Why fail in investment in Bursa Malaysia

Bursa Malaysia:Mid Cap top pick for 2007

2006-12-17T16:36:00.000-08:00

Bursa Malaysia:Mid Cap top pick for 2007 http://bursatop.blogspot.com

Closed Blog

2006-12-07T00:05:00.000-08:00

I will stop using this blog to share my investment experience in Bursa malaysia, the market is bullish and may be further uptrend. there is useless i continous claim useless bursa malaysia. I will continous my blogging at

http://topbursa.blogspot.com/

KESM-RM1.80

2006-12-04T19:54:00.000-08:00

Kesm, involved in the provision of semiconductor burn-in services, assembly of electronic components & testing of semiconductor integrated circuits. The perofrmance impact by slow grow semi conductor industries, this can be see from the financial result. The turnover and profit remain flat for the period under review for this 2 year. But overall the pe just 5 time with EPS at 36 cent and constantly profit show that is good management. NTA now is more than 3 dollar with stock price 1.80 . Remember when it recent peak at 3.60 during 2003. So uptrend potential is there. it low at 1.4/1.5 some whee few month back.
Do u see the potential?

Investment Diary and Call warrant update 1/12/2006

2006-12-01T16:44:00.000-08:00

You can see on the table that average premium on Call warrant is reducing or exhausting, this due to buyer already alert the risk of premium involving in CA, Only invest those blue chip that you think that still under pricing or potential to move on. Just remind that CA is not tradisional type of warrant, the expiry date is short. Avoid those seriously out of money and expiry soon. If buy Scomi Ca, you rather go for Gamuda WB which expiry soon and get the convertion discounts as yesterday price 4.21+ 0.47 =4.68 and mother at 4.92

Still think that Maxis Ca, Maybank Ca , Commerce Ca is top pick due to lower premium. and potentially, especially Commerce assets, if plan for merging goverment link plantation success, believe it will lift to another high. invest on your own risk, this just my 2 cent opinion. Although I have handsome gain on Maxis CA and RUB recently. I believe Bursa will continous lift up more potential counter.

As my previous post on top pick on mesdaq, i wonder why quality mesdaq and some quality 3rdlinear counter still not in play. But I believe soon will lift up too.

Call Warrant up date - 29/11/06

2006-11-29T16:55:00.000-08:00

As per today most of the CA already reach their Fair value, special mention here :

1. Astro CA and Scomi CA is expiry onJan 2007, Avoid this 2 CA, Especially scomi CA is seriously out of money.

2. Sime CA , The premium is high 16% and the Sime current price already in the value that proposed restructure price by CIMB. Any outside prospect?

3. Maxis CA and May bank CA , still at reasoable price, if market is bullish, the 2 counter yet to show their history high. So se ethe potential?

3rd hopeless stock : Utusan and NSTP Merging

2006-11-27T23:23:00.000-08:00

Why both, ? they are merging and share price is up! why they are hopeless? Hopeless stocks x 2 = hopeless stock also . Can change their fate and future.

NST once a time is top english newspaper especially in southern Johor, Especially weekend edision, they are lot of advertisement for johor and melacca, Today at saturday edition. Star sure will out of stock at petrol kiosk if you go late morning. But for NST will return at next day. Everybody reading stars! This can see the profitability and share price.

Utusan is very famous and independent paper in old time, Not only malay read it, those non malay which understand Bahasa also will brought it and read. After Umno take over. It lost the characterisitc of idependent. then the market share drop. Today even many malay in KL will interest to buy Metro or malaymail. Malay also not read it, how you see their future?

You may be can gain for the merging for short term,But how about long term. They are losing market share and the trend not easy be turn back.

Call Warrant update

2006-11-26T21:23:00.000-08:00

When I look at this 2 day market, Everybody Chasing blue chip Call Warrant or warrant. As table show, most of the warrant already out of money. Market non stop moving when break 1,000. When is correction time. Beware my friend !!

Ranhil Utilities :1.71

2006-11-23T01:20:00.000-08:00

Latest result of RU Berhad, Theprofit jump to RM58 m for Q3,(The profit is up trend if you compared) or equivalent 60 cent per share per annuam, PE will stand allow 3 . It is super undervalue? No!!! it carry high debt (similar like Megan). It still consider good opportunity to going at this price. Remember it is public utilities business and Monopoly business (SAJ). No matter how! goverment will protect this idle company also. Later the water Tarif may adjust (already happen in Selangor) to cover the high capital investment. Is good opprtunity to go in? Value yourself!!

