CIS - The Mystery Man Who Moves....

The man who made the market for SoftBank that winter morning was sitting in pajamas in a bedroom cluttered with comic books. He was leaning into the glare of four computer screens and munching a carrot -- something to calm his stomach. 

Read more....

The Homeless Generation is getting bigger

Should we still allow ‘sell and build’ concept?

WE refer to the report “The young find it difficult to afford a home” (Sunday Star, Sept 28).

The price of property is rising because of rising material, labour cost, inflation and speculation.

Speculation occurs when there a developer develops property on a “sell and build” (SAB) basis.

Properties are constructed and delivered over 36 months. Mega developers would launch their product by phases. Every new phase is launched with minor cosmetic appearance with the price increased by 15% to 25%.

This encourages people to rush and buy houses before the next phase is launched, as they would want to make quick capital gains.

The developer interest-bearing scheme (DIBS) encourages developers to act as an unlicensed financial institution when they say they subsidise the interest during construction period.

The developer actually transfers the interest cost into their product cost and force the buyers to pay for it via bank loans.

In other words, banks gains interest during the construction period. This contributes to higher property prices and household debt.

Malaysian household debt has risen to a worrying level. The large proportion of this debt is due to anxiety of potential buyers afraid that they cannot afford to buy properties in the future.

It is a vicious cycle that damages individual economies. The combination of developers marketing strategy that focuses on people’s anxiety is an important factor.

Many people own more than one house and use the extra houses as an investment. It is quite a possible to earn 100% gain within three to four years after a house is completed.

The solution to this problem is clear. Developers must not be allowed to practice the SAB concept.

They should only build and then sell (BTS). It is morally wrong for anyone to sell something that does not exist.

In Malaysia Islamic loans by the banks are being allowed to finance something that is not syariah compliant. The SAB concept also contributes towards the rising number of abandoned projects.

Despite all control measures imposed by the Housing and Local Government Ministry, between 2009 till Sept 2014, the numbers of abandoned project increased from 68 to 212 projects.

This in turn increases the burden on the ministry in trying to help the house buyers.

It appears that developers are only interested in making a profit but when there are problems, they walk away.

It is time that Bank Negara orders banks to stop providing loans to support the SAB concept. This will deter property speculation, prevent abandoned housing and address oversupply.

The Housing Development (Control and Licensing) Act 1966 (Act 118) has the legal provision to support the BTS concept and it is Syariah compliant.

DR MOHAMED RAFICK KHAN

President

Victims of Abandon Property Owners Malaysia

source: thestar 30sep14

Lucky childrens!

HBA: Build-then-sell system safer way to build houses

ABANDONED housing projects in the country continue to be a dampener to the hopes of many house buyers and their families from realising their dream of being owners of their own homes.

Its continued presence remains a thorn in the housing industry that does not bode well for the wellbeing of the affected house buyers nor the reputation of the errant developers.

Although the majority of developers have fulfilled their delivery promises to house buyers, there are still some “bad apples” that have reneged on their end of the bargain when they abandoned projects.

Chang:'The BTS 10:90 is a far safer mode of home delivery system'.

Besides causing dilapidated environment, abandoned projects also cause unnecessary hardships to many people as they need to continue with their monthly bank instalments for their housing loans, and in many cases unless the projects are successfully revived, there will be no end in sight as to how long they have to bear their ordeal.

Championing the plight of the affected buyers is the National House Buyers Association (HBA) which has urged the Government to make good the implementation of the build-then-sell (BTS) 10:90 system as the industry’s housing delivery model from 2015.

HBA secretary-general Chang Kim Loong urges the Government not to deviate from the original road map to implement the BTS 10:90 system put in place under the Housing Development (Control and Licensing) Act and Regulations.

“The Government had in 2012 reiterated the BTS 10:90 system will be made mandatory by 2015, and hopefully it will hold true to its word of making this housing delivery system mandatory come next year,” Chang tells StarBizWeek.

