Please review our research from below link :-
http://rapidshare.com/files/282047415/Federal_International.docx
Any opinion?
Saturday, September 19, 2009
Friday, September 18, 2009
US Market : Becton Dickinson & Co
Company Description
Becton, Dickinson and Company was incorporated under the laws of the State of New Jersey in November 1906, as successor to a New York business started in 1897. BD is a medical technology company engaged principally in the manufacture and sale of a wide range of medical supplies, devices, laboratory ...
Becton, Dickinson and Company was incorporated under the laws of the State of New Jersey in November 1906, as successor to a New York business started in 1897. BD is a medical technology company engaged principally in the manufacture and sale of a wide range of medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions, life science researchers, clinical laboratories, industry and the general public. BD's operations consist of three worldwide business segments. BD Medical produces an array of medical devices that are used in a wide range of healthcare settings. They include many safety-engineered injection, infusion and surgery products. The primary markets served by BD Medical are hospitals and clinics; physicians' office practices; consumers and retail pharmacies; public health agencies; pharmaceutical companies; and healthcare workers. BD Diagnostics provides products for the safe collection and transport of diagnostic specimens, and instrumentation for analysis for a range of microbiology and infectious disease testing. BD Diagnostics serves hospitals, laboratories and clinics; reference laboratories; blood banks; healthcare workers; patients; physicians' office practices; and industrial microbiology laboratories. BD Diagnostics' principal products and services are integrated systems for evacuated blood collection; a wide line of safety-engineered specimen collection products and systems; plated media; automated blood culturing; molecular testing systems for sexually transmitted diseases; microorganism identification and drug susceptibility systems; and rapid manual testing products. BD Biosciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. The primary markets served by BD Biosciences are research and clinical laboratories; hospitals and transplant centers; blood banks; and biotechnology and pharmaceutical companies. BD Biosciences' principal product lines include fluorescence activated cell sorters and analyzers; cell imaging systems, monoclonal antibodies and kits; reagent systems for life sciences research; tools to aid in drug discovery and growth of tissue and cells; and diagnostic assays. BD's products are manufactured and sold worldwide. BD's operations outside the United States are conducted in Canada and in five geographic regions: Europe, Japan, Asia Pacific, South Latin America and North Latin America. The principal products sold by BD outside of the United States are hypodermic needles and syringes, insulin syringes and pen needles, diagnostic systems, BD Vacutainer brand blood collection products, BD Hypak brand prefillable syringe systems, infusion therapy products, flow cytometry analyzers and sorters, and disposable laboratory products. BD's products and services are marketed in the U.S. and internationally through independent sales representatives and independent distribution channels, and directly to end-users.
Per Share Data
Earnings (TTM)
4.83
Current P/E ratio
14.51
Cash flow
$6.99
Annual dividend
$1.32
Book value
$21.77
EBIDTA
$2.03B
Profitability
Market cap
$16.75B
Gross margin (TTM)
59.10%
Operating margin (TTM)
29.30%
Profit margin (TTM)
15.70%
This is the best stock i found in Bio-Medical stock. Good profit margin !
Thanks.
Becton, Dickinson and Company was incorporated under the laws of the State of New Jersey in November 1906, as successor to a New York business started in 1897. BD is a medical technology company engaged principally in the manufacture and sale of a wide range of medical supplies, devices, laboratory ...
Becton, Dickinson and Company was incorporated under the laws of the State of New Jersey in November 1906, as successor to a New York business started in 1897. BD is a medical technology company engaged principally in the manufacture and sale of a wide range of medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions, life science researchers, clinical laboratories, industry and the general public. BD's operations consist of three worldwide business segments. BD Medical produces an array of medical devices that are used in a wide range of healthcare settings. They include many safety-engineered injection, infusion and surgery products. The primary markets served by BD Medical are hospitals and clinics; physicians' office practices; consumers and retail pharmacies; public health agencies; pharmaceutical companies; and healthcare workers. BD Diagnostics provides products for the safe collection and transport of diagnostic specimens, and instrumentation for analysis for a range of microbiology and infectious disease testing. BD Diagnostics serves hospitals, laboratories and clinics; reference laboratories; blood banks; healthcare workers; patients; physicians' office practices; and industrial microbiology laboratories. BD Diagnostics' principal products and services are integrated systems for evacuated blood collection; a wide line of safety-engineered specimen collection products and systems; plated media; automated blood culturing; molecular testing systems for sexually transmitted diseases; microorganism identification and drug susceptibility systems; and rapid manual testing products. BD Biosciences produces research and clinical tools that facilitate the study of cells, and the components of cells, to gain a better understanding of normal and disease processes. The primary markets served by BD Biosciences are research and clinical laboratories; hospitals and transplant centers; blood banks; and biotechnology and pharmaceutical companies. BD Biosciences' principal product lines include fluorescence activated cell sorters and analyzers; cell imaging systems, monoclonal antibodies and kits; reagent systems for life sciences research; tools to aid in drug discovery and growth of tissue and cells; and diagnostic assays. BD's products are manufactured and sold worldwide. BD's operations outside the United States are conducted in Canada and in five geographic regions: Europe, Japan, Asia Pacific, South Latin America and North Latin America. The principal products sold by BD outside of the United States are hypodermic needles and syringes, insulin syringes and pen needles, diagnostic systems, BD Vacutainer brand blood collection products, BD Hypak brand prefillable syringe systems, infusion therapy products, flow cytometry analyzers and sorters, and disposable laboratory products. BD's products and services are marketed in the U.S. and internationally through independent sales representatives and independent distribution channels, and directly to end-users.
Per Share Data
Earnings (TTM)
4.83
Current P/E ratio
14.51
Cash flow
$6.99
Annual dividend
$1.32
Book value
$21.77
EBIDTA
$2.03B
Profitability
Market cap
$16.75B
Gross margin (TTM)
59.10%
Operating margin (TTM)
29.30%
Profit margin (TTM)
15.70%
This is the best stock i found in Bio-Medical stock. Good profit margin !
Thanks.
Unit Trust Comparison
How to earn money by investing unit trust in Malaysia?
Unit Trust industry is very hot in Malaysia recently. Public Mutual is the biggest unit trust fund management company in Malaysia. I would like to review unit trust industry in Malaysia.
How to Choose Unit Trust Asset Management in Malaysia?
1) Public Mutual - subsidized by Public Bank Berhad. Recently, Public Mutual is moving forward to Global, China, ASEAN fund recently. The service charge is 6.5%. I personally think the Service Charge too high. Most of the service charge go into Agent's "pocket". Nowadays, online investment is well-knowned in Europe, US, and Japan. Why not they implement online investment with lower service charge?
2) OSK-UOB Asset Management Bhd - the service charge from OSK-UOB is lower, roughly 2.5-3%. Lower service charge help you gain more after 5-7 years investment. I personally prefer OSK-UOB fund because most of the fund are under UOB asset manaagement Singapore. The Fund Size overall bigger than other fund. The Fund is not only for Malaysian but Global Customer.
3) Prudential Asset Management - The service charge is roughly 5%. Prudential is well-knowned international insurance company but fund management's performance is not really doing well compare to other fund. They're improving their website recently, but no improment on fund performance.
4) CIMB Asset Management - Some of the fund really doing quit well but, i haven't explore to this fund.
5) I-Fast Online Unit Trust - offer lowest Service Charge 2%. U can buy most of the fund registered in Malaysia from Fund Supermart. Let's go for it if you're good in internet banking/investment.
I would recommend I-Fast FundSupermart to invest in Unit Trust/Mutual Fund. The service charge is only 2%-1.5%.
Worth for it !
Thanks.
Unit Trust industry is very hot in Malaysia recently. Public Mutual is the biggest unit trust fund management company in Malaysia. I would like to review unit trust industry in Malaysia.
How to Choose Unit Trust Asset Management in Malaysia?
