Finally got my first interim dividend from MSM of 8cents/share.
Thursday, 27 December 2012
Thursday, 30 August 2012
Market Outlook for the Month
Speculation is very tempted when coming to huge short term game, alot people though they can outsmart the market. It is just like a gambling and passing a time bomb from one speculator to another and earn the bucks out of their pocket. Fear & greed will ride the euphoria all the way to the sky. Whereas, value investing is a win-win situation between company with loyal shareholders. Investing through waiting the company generates earnings funded by normal business activities. Stick to a good company and hold for long term is the only way for unbeatable gain. When u understand the value and price u pay out of the figures beyond the balance sheet, you will do things differently. (Jacob Chong, 2012)
Pasukhas has made a decent return for speculator for these two days. IPO price of rm0.12 surged to 0.62 on its debut before the closing of the market.
Some syndicate is trading on their own table, there is less likely have genuine buyer at this price level. P/E ratio reach 120 times. Despite bursa malaysia has query on the unusual market activites (UMA) on the company unusual volume of share trading. The market still allowed it to trade and further hikes up to a higher level of rm0.83/share and plummet back to rm0.70 before the market bell rang.
This is the most crazy IPO i have ever seen. Speculator made a 5 folds return in 2 days. This is a WOW! Nobody dare to dive in for a counter. This is a pure gambling, wonder where has the MCCG code in practice. When the music stops, the ball ends, and soon the bubbles will burst!
Pasukhas has made a decent return for speculator for these two days. IPO price of rm0.12 surged to 0.62 on its debut before the closing of the market.
Some syndicate is trading on their own table, there is less likely have genuine buyer at this price level. P/E ratio reach 120 times. Despite bursa malaysia has query on the unusual market activites (UMA) on the company unusual volume of share trading. The market still allowed it to trade and further hikes up to a higher level of rm0.83/share and plummet back to rm0.70 before the market bell rang.
This is the most crazy IPO i have ever seen. Speculator made a 5 folds return in 2 days. This is a WOW! Nobody dare to dive in for a counter. This is a pure gambling, wonder where has the MCCG code in practice. When the music stops, the ball ends, and soon the bubbles will burst!
My current portfolio holdings
Will be looking to hunt some good quality REIT in upcoming investment. Since the KLSE index has reached its euphoria of 1,646. Wait for the bubbles burst and shopping at a bargain hunting price. With global uncertain economic event, my ears will be on Ben Bernake at Jackson Hole upcoming speech then decide future investment decision.
Looking at upcoming IPO, will park some of my fund in ASTRO. Since it is a monopoly player and has a promising dividend policy of 75% of their earnings distributing to the shareholders. Wait the cash cow system works, not more than 2 years, i will have adequate cash reserves to march my fund to property market.
EPF has channel fund to its special purpose vehicles (quasi subsidiary) to loan out the fund to younger generation to afford to buy a house. They don't need to pay any upfront payment for house below rm200,000. This makes the property more affordable and further hikes up the prices. All these is taxpayers money. They may default the loan repayment and soon the bubble will burst. The property mortgage will soon becomes toxic asset. Citizen retirement fund may not be secured. This is totally bad for economy, the sub-prime loan crisis of US is created by this way. Most of the property in Malaysia is speculated by high net worth foreign corporation and less likely is genuine house buyer. Government should charge higher RPGT to speculator instead of giving out a loan to young generation. The property price needs a cooling off. Otherwise, a graduates with average rm3,000 salary/ mth couldnt afford to own a house in the future.
I am so blessed that i have investment awareness ahead of my peers. I need not borrow fund from my parents to afford a house in the future. Live frugaly and delay gratification. I will laugh at the bank when the time comes!
We spend money that we do not have, on things we do not need, to impress people who do not care.”
-Will Smith
Wednesday, 9 May 2012
Felda Global Ventures Holdings Berhad (FGVH) IPO
After the listing of a subsisdiary of Felda in june last year, MSM holdings berhad, which was takeover by BN cronies from the hand of reknowned billionaire Roberk Kuok. whose core business is operating in sugar refinery with an individual IPO offering price of RM 3.38 and has surged to RM6+ within 3 days of trading in bursa malaysia. It has now remained stable in the range between RM5.10-RM5.20. There is 10 lot remained in my portfolio and made an unrealised gain of RM 1,820.00 based on the pricing of RM5.20/share. As a long term investor like me, I would hold it for long term to generate dividend income for such a good dividend counter like MSM.
The holding company Felda is going to be listed in upcoming June. Its core business activities includes plantations, refinery of oil palm and sugar refinery within Malaysia and some offshore land and plantation investment. The main reason is to unlock the value of the company and invite foreign investor to participate in investing in Bursa to encourage groundfield investment through foreign direct investment (FDI). Besides, it is in lines with economic transformation program to help those employee in rural area generate bonus and provide them with ESOS scheme to share the fruitful growth returns of the business. Let us look into the fundamental of the share based on bookbuilding offer price of RM4.65 with a par value of RM1.00. It will be the third largest share cap plantation company in the world and top ten heavyweight share cap listed in Bursa Malaysia.