Call Warrant Update

2006-11-20T16:53:00.000-08:00

The above indicate
1. Yellow colour - Those premium below 10%

Why publish this table, Just Imagine that KLCI is up to 1030-1040, most of the blue chip are up to their valuation, May be the correction will impact of all this CA, becareful the convertion price and ratio. Just want to share that in my opinion MAXIS CA is the Call Warrant i think still fair to look at, The mother still pullish (Compared to DIGI already up to 13.00) and the CA convertion premium is reasoable.( See the table). Just want to remind some of the Call warrant valuation wide is no more cheap.

Top Stock Selection for Mesdaq

2006-11-16T23:39:00.000-08:00

I do not know whether any one realised that quality of newly listed mesdaq counter show a better quality and performance compared to all mesdaq stock. I think Bursa are improving in selection listing unit and try improved the image for it.

Let us see some good example for quality Mesdaq company, The lists may not complete , But is my opinion.

1. Jobstreet
It is pioneer and successful online job hunter in region, now it expanse to few country and the information i get ,it is top lists selection for employee advertisement to day. The latest financial performance show revenue and profit still increasing. Only concern is the stock price almost relect it value.

2. Carotech
Already recommend in my previos posting, As i pioneer in bio diesel player in Malaysia and there is lot of advantage and unique of it industries. In foreaseable future it product may not easy be replace by other. Profit Margin may effected it the oil price droping and ram material costs increase. Any how, it is King of the day now.

3. Dgate
As name , it unique business modeling in gambling business make it name appear. Strong casino business in the asia and region will help Dgate remain positive outlook for the foreaseable future. It is top pick under mesdaq.

4. Notion,Scicom
Why I put this 2 company together, There are contract Manafactured for Camera and MMC company respectily. With outsourcing is the trend for entepriser, Foreseable future business prospect is high. Risk is the profit margin and highly depend on source vendor. This may create risk for future.
Notion just release it Q3 result, the revenue and profit continous up trend.

How about other good company such as M touch, Greepacket and other many highlyy potential counter. In malaysia contect. We are lack of skill and competitiness in those area. Some good out look company may will become unprofitable due to many reason. Any how buying mesdaq is buying something future. Remember future is unpredictable. so only put small money in it. Just buying a hope !!!

CAROTECH MOVING

2006-11-15T21:42:00.000-08:00

It really move, The reason why it suddenly so hot. I conclude following few reason

1. Market is so hot, still looking counter like Carotech to move, (good potential n good management)

2. Khazanah Factor, Many of us just notice from recent annocement, Khazanah is substantial shareholder of Carotech, This is unusual for khazanah invest in Mesdaq, in small Cap and business running by non malay. I think is strategy holding to protect country interest. Since Carotech is only listed unit for bio diesel.

3. Speculator or punter.

I believe this is just a start for this stocks, and remember it suitable for long term investment. Not Short term investor appetive.

Carotech update : 15 Nov 2006

2006-11-14T19:44:00.000-08:00

From the annoucement yesterday, saw a large transaction of stock between Commerse Assets and khazanah, look is acquistion and suprising to see Khazah willing to invest in Mesdaq. I believe due to the bio diesel and the company capacity will be expanse another 3 folks soon.

The financial result of it no need further discuss for industries which is high grow and bright prospect. PE now is substantially high, I think market already capitalised some of the prospect in the company future. Now waiting for it materialised next year.
If answer is "YES" ! It share price may jump to another peak soon.

Now waiting for their Quarter annocement, if result is favauable, I think will attract some buying interests. other wise will see it crystalised next year. for long term prospect, unless it changing in management style. LONG TERM return is expected. Many bio diesel license granted to malaysia company. But How many of them start doing it? a lot of barrier of entry to go , before product really can go to eksport market. Carotech is at the movement with steady exsport market and customers and be one of the famous "Brand" in the market. So do you think is good prospect??

Bursa index break 1000. carotech still hang for 86 cent. when is you turn! Carotech

nexttrade: Mieco- a turnaround story in the making

2006-11-11T23:25:00.000-08:00

nexttrade: Mieco- a turnaround story in the making

Don't put money in Warrant !

2006-11-09T19:08:00.000-08:00

Recently when bursa break 1000! Many newspaper or broker film all said buy warrant. Whether call warrant or warrant issued by company itself, they still warrant. I remember old time, when I in one forum , the forumer (all think themselves is fundamental player (FA). We all buying warrant, whether blue chip or other counter which S&P and many analysts favour counter. when time pass. Most of the forumer be burning and the forum is end and no more active.

Just an reminder in bull market. Limitation and risk involved in buying warrant. Unless you are gambler (or Technical view). Then you can take the risk of warrant.

Warrant is bull market tools to win big money, This can said alrite for gambler or TA. But Warrant Buffet won't buy warrant. why. there are limitation for warrant.