1) Public Mutual - subsidized by Public Bank Berhad. Recently, Public Mutual is moving forward to Global, China, ASEAN fund recently. The service charge is 6.5%. I personally think the Service Charge too high. Most of the service charge go into Agent's "pocket". Nowadays, online investment is well-knowned in Europe, US, and Japan. Why not they implement online investment with lower service charge?
2) OSK-UOB Asset Management Bhd - the service charge from OSK-UOB is lower, roughly 2.5-3%. Lower service charge help you gain more after 5-7 years investment. I personally prefer OSK-UOB fund because most of the fund are under UOB asset manaagement Singapore. The Fund Size overall bigger than other fund. The Fund is not only for Malaysian but Global Customer.
3) Prudential Asset Management - The service charge is roughly 5%. Prudential is well-knowned international insurance company but fund management's performance is not really doing well compare to other fund. They're improving their website recently, but no improment on fund performance.
4) CIMB Asset Management - Some of the fund really doing quit well but, i haven't explore to this fund.
5) I-Fast Online Unit Trust - offer lowest Service Charge 2%. U can buy most of the fund registered in Malaysia from Fund Supermart. Let's go for it if you're good in internet banking/investment.
I would recommend I-Fast FundSupermart to invest in Unit Trust/Mutual Fund. The service charge is only 2%-1.5%.
Worth for it !
Thanks.
Today Insiders news
Friday, 18 Sep 2009
4:45PM PREMIUM National Land Finance Co-operative Society Limited (916,800 Shares Acquired)
4:42PM OILCORP Default in Payment under Practice Note 1/2001
4:11PM TGOFFS TGOFFS-EMPLOYEES' SHARE OPTION SCHEME ("SCHEME")
4:11PM MUDA MUDA- EMPLOYEES' SHARE OPTION SCHEME ("SCHEME")
4:10PM TENAGA TENAGA-EMPLOYEE SHARE OPTION SCHEME ("SCHEME")
3:18PM YTLPOWR YTLPOWR-EXERCISE OF 5,530,599 WARRANTS 2000/2010 AND 947,866 WARRANTS 2008/2018
3:14PM YTLLAND YTLLAND-CONVERSION OF IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES 2001/2011 INTO
2:58PM NAMFATT NAMFATT-CONVERSION OF RM3,402,236 IRREDEEMABLE CONVERTIBLE UNSECURED LOAN
2:58PM BSTEAD Additional Listing Application
1:26PM SUBUR Tiong Kiong King (1,000 Shares Acquired)
1:01PM Forbid of Direct Business Transaction (DBT) Due to Rule 902.2
12:45PM MEASAT Civil Suit No. 1100/PDT.G/2008/PN.JKT.SEL
12:45PM BSTEAD Dealings by Principal Officer
12:44PM BSTEAD Rights Shares
12:43PM BSTEAD Tan Sri Dato' Lodin Wok Kamaruddin (16,200 Shares Disposed)
12:42PM TAKASO EXTENSION OF OFFER PERIOD (Amended)
12:41PM MFCB 15,000 shares purchased
12:34PM MUDAJYA 2nd Interim Dividend 5%
12:07PM TAKASO EXTENSION OF OFFER PERIOD
11:43AM TALAM TALAM-CONVERSION OF 800,000 REDEEMABLE CONVERTIBLE PREFERENCE SHARES 2009/2014
11:14AM TM Employees Provident Fund Board (7,614,400 Shares Transacted)
11:01AM GENP GENP-EXECUTIVE SHARE OPTION SCHEME ("SCHEME")
10:58AM REDTONE REDTONE-Employees' Share Option Scheme ("Scheme")
10:57AM GENM GENM-EXECUTIVE SHARE OPTION SCHEME ("SCHEME")
10:55AM GENTING GENTING-EXECUTIVE SHARE OPTION SCHEME ("SCHEME")
9:10AM ABFMY1 Valuation Point as at 17-09-2009
9:10AM LHH Dato' Lau Eng Guang (59,000 Shares Transacted)
9:02AM TA NOTICE OF EGM
7:46AM M3NERGY M3NERGY-Employees Share Option Scheme ("Scheme")
7:45AM TSM TSM-Employees' Share Option Scheme ("Scheme")
7:44AM GENM GENM-Executive Share Option Scheme ("Scheme")
7:12AM Forbid of Direct Business Transaction (DBT) Due to Rule 903
4:45PM PREMIUM National Land Finance Co-operative Society Limited (916,800 Shares Acquired)
4:42PM OILCORP Default in Payment under Practice Note 1/2001
4:11PM TGOFFS TGOFFS-EMPLOYEES' SHARE OPTION SCHEME ("SCHEME")
4:11PM MUDA MUDA- EMPLOYEES' SHARE OPTION SCHEME ("SCHEME")
4:10PM TENAGA TENAGA-EMPLOYEE SHARE OPTION SCHEME ("SCHEME")
3:18PM YTLPOWR YTLPOWR-EXERCISE OF 5,530,599 WARRANTS 2000/2010 AND 947,866 WARRANTS 2008/2018
3:14PM YTLLAND YTLLAND-CONVERSION OF IRREDEEMABLE CONVERTIBLE PREFERENCE SHARES 2001/2011 INTO
2:58PM NAMFATT NAMFATT-CONVERSION OF RM3,402,236 IRREDEEMABLE CONVERTIBLE UNSECURED LOAN
2:58PM BSTEAD Additional Listing Application
1:26PM SUBUR Tiong Kiong King (1,000 Shares Acquired)
1:01PM Forbid of Direct Business Transaction (DBT) Due to Rule 902.2
12:45PM MEASAT Civil Suit No. 1100/PDT.G/2008/PN.JKT.SEL
12:45PM BSTEAD Dealings by Principal Officer
12:44PM BSTEAD Rights Shares
12:43PM BSTEAD Tan Sri Dato' Lodin Wok Kamaruddin (16,200 Shares Disposed)
12:42PM TAKASO EXTENSION OF OFFER PERIOD (Amended)
12:41PM MFCB 15,000 shares purchased
12:34PM MUDAJYA 2nd Interim Dividend 5%
12:07PM TAKASO EXTENSION OF OFFER PERIOD
11:43AM TALAM TALAM-CONVERSION OF 800,000 REDEEMABLE CONVERTIBLE PREFERENCE SHARES 2009/2014
11:14AM TM Employees Provident Fund Board (7,614,400 Shares Transacted)
11:01AM GENP GENP-EXECUTIVE SHARE OPTION SCHEME ("SCHEME")
10:58AM REDTONE REDTONE-Employees' Share Option Scheme ("Scheme")
10:57AM GENM GENM-EXECUTIVE SHARE OPTION SCHEME ("SCHEME")
10:55AM GENTING GENTING-EXECUTIVE SHARE OPTION SCHEME ("SCHEME")
9:10AM ABFMY1 Valuation Point as at 17-09-2009
9:10AM LHH Dato' Lau Eng Guang (59,000 Shares Transacted)
9:02AM TA NOTICE OF EGM
7:46AM M3NERGY M3NERGY-Employees Share Option Scheme ("Scheme")
7:45AM TSM TSM-Employees' Share Option Scheme ("Scheme")
7:44AM GENM GENM-Executive Share Option Scheme ("Scheme")
7:12AM Forbid of Direct Business Transaction (DBT) Due to Rule 903
Trader TIPS !
Lately, investors have been embracing risk as they feel more comfortable about the global economy and we expect the strong Dow performance overnight (its 8-day gain over nine sessions) will boost the FBM KLCI to another new 2009 high. Nevertheless, trading sentiment for rest of this week would likely remain cautious ahead of the long Hari Raya holidays next week. That said, we remain optimistic on the near term trend of the FBM KLCI, and maintain the index’s target at 1,248 (38.2FR% from 801-1524).
The Truth in Unit Trust Fund
I think unit trust is safer way to invest in stock, but it's not the best way to gain profit from investment. Imagine the annual management fee 2%. How much it cost you for 10 years?
First Year 2% -> if your fund performance with annualized return 10%, end up, you pay almost 20% of your total return to your fund manager. 80% profit belong to you.
...
...
10th years? What happen?