(1) Based on the prospectus, it made a pre-tax profits of RM804.3 million in 2009 doubled from 2005. Its revenue has jumped by almost two-thirds to RM11.8 billion in the same period. Which means it represent a P/E ratio of 18x of its earnings. With the significance growth on its book, there maybe some windows dressing made on the financial statement to encourage participating in investment though.
(2) Compared to pure plantation stock like IOICorp, whose P/E ratio is 16x. The pricing of Felda IPO is a little overvalued. However, the stock price is abit hard to determine since it is not a pure plantation stock, it has land investment and some offshores investment in Asia, Europe and South America. Fluctuation of FOREX may need to take into account.
(3) Besides the IPO of facebook which will be issued in upcoming month, there are also indonesia based plantation stock Bumi Utama to be listed in (IDX). Based on analyst research, the plant of Bumi Utama is younger than Felda existing oil palm tree, which means after getting funds from the IPO. Felda may incur large amount of CAPEX to replant its plant. Oil palm would have to wait at least 5 years to become a "cash cow" assets. This may deter foreign investor from investing in Felda.
(4) Since it is a government backed company, Koperasi Felda is owning 51% stake of the company directly and indirectly. Government may not want the share price to plummet on first day of trading. This may depress the employee of koperasi felda, which means government may pump in money to the stock on the first few days.
(5) Election is around the corner, which means government may try to preserve the share price. Felda employees vote is threshold importance to them. Otherwise, opposition party may take out the issue to attack BN cronies. Their throne will not be secured.
Based on the above issue, I personally think that the fundamental of the company may not be very optimistic. However, based on other factors considered, it is a good hit and run share for the first few days of trading. It is similar to PCHEM and MSM. Although is little overvalued, but market will still have confident for them in long run since they are government owned. I personally applied 20 lots of the share through MITI which is half of my personal net worth with the IPO pricing of RM4.65/share.
The holding company Felda is going to be listed in upcoming June. Its core business activities includes plantations, refinery of oil palm and sugar refinery within Malaysia and some offshore land and plantation investment. The main reason is to unlock the value of the company and invite foreign investor to participate in investing in Bursa to encourage groundfield investment through foreign direct investment (FDI). Besides, it is in lines with economic transformation program to help those employee in rural area generate bonus and provide them with ESOS scheme to share the fruitful growth returns of the business. Let us look into the fundamental of the share based on bookbuilding offer price of RM4.65 with a par value of RM1.00. It will be the third largest share cap plantation company in the world and top ten heavyweight share cap listed in Bursa Malaysia.
(1) Based on the prospectus, it made a pre-tax profits of RM804.3 million in 2009 doubled from 2005. Its revenue has jumped by almost two-thirds to RM11.8 billion in the same period. Which means it represent a P/E ratio of 18x of its earnings. With the significance growth on its book, there maybe some windows dressing made on the financial statement to encourage participating in investment though.
(2) Compared to pure plantation stock like IOICorp, whose P/E ratio is 16x. The pricing of Felda IPO is a little overvalued. However, the stock price is abit hard to determine since it is not a pure plantation stock, it has land investment and some offshores investment in Asia, Europe and South America. Fluctuation of FOREX may need to take into account.
(3) Besides the IPO of facebook which will be issued in upcoming month, there are also indonesia based plantation stock Bumi Utama to be listed in (IDX). Based on analyst research, the plant of Bumi Utama is younger than Felda existing oil palm tree, which means after getting funds from the IPO. Felda may incur large amount of CAPEX to replant its plant. Oil palm would have to wait at least 5 years to become a "cash cow" assets. This may deter foreign investor from investing in Felda.
(4) Since it is a government backed company, Koperasi Felda is owning 51% stake of the company directly and indirectly. Government may not want the share price to plummet on first day of trading. This may depress the employee of koperasi felda, which means government may pump in money to the stock on the first few days.
(5) Election is around the corner, which means government may try to preserve the share price. Felda employees vote is threshold importance to them. Otherwise, opposition party may take out the issue to attack BN cronies. Their throne will not be secured.
Based on the above issue, I personally think that the fundamental of the company may not be very optimistic. However, based on other factors considered, it is a good hit and run share for the first few days of trading. It is similar to PCHEM and MSM. Although is little overvalued, but market will still have confident for them in long run since they are government owned. I personally applied 20 lots of the share through MITI which is half of my personal net worth with the IPO pricing of RM4.65/share.
Subscribe to:
Posts (Atom)