1. Time frame and expired dated. I still remember few year back if you holding a Gamuda wb and Gamuda wc. pricing from 3 dollar to 2 dollar. Today they are in 20 cent and 90 cent respectively, Even the mother are recover from lower 3 dollar to 4.5 dollar. Why ?? this is high risk instructment. not sultable for small investor. I will recommend you bet the KLCI future for betting up or down rather than in Warrant.

2. Due to limitation of quantitiy in market, Warrant easily be use by speculater to win fast money (Big fish). Those small fish it follow through will die very fast too, Yesterday gamuda Wb up to 31 cent , today is 22 cent. If you win money congratulation ! If lost money that your fault. Don't blame market.!! High violation is not suitable for small investor.

Using buffet word. " Protect your capital rather than win the market". but i know when end of the bull run, many of us will burnt by warrant again!! God Bless You~

My first recommendation stock :Titan

2006-11-08T01:13:00.000-08:00

Why Titan ? Since IPO the stock price always perform under IPO price, I remember is 1.7, yet today still hang 1.3 or 1.4. Market is concern the High gearing 1420 M as per latest annocement, also hike by high petrol price and impact the earning ability. Today oil price drop high and Titan margin are improving......

1. Earning for 3 quarter up to 30 cent per share or equivalent to 40 cent per annuam (PE around 4)
2. Demand of PP,PE constantly growing, this can be from their annual report. Margin improving as per latest Q3 annocement and the management are positive to Q4 performance
3. Market breaking 1000, is time to look for under value stock.
4. Only concern is the gearing level here. long term Debt about 1,400 m which will take few year to clear off. if assume current net profit can be maintain (600m per year) the ability to paid back is not in concern.
5. The company start paying dividend. even is 3 cent for interim is better than Megan given 0.
6. The share spreads only 27% to public, this is my concern. But any how I am happy my holding costs is around 1.25 to 1.30
7. With oil price droping to 57, I believe coming Quarter, Titan will given suprise result.

Bursa break 1000:Dream or true

2006-11-07T01:29:00.000-08:00

Today, Bursa officially beak 1000, close at 1003, Do you win any money ? if yes congratulation!! I believe if you are in market more than 10 year. Your won't be happy. Most of us lossing like hell. Many stock forum active , then die , why market really bad.

Execept plantation and some blue chip. Ask your self? Market really up? Can I recover money I lost in 2000 bull or far 1997 Crisis or even far 1994 super bull. Our neigbour like Singapore, Thailand and Indonesia. All break history high, they are rank superbull now. Where is 1,300 for index. How is our 2nd board and mesdaq? 2nd board still below 90 (lower than crisis). Mesdaq 186 since 2002. then now??? where small investor like us shall go to complaint!! I remember I buy few lot of Cosco (Singapore stock exchange ) few year back,. now my return is 1000%. So what is suprise our IoI 300% for this few year.

Hope market will up trend a while, Broker film will full of people, and every one is buying... that is the time i leave Bursa and only concentrate on Blue chip on bursa.

Hope the day will come soon.

Mieco Chiboard: my 2nd hopeless stocks lists

2006-11-02T01:38:00.000-08:00

Why mieco, Still remember back 2 to 3 year ago, S&P , and also some stocks forum, analyser, all call for buy mieco. I remeber the S&P put it rating RM4.7 per share. From that day every one are buying. The higher shall be at 2.70 or 3.00. Today Mieco is at hang around 1.00. What happen to this counter.

Prior to investment in 2nd plant. The plant 1 is fully operate and achieve as high of 30 m profit for 2004. The management put high inbition to build a plant B is much more big capacity for plant A. The plant B will iddle from them. The over supply of capacity (everyone increased capacity during same time , especially Thailand). In additional problem of sourcing raw material in plant B too, force the company paying higher material price or importing. All those factors make the company turn to red after the commisison of plant B in 2005. It show a positive result in 2006-Q1 but is due to change in accounting policy of depreciation.

I am doubt the management decision making of build in plant B. Who suppose responsible for this fail investment? Shareholder like us. Whether those any back-up emergency plan if the thing go wrong. With big loan due from 2006 to 2009, equivalent to 175 M (not yet include interest 5%) Does the company ability to pay off the debt. when i review their financial report on 2005 Cashflow their ability to earn cashflow to settle the debt for 3 year only 120 m. How is the negetive 55 m been paid off.