Calculation:
First year : 2%^10 = 21% (after 10 years)
Second Year : 2% ^9 = 19% (after 9 years)
Third Year 2%^8 = 17% ( after 8 years)
After 10th Year, What's the NUMBER?
This is huge amount, but go into fund manager's pocket. That's how the fund management fee work out.
If you don't have time to manage your fund, it would be better for you to invest in unit trust. Less time consuming, but please find some good fund managers.
Recommendation :-
1) OSK-UOB asset management s/b : VERY GOOD! GOOD ASSET ALLOCATION
2) PBMUTUAL asset management s/b: GOOD in term of payment, easy to access to the fund.
First Year 2% -> if your fund performance with annualized return 10%, end up, you pay almost 20% of your total return to your fund manager. 80% profit belong to you.
...
...
10th years? What happen?
Calculation:
First year : 2%^10 = 21% (after 10 years)
Second Year : 2% ^9 = 19% (after 9 years)
Third Year 2%^8 = 17% ( after 8 years)
After 10th Year, What's the NUMBER?
This is huge amount, but go into fund manager's pocket. That's how the fund management fee work out.
If you don't have time to manage your fund, it would be better for you to invest in unit trust. Less time consuming, but please find some good fund managers.
Recommendation :-
1) OSK-UOB asset management s/b : VERY GOOD! GOOD ASSET ALLOCATION
2) PBMUTUAL asset management s/b: GOOD in term of payment, easy to access to the fund.
CIMB (TP RM13.00 - BUY) Company Update: Raising The Bar
Following our recent discussion with management, we gather that the YTDFY09 earnings trend is still indicative of strong earnings growth momentum. We believe that:
1) a strong investment banking and bond origination deal pipeline,
2) further traction in CIMB Niaga’s earnings growth, and
3) more subdued loan loss provisioning on the back of still improving asset quality will underpin consensuswide earnings upgrades as we edge closer to the release of the group’s 3Q09 results
in November.
Our current FY09 earnings estimates are 9.2% above consensus. Maintain BUY with a higher TP of RM13.00 (2.2x FY10 PBV and 14.9x FY10 PER), implying a realistic 14.4x FY10 PER, which is still below its historical 15x average PER.
"CIMB is the no.1 bank in Malaysia because it provides you the special situation investing concept. I believe it will hit RM13.00 within 12 months. All "friend"s really good support for CIMB share, keep buying daily. "Hot" money is pump into CIMB to stimulate the share price" Mr. Tun
1) a strong investment banking and bond origination deal pipeline,
2) further traction in CIMB Niaga’s earnings growth, and
3) more subdued loan loss provisioning on the back of still improving asset quality will underpin consensuswide earnings upgrades as we edge closer to the release of the group’s 3Q09 results
in November.
Our current FY09 earnings estimates are 9.2% above consensus. Maintain BUY with a higher TP of RM13.00 (2.2x FY10 PBV and 14.9x FY10 PER), implying a realistic 14.4x FY10 PER, which is still below its historical 15x average PER.
"CIMB is the no.1 bank in Malaysia because it provides you the special situation investing concept. I believe it will hit RM13.00 within 12 months. All "friend"s really good support for CIMB share, keep buying daily. "Hot" money is pump into CIMB to stimulate the share price" Mr. Tun
Thursday, September 17, 2009
Leng Lui Stock Analyst's call, come support !!!
Dear My Valued Customers,
Genting Singapore's proposal: Rights issue 1 for every 5 at S$0.80 each. Ex date: 18 Sep 2009
Genting (Stock code: 3182) has 54.4% stake in Genting Singapore. This means it will cost RM2.1 billion to subscribe for the rights issue. However Genting holds only RM310 million in cash, deposits and money market instruments as at end-FY 2008
3 possibilities for Genting (Stock Code: 3182) in raising money to answer the cash call:
1) Intercompany loan with GenM (Stock code: 4715, used to known as Resort)
As at end June 2009, GenM's cash holding amounted to RM5.1 billion. If Genting does end doing on interco with GenM, however, it should be kept in mind that occurred between Berjaya Sports Toto Bhd and Berjaya Land Bhd. An interco between the two related companies had massively depressed BJToto's share price until the issue was eventually resolved.
2) Dividend payout from GenM
For FY2008 and FY2007, GenM paid a gross dividend of 7 and 6.48 sen per share respectively. For FY2008 and FY2007, Genting's dividend income came to RM247.1 million and RM1.26 billion respectively. However, analyst said it is unlikely that GenM will suddenly give a bumper or special dividend. At most, it will be slightly higher than its normal dividend payout.
3) By bank borrowing
If Genting chooses to fund the exercise purely by borrowings with a finance cost of 7%, forward earnings could be cut by up to 8%. Analysts calculates that if Genting were to raise the entire RM2.1 billion it requires via bank borrowings at an average interest rate of 5.5%, the impact on FY2010 earnings is estimated at 7.1%, with net interest cover remaining steady at 5.9 times versus the current 10.6 times.
My Valued customers,
What is the best step should be take by Genting to exercise the right issue? In my opinion, a combination of debt and cash from GenM will be good to Genting. In this case, i think the cash rich counter like GenM (Stock code: 4715, used to known as Resort)should be a good-buy counter. What do you think?
Genting Singapore's proposal: Rights issue 1 for every 5 at S$0.80 each. Ex date: 18 Sep 2009
Genting (Stock code: 3182) has 54.4% stake in Genting Singapore. This means it will cost RM2.1 billion to subscribe for the rights issue. However Genting holds only RM310 million in cash, deposits and money market instruments as at end-FY 2008
3 possibilities for Genting (Stock Code: 3182) in raising money to answer the cash call:
1) Intercompany loan with GenM (Stock code: 4715, used to known as Resort)
As at end June 2009, GenM's cash holding amounted to RM5.1 billion. If Genting does end doing on interco with GenM, however, it should be kept in mind that occurred between Berjaya Sports Toto Bhd and Berjaya Land Bhd. An interco between the two related companies had massively depressed BJToto's share price until the issue was eventually resolved.
2) Dividend payout from GenM
For FY2008 and FY2007, GenM paid a gross dividend of 7 and 6.48 sen per share respectively. For FY2008 and FY2007, Genting's dividend income came to RM247.1 million and RM1.26 billion respectively. However, analyst said it is unlikely that GenM will suddenly give a bumper or special dividend. At most, it will be slightly higher than its normal dividend payout.
3) By bank borrowing
If Genting chooses to fund the exercise purely by borrowings with a finance cost of 7%, forward earnings could be cut by up to 8%. Analysts calculates that if Genting were to raise the entire RM2.1 billion it requires via bank borrowings at an average interest rate of 5.5%, the impact on FY2010 earnings is estimated at 7.1%, with net interest cover remaining steady at 5.9 times versus the current 10.6 times.
My Valued customers,
What is the best step should be take by Genting to exercise the right issue? In my opinion, a combination of debt and cash from GenM will be good to Genting. In this case, i think the cash rich counter like GenM (Stock code: 4715, used to known as Resort)should be a good-buy counter. What do you think?
Wednesday, September 16, 2009
Automakers try to energize electric-car business
FRANKFURT (AP): The race is on among the world's auto companies to make electric cars go farther on a single charge, bring the price down to compete with gas-powered vehicles, and give drivers more places to recharge them than just the family garage.
Continue?
http://biz.thestar.com.my/news/story.asp?file=/2009/9/16/business/20090916080211&sec=business
"Let's think about next bubble now. Could be automobile industry or nucklear power generation industry. What stock to buy?" - Sultan Lee
Continue?
http://biz.thestar.com.my/news/story.asp?file=/2009/9/16/business/20090916080211&sec=business
"Let's think about next bubble now. Could be automobile industry or nucklear power generation industry. What stock to buy?" - Sultan Lee
Outlook: JP Morgan on Malaysia September
Outlook:
Currently trading at 15x 2010 PER,Malaysia is not cheap versus the region, but could prove to be defensive should profit taking set in. Earnings growth outlook could see upward revisions should CPO prices take a turn up in the next few months due to possibility of El Nino. In addition, bank credit costs may come in lower than expected as loan deterioration looks to be more benign.