Under the BTS 10:90 system, house buyers only need to fork out the initial downpayment of 10% when booking a house and do not need to make any further payment until the vacant possession of the property is delivered to them.

As such, the servicing of the end-financing loans do not kick in until the houses are completed with all the certifications obtained and keys with vacant possession are presented to the buyers.

Chang says the Government’s abandoned project revival efforts do not seem to be able to match or counter balance the fresh problematic projects that have been labelled as “sick” or “delayed” that continue to come on line.

“The BTS 10:90 is a far safer mode of home delivery system and the Government should without further delay, compel the housing industry to adopt the system as we believe it will drastically if not totally eliminate cases of housing projects being abandoned.”

He says this is precisely why the Government is encouraging it and offering incentives to developers who opt to adopt this mode of selling their products.

“But it fell short of compelling the industry to adopt this BTS 10:90 concept concurrently,” Chang notes.

But is the BTS 10:90 system the answer to the menace of abandoned projects in the country? Khong & Jaafar Sdn Bhd managing director Elvin Fernandez thinks not.

Voicing his reservation about the efficacy of the BTS 10:90 system, Fernandez says if the BTS 10:90 becomes the sole mode of housing delivery for the country in replace of the sell-of-the-plan mode of housing delivery, it will be highly negative for the market.

“The market will slide downwards into an oligopolic market. If the BTS is legislatively imposed on the developer, he will transfer the cost to the buyer or cease developing which means the number of players will be substantially reduced.”

Fernandez says if the new rules allow both the BTS and the sell-then-build (STB) systems to co-exist it will be a better system.

“One has to understand the role of the developer in the market. He is but a middle man, assembling a site, taking risks to bring the product to market.” While admitting there may still be abandoned projects in the present system, Fernandez says they should be dealt with appropriately such as by way of adopting a better project financing system and better monitoring of developers.

A better alternative

Speaking up for the BTS 10:90 system, HBA vice-president Brig-Gen (R) Datuk Goh Seng Toh says basically the BTS 10:90 creates a more orderly system of financing in that banks give project financing to developers and buyers are not subjected to this early stage financing.

“House buyers pay only 10% upon entry. Project financing covers only the construction and the incidental/accessory costs. Developers’ profits are not factored in. Rightly so, as developers should collect their profits only upon completion of their projects. This will also have a stabilising effect on house prices because banks would want developers to show proof of committed sales (percentages) before they would approve or release the project financing. Hence house prices would be placed at realistic and current values in order to secure sales. Over-priced houses will not sell and this would be a big problem with regard to getting bank approval for project financing,” he explains.

Goh: 'The housing industry and financing go hand in glove'.

Goh says with this safer system created by the BTS 10:90, banks may even consider lowering interests as cases of abandonment will be largely diminished and correspondingly bad loans within the housing industry will reduce.

He says currently the large number of abandoned projects in the country is tying up large amount of dormant funds. When this is reduced, financing costs can also reduce and the industry will benefit.

On the argument that house prices will go up, Goh says the claim that house prices will jump many folds is “based on the wrong premise that the industry will shrink”.

Goh says this point had long been one of “the frighteners” or “fear tactics” touted by interested parties.

“It is at best a conjecture without any solid justification. It is a wrong premise intentionally adopted by the opponents of the BTS10:90. This wrong premise is that in the current system of sell-then-build (STB), the buyers are the ones financing the housing industry. Hence the argument is that if you take away this financing by the buyers, the industry will collapse. This is not true.

“It is the financial institutions that are financing the housing industry. The housing industry and financing go hand in glove. Even big and cash rich developers conduct their businesses using financing and not entirely from their in-house funds. This has to do with leveraging, risk spreading and taxation,” he points out.

Currently, under the STB, banks lend money to house buyers and these funds are then channeled to pay developers. The risks to banks is that if the houses are not completed (ie the project fails) for whatever reason, buyers become defaulters.