There are few possiblity that i can think off

1. Increase short term borrowing, There already make use of it at 2006-Q1amounting to 40 m , turover is 150 m for each quarter,
maximum loading is about 100 m , this is temperary and last resource.
2. Right issued, 4 issued 1 or 3 issued 1, but this option can't work due to holding company
Bandaraya. Cash in hand only 18 M and it need 31 m to pay off the right issued since he holding 56% (as at 30.06.06)
3. Private placement, this is possible option, this option also not favaour to small shareholder.
4. Restructure the debt or capital repayment, this is unfavour option to the small shareholder too.

Any how, for small investor like us (including bandaraya shareholders) We are paying for the mistake of management will make.
The reason I learn here also include in my lists of reason why I fail in investment. Sad to said off

Don't Put ALL YOUR EGGS IN MESDAQ STOCKs

2006-10-19T19:00:00.000-07:00

STI received a comment said swap the megan into potential high grow mesdaq counter, hahaha This is one of the experience I want to share with all before depart for long weekend.

Do you still remember, OPCOM, AKNMSG,REDTONES......If you are in mesdaq few year ago, when this counters share up sharply (almost 5 to 10 time compared to current price) All analysts or stocks expert keep calling "BUY" "BUY" .......
As per today AKNTEC, left 20 cent compared to higher about RM 4 per share, all my goodness is 20 time lower than now. and so on. I sale my akn tec when it drop to 90 cent or low. CUT LOSS, if not cut, i wll incurred another heavy loss. But stupid still keep the opcom until today.

Where is the analysts to call " buy" "buy" .. from daily newspaper, the edge and so many forum like to discuss about it. Now where are they now? This is market Trend to up certain industries. and later back to their own fundamental. Today I also saw many call for buy mesdaq counter. Does any % will success to grow to be strong to fight in oversea market. Tell you won't more than 5% or even less in few year later. Today MTOUCHE, GREENPACKET may high like hell, tell you. it may be drop like akntec 1 day. That we DONNO AND WE CANNOT TO PREDICT.

Why not we invest in certain counter with sure win or beat the market like I share with you the 15 point in my first posts. Invest in something uncertainty or you do not understand the whole. Just like gambling in Genting. WIN SMALL MONEY BETTER THAN LOST ALL YOUR CAPITAL.

lastly, HAPPY DEPPA-RAYA

why Megan under my top hopeless stocks

2006-10-17T22:56:00.000-07:00

Why MEGAN? I think many of us listen recommendation to buy Megan. Not only from analysis, many stocks forum like Cari, Sam gang and so on. But why today remain will drop around 60 cent. Standard & Poor just ranking this counter for sales and 12month target price at 60 cent.

Why like that? Standard & Poor estimate 07 & 08 financial year-end net profit at 35 cents per share or equivalent to PE less than 2. Super earning, why still recommend to “SELL”.

Many of us noticed that during FY 2005.Megan making huge Capital investment of RM 5 Billion or equivalent to 73-year equivalent payback period (Not consider the PV).
Wrong expectation of market and profit margin of product (DVD-R) make this company become risks in liquidity (see Table below). Cash crisis for repayment of loan from 2007 to 2012, the company still contractual another RM 110 Million for 2007 to 2008.
· Does anything the management done to reduced the gearing or waiting for liquidity, I am doubt the future ability to paid debt. Over estimated of market and make a big investment.
· Does any risk management and proper feasibility done before such decision? For small cap counter, 5 Billion is huge amounts, any proper record and discussion for BOD before this decision.
· Who protect small investor like us? With incremental profit of 20 m after such big expansion. The pay back period may be as long as 250 year! Some may argue here this is replacement of technology; even we take the yearly net profit at 80 m per year it will take another 62 year of repayment. What the stupid decision.

Is useless to comment on the profitability of single digit PE, What is the % of depreciation and so on. Let review the forecast cashflow as table below :

('000) 2007 2008 2009 2100 2111 2112
Cashflow from operation 110,000 110,000 110,000 110,000 110,000 110,000

Purchase of Fixed assets (55,000) (55,000)

Repayment of loan & HP (16,313) (16,313) (65,250) (65,250) (65,250)
bai adm islam loan (40,000) (40,000) (40,000) (60,000) (60,000) (70,000)

Balance/(Deficit) (1,313) (1,313) 4,750 (15,250) (15,250) 40,000

from the table, you will see the cash deficit for the rest of the period, why they still plan for investment, future uncertainty will make this investment useless, and bank won't borrow money to our gear company. here assume many factor un-quo. so it is dangerous for company to continous expansion.