"Overall market is not so cheap, but there're some stocks , still good for bargain. Have some fun on hunting those super stock" - Tun Dr. Ir Sultan Lee
Currently trading at 15x 2010 PER,Malaysia is not cheap versus the region, but could prove to be defensive should profit taking set in. Earnings growth outlook could see upward revisions should CPO prices take a turn up in the next few months due to possibility of El Nino. In addition, bank credit costs may come in lower than expected as loan deterioration looks to be more benign.
"Overall market is not so cheap, but there're some stocks , still good for bargain. Have some fun on hunting those super stock" - Tun Dr. Ir Sultan Lee
Updated on UNICO - Plantation Sector
Some update from previous post :-
Today UNICO price hits 80-82 cents. My analysis absolutely correct.
Strategy
it will hit 85-86 cents. Once hits 85-86 cents, a lot investors/traders start to sell this stock.
Expect it will stay between 80-85 cents for a few months before CPO price rebounce to RM2,500/tonne.
Enjoy the trade !
Today UNICO price hits 80-82 cents. My analysis absolutely correct.
Strategy
it will hit 85-86 cents. Once hits 85-86 cents, a lot investors/traders start to sell this stock.
Expect it will stay between 80-85 cents for a few months before CPO price rebounce to RM2,500/tonne.
Enjoy the trade !
What Credit Suisse Group BUY today?!
5:11PM UTDPLT Credit Suisse Group AG ("CSG AG") (10,407,200 Shares Acquired)
CITIBANK - Common Stock provide you uncommon profit here !
Brothers, Let's go to "chiong".
Thanks.
MPHB - LK's stock
It seems like downtrend today.
Drop, Drop a gap (techical). It will re-fill soon. GO or NOT?
Proton Lau Ya Chia still can move !!! - BUY - TP 4.50
- We lift our call on Proton to 4-STARS (Buy) from 3-STARS (Hold) with a raised 12- month target price of MYR4.50 (from MYR3.20) after reports that the company is in discussions that could lead to a strategic partnership and vehicle assembly contract with Volkswagen (VOW GY, EUR122.50, 1-STARS)
- StarBiz reported today, citing unnamed market sources, that the potential strategic partnership was unlikely to see Volkswagen taking an equity stake in Proton, with negotiations centering on platform and engine collaboration. The apparent reemergence of Volkswagen is a surprise. Proton and Volkswagen nearly entered into a strategic tie-up in 2007, only for the proposed deal to fall through at the last minute, after an extended courtship. While the real reasons for the breakdown of that deal have never been officially confirmed, political interests are believed to have been a major stumbling block, in addition to onerous financial demands from Volkswagen. However, recent comments from Proton’s management as well as Prime Minister Najib Razak have indicated a more liberal attitude toward the idea of having a foreign partner.
A strategic partner such as Volkswagen will be in a position to provide access to: (i) model platforms, (ii) more cost-effective R&D resources, (iii) engine and drive train technology, and (iv) markets. In particular, modern diesel engine technology will be important if Proton is to break into European markets. In return, Proton could offer its modern production facilities and be a manufacturing base for access into ASEAN and other East Asian markets. The forthcoming revamp of the National Automotive Policy, which has been delayed till next month, could have a major bearing on the outcome of the Proton-Volkswagen talks.
Investment rationale
Given Proton’s undemanding P/B valuation (0.39x FY10), the increasing investor risk appetite and dearth of other major corporate newsflow, the stock represents a strong trading opportunity. The entrance of a strategic partner on favorable terms could have a major impact on Proton’s medium-term prospects. It would reduce the valuation discount, in addition to resolving key issues, including limited product platforms, ageing models, small engine range, low R&D resources and low economies of scale from the small current production volumes. We raise our 12-month target price to MYR4.50 (from MYR3.20). We continue using a relative P/B approach to derive our target price - ascribing a target P/B multiple of 0.46x (up from 0.33x, to reflect the potential impact of a strategic alliance) to prospective CY10 BVPS (unchanged) of MYR9.69. The target P/B multiple remains at the mid-point of its five-year P/B range of 0.15x-0.96x.
Risks
Risks to our forecasts include an unexpected dip in consumer spending that could render our vehicle sales forecasts too optimistic. A sustained depreciation of the MYR against the JPY and USD would also increase import costs and crimp margins. The failure of negotiations with Volkswagen or an alliance on unfavorable terms for Proton and its shareholders could disappoint investors.
SapuraCrest Petroleum - BUY - TP 1.90
2QFY10 results in line
SapCrest’s reported 1HFY10 (Jan) net profit of MYR78 mln (+48.7% YoY) was in line with our expectations, making up 49% of our FY10 earnings forecast.
The better QoQ performance (net profit of MYR52 mln up 104% QoQ) was due to a substantial increase in revenues from the installation of pipelines and facilities
(IPF) division. Operating margins improved slightly to 11.8% (+0.7%-pt QoQ), led mainly by respective volume efficiency and pricing benefits at the IPF and drilling
divisions.
The +63% YoY growth was fuelled by higher contributions from TL Offshore, thanks to increased IPF activities in the quarter, as well as the reversal of associate losses at SapCrest’s joint-venture SapuraAcergy. Drilling profits expanded 33.5% YoY, despite revenues staying relatively flat, as SaprCrest’s new, higher day rate drilling contracts for tender-rigs T-9 and Teknik Berkat kicked in.
SapCrest’s orderbook, currently at MYR7 bln, should underpin earnings visibility well into FY11. We expect continuing strong contributions from the IPF business
as billings from the Gemusut-Kakap offshore work increases. With its MYR3 bln transportation and installation of offshore facilities contract with Petronas coming
to an end in March 2010, we expect more news flow on the renewal of this contract to emerge towards end-2009.
Recommendation & risk
Despite there being no changes to our earnings estimates, we cut our call on SapCrest’s to Buy (from Strong Buy), due the reduced upside to our unchanged 12-month target price of MYR1.90.
The outlook for the oil & gas services sector has improved, with the rise in oil prices to the USD70/bbl level from USD47/bbl in March. Although we believe that most oil & gas budgets are based on long-term supply/demand factors, the higher prices do help reduce the risk of additional project delays and curbed marginal field activity. These should help support drilling rig and other services day rates. Our 12-month target price of MYR1.90 is based on a combination of the company's estimated is counted cash flow and relative values (10x calendar 2010 EPS).
At our target price, SapCrest would trade at 14x fully diluted calendar 2010 EPS estimate, at a premium to its Malaysian peers (now averaging around 9.5x 2010 EPS). We believe SapCrest’s premium to the sector is warranted, given its asset profile, strong growth prospects to FY11 and its ability to participate in deep-water developments.
Risks to our recommendation and target price include a prolonged period of weakness in oil prices, which will have in impact on capex spending by the oil majors. In addition, the company’s earnings could be subject to weather- and execution-related risks, while a weakening USD could translate to a lower-than expected EPS for SapCrest.
沙布拉浪峰（SAPCRES,8575,主板貿服組）截至2009年7月31日為止的半年凈利激揚48.74%至7802萬2000令吉，比較前期為5245萬5000令吉，主要歸功於油管裝置及相關設施和岸外鑽機業務的拉抬。
沙布拉浪峰公佈最新業績也顯示，半年營業額上揚10.09%至17億4775萬6000令吉，比較去年同期為15億8757萬9000令吉，主要拜所有的部門業務活動都增溫。
沙布拉浪峰也宣佈每股3仙的中期股息，預定在今年11月9日支付，享息股東是根據今年10月12日的存票注冊。
沙布拉浪峰次季凈利勁揚63.12%至5236萬2000令吉，比較去年同季度為3210萬令吉，托油管裝置及相關設施和岸外鑽機業務拉動之福。
次季的營業額則彈升14.22%至10億3157萬3000令吉，比較前期為9億零313萬3000令吉。
若無意外，集團董事部預計截至2010年1月31日為止財政年的財報表現令人滿意。
SapCrest’s reported 1HFY10 (Jan) net profit of MYR78 mln (+48.7% YoY) was in line with our expectations, making up 49% of our FY10 earnings forecast.
