Thursday, February 25, 2010

KFIMA - Fantastic 3Q result

Kumpulan Fima Berhad. The Group's principal activities are producing and trading security and confidential documents. Other activities include manufacturing and packaging of food products, estate operations and cattle farming, providing bulk handling and storage of liquid products and cargoes, warehousing and transportation and customs for forwarding services and international trading. It is also involved in rental and management of commercial properties and operating as an investment holding company. Operations are carried out in Malaysia, Papua New Guinea and Indonesia.

Fantastic 3Q result coming from Kfima. 9 months net profit 46m increased by 58%. This brings the EPS to 17.65sen (accumulate of 3Q) almost on par with last whole financial year. There is one more quarter to run, would expect a better dividend in the next quarter.

Current PE = 86/17.65 = 4.87sen, excluding the last quarter, assuming rounding the last Q to make the EPS to 20sen, that will represent a PE of 86/20 = 4.3sen.
My simple way of Fair Value for Kfima should be around = 5 X 20 = RM1.00.
Worth considering.

Wednesday, February 24, 2010

YILAI BERHAD Proposes 6sen TE Dividend

Yi-Lai Berhad is an investment holding company. The Company, through its subsidiaries, is principally engaged in the manufacture and sale of ceramic and homogeneous tiles.

The Company has been consistently paying good dividend all this while, with the latest 4th quarter financial result where it has registered almost double increase of net profit comparing previous 4Q. However, overall financial year end as at 31/12/2009 decreased by 10%. Proposing a 6sen TE 4Q dividend, this respresent a 7.7% dividend yield base on current price.

It is indeed a good longterm dividend play for one who opt or aim for dividend yielding. Earning has been steady, consistent dividend payout, a potential penny stock lower than RM1 and trading at around PE of 10sen. Should be worth taking a closer look while riding on the recovery of current economy.

Carlsberg Declares a Better Dividend

Carlsberg just declared a Final Dividend of 7.5 Sen and Special Dividend of 10.5 Sen, total up to 18sen for it 4Q result. Financial year end net profit of 75m almost on par with its previous year. Not a bad start for 2010. The 18sen dividend will represent a 4% dividend yield base on current price at RM4.56.
Expected to have a better earning coming Q in 2010 when Carlsberg (S) is able to contribute at least 50% of revenue to Carlsberg (M) after the acquisition. Furthermore a proposal to Purchase the Companys Own Shares of up to 10% of its issued and fully paid-up share capital. Thus, i believe we should have a better year to come for 2010.

Monday, February 22, 2010

Sailing through turbulence time with high dividend yield stocks

In bull or bear markets, high dividend yield stocks are always a safer bet. Despite the recovery in stock prices since March 09, it may be wise to turn slightly more defensive and go for dividend yielding stocks now, in preparation for any potential turbulence ahead.

High-yield stocks are an attractive alternative to low returns in fixed income instruments or fixed deposits. Currently, 3-year Malaysian Government Securities (MGS) promise yields of around 3.3% while 1-year fixed deposit rates generate returns around 2.0-2.5%.

For investors with a smaller risk appetite but wish to gain entry into the stock market may find high dividend yield stocks as a good entry points. In bear markets, stocks with high dividend yields become even more desirable because they deliver real downside protection. In the current low interest rate environment, these stocks will provide better returns on investment.

We have short listed 20 high dividend yield stocks, which we feel are worth looking at. Our criteria for selection includes:

(1) Gross dividend yield of at least 6% for FY2010
(2) Strong management
(3) Stable earnings for consistency in dividend payout
(4) Preferably trading in single digits or close to the market PER or PBV
(5) Sound balance sheets.

Other than high yield stocks, we also included five high yield REITS for their stable income streams and consistency in dividend payout.

We have also selected 13 companies with high net cash per share which we believe may offer upside surprises in future dividend payments due to its cash flow generating capability.

Saturday, February 20, 2010

Flash Genting Singapore reports net loss of S$277.56m for FY2009

Last year is bygone, will need to see how it fare in the coming Q.......