“When one project fails, there are perhaps hundreds of defaulters. Revival of any abandoned project becomes very problematic within a legal quagmire. This is due primarily to the situation that within any failed project, there are multiple banks that have given end financing loans to the buyers. The collateral is held by multiple banks with each holding multiple liens to the various lots. “Hence the banks also suffer losses. Buyers may become bankrupt, developers hide behind the corporate veil and often escape using crafty corporate maneouvres. Banks are left holding collaterals that have little or no cashable value unless revival effort is successful,” he says.

He says whereas in a BTS 10:90 system, the bank deals only with the developer and the parcel of land remains wholly within the control of the project financing bank, unlike the present situation where no particular bank has control over the multiple lots under development. “In fact with banks operating within a less risky environment, it will encourage more willing financing from them. The Association of Bankers have consistently stated that they do not discriminate between big or small developers or whether the sell-then-build or BTS 10:90 is adopted. Their main criteria is viability of any project. Herein lies another advantage of the BTS 10:90 in that there is another audit put in by the project financing banks before a project is launched. Chances of project abandonment is further trimmed.”

Goh says HBA believes that with a more orderly system, the housing industry will be more stable and stronger. Banks will be operating in a safer and lower risk environment due to the more logical structure of financing the industry.

He gave HBA’s two observations on the matter. Firstly, developers now have to factor in the interests into the costs of their product but these interests should cover only the construction costs and it is also not a one-time outright payoff. “Project financing is released in stages in accordance to the developers’ stages of construction. Herein lies another unseen advantage. The onus is now on developers to complete their projects as early as possible in order to minimise their finance costs. Hence cases of delays will be reduced.”

Secondly, buyers are already paying the unseen costs by way of progressive payment interests even before the houses are completed. Thus, any price increase brought about by developers having to carry their finance costs will be offset by the savings on progressive interests.

“Within this safer system of financing, banks should be more willing to support the industry with cheaper financing costs. This will certainly have a positive effect on supply and pricing,” he says. 

source: thestar 19jul14

Check out this video HERE.

Kerja terus sampai mati

Jikalau tak mahu, save, save, save, invest, invest, invest. >> Compounding magic!

Klik pada gambar untuk besarkan imej

Kerana.....

So learn, Rules of 72.

Thrill?

noun

1. a sudden feeling of excitement and pleasure.

   "the thrill of jumping out of an aeroplane"

   
   

   synonyms:

   (feeling of) excitement, thrilling experience, stimulation, sensation, glow, tingle, titillation;

2. 
   
3. 
   
   

It was this kind of feeling riding with faris on BLC2797! 

20 Reasons I Won’t Return to a Stock Market Job

This is one good piece of confession found at safalniveshak.com

A friend also relate his story to me. He did follow analyst advice many years before until he discover a "highly promising buy call" from almost all analysts and the counters fell into the ditch a year later. After that episode, he never trust their words anymore, and his winnings thereafter are all base on waiting fundamentally strong to come out of their slumber. It really pay off!

1.  It’s a place where logic, as I’ve learned over the years, doesn’t always matter.
2. It’s a place where the priorities are out of order – making fast money and evangelizing big investors is on the top of this priority list. The small investor, I think, does not exist at all!
3. It’s a place where analysts are able (and are paid) to find stocks that are “good values at any price” and stocks the values of which will “perpetually rise”.
4. It’s a place where daylight robbery happens in the plain sight of everyone, from investors to regulators – and no one seem to mind.
5. It’s a place where you are counted among the few foolish if you try to stay objective.
6. It’s a place where dealing with small investors is considered a wastage of time – that distracts the analyst from “doing research”, and siphons off time that otherwise might be used to serve big, institutional clients and win “best analyst” votes.
7. It’s a place where “risk” is thrown out of the window…literally!
8. It’s a place where “warnings”, “worst case scenarios”, and other details that institutional clients read and take time to understand never make it to the regular folks (people like you and me).
9. It’s a place where the only game they play is called “expectations”, and reality, even when it bites, never gets etched in the mind.
10. It’s the only place where trees rise to the skies.
11. It’s a place filled with misplaced belief that analysts seem to have the magic wand to reverse a stock’s decline, simply by saying it wasn’t so.
12. It’s a place where information travels unevenly. Of course, the small investor gets the least information, and gets it last!
13. It’s a place with so many disappointments and reversals that at the end of a few years, you lose the ability to be shocked by anything.
14. It’s a place where, as you gain experience, you lose your powers of rational thinking.
15. It’s a place where, if you have some sanity left, you will add a line in your valuation model that reads – “adjustment for irrational exuberance”.
16. It’s a place where the small investor is playing a loser’s game.
17. It’s a place where your obligation to be independent isn’t economically logical, especially when you are working with a broking firm whose primary purpose is to maximize profits.
18. It’s a place filled with “smart” men and women who know the price of everything, but the value of nothing.
19. It’s a place where two types of people meet up in the morning: those with experience and those with money. At the end of each day, those who had experience have the money, and those who had money have the experience.
20. It’s a place where they fool people. 