The better QoQ performance (net profit of MYR52 mln up 104% QoQ) was due to a substantial increase in revenues from the installation of pipelines and facilities
(IPF) division. Operating margins improved slightly to 11.8% (+0.7%-pt QoQ), led mainly by respective volume efficiency and pricing benefits at the IPF and drilling
divisions.
The +63% YoY growth was fuelled by higher contributions from TL Offshore, thanks to increased IPF activities in the quarter, as well as the reversal of associate losses at SapCrest’s joint-venture SapuraAcergy. Drilling profits expanded 33.5% YoY, despite revenues staying relatively flat, as SaprCrest’s new, higher day rate drilling contracts for tender-rigs T-9 and Teknik Berkat kicked in.
SapCrest’s orderbook, currently at MYR7 bln, should underpin earnings visibility well into FY11. We expect continuing strong contributions from the IPF business
as billings from the Gemusut-Kakap offshore work increases. With its MYR3 bln transportation and installation of offshore facilities contract with Petronas coming
to an end in March 2010, we expect more news flow on the renewal of this contract to emerge towards end-2009.
Recommendation & risk
Despite there being no changes to our earnings estimates, we cut our call on SapCrest’s to Buy (from Strong Buy), due the reduced upside to our unchanged 12-month target price of MYR1.90.
The outlook for the oil & gas services sector has improved, with the rise in oil prices to the USD70/bbl level from USD47/bbl in March. Although we believe that most oil & gas budgets are based on long-term supply/demand factors, the higher prices do help reduce the risk of additional project delays and curbed marginal field activity. These should help support drilling rig and other services day rates. Our 12-month target price of MYR1.90 is based on a combination of the company's estimated is counted cash flow and relative values (10x calendar 2010 EPS).
At our target price, SapCrest would trade at 14x fully diluted calendar 2010 EPS estimate, at a premium to its Malaysian peers (now averaging around 9.5x 2010 EPS). We believe SapCrest’s premium to the sector is warranted, given its asset profile, strong growth prospects to FY11 and its ability to participate in deep-water developments.
Risks to our recommendation and target price include a prolonged period of weakness in oil prices, which will have in impact on capex spending by the oil majors. In addition, the company’s earnings could be subject to weather- and execution-related risks, while a weakening USD could translate to a lower-than expected EPS for SapCrest.
沙布拉浪峰（SAPCRES,8575,主板貿服組）截至2009年7月31日為止的半年凈利激揚48.74%至7802萬2000令吉，比較前期為5245萬5000令吉，主要歸功於油管裝置及相關設施和岸外鑽機業務的拉抬。
沙布拉浪峰公佈最新業績也顯示，半年營業額上揚10.09%至17億4775萬6000令吉，比較去年同期為15億8757萬9000令吉，主要拜所有的部門業務活動都增溫。
沙布拉浪峰也宣佈每股3仙的中期股息，預定在今年11月9日支付，享息股東是根據今年10月12日的存票注冊。
沙布拉浪峰次季凈利勁揚63.12%至5236萬2000令吉，比較去年同季度為3210萬令吉，托油管裝置及相關設施和岸外鑽機業務拉動之福。
次季的營業額則彈升14.22%至10億3157萬3000令吉，比較前期為9億零313萬3000令吉。
若無意外，集團董事部預計截至2010年1月31日為止財政年的財報表現令人滿意。
Bernanke defends crisis actions, upbeat on growth
WASHINGTON (MarketWatch) -- Federal Reserve Board Chairman Ben Bernanke said global regulators acted swiftly in the wake of last September's financial crisis and succeeded in bringing the global economy back from the brink of collapse. There is no longer widespread fear of a financial collapse and economic activity is leveling out, he said. However, the recovery is likely to be slow, he said. Bernanke's remarks, given to a forum at the Brookings Institution, a liberal think-tank, were the same as remarks he gave in August at the Fed's annual retreat in Jackson Hole, Wyo. On the one-year anniversary of the collapse of Lehman Brothers, Bernanke defended the government's decision to remain on the sidelines and not rescue the investment firm.
"Do you believe this guy?" Pls read the book called "Secret of the Temple"
Don't trust him :)
"Do you believe this guy?" Pls read the book called "Secret of the Temple"
Don't trust him :)
Recover or not?
We don't need to hear those idiot economist prediction. We buy CHEAP STOCK to keep. If economist so pro, i guess they're not sitting there to give opinion. They will buy @right timing (BOTTOM), earn more, retire. Don't you think so?
Don't trust idiot economist. Trust the price & valuation.
Don't trust idiot economist. Trust the price & valuation.
Tuesday, September 15, 2009
Crisis not over, reveals global survey
PETALING JAYA: While recent economic data point towards signs of recovery that help to fuel rally in the equity markets, a global survey, however, reveals that two thirds of fund managers reckon the financial crisis is not over."Anecdotal evidence gathered during the survey suggests investors across the globe are still concerned that the amount of leverage in the (financial) system that caused the original problem has not been reduced," said president and CEO of FTI Consulting Inc's Jack Dunn commenting on the survey result."The prevailing view is that there has been so much economic stimulus that markets cannot help but go up. The concern is what would happen when government money runs out.
These findings suggest a paradox, in that despite the negative outlook, global equity markets have rallied significantly in recent months. This indicates a willingness of investors, for now at least, to focus on factors beyond the fundamental issues that caused our current economic crisis."The survey of more than 153 leading institutional investors revealed that 64% of the respondents globally said they did not believe that the financial crisis was over, with 31% saying the crisis was over, and 5% undecided.Investors from the UK, US and Australia are the most pessimistic with 73%, 76% and 80% of investors, respectively, believing the crisis has not ended. Meanwhile, Continental European and Asian investors are slightly more optimistic with 59% and 62%, respectively, saying the crisis was not over."Clearly, the majority of funds surveyed do not believe the financial sector has recovered since the pinnacle of collapse in September 2008.
The sentiment is reflected across all regions, with the US, UK and Australian investors the most pessimistic, Dunn said in the statement."In Continental Europe and Asia, there is more optimism, but a significant majority still do not believe the financial sector is back on track," he adds.
The global survey was conducted by FTI Consulting Inc, which is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. Some 21% of investors surveyed are based in the UK, 20% are based in the US, 21% based in Asia, 34% based in Europe, and 4% based in Australia.
Dunn said the findings reflected ongoing uncertainty in world markets and highlighted challenges that would be faced by world economic leaders at the upcoming G-20 summit in Pittsburgh.He pointed out that among US companies alone, approximately US$163 billion (RM570.5 billion) of corporate speculative grade debt is due to mature in 2010, with approximately US$266 billion set to mature in 2011, according to Standard & Poor's research."These enormous financing requirements amid still-fragile credit markets, and weak demand apart from government stimulus, put a premium on a company's ability to effectively manage both public perceptions and the underlying business," he adds.Considering the economic uncertainties and weak credit markets, Dunn said companies would have to look at alternative funding avenues, such as sovereign wealth funds, the equity markets, or more exotic capital raisings. And for policy makers, it has meant reassessing the regulatory environment and executive incentives that have driven the market for many years.
These findings suggest a paradox, in that despite the negative outlook, global equity markets have rallied significantly in recent months. This indicates a willingness of investors, for now at least, to focus on factors beyond the fundamental issues that caused our current economic crisis."The survey of more than 153 leading institutional investors revealed that 64% of the respondents globally said they did not believe that the financial crisis was over, with 31% saying the crisis was over, and 5% undecided.Investors from the UK, US and Australia are the most pessimistic with 73%, 76% and 80% of investors, respectively, believing the crisis has not ended. Meanwhile, Continental European and Asian investors are slightly more optimistic with 59% and 62%, respectively, saying the crisis was not over."Clearly, the majority of funds surveyed do not believe the financial sector has recovered since the pinnacle of collapse in September 2008.
