Saturday 27 July 2013

Stocks that could potentially benefit from recurring hazy condition in Malaysia

TENAGA - Consumers switch on their air-conditioning units and air ionizers more frequently

PUNCAK - Increased drinking and washing to counter the side-effects of the dirty air quality

SPRITZR - Higher water demand

IHH, KPJ, FABER - Higher demand for their services from the public. The effects on the healthcare sector would be more long term in nature, given that side-effects to health would likely be less noticeable at first, only showing up in other related ways after a certain period of time.

Monday 22 July 2013

Volume Spread Analysis

Bullish volume is increasing but not ultra high volume on up bars and decreasing volume on down bars in an uptrend.

Bearish volume is increasing but not ultra high volume on down bars and decreasing volume on up bars in a downtrend.

When WEAKNESS (shorting opportunities) appears on a chart, it will appear on an up bar, that is a price bar that has closed higher than the bar behind it, and will be on unusually high volume or unusually low volume

When STRENGTH (opportunities to go long) appears on a chart, it will appear on a down bar, that is a price bar that closed lower than the bar behind it, and will be on unusually high volume or unusually low volume.

Thursday 11 July 2013

Did outperform open-ended unit trusts?

The 5-year (longest period available) average return of equity Malaysia non-islamic unit trusts (which I think is most comparable to for the period between 27 June 2008 and 28 June 2013 was 68.14% while the 5-year growth in the NAV of between 25 June 2008 and 26 June 2013 was lower at 62.09%. For the same period, the share price appreciation of was significantly lower at 21.32%

25 June 2008 – 26 June 2013
62.09% (NAV)
21.32% (share price)
Equity Malaysia, non-Islamic unit trusts
27 June 2008 – 28 June 2013
68.14% (average)

Source: The Edge Malaysia, page 50 (8 July 2013), ICAP bursa announcement

Closed-end funds do not experience inflows and outflows of funds, their fund managers have a broader range of investment choices and greater flexibility in deciding where and how to invest. 

Since closed-end funds have a fixed number of shares outstanding, they do not experience constant inflows and outflows of funds. Therefore, closed-end funds have less trading activities. With less buying and selling to do, closed-end fund would have less reinvestment decisions to make. The more reinvestment decisions there are, the higher the risks of making the wrong decisions and thus the higher the chances that the performance of a fund would be inferior. As a result, the chances of sucess for closed-end funds are much higher.


Tuesday 9 July 2013

Asia Media - What the shareholders should know

The non-interested directors and the independent adviser recommended shareholders of Asia Media to vote in favour of the resolutions pertaining to the proposed rights issue and proposed exemption respectively in the upcoming EGM. Do they take the followings into consideration and highlight these in the circular to shareholders in relation to the proposed rights issue to give shareholders a true and fair picture?

1. In the IPO prospectus (page 54),
Our DTTB will be rolled out initially in Klang Valley upon the completion of the construction of transmitter, transmission towers and gap fillers, which is expected to be in the first half of 2011
RM16mn, which was part of the RM22.54 IPO gross proceeds was previously allocated for capex, to invest in DTTB. The launch of DTTB has been delayed for more than 2 years. What caused the prolonged delay? Why another RM20m is required, as compared to the initial RM16mn to launch the DTTB in Klang Valley? This was not explained in the circular to shareholders dated 4 July 2013.

2. The group intends to expand the DTTB coverage to JB in 2013 (page 15 of circular dated 4 July 2013). The commencement of DTTB in Klang Valley has been delayed for more than 2 years. Why not the group focuses on the implementation of DTTB in Klang Valley, get it run smoothly first before expanding it in JB?

3. (Page 58 of circular dated 4 July 2013) DOOH Transit Media Industry (Malaysia) grew 23.7% from 2011 to 2012, and forecast to grow by 23.8 in 2013. CAGR of 28.7% is expected between 2013 and 2017. This gave promising prospects for DOOH Transit Media Industry. However, did they non-interested directors and the independent adviser highlight the flattish revenue experienced by AMEDIA in recent quarters and provide the causes of it?

Revenue PBT
3Q10 6.401 2.087
4Q10 6.979 2.175
1Q11 9.995 4.15
2Q11 9.52 4.191
3Q11 8.428 3.401
4Q11 8.605 3.498
1Q12 11.137 4.281
2Q12 10.852 4.454
3Q12 11.604 4.204
4Q12 11.173 2.97
1Q13 11.663 3.673

4. (Page 35 of the circular dated 4 July 2013)
The proceeds from the proposed rights issue of shares will allow the group to repay its existing creditors in respect of equipments purchased previously for its DTTB infrastructure hence maintaining good reputation and trust with its suppliers
Does Asia Media has liquidity issue?

For the above, is omission the same as lying?

Sunday 7 July 2013

i-Berhad sees goldmine in wax museum

If assume 30,000 visitors a month, RM45 per pax, this translates into yearly revenue of RM16.2m, versus investment of RM25m.

Normal ticket prices at Madame Tussauds:
Hong Kong: HK$215 
Shanghai: RMB150
Sydney: $38
London: £30
New York: $36
Hollywood: $27.95

PROPERTY developer i-Berhad expects revenue from its leisure sector to double to RM64 million this year. The bulk of the expected revenue will come from its latest attraction, the Red Carpet@i-City wax museum at its theme park in Shah Alam.

i-Bhd director Monica Ong told the Malaysian media, here, that the Red Carpet@i-City wax museum is the first of its kind in the country with its inclusion of interactive exhibits. She said 50,000 people are expected to visit the interactive wax museum monthly when it opens early next month. Entrance ticket is priced at RM80 for adults and RM40 for children. Family packages of RM180 will be made available for two adults and two children. The tickets will also be available online at RM100 each for tourists.