Propose - Action
As we know that margin of CD or CD-R continuous fall and margin will tight from time to time. They should reduce the outsourcing to sub- con. Start their own in house production. This is similarly in many industries with tight margin. The profit will highly depend on volume and production efficiency. In Megan case, if next 2 year expansion is buy some 2nd hand machine for these lines. I am agreed on that too, but not for those lines with uncertain market condition. To hold all of other investment of RM110 million for other equipment. Try to reduced gearing of the company by 5-year time. Later then consider other investment opportunity. At the mean time by given reasonable dividend to shareholder. High Dividend yield is the trend in equity market. So paid said 5% dividend to shareholder is better than investing in stupid equipment. With this hope will build investor confident on that. Disposal of singapore factory to reduced the gearing, since the company already moving operation to malaysia.

What reason I learn

I am holding Megan from day 1 it listing and continuous average down to 1.2 then I stop. Now with market price 60 cent, I also make a big paper loss on that. It is one of the small caps and makes many criteria in my 15-point mention. What I will do, I will hold it for another 2 Quarter, see any action taken by management. Otherwise I will dispose it permanently due to foreseeable liquidity risks. sad to said this company problem is expansion too fast, then become over gear. now they need to take a break for few year.

I will not able to attend Megan AGM on coming, if any one want attend, I would like to give the proxy to you, just mail to me (limkwongwee@hotmail.com ) . Please help to forward this issued during AGM.

If figure can tell.... Comparison of Singapore and Malaysia after 43 year of Divorce.

2006-10-14T00:32:00.000-07:00

TQ for comment, I am not the menion smart guy, I just an normal man who live in Johor and earn the RM. Alhough I got choice to be work in Singapore and be PR. I still choice to be in Johor. One of the reason behind is I love Malaysia!

Yesterday, Again Singapore stocks Market Break the record high at 2666, I still dream when is our Bursa 1300, More disappointment is newspapers tell us dream of1,000 next year. Oh my god! What happen just 10 year of our stocks market separate. Does any one of us earn enough money from stocks market this few year. If you are like me, this 10 year spent the the time in non blue chip counter. no need said more, we all understand what happen.

When the corruption index in annoucence again we at 25 out of 30 country been selected. Where is singapore? top 5 or 10 ?? when the top university lists come out, we happy because only university of malaya is down a bit in term of ranking , our other universitiy show good bench mark and improving and we are so exciting to tell our people. Look we are so great.
University of singapore , old time just a subsi for UM, today they are AT RANKING 19. When we can achieve that standard ? I am dreaming again. I still remember when last year the ranking come out , we still arguing for what is the bench mark for ranking, time won't wait us.

When ASLI publish the bumi share holding is Malaysia, then we realised all the while when government said something like 18% . The standard is using "PAR VALUE" again what is par value a LCCI student can tell you that is irelevent to prove anything. But yet we accept the data publish by government. Until this day. When ASLI using market capitalised as basic of calculation. We call this is "Rubbish Report" . So what is conclusion, the actual % ? Goverment said ask us don't ask just accept their figure. the real reason behind we all understand. But i believe our people standard stilll baby standard.. Only baby won't ask why and what... Ohhhh BABY.

Lastly when the newspaper announce that millionaire in Asia. I am so exciting to look at our ranking. But i can't find malaysia . WE been grouping in to "OTHER or lain lain ". Even Indonesia also in ranking. No doubt Singapore already make got 5 0,000 people or equivalent to 200, 000 house hold or 10% of the population either themselves or population...... Where our stand. Does money will come down from heaven? Yes ! For limited time only! after our resource is finish. Where we will go?

This is be love land we stay, My family, kids , friends all here. We hope it will be better and better for sure. now " Mak himpit" going to be our minister one day.. may be.. hahaha
I am sympathy to those top people like the email lists I receive from some one. They shall help our country become better.

I will stop my argument here. This is investing blog. not the politic blog. May be i will go to open an politic blog one day. Next topic i will pick 10 hopeless counter in Bursa. I still at stages pick up the counter and do analyst. Hope can be publish next week.

Letter from Oversea Malaysian? Do we still invest in Bursa Malaysia?

2006-09-28T00:32:00.000-07:00

The Letter below is somebody forward to me, I read with Sad and cry, this is our belove Malaysia! Malaysia Boleh! Let us pray for this Country and our nation, think of our next generation! What we can do on that?