The sentiment is reflected across all regions, with the US, UK and Australian investors the most pessimistic, Dunn said in the statement."In Continental Europe and Asia, there is more optimism, but a significant majority still do not believe the financial sector is back on track," he adds.
The global survey was conducted by FTI Consulting Inc, which is a global business advisory firm dedicated to helping organisations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. Some 21% of investors surveyed are based in the UK, 20% are based in the US, 21% based in Asia, 34% based in Europe, and 4% based in Australia.
Dunn said the findings reflected ongoing uncertainty in world markets and highlighted challenges that would be faced by world economic leaders at the upcoming G-20 summit in Pittsburgh.He pointed out that among US companies alone, approximately US$163 billion (RM570.5 billion) of corporate speculative grade debt is due to mature in 2010, with approximately US$266 billion set to mature in 2011, according to Standard & Poor's research."These enormous financing requirements amid still-fragile credit markets, and weak demand apart from government stimulus, put a premium on a company's ability to effectively manage both public perceptions and the underlying business," he adds.Considering the economic uncertainties and weak credit markets, Dunn said companies would have to look at alternative funding avenues, such as sovereign wealth funds, the equity markets, or more exotic capital raisings. And for policy makers, it has meant reassessing the regulatory environment and executive incentives that have driven the market for many years.
The Great Depression Ahead part 1
The Perfect Storm: Peak Baby Boom Spending Collides With Peak Oil/Commodity Prices in 2009-2010
On the basis of predictable demographic and technology cycles, Harry Dent has forecast since the late 1980s that the economic boom would be greater than previously thought and would last until the end of the current decade. Dent has been one of the most bullish forecasters for decades, standing virtually alone in forecasting the great bull market of the 1990s in his book The Great Boom Ahead (1992). Now he is calling for an end to this great bubble boom, after revising his forecasts downward for U.S. stocks in 2006 as a result of the increasingly adverse geopolitical cycle and rising oil/commodity prices. In all of his past books since 1989, Dent saw an end to the Baby Boom spending cycle around the end of this decade. Harry Dent forecast the housing slowdown years before it occurred and sees the minor recession of 2008 as the beginning of a greater stock crash and depression to unfold between 2009 and 2012, with the worst crash for stocks and housing likely between late 2009 and mid 2011. Home prices will continue to decline into late 2008 and then will likely experience a minor rebound in early to mid 2009. However, rising inflation, interest rates and a last commodity bubble will bring a final blow to stocks, the economy, housing, and even the greater emerging market bubble in stocks overseas.
Between mid to late 2009 and mid to late 2012, the U.S. will see the next Great Depression and the deflation of the “three bears,” bubbles in stocks, housing, and commodities. This occurrence will represent the de-leveraging of the greatest credit bubble in history and will have much greater effects than we have seen thus far on banking and financial systems. Americans will see the first and last “Great Depression” of most of our lifetimes. Most people simply are not prepared for this coming dramatic change in our economy. Aging Baby Boomers will see the worst of the economy in their retirement years, much as the Bob Hope generation saw the worst in their early years in the 1930s and in World War II on an 80-year generational cycle.
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MALAYSIA – 3.5 STARS (ATTRACTIVE)
MALAYSIA – 3.5 STARS (ATTRACTIVE)
Exports in Jun 09 fell 22.6% from a year ago, but gained 2.9% m-o-m
IPI in June declined by 9.6% y-o-y and gained 0.2% m-o-m
Manufacturing sales was 25.5% lower on yearly comparison, 6.7% higher on m-o-m comparison
Deflationary trend persisted for the second straight month in July, CPI fell 2.4% from a year ago
2Q GDP growth contracted by 3.9% y-o-y.
Positive quarterly GDP growth of 4.8% q-o-q signifies Malaysia is officially out of technical recession.
3.5 star ratings maintained, with consensus earnings for 2009 and 2010 being revised upwards to -2.7% and 15.2% respectively,which translate to a forward PE of 16.7X in 2009 and 14.5X in 2010
MARKET OUTLOOK
OUR RECOMMENDED FUND:
ABERDEEN MALAYSIAN EQUITY FUND (CPFIS REGISTERED)
Malaysia’s exports fell at the slowest pace during the month of June. Exports were 22.6% lower year-on-year after a 29.7% decline in May. On a monthly comparison, exports were 2.9% higher than the previous month. Meanwhile, imports displayed a similar trend, with a 20.8% year-on-year decline, following the previous month’s 27.8% decline and a month-on-month increase of 9.4%. Industrial production index (IPI) in June, supported by exports, also posted a smaller fall of 9.6% year-on-year, while it gained 0.2% on a monthly comparison. Manufacturing sales growth in June was 25.5% lower as compared to a year ago and was 6.7% higher as compared to the previous month. The reversal of the monthly data are signs of a recovery in demand as global recession threat eases.
Consumer prices in July fell by 2.4% year-on-year as commodity costs eased from previous year’s records. We believe that current deflationary trend would allow the central bank to hold its interest rates low throughout the year. Malaysia recorded a 3.9% contraction in its second quarter of 2009. This brings the GDP growth for the first half of 2009 to -5.1% year-onyear. The smaller than expected contraction was supported by higher public spending and a mild positive growth in private consumption of 0.5%.
On a quarterly comparison, Malaysia is officially out of technical recession. On a quarter-on-quarter basis, Malaysia’s GDP grew by 4.8% from a revised 1Q of -7.8% quarter-on-quarter growth. To recap, Malaysia recorded two-consecutive negative growth rates of -3.4% and -7.8% in fourth quarter of 2008 and first quarter of 2009 respectively. Judging from the economic data, Malaysia is poising for a gradual recovery.
We believe that the current consensus earnings were being too pessimistic, hence we have revised the market earnings growth for 2009 and 2010 upwards to -2.7% and 15.2% respectively, which translate to a forward PE of 16.8X in 2009 and 14.6X in 2010 (as at 27 Aug 2009). We are maintaining 3.5 star ratings on Malaysia market
Exports in Jun 09 fell 22.6% from a year ago, but gained 2.9% m-o-m
IPI in June declined by 9.6% y-o-y and gained 0.2% m-o-m
Manufacturing sales was 25.5% lower on yearly comparison, 6.7% higher on m-o-m comparison
Deflationary trend persisted for the second straight month in July, CPI fell 2.4% from a year ago
2Q GDP growth contracted by 3.9% y-o-y.
Positive quarterly GDP growth of 4.8% q-o-q signifies Malaysia is officially out of technical recession.
3.5 star ratings maintained, with consensus earnings for 2009 and 2010 being revised upwards to -2.7% and 15.2% respectively,which translate to a forward PE of 16.7X in 2009 and 14.5X in 2010
MARKET OUTLOOK
OUR RECOMMENDED FUND:
ABERDEEN MALAYSIAN EQUITY FUND (CPFIS REGISTERED)
Malaysia’s exports fell at the slowest pace during the month of June. Exports were 22.6% lower year-on-year after a 29.7% decline in May. On a monthly comparison, exports were 2.9% higher than the previous month. Meanwhile, imports displayed a similar trend, with a 20.8% year-on-year decline, following the previous month’s 27.8% decline and a month-on-month increase of 9.4%. Industrial production index (IPI) in June, supported by exports, also posted a smaller fall of 9.6% year-on-year, while it gained 0.2% on a monthly comparison. Manufacturing sales growth in June was 25.5% lower as compared to a year ago and was 6.7% higher as compared to the previous month. The reversal of the monthly data are signs of a recovery in demand as global recession threat eases.
Consumer prices in July fell by 2.4% year-on-year as commodity costs eased from previous year’s records. We believe that current deflationary trend would allow the central bank to hold its interest rates low throughout the year. Malaysia recorded a 3.9% contraction in its second quarter of 2009. This brings the GDP growth for the first half of 2009 to -5.1% year-onyear. The smaller than expected contraction was supported by higher public spending and a mild positive growth in private consumption of 0.5%.