KUALA LUMPUR: Genting Singapore plc posted net losses of S$277.56 million (RM 669 million) in the financial year ended Dec 31, 2009 versus S$124.80 million a year ago due to losses in derivative financial instruments, higher pre-operating expenses and lower contribution from its UK casino operations.
It told the Singapore Exchange today that consolidated revenue was S$491.2 million in FY2009 compared to S$630.7 million in 2008. The reduction is mainly due to a decrease of S$141.8 million in revenue from the group’s UK casino operations.
It added revenue from the UK casino operations were depressed by lower business volumes. The reduction was further exacerbated by the weakening of the sterling pound against the Singapore dollar.
Genting Singapore's loss before taxation increased from S$148.5 million in the previous financial year to S$265.7 million in the current financial year.
This was mainly due to:
a) Fair value loss on derivative financial instruments in the current financial year of S$108.3 million arising mainly from the valuation of the conversion option embedded in the group’s convertible bonds as compared to a fair value gain of S$37.2 million recognised in 2008;
b) Increase in pre-operating expenses incurred for the integrated resort in Singapore of S$103.4 million. The higher pre-operating costs is mainly in relation to staff costs incurred as the integrated resort begins to accelerate its recruitment, training, sales and marketing programs prior to its launch;
c) Lower interest income of S$3.8 million for the current financial year compared against S$13.2 million in 2008;
d) Share of losses from jointly controlled entities of S$8.9 million;
e) The estimated one-third share of after tax profits of the international betting division, which was disposed by the group in 2007. The group had on March 22, 2007 completed the disposal of its 50% interest in international betting operations for a cash consideration of S$3.3 million.

Thursday, February 18, 2010

Remain Positive on Genting Singapore

Me too remain positive on Genting Singapore, in fact is a good time to accumulate more, the lower the better. This for one for sure will never go holland. How many time you get to have such an opportunity to buy at current low price ? Valuation may seem unattractive but what will you see in 3 years time ? You think it still worth at S$1 ? Human are just too funny, we chase when the price are high, no one dare buying when it is dirt cheap. Plan your entry level keep buying in stages to fulfill your investment for GSP and lock it in for at least 3 years. This is short term pain but long term gain. When you buy stock, you buy for future business prospective, if you think GSP will never fail you in 3 years time to come, you buy with confident just like me. We are not dealing with speculative stock, we are in serious investment and a longterm engagement with a quality stock. So, what do you foresee in 3 years time ? Won't you think it is far more better than betting on a non-quality and potatoes chip ? The share price practically rely on future earnings, 1Q result would likely to review it capability and potential future earnings. We will be able to picture GSP in a better position come May 2010 where 1Q result expected to be announced then. I have no worry at all, in fact planning more entry level with GSP, hope to capture the best price while at the same time enjoying the bargin. Good luck. 

Genting Singapore hits 5-month low

Shares of Genting Singapore Plc, which has just opened its casino in the city-state, fell to its lowest level in five months on concern valuations have become unattractive following recent gains.
“While we remain positive on the group’s business model, valuations are very demanding,” said Melvyn Boey, an analyst at Bank of America’s Merrill Lynch in Singapore. -- Bloomberg

Wednesday, February 17, 2010

TIME and TIME again, we should not time

Sports commentators often predict the big winners at the start of a season, only to see their forecasts fade away as their chosen teams lose. Similarly, market timers often try to predict big wins in the investment markets, only to be disappointed by the reality of unexpected turns in performance. For those who do not wish to subject their money to such a potentially risky strategy, time and not timing could be the best alternative.

What Is Market Timing?

Market timing is a strategy in which the investor tries to identify the best times to be in the market and when to get out. Relying heavily on forecasts and market analysis, market timing is often utilized by brokers, some investment advisors and market punters to attempt to reap the greatest rewards for their own or clients’ money.

Proponents of market timing say that successfully forecasting the ebbs and flows of the market can result in higher returns than other strategies. Their specific tactics for pursuing success can range from what some have termed "pure timers" to "active strategic allocation."