Dear Mr Ooi,
I have been meaning to pen some thoughts for some time now, to letpeople actually read the views of the typical 'overseas Malaysian' whois kept away. I realise that my email is rather long, but I do hope thatyou would consider publishing it (and also keep my name private!).
I shall start by telling a little about my background. Mine is a rathersad tale - of a young Malaysian full of hope and patriotic enthusiasm,which is slowly but surely trickling away.
I am very different from many other non-bumiputeras, as I was giventremendous opportunities throughout my childhood. Born into amiddle-class Chinese but English-speaking family, I grew up with all theprivileges of imported books, computers, piano/violin lessons andtuition teachers.
My parents insisted that I should be exposed to a multi-racial educationin a national school. In my time, my urban national school (a missionaryschool) was a truly happy place - where the Malays, Chinese and Indianstudents were roughly equal in proportion. We played and laughed witheach other, and studied the history of the world together during Form 4,with one interesting chapter dedicated to Islamic history.
Though 75% of my teachers were Malays, I never really noticed. My Malayteachers were the kindest to me - teaching me well and offering me everypossible opportunity to develop. I led the district teams for Englishand Bahasa Malaysia debating competitions. I was the only non-Malayfinalist in the Bahasa Malaysian state-level elocution competition. MyMalay teachers encouraged me to transfer to a government residentialschool (sekolah berasrama penuh) so as to enable me to maximise myacademic potential. I refused because I was happy where I was, so theymade me head prefect and nominated me as a 'Tokoh Pelajar Kebangsaan'.Till this day, I am absolutely certain that it was the kindness of allmy Malay teachers which made me a true Malaysian.
I excelled at school and was offered a Singaporean governmentscholarship to study overseas. I turned them down because I wanted toensure that I would remain a 'true Malaysian' in the eyes of Malaysia.So I accepted a Malaysian government scholarship to study at OxfordUniversity. Throughout my three years as an undergraduate, the officersat the MSD looked after me very well, and was always there to offersupport.
I graduated with first class honours, and was offered a job with aleading investment bank. The JPA released me from my bond, so as toenable me to develop my potential. I shall always be grateful for that.I worked hard and rose in rank. My employer sent to me to HarvardUniversity for postgraduate study and I climbed further up theirmeritocratic ladder.
Now I am 31 years old and draw a comfortable monthly salary ofUS$22,000.Yet, I yearn to return home. I miss my home, my family, my friends, myMalaysian hawker food and the life in Malaysia. I have been asked manytimes by Singaporean government agencies to join them on very lucrativeterms, but I have always refused due to my inherent patriotism.
I really want to return home. I have been told by government-linkedcorporations and private companies in Malaysia that at best, I wouldstill have to take a 70% pay cut if I return to Malaysia to work. I amprepared and willing to accept that. My country has done a lot for me,so I should not complain about money.
But of late, my idealistic vision of my country has really come crashingdown, harder and faster than ever before.

I read about the annual fiasco involving non-bumiputera top scorers whoare denied entry to critical courses at local universities and areoffered forestry and fisheries instead. (My cousin scored 10A1's for SPMand yet was denied a scholarship).
I read about UMNO Youth attacking the so-called meritocracy systembecause there are less than 60% of Malay students in law and pharmacy,whilst conveniently keeping silent about the fact that 90% of overseasscholarship recipients are Malays and that Malays form the vast majorityin courses like medicine, accountancy and engineering at localuniversities.
I read about the Higher Education Minister promising that non-bumiputeraMalaysians will never ever step foot into UiTM.I read about a poor Chinese teacher's daughter with 11A1's being denieda scholarship, while I know some Malay friends who scored 7A's and whoseparents are millionaires being given scholarships.
I read about the brilliant Prof. K.S. Jomo, who was denied a promotionto Senior Professor (not even to Head of Department), although he wasbacked by references from three Nobel Prize winners. Of course, histalent is recognised by a prestigious appointment at the United Nations.I read about UMNO Youth accusing Chinese schools of being detrimental toracial integration, while demanding that Mara Junior Science Collegesand other residential schools be kept only for Malays.
I read about the Malay newspaper editors attacking the private sectorfor not appointing enough Malays to senior management level, whilstinsisting that the government always ensure that Malays dominateanything government-related.
I read that at our local universities, not a single Vice-Chancellor orDeputy Vice-Chancellor is non-Malay.I read that in the government, not a single Secretary-General of anyministry is non-Malay. The same goes for all government agencies likethe police, armed forces, etc.
I read about UMNO screaming for the Malay Agenda, but accusing everyoneelse of racism for whispering about equality.I read about a poor Indian lady having to pay full price for a low-costhouse after being dispossessed from a plantation, whilst Malaymillionaires demand their 10% bumiputera discount when buying RM2million bungalows in a gated community.
I read about my beloved national schools becoming more and more Islamicby the day, enforced by overzealous principals.I read about my Form 4 World History (Sejarah Dunia) syllabus, which nowcontains only one chapter of world history, with Islamic historycovering the rest of the book.
As I read all this, I tremble with fear. I love my country and long toreturn. I am willing to take a 70% pay cut. I am willing to face ademotion. I honestly want to contribute my expertise in complexfinancial services and capital markets. But really, is there a futurefor me, for my children and for their children? I am truly frightened.
I can deal with the lack of democracy, the lack of press freedom, theISA, our inefficient and bureaucratic civil service, our awful mannersand even a little corruption. But I cannot deal with racism in myhomeland. I think this is the single biggest factor which is keepingpeople like myself away.
And bear in mind - there are so many of us (researchers, scientists,bankers, economists, lawyers, academics, etc.). What people read aboutin Malaysia (like Dr Terence Gomez) is but the tiniest tip of theiceberg. You will be amazed to know about Malaysians denied JPAscholarships (which would have made them civil servants), took loans toattend Ivy League universities, but who are later asked to advise ourgovernment (on IT, economics, etc.) at fees running to millions of USdollars. Such information will never be published because it ispolitically incorrect.
I pray for God's blessing on this great country of ours.I pray that He blesses our leaders with the foresight and humanity tosee that this will not work and cannot continue. I pray that they willhave the strength to make our country a home for all Malaysians and thatthey will have mercy for the poor, including the non-Malays. I pray fortrue racial harmony and acceptance (not just tolerance) in Malaysia.Yours sincerely,A very frightened Malaysian abroad.