"Think independently and don’t let yourself be influenced by the “noise”. Stay focused on analysis, valuation, and margin of safety. Despite all its ills, the stock market is still a place where you, if you can keep your head when others around you are losing their’s, you can achieve your financial freedom."

Related post on PDT/IVTs

If I knew, would I invest?

A tribute to a warrior and a fallen angel!

Warrior - its not you, actually, and angel, just believe in destiny and move on.

Care for a cup?

It is one of the world most consumed beverages. Yet the planters are the least profitable in the supply chain. Why?

What is the value here....

How this RRIM location map would be like in 2024?  

TOP WARNING SIGNALS FOR COMPANY TO GO BANKRUPT

Article by Dr. Nazri Khan first appeared in Mac 2014.

Transmile, Kenmark, Megan Media, Ekran, Linear Corp, Scan Associates, Golden Plus, Dis Technology, Welli Multi and of course Renong Berhad. All are distressed public listed companies which have disappeared.

Will Malaysia Airlines join them ? Good question. Maybe and maybe not.

My sixteen years experience shows that companies rarely go into bankruptcy without some warning. The following are the BEST TOP WARNING SIGNALS which will tell us 99% they are going under. Beware & Stay Away.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Danger Sign No. 1
Management Scandal. Leaders keep changing.
A serious warning if top guys CEO or CFO take flight suddenly without explanation or give stupid reason such as personal commitement or personal health reason.

Danger Sign No. 2 
A History of Financial Restatements or Late Filings.
Late financial reporting and accounting restatements normally are associated with bad management integity. This was especially characteristic of companies engaging in complex accounting to sweep losses under the rugs and hide liabilities just to drive stock prices higher.

Danger Sign No. 3 
Faster Growth in Accounts Receivable With Flat Growth of Sales.
Faster growth of receivables than growth of sales. The balance sheet is full of rubbish sales with no cash to accrue. Bad companies have serious bad debts, rising receivables and credit downgrade.

Danger Sign No. 4 
Mysterious Growth In Inventories.
Unexpected bumps in inventories relative to sales. Growing inventories could signal a weak customer base, or worse, that the company use suspicious creative accounting to boost value of inventories to offset declining sales.

Danger Sign No. 5 
Mysteriously Bad Cash Flow With Strong Profits And Sales.
Cash flows is the most transparent and is extremely difficult for management to abuse. Bad cash flow normally suggest complex liquidity and smells trouble for the company. If net income is increasing at a faster clip than cash flow, beware. If earnings are rising year to year and cash flow is not, danger! Either way, something’s not right.

Danger Sign No. 6 
Frequent Change Bank Lender And Swim With Loan Sharks.
A company's relationship with its bank and any changes therein is also a useful financial signal. Reduced availability on a company credit line or a frequent change in borrowing patterns may be indicative of financial problems. Increase in loan security and unsecured loan from no-brand-lender are clear evidence of deterioration in the financial health of a business. Finally, the breaching of loan covenants or missed loan payments are clear warning signs that the company requires help.