Pure timing requires the investor to determine when to move 100% in or 100% out of one of the three asset classes — stocks, bonds, and money markets. Perhaps the riskiest of market timing strategies, pure timing also calls for nearly 100% accurate forecasting, something nobody can claim.

On the other hand, dynamic asset allocators shift their portfolio’s weights or redistribute their assets among the various classes, based on expected market movements and the probability of return versus risk on each asset class. Professional mutual fund managers who manage asset allocation funds often use this strategy in attempting to meet their funds’ objectives.

Risks of Timing the Market

Although professionals may be able to use market timing to reap rewards, one of the biggest risks of this "strategy" is potentially missing the market’s best-performing cycles. For example, suppose an investor, believing the market will go down, removes his investment monies and places them in more conservative investments. While the money is out of stocks, the market instead can enjoy its best-performing month. The investor has, therefore, incorrectly timed the market and "missed" those top months. That is why perhaps the best move for most individual investors, especially those striving toward long-term goals might be to purchase shares and hold on to them throughout market cycles. This is commonly known as a "buy-and-hold" strategy.

The Potential Risk of Missing Out (Source : Standard & Poor’s Journal of Financial Planning, 2006)

                                                               A                 B                  C

                                                              1976-2005   1986-2005   1996-2005

[1] Untouched                                       $36,479       $9,547         $2,384

[2] Miss 10 Top-Performing Months  $ 12,742       $ 3,880        $1,109

[3] Miss 20 Top-Performing Months  $5,855          $1,931         $619

Perhaps the most significant risk of market timing is missing out on the market's best-performing cycles. Columns A, B, and C represent the growth of a $1,000 investment beginning in 1976, 1986, and 1996, and ending 31 Dec 2005.

Row 1 shows the investment if left untouched for the entire period shown above; Row 2 shows the investment if it was pulled out during the 10 top-performing months; and Row 3 shows the investment if it was pulled out during the 20 top-performing months.

As seen in the above table, purchasing investments and then withstanding the market’s ups and downs can often work to your advantage. Though past performance cannot guarantee future results, missing the top 20 months in the 30-year period ending December 31, 2005, could have cost you $30,624 in potential earnings on a $1,000 investment in Standard & Poor’s Composite Index of 500 Stocks (S&P 500). Also consider a $1,000 investment made in 1996 that was left untouched until 2005, it could have grown to $2,384. But missing only the top 20 months in that 120-month span could have cut your accumulated wealth to $619.

Though many debate the success of market timing versus a buy-and-hold strategy, forecasting the market undoubtedly requires the kind of expertise that portfolio managers use on a daily basis. Individual investors might best leave market timing to the experts and focus instead on their personal financial goals.

Compounding: Time Can Work for You

If you’re not a professional money manager, your best bet is probably to buy and hold. Through a buy-and-hold strategy, you take advantage of the power of compounding, or the potential for your invested money to make money. Even Albert Einstein took notice of compounding. When asked what was the most important thing he learned from mathematics, he replied, "Compound interest. It’s the most powerful force on earth." The compounding power of investments can also help manage risk over time.

Reevaluate Your Portfolio Regularly

Buy and hold, however, doesn’t mean ignoring your investments. Remember to give your portfolio regular checkups, as your investment needs will change over time. Most experts say annual reviews are enough to help ensure that the investments you select will keep you on track toward meeting your goals.

For example, a young investor will probably begin investing for longer-term goals such as marriage, buying a house, and even retirement. The majority of his or her portfolio may be in stocks and stock funds, as history shows they have offered the best potential for growth over time, even though they have also experienced the widest short-term fluctuations. As our young investor ages and gets closer to each goal, he or she will want to revisit the portfolio to rebalance assets as his or her financial needs warrant.

This hypothetical investor knows that how much time is available plays an important role when determining asset choice. Most experts agree that generally, a portfolio made up primarily of the "riskier" stock funds (e.g., growth, small-cap) may be best for those saving for goals more than five years away. On the other side, investors nearing retirement, or saving for shorter-term goals, or those who see a possible need for cash in the near future, might consider a portfolio weighted toward money market instruments. Remember, though, that because people are often living 20 years or more beyond their last official paycheck, even those enjoying retirement should consider the potential inflation-beating benefits as well – hence, there are still valid reasons for them to consider investing into stocks and stock mutual funds, although they may need more regular portfolio check-ups than the younger investors.