Fast return on Bursa Malaysia? Don't Dream

2006-09-26T20:02:00.000-07:00

Yesterday a young investor told me, she lost 70 k during last couple a month. She don't know stocks market all for her life. Just recently joint a malaysia famous chinese cari forum for stocks. She know somebody there and trust their advice. simply throw the money to tomei, oilcorp, uemworld, uem builder.. evne worst is mobif........

It is sad to heard that and hard to believe still got such thing happen in our neigbour or friends, Now she keep asking me the same question. How can i get back the lost money in short term? I tell her. may be for life you won't recover it. unless you go back to fundamental and study , learning basic. otherwise keep money into Shell, or Public bank to earn dividend.

Education and education is important. hope any one friends got similar experience. please forward to this blogs. i willing to share with all ! how to minimise the lost.

For that young friends, final advice, don't believe any body just believe yourself.... ( see my first posting)

A reply from Carotech CFO, WHY Carotech stock balance increase

2006-09-25T20:22:00.000-07:00

Thank you for your support and interest in our Company. I believe you may have mistake our stock level for last year. As at 30 June 2005, we had RM15.5m in stocks and this increased to RM29.7m as at 30 June 2006. The significant increase was largely due to (1) The increase of our production capacity by 265% in FY2006 compared to FY2005. Although, the increased capacity was commissioned in the last quarter of FY2005, it was towards the last months in FY2005 and was only fully commissioned in the first quarter of FY2006. (2) Due to the significant increase in capacity, some of our old back end (phytonutrient plant) equipments could not cope with the increased capacity and was constantly failing us in FY2006. This was announced in our Q2 results announcement. Consequently, we were unable to process all our phytonutrient WIPs. We have installed the new equipments in Q4 of FY2006 and are beginning to clear the WIPs as fast as we can.

We thank you for your concern on the possible constraint to our cashflow with such high stocks and we are very mindful of it and will monitor this closely. However, as you are aware, the business of Carotech is essentially in breaking down CPO into four major components, namely Biodiesel, Glycerin, Palm Vitamin E and Carotene. We do not pick and choose what we produce as these 4 components are in CPO and would be a waste if we do not extract any of them. Therefore, inevitably our stocks would increase, in the event our plant is not able to process any of them, resulting in them being in WIP stocks.

Our stocks are keep under close monitor and tight control as these are high value stocks. We have experienced in the past holding these products for more than 3 years without any significant problems. Therefore, provided they are kept in accordance with our Standard Storage Procedures there should be ok and available for future sales once our phytonutrient plant is back to full operation. We are mindful of the need to provide or expense stocks that are no longer of value to the company and this is done monthly.

I hope the above clarifies your queries. I look forward to your continued support and interest in our companies.

Best Regards,
Andrew Goh
Chief Financial Officer Hovid Bhd / Carotech Bhd 121 Jalan Tunku Abdul Rahman 30010 Ipoh, Perak MALAYSIA Tel : +605 506 0690 ext. 166 Fax : +605 506 1215 Webpage : www.hovid.com
Subject: Carotech accounts

Dear Accountant/ Financial Controller.

I am the small investor for hovid and carotech, I asm impressive for your business model , recently when I read the Quarterly annocement for carotec, I found some question on following

1. The stocks level of Carotec from 5 m a year ago to 25m until june 2006, In view of your Sales and your Stock level is extremely exceed 120 day holding level. My question here :

a. The high stock level is for production user or what other reason, The rational to keep 120 days stock. Does short supply of Raw material or re- order lead time? if for future use, why need to build up the stock now ? This question is rather important to view the tight cashflow and heavy expansion. to cope with market demand on bio diesel.

b. Any valuation issued on stock holding ? damaged or expired goods ! need to ractify? For Company size like hovid or carotec 20 M is BIG SUM.