On a quarterly comparison, Malaysia is officially out of technical recession. On a quarter-on-quarter basis, Malaysia’s GDP grew by 4.8% from a revised 1Q of -7.8% quarter-on-quarter growth. To recap, Malaysia recorded two-consecutive negative growth rates of -3.4% and -7.8% in fourth quarter of 2008 and first quarter of 2009 respectively. Judging from the economic data, Malaysia is poising for a gradual recovery.
We believe that the current consensus earnings were being too pessimistic, hence we have revised the market earnings growth for 2009 and 2010 upwards to -2.7% and 15.2% respectively, which translate to a forward PE of 16.8X in 2009 and 14.6X in 2010 (as at 27 Aug 2009). We are maintaining 3.5 star ratings on Malaysia market
3:03PM AIRASIA SUSPENSION OF TRADING
Further to our announcement dated 14 September 2009 on the above, we wish to
announce that we have requested for the suspension in the trading of our
ordinary shares on the Main Market of Bursa Malaysia Securities Berhad (Bursa
Securities) be continued with effect from 2.30 p.m. on 15 September 2009 to
5.00 p.m. on 15 September 2009 in view that the bookbuilding exercise is only
expected to be completed in the afternoon of 15 September 2009.
The request for suspension is made under subparagraph 3.1(c) of Practice Note
No. 2 on Requests for Suspension of the Listing Requirements of Bursa
Securities for the Main Market.
This announcement is dated 15 September 2009.
announce that we have requested for the suspension in the trading of our
ordinary shares on the Main Market of Bursa Malaysia Securities Berhad (Bursa
Securities) be continued with effect from 2.30 p.m. on 15 September 2009 to
5.00 p.m. on 15 September 2009 in view that the bookbuilding exercise is only
expected to be completed in the afternoon of 15 September 2009.
The request for suspension is made under subparagraph 3.1(c) of Practice Note
No. 2 on Requests for Suspension of the Listing Requirements of Bursa
Securities for the Main Market.
This announcement is dated 15 September 2009.
IOICORP - SELL RM3.40
Negative Signal From Rights Issue
IOI is proposing to issue a renounceable rights issue of 420.989m shares at RM2.90 each at a ratio of 1 rights share for every 15 existing held. The issue price of RM2.90 is a 38.3% discount to its theoretical 5 day VWAP ex-rights price of RM4.70. We view IOI Corp’s proposed rights issue negatively, interpreting it as a signal of more subdued outlook going forward given its past tendency of issuing debt to fund its expansion and allowing degearing to be taken care of by its cash flow and bond conversion. Maintain Sell on negative sector outlook and lofty valuation of 20x forward earnings.
RECOMMENDATION
Capex needs. Proceeds will amount to RM1.221bn, which will be used for capex and repay borrowings. We believe part of the proceeds will go to the building of new 300k tonnes refinery capacity in Rotterdam and additional 100k specialty fats capacity at Pasir Gudang, Johor. On top of that, IOI is also developing 60k hectares of land in Kalimantan into oil palm plantation, the work of which has already begun.
Financial impact. The rights issue will help to lower net gearing from 42.5% to 26.3% which is a good thing while EPS dilution for FY10 is minimal at an estimated 6.5%. Signals tough times ahead? In the past decade, IOI always issued debt for expansion purposes, which also helped raise its gearing level for a more optimal capital structure. Anytime it issues new debt, its gearing rises to uncomfortably high levels but was quickly brought down due to its strong cash generation and strong stock price performance, which resulted in conversion of its convertible bonds into shares.
So, the raising of rights issue makes us suspect that IOI's management may be concerned that its future cashflow generation may be weaker than before. Without the rights issue, its gearing will linger at the current levels much longer than desired. While the previous debt raising exercise was a bullish signal, the rights issue is a negative signal sent out by management.
IOI is proposing to issue a renounceable rights issue of 420.989m shares at RM2.90 each at a ratio of 1 rights share for every 15 existing held. The issue price of RM2.90 is a 38.3% discount to its theoretical 5 day VWAP ex-rights price of RM4.70. We view IOI Corp’s proposed rights issue negatively, interpreting it as a signal of more subdued outlook going forward given its past tendency of issuing debt to fund its expansion and allowing degearing to be taken care of by its cash flow and bond conversion. Maintain Sell on negative sector outlook and lofty valuation of 20x forward earnings.
RECOMMENDATION
Capex needs. Proceeds will amount to RM1.221bn, which will be used for capex and repay borrowings. We believe part of the proceeds will go to the building of new 300k tonnes refinery capacity in Rotterdam and additional 100k specialty fats capacity at Pasir Gudang, Johor. On top of that, IOI is also developing 60k hectares of land in Kalimantan into oil palm plantation, the work of which has already begun.
Financial impact. The rights issue will help to lower net gearing from 42.5% to 26.3% which is a good thing while EPS dilution for FY10 is minimal at an estimated 6.5%. Signals tough times ahead? In the past decade, IOI always issued debt for expansion purposes, which also helped raise its gearing level for a more optimal capital structure. Anytime it issues new debt, its gearing rises to uncomfortably high levels but was quickly brought down due to its strong cash generation and strong stock price performance, which resulted in conversion of its convertible bonds into shares.
So, the raising of rights issue makes us suspect that IOI's management may be concerned that its future cashflow generation may be weaker than before. Without the rights issue, its gearing will linger at the current levels much longer than desired. While the previous debt raising exercise was a bullish signal, the rights issue is a negative signal sent out by management.
Macroeconomics
Macroeconomics
· In US, President Obama said recent data suggest that US economy is returning to growth and the administration must avoid removing stimulus programs prematurely. The White House expects the $787bn stimulus to add as many as 3% points to growth in Jul through Sep, and it credited the initiative with creating or saving as many as 1.1m jobs.
· The Euro industrial output fell 0.3% in July as the economy struggles to recover. Manufacturers across Europe are cutting costs and output to improve earnings as domestic and foreign spending on machinery, cars and metals continue to contract. Employment has declined for consecutive 4Qs and the jobless rate rose to the highest in more than 10 years in Jul.
· Bank of Japan will probably keep their benchmark interest rate near zero this week and maintain emergency lending programs as the economy recovery shows signs of losing momentum.
· At home, Malaysia’s CPI likely fell for a 3rd straight month in Aug but at a slightly slower pace than in July. Aug CPI likely fell 2.35% from a year earlier following a fall of 2.40% in Jul. Aug’s decline was largely due to the lingering base effect from last year when global food and energy costs were spiking, but that this month’s consumer prices might grow due to taxi and bus fare hikes.
· In US, President Obama said recent data suggest that US economy is returning to growth and the administration must avoid removing stimulus programs prematurely. The White House expects the $787bn stimulus to add as many as 3% points to growth in Jul through Sep, and it credited the initiative with creating or saving as many as 1.1m jobs.
· The Euro industrial output fell 0.3% in July as the economy struggles to recover. Manufacturers across Europe are cutting costs and output to improve earnings as domestic and foreign spending on machinery, cars and metals continue to contract. Employment has declined for consecutive 4Qs and the jobless rate rose to the highest in more than 10 years in Jul.
· Bank of Japan will probably keep their benchmark interest rate near zero this week and maintain emergency lending programs as the economy recovery shows signs of losing momentum.
· At home, Malaysia’s CPI likely fell for a 3rd straight month in Aug but at a slightly slower pace than in July. Aug CPI likely fell 2.35% from a year earlier following a fall of 2.40% in Jul. Aug’s decline was largely due to the lingering base effect from last year when global food and energy costs were spiking, but that this month’s consumer prices might grow due to taxi and bus fare hikes.
MLabs enters MOU for bioethanol plant
MLabs enters MOU for bioethanol plant
It has enter into a MOU to set up a 100,000mt/annum bioethanol plant and crop cultivation with 2 other parties. It expects Chinese investors to participate and enter into off-take agreements.
Anybody know well about this stock? Penny Stock?