Time Can Be on Your Side

Clearly, time can be a better ally than timing. The best approach to your portfolio is to arm yourself with all the necessary information, and then take your questions to a financial professional to help with the final decision making. Above all, remember that your investment decisions, both long- and short-term should be based on your financial needs and your ability to accept the risks that go along with each investment. Your financial professional can help you determine which investments are right for you.

Points to Remember

1. Historically, although past performance is not indicative of future results, a buy-and-hold strategy has resulted in higher gains over the long run.

2. A big risk of market timing is missing out on the best-performing market cycles.

3. Missing even a few key months can substantially affect portfolio earnings.

4. Market timing "strategies" which range from putting 100% of your assets in or out of one asset class to allocation among a variety of assets are based on market performance expectations.

5. Market timing is best left to professional investment managers.

6. Though buy-and-hold is a smart strategy, regular portfolio checkups are necessary.

7. Time horizon is particularly important when determining asset choices.

8. Riskier investments can be more appropriate for longer-term goals.

9. As goals get closer, portfolios should be rebalanced.

10. Even in retirement, portfolios should contain investments for earnings to seek to keep pace with inflation.

Friday, February 12, 2010


One old man was sitting with his 25 years old son in the train. Train is about to leave the station. All the passengers are settling down into their seats. As the train started the young man was filled with alot of joy and curiosity. He was sitting on the window side. He went out one hand and feeling the passing air. He shouted, "Papa see all the trees are going behind". Old man smile and admired his son's feelings. Beside the young man one couple was sitting and listing all the conversation between father and son. They were little awkward with the attitude of the 25 years old man behaving like a small child.

Suddenly the young man again shouted, "Papa see the pond and animals. Clouds are moving with the train". Couple was watching the young man in embarrassingly. Now its start raining and some of water drops touches the young man's hand. He is filled with joy and he closed his eyes. He shouted again," Papa it's raining, water is touching me, see papa". Couple couldn't help themselves and ask the old man. Why don't you visit the Doctor and get your son treated. Old man said," *Yes, We were from the hospital. Today my son got his eyes for the first time in his life".*
Moral of the story

**We must not come to any conclusion until we know all the** facts"*learn from the past, live in the present and work for the future.

Wednesday, February 10, 2010

Guinness Anchor 2Q net profit up 26.4% at RM43.82m

I have been keeping this for 7 years now, still don't intend to sell as it dividend payout still relatively sustainable judging the recent announcement below. Recently a backdrop of weaker demand as a tougher economic landscape eats into consumers' purchasing power. This can be seem in its previous 1Q where a 43% drop of net profit. However second Q has rose to 26% and maintaining a 10sen dividend for this Q. I would expect a same margin of dividend in August 2010 where a minimum of 30sen dividend is possible basing its 90% of net profit of dividend payout policy.

KUALA LUMPUR: GUINNESS ANCHOR BHD []'s second quarter net profit rose 26.4% to RM43.82 million from RM34.67 million a year ago and it expects a better year ahead for its brands.
It said on Tuesday, Feb 9 revenue rose 15.1% to RM378.13 million from RM328.52 million. Earnings per share were 14.5 sen versus 11.48 sen. It declared an interim dividend of 10 sen per share.
For the first half, net profit was RM70.56 million, down 14% from RM82 million in the previous corresponding period. Revenue was also lower at RM679.1 million versus RM694.32 million.

Monday, February 8, 2010

Genting SP's Licence has been issued. !!

Finally a license has been granted, likely to spur some share price movement here.. :)
Laughing All The Way To Bank !!!!!!