Hope to received reply soon as myself and my group of friend is very impress your business model.

TQ

A reply from Carotech, I am Thank for sincere reply from him, I been write to many FC/Accountant for listed company. Some of them even not reply me, some of them will only reply with very formal answer. But…
I am public this reply due to impression that, they are sincere and trust to shareholder. With the special business (bio-diesel) and the only bio- diesel operator in Malaysia (listed unit). I will keep buying Carotech and Hovid. (not any recommdation to other.Mark my word, only trust yourself!)

Only thing is the historic of it, is too short for further analyses their financial result. And recently week in their share price(0.85at last Friday 23/9/06). I saw a golden opportunity to accumulated.

Why Shareholder like Dividend

2006-09-24T21:42:00.000-07:00

Shareholders like dividends because...
Shareholders have their own personal cash needs and self-select the companies whose dividends satisfy these.
Preferred shareholders like common share dividends because it creates a cushion that must be cut before their own dividends are.
Shareholders feel the risk of returns from reinvested earnings at a later date, is higher than the risk of cash received today.
Benjamin Graham and David Dodd, in the classic 1934 reference Security Analysis, suggest that retaining earnings is, in effect, management dictating to owners how to invest their money.
Reasons companies don't pay dividends
Management and the board may believe that the money is best re-invested into the company: research and development, capital investment, expansion, etc. Proponents suggest that a management eager to return profits to shareholders may have run out of good ideas for the future of the company.
When dividends are paid, shareholders in many countries suffer from double taxation of those dividends: the company pays income tax to the government when it earns any income, and then when the dividend is paid, the individual shareholder pays income tax on the dividend payment. This is often used as justification for retaining earnings, or for performing a stock buyback, in which the company buys back stock, thereby increasing the value of the stock left outstanding. The shareholder will pay a tax on capital gains (which is often taxed at a lower rate than ordinary income) only when the shareholder chooses to sell the stock. If a holder of the stock chooses to not participate in the buyback, the price of the holder's shares should rise, but the tax on these gains is delayed until the actual sale of the shares. Certain types of specialized investment companies (such as a REIT in the U.S.) allow the shareholder to partially or fully avoid double taxation of dividends.
Shareholders in companies which pay little or no cash dividends can reap the benefit of the company's profits when they sell their shareholding, or when the company is wound down and all assets liquidated and distributed amongst shareholders.

The above is more useful link for US concept, in Malaysia, we need to settle the tax difference before we can earn out net dividend or money received. This is unfavour for creating shareholder value or encouraging public to invests.

Why I am fail in investing in Bursa Malaysia?

2006-09-22T01:22:00.000-07:00

The purpose of the article is share my fail experience to all to avoid you continous losing money in your investing career. Regardless where you are and who you are.

1. Don’t Ever Think of borrow money or bank loan or bank overdraft , Market fluctuation will make u crazy and heart attack
2. Don’t invest in warrant. Or anything so call tools for financing. Unless you are gambler (for gambler advice you go casino, atleast the change is 50% to 50%). The only exception is you are rich enough and holding substantial volume of that counters.
3. Don’t ever invest in small cap with no strong background (Big Cap holding or rich man holding). Only permissible when they are trace records .
4. Don’t ever buy at first day of IPO of any stocks, the change going south after first day is 80% (don’t believe, try yourself)
5. Don’t ever think of speculate or listening to rumours.
6. Don’t trust any body or word from any body, only trust yourself, of course you must prepare yourself before you can trust yourself.
7. Don’t try to win the market , you only can follow the market except you are riches can control that particular counter (syndicate).
8. Only invest in high growing, potential sector counter, don’t go again market.
9. Only Buy Big Cap with strong branding or industries with inelastic demand
10. Only buy with any high dividend counters, money won’t cheat you.
11. Don't invest in "IT stocks", The industries is highly competitir and you may win 50% over nite or you may lost whole at last, Good example is AKN MSG , Redtones.. high may be 3.00 now only 30 cent. just imagine you left 10% after all, I am not pin point to any counter at the movement,. Just for sharing.
12. Don't invests in sector you donno or you don't know how the Company operation.
13. Don't buy the stocks which you donno the owner!.
14. Don't buy the industries, highly dependance on Raw Material Price and Highly dependence of few customers
15.buy small caps only when they got strong owners or big caps subsidiary.