"This attraction is one of the tourism products for Visit Malaysia Year 2014 and has been aggresively promoted by the Tourism Ministry," she said after signing the agreement between Red Carpet@i-City and Zhongshan City Elephant Sculpture Art Co Ltd (ZCESA) here. Representing ZCESA, which produces the wax figures at its premises here, is its wax sculpture designer Zhao Xue Rong. Also present were the consul-general of Malaysia in Guangzhou Francisco Munis and i-Bhd executive chairman Tan Sri Lim Kim Hong.
Others include ZCESA's president Liu Zhen and the Red Carpet@i-City's Creative Design director Bernardo Munoz.

The interactive wax museum project at the i-City theme park is the brainchild of Lim who believed that it would become an iconic attraction for the whole family and it would attract both local and foreign visitors.

"We are investing RM25 million in the project. It is a big investment but we wanted to have a major attraction for VMY 2014," he said. Lim said in view of i-City being a Malaysia Super Corridor (MSC) Malaysia Cybercentre-certified development, the company wanted not only a normal wax museum but one that incorporates multimedia technology.

The Red Carpet@i-City will have 100 wax figures, including that of the country's first Prime Minister Tunku Abdul Rahman, at the proclamation of independence. Other Malaysians to have their wax figures displayed at the Oscar-night-themed museum are actress Tan Sri Michelle Yeoh and badminton superstar Datuk Lee Chong Wei. Other exhibits at the 30,000 sq feet attraction include the British royal family, international movie stars, sports icons and world leaders. The highlight is the interactive part of the museum which will have life-like wax figures of Korean superstar Psy, Michael Jackson and even Elvis Presley singing and dancing.

Wednesday 3 July 2013


Refer to the previous offer by State Government in Feb 2013 for the privatisation of water assets in Selangor, accrding to CIMB research in a report dated Feb 2013, Puncak will get about RM2.77/share for disposal of Puncak Niaga Sdn Bhd and 70% stake in Syabas. But based on my calculation, if I interpret it correctly, it could be RM3.46/share.

Besides 5 sen single tier dividend which will go ex on 11 July 2013, Puncak is also giving out free warrant on the basis of 1 for 10, to be ex on the same date.

SHAH ALAM (July 2, 2013): The federal government has agreed to Selangor acquiring all four water concessionaires in the state. Mentri Besar Tan Sri Abdul Khalid Ibrahim said he has received a letter from Prime Minister Datuk Seri Najib Abdul Razak agreeing to the deal. "Selangor is all set to bring the supply of water under its control before the end of the year," Abdul Khalid said. While he did not disclose figures or terms of the agreement, the Pakatan government, since came into power in 2008, has been clamouring for water to come under the control of the state. Abdul Khalid told Dr Abd Rani Osman (Meru-PAS) in the state assembly today: "The state and federal governments are working together in drafting the agreement in accordance with the Water Concessionaries Industry Act 2006. "Under the Act, the federal government has the executive power over any water deal across the peninsular and federal territories." The Selangor government cited incompetence on the part of the concessionaires as one of the reasons to acquire the companies. Answering a supplementary question, Abdul Khalid said the state is ready to manage water supply and that a professional management team is already in place. 

(雪蘭莪‧沙亞南2日訊)雪州大臣丹斯里卡立表示,雪州水供重組計劃是龐大計劃,既然冷岳2水供計劃也在水供重組計劃中,州政府對這項計劃持開放立場。 他說,首相拿督斯里納吉表明願意與雪州共商重組水供工業事宜後,州政府也在準備相關文件,以符合2006年水供服務工業法令(655法令)的要求,並希望水供重組可在兩個月內完成。 卡立今日在州議會回答中路州議員阿都拉尼和雙武隆州議員三蘇汀的問題時也說,為了避免公眾在雪州政府接管水供後面對困擾,州政府在2012年中旬成立一個專業團體來管理雪州政府成功接管的雪州水供。 “這些將負責管理雪州水供的專家和外國執行員領取的薪水,比雪州水供公司首席執行員領取的薪水低。” (星洲日報)

Tuesday 2 July 2013

Lowest brokerage in town?

I think Ambank's eDirect offers the lowest brokerage for cash upfront online account, 0.035% or minimum brokerage fee of RM6, whichever higher.

Interest is payable for cash balances of RM2k and above.

Plus point is that any contra gains will be credited into the trading account on contra date.

However, it should be noted that eDirect does not consolidate the trades of a counter. Minimal brokerage of RM6 will be imposed on every single trade order. Fees are also imposed on various types of service for nominee account and I don't think the rates are cheap.

More info available here.
See product disclosure sheet

Monday 1 July 2013

boutique financial advisers

Key driver: Seow Lun Hoo, a former heavy hitter in the Hong Leong group.

Key driver: Wong Muh Rong. She was a senior management team member in Newfields Advisory from 2002 to 2008. Prior to that she worked in consulting and was an investment banker.

Key Driver: Lim Beng Guan. Its founders are Lim Beng Guan, Danny Choong and Poi Koon Hwee. Lim and Choong were previously from CIMB doing corporate finance, capital market and debt restructuring. Meanwhile, Poi was previously with Nomura Advisory Services and Malaysian Trustees Bhd.

Key Driver: Datuk Siow Kim Lun. Former Securities Commission (SC) director During his tenure with the SC, Siow held several positions including that of the director of issues & investment division, the director of the market supervision division as well as the executive director in the office of the SC Chairman. Siow served in the SC for 13 years, retiring in Dec 2006. Azhar Mohamad, also formerly form the SC. His last position in the SC was head of Securities Issues Department.

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