SINGAPORE, Feb 8 (Reuters) - Genting Singapore requested a trading halt on Monday pending an announcement, following the granting of a casino license by the city-state's regulator over the weekend.
The Straits Times newspaper reported on Monday that Genting, a unit of Malaysia's Genting Bhd , has told staff and tenants the casino and Universal Studios theme park at its Resorts World at Sentosa casino-resort will open this week. (Reporting by Kevin Lim and Harry Suhartono; Editing by Lincoln Feast) ((; +65 6403 5663; Reuters Messaging: ((If you have a query or comment on this story, send an email to Keywords: GENTING SINGAPORE/

SINGAPORE, Feb 6 (Reuters) - Singapore's Casino Regulatory Authority said on Saturday it had issued a licence for Resorts World Sentosa (RWS), operated by Genting Singapore PLC .
RWS is one of two casinos which will start operation in Singapore this year. (Reporting by Harry Suhartono; Editing by Nick Macfie) ((; +65 6403 5658; Reuters Messaging:
((If you have a query or comment on this story, send an email to Keywords: SINGAPORE CASINO/GENTING

Thursday, February 4, 2010

China - The Success Story

Read up some fun story while the market is slack........

US President Obama visited China last week, primarily to find out what exactly & how exactly China is doing things that makes it such a success story, surpassing all the so-called "expert economic planners" of the US & Europe. His team found these 5 basic lessons behind China 's success - it applies equally to our country :


The Chinese believe in Setting Goals, Making Plans, & Focusing on Moving Ahead - there is always the sense of foward motion.

As an example, a huge 6-lane highway in Shanghai took only 2 years from planning to ready for traffic. In the US, 2 years will only get you the environment and local authority permit if you are lucky - in Malaysia in 2 years, they will still be calculating how to inflate the costs, and to whose abang-adik company to award the project.


The Chinese are obsessed with ensuring kids get the right education - English, Maths & Science. They made sure that ther education system reached even the most remote rural areas - today the literacy rate in China is OVER 90%, surpassing even the USA 's 86%. According to American Educationists, the Chinese kids are way ahead of the kids in the USA .
Meanwhile in Malaysia, our Moo-Moo politicians are determined to retract our education system into the stone age.


The Chinese DO NOT send their elderly to nursing care centres - they personally look after & care for their parents. In the US, nursing care of the elderly is now costing each resident USD 85,000 annually, & this is rising. The Chinese also believe that the grandparents at home make the best tutors for their children. It also provides a sense of cultural continuity - this helps bind society.

Here its a growing trend to have children brought up by maids, of the lowest educational & moral quality - so our children (the future leaders) grow up with similar language & outlook capability.


In the USA, savings dropped to zero in 2005, and is only now slowly rising to 4%. In China , the savings rate for every household has exceeded 20%.

The Chinese believe that fugality & a healthy savings rate are a sure indicator of a country's financial health. High savings lead to increased investments - results in increased productivity, innovation & job growth.

In the West, & aped by our Malaysians, the status symbol is to spend more than you earn, with as many credit cards as possible.In the end, the whole country gets into debt.


In China ,eveyone is foward looking - never backwards. New graduates make a vow - never ever will their children & grandchildren ever work in the fields again.

With this kind of foward mentality, people are always thinking & planning how, not just to succeed, BUT how to be the best in the world in everything they do.

In Malaysia , we are still, after 24 years, trying to get the window switches of the Proton to work properly.

Tuesday, February 2, 2010

Another Form of Charity Work

I am trying to cancel my CITIBANK choice card today as it is due for renewal in March 2010. Called up the centre and informing the intention, as usual they are asking for reason, I told them “to avoid being taxed by the government” and also I already owned a VISA shell card, this one being extra.

Was told that I got to settle my outstanding and redeem all the points before canceling. So, I did by settling my outstanding and also to redeem my reward points. Unfortunately, there being not much items to be redeemed as my reward points is just far too low for any redemptions. Go through the search items and discover below charity icon.

So decide to make a charity by donating all my reward points to this “Shelter Home For Children”…..

Remember, for those who wish to cancel your credit card and the extra points that you can’t use it for any redemption, please donate them, instead of getting those reward points burn without any contribution. It is another form of charity work. God Bless. 

Related Posts with Thumbnails