It has enter into a MOU to set up a 100,000mt/annum bioethanol plant and crop cultivation with 2 other parties. It expects Chinese investors to participate and enter into off-take agreements.
Anybody know well about this stock? Penny Stock?
KNM - Update from OSK research
The Star’s online report yesterday said Chevron has announced that the Gorgon gas project has been approved and will be developed off northwest Australia. Chevron will partner with ExxonMobil and Royal Dutch Shell to develop the gas field. The report also said the project has appeared to be more certain after PetroChina agreed to buy 2.25m tonnes of LNG p.a. from the gas field.
Approval is good news for Malaysian companies too. We believe the main beneficiaries will include Wah Seong and KNM, which have put in their bids for jobs in the Gorgon project. We understand that Wah Seong stands a very good chance of winning at least part of the pipe coating jobs since it is one of the two main bidders for the project, other than Bredero Shaw. As for KNM, we understand from the company’s management that it too is bidding for higher-end process equipment jobs. The group has significant presence in Australia through its subsidiary, KPL. Maintain Buy on Wah Seong (TP: RM2.78) based on a PER of 12x FY10 EPS) and KNM (TP: RM1.01), based on PER of 10x FY10 EPS).
My View (3.24pm, 15/09/2009) :-
"I guess uptrend on KNM stock soon or later once the project approved. KNM is cheaper than Wah Seong"
OSK-Multi Currency Settlement Facility (MCSF)
OSK Investemetn bank has recently launched MCSF which enables foreign share trading settlement in foreign currencies.
Pls read from below link:-
http://www.osk188.com/adminv2/UserFiles/OSK188-Malaysia/Banner/GCCI-GC-0078_MCSF%20Website%20Info.pdf
Pls read from below link:-
http://www.osk188.com/adminv2/UserFiles/OSK188-Malaysia/Banner/GCCI-GC-0078_MCSF%20Website%20Info.pdf
Strong BUY - KNM TP RM1.20
Expect Better Quarters Ahead
We lift our call on KNM Group to 5-STARS (Strong Buy) from 4-STARS (Buy) previously, with a higher 12-month target price or MYR1.00 (from MYR0.95).
We see signs of life in terms of orderbook replenishment for KNM, with orders totaling MYR400 mln coming in in the first two months of 2H09, vs. MYR300 mln achieved in the whole of 1H09. Hence, we think 2Q09’s relatively weak performance should represent the bottom for KNM, and we expect the company to deliver better numbers from 3Q09 onwards, providing the catalyst for an upward re-rating.
KNM reported 1H09 net profit of MYR169.9 mln (+13% YoY), on a 3.7% increase in revenue to MYR964.7 mln. The results made up 43% of our 2009 forecast, which we consider to be in line, as 2H09 is likely to be stronger for the group on increased billings, new contract awards and a pickup in activity.
QoQ revenue and net profit again contracted by 16% and 28% respectively, on lowered billings and EBIT margins. Lower tax rates helped to offset a weakerthan-expected topline. Profit margins, while in line with our previous assumptions, were mainly boosted by 1Q09 one-off gains. 2Q09 operating margin was lower than we had expected, due mainly to lowered revenue.
KNM’s Chad JV will net the company a USD220-mln (MYR790 mln) EPCC contract to build up production facilities in the Sedigi oilfield development. We acknowledge the higher country risk associated with the venture, but we takecomfort from management’s successful risk management track record with previous acquisitions.
Overall, we trim our 2009 earnings forecast by 5%, following a cut in our margin assumptions given the lower 2Q09 margins. We maintain our long-term positive outlook on KNM Group, as we believe orderflow will pick up again, driven by rising oil prices and as global demand recovers.
Investment rationale
Order flow appears to have picked up in 3Q09, and this should drive a rebound in profits for 2H09 and 2010 onwards, and provide the impetus for a re-rating. The outlook for KNM remains upbeat, premised on our positive medium-term outlook on oil prices. We now value KNM based on its Malaysian peer valuations (vs. global peers previously) as we feel this is more reflective of KNM’s fair value. We note that global peer valuations have risen to 18x 2010 EPS, vs. 12.4x 2009 EPS previously. Nevertheless, we do not expect KNM to reach these levels, given its previous investor concerns on the forced-selling of shares pledged by management and its
smaller market capitalization. With domestic peers now trading at 8.6x 2010 EPS, and rolling forward our valuation base year to 2010, we raise our 12-month target price to MYR1.20 (from MYR0.95).
Risks
Downside risks include a prolonged weakness in energy prices, which may force cutbacks on capital expenditure by the oil majors, thus impacting KNM’s ability to sustain its orderbook. A related risk is the large value of goodwill that KNM continues to carry on its books from the Borsig acquisition. Finally, management/succession risk lies in the fact that Lee Swee Eng, KNM’s co-founder and managing director, has very much been the driving force behind KNM’s
success, in our opinion.
UNICO - Trading BUY TP 85 cents
UNICO.KL
Profile
The Company is organized into two main business segments: plantations, which involve the cultivation of oil palm, palm oil milling and distribution of palm oil and palm kernel, and hire purchase financing and related activities, which involves hire purchase financing for motor vehicles and insurance agency.
Target Price : 85 cents.
Unico review its total asset value to 85cents.
Trading BUY : TP 85 cents.
Have fun !
Profile
The Company is organized into two main business segments: plantations, which involve the cultivation of oil palm, palm oil milling and distribution of palm oil and palm kernel, and hire purchase financing and related activities, which involves hire purchase financing for motor vehicles and insurance agency.
Target Price : 85 cents.
Unico review its total asset value to 85cents.
Trading BUY : TP 85 cents.
Have fun !
US - Obama's China Tariffs May be Prelude to Opening Trade
President Barack Obama’s decision to place tariffs on tires from China may be the opening move in a campaign for fewer trade barriers, based on the strategy used by his four predecessors. Obama announced duties Sept. 11 of 35% on US$1.8bn of automobile tires from China, acting on a complaint by the United Steelworkers union that surging imports were pushing US factory workers out of their jobs. Former Presidents Ronald Reagan, George H.W. Bush, Bill Clinton and George W. Bush each took action to protect domestic industries early in their terms before making free trade a focus. Obama, like Clinton, has the added challenge of trying to satisfy trade-wary Democratic lawmakers and the unions that helped them win election. (Bloomberg)
US - Obama Warns Must be Careful to Avoid Removing Stimulus Too Soon
President Barack Obama said recent data suggest the US economy is returning to growth and the administration must avoid removing stimulus programs prematurely. All the indicators would tend to suggest that they’re starting to see growth. The White House last week said it expects the US$787bn stimulus to add as many as 3%-pts to growth in July through September, and it credited the initiative with creating or saving as many as 1.1m jobs. Obama signed the fiscal spending package into law in February. (Bloomberg)
Stock Market Today
"Succumbing to profit taking. The FBM KLCI ended 4.92 points lower at 1202.36 on the back of profit taking of key heavy weights. Regional markets also ended mostly in the red with investors taking a more conservative approach ahead of key data-points to be released later this week from the US. Major local headlines for today are the government to spend RM6-7bn on the LRT extensions, Proton denying management buyout talks and AirAsia to be suspended today for the announcement of the book-building pursuant to its private placement exercise. Overnight, US markets closed higher on a last minute turnaround following gains in financial, utility and industrial shares with crude oil price stable at US$68 per barrel."
From OSK Research
From OSK Research
My Fund Porfolio
If you see carefully, i actually overweight on financial sector on my porfolio.
Global Financial Sector - Overweight
Emerging Market - China, Vietnam - Weight
Global Resource - Overweight - Risk is hyperinflation. Gold price shoot up, All commodities up, stock related also UP.
Vietnam Index Up
These few days, Vietnam index shoot up on hope of recovery. I'm very optismitic on Vietnam market but cautiously invest in this market. Don't throw all your fund into Vietnam Fund.
Next Posting is aboout my current holdings on Unit Trust (FundSuperMart.com)
Next Posting is aboout my current holdings on Unit Trust (FundSuperMart.com)
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