008.
The irregular performance of the Clock Spring can lead to various instances:
  1. Noises when turning the steering wheel.
  2. Unintentional triggering of the car horn.
  3. Malfunction of car audio remote button on the steering wheels.
  4. Self-deployment of the air bag.
  5. Unable to start car due to short circuit of the electronic components.
PROTON i-care hotline: 1300-880-888

Monday, October 11, 2010

Stock of the week ?

This week's stock of the week forecast on GLOMAC.

Eye on stock

AFTER breaching the most recent peak of RM1.57 on Thursday, Glomac shares extended the upward thrust to achieve a 38-month high of RM1.66 during intra-day session amid follow-through buying momentum yesterday.

Based on the daily bar chart, the bulls are now running on a new recovery track after undergoing a period of correction earlier of the year. Perhaps, investors can consider taking up a position, if one is optimistic of additional gains in the immediate term.

The daily slow-stochastic momentum index was positive, with the oscillator per cent K and the oscillator per cent D marching steadily towards the bullish territory.

Likewise, the 14-day relative strength index climbed from the mid-range earlier of the week to end at around the 83 points level yesterday.

Elsewhere, the daily moving average convergence/divergence histogram resumed the upward expansion against the daily trigger line to stay bullish. It flashed a buy in mid-September.

Technically, indicators suggest more scaling in the pipeline. If prices can penetrate the RM1.73-RM1.75 heavy resistance band, the next upside objective to look for would be the RM2-RM2.10 level.

Concrete support floor is pegged at the 14-day simple moving average of RM1.53. -

● The comments above do not represent a recommendation to buy or sell.
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