Danger Sign No. 7 
Three Years Combo Of Sustain Operational Losses And Decline In Sales.
A sustained decline in sales, poor profit margins, losses, increased debt, a highly leveraged balance sheet and negative working capital over twelve straight quarters may be the best cancer signals of a serious financial distress.

Danger Sign No 8 
A Series Of Bad Lucks In A Row
Companies face so many highly improbabale one-time events back-to-back such as a warranty claim, the cancellation of a large order, a huge union strike, an adhoc special operational audit, a sudden uninsured fire or theft, a sudden departure of supplier or a serious change in supplier payments. A failure to explain this event may be some creative accounting management is using to cover operational losses.

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Hall Of Fame :
1. Transmile Group Berhad
Recorded a net loss of RM369.56 million and overstated its consolidated revenues by RM 530 million in 2005 after a special audit was conducted.

2. Kenmark Industrial Berhad
Fail to issue the fourth-quarter results 2010 for three months. Operations stopped while two banks demanded RM73 million. Became a PN17 company and shares tumbled 80 per cent.

3. Megan Media Holdings Berhad
Posted a mind-boggling net loss of RM1.14 billion for the fourth quarter ended April 30, 2007. Investigated by the Securities Commission, and found to have defaulted RM893.97mil in maturing banking facilities.

4. Ekran Berhad
Magnificent rise in 1990s corporate Malaysia but only to hit a peak months after it had been awarded the contract for the multi-billion ringgit Bakun hydroelectric dam project. Defaulted loan payments and was categorised as a PN1 and PN17 company for at least four years before delisted from Bursa Malaysia.

5. Linear Corp Berhad
A cooling systems company that has landed itself into a PN17 company after being investigated by Bursa Malaysia and the Securities Commission over its troubled RM1.6bil King Dome project in Manjung, Perak.

6. SCAN Associates Berhad
The board of directors lodged a police report and then dismissed CEO following an alleged misappropriation of near RM2 million funds.

7. Golden Plus Holdings Berhad
Failed to submit its audited accounts and annual report for 2007 and its quarterly report for the period ended March 2008 before being reprimanded by SC.

8. DIS Technology Holdings Berhad
Found to misstate several quarterly reports due to an alleged employee fraud worth RM80 mil reported by a major customer based in Hong Kong.

9. WELLI Multi Corp Berhad
Managing director were convicted for furnishing the Securities Commission with misleading fictitious sales information of RM141 million in its audited 2005 financial statement.

10. Renong Berhad
The deal involving United Engineers (M) Bhd’s (UEM) mysterious put option with a total cost of RM2.34bil from an unknown sellers which later expired with no settlement. The CEO later resigned from the group in October 2001 and later sues government for a sour business deal.

My dedication to all investors of these companies. Hope we learn something.

What happened to MAS?

7 Key Tips to Value Investing

1. Never Lose Money
2. Invest. Don’t Speculate
3. Don’t Invest on Margin
4. Don’t Listen to Mr. Market
5. Don’t Forget a Margin of Safety
6. Don’t Listen to Bad Management
7. Don’t Stop Reading

by www.fb.com/profit.at.bursa

Treat All Investors Equally

I REFER to the report “Bursa sets record straight on remisiers issues” (The Star, Dec 11). The concerns raised by the Remisiers’ Association of Malaysia or Pesama has its basis.

Liberalisation of brokerage fees is fine if it reduces trading cost for all investors. However, what many investors are not aware of is that there exist certain type of privileged market players who do not pay any fees. They are called Proprietary Day Traders (PDTs) and Investment Accounts (IVTs).

Basically, these are personal or the house account of the dealer or broker and their full-time job is to trade or speculate as much as possible.They are not serious or long-term investors as they will usually square their positions on the same day.

While most investors must pay brokerage fee, clearing fee and stamp duty whenever they trade, these PDTs and IVTs do not incur such costs. This zero cost privilege has enabled them to profit from even a minimal of one uptick or half a sen when normal investors have to wait patiently for at least nine upticks before they can even break even (based on the minimal brokerage of RM40 for both the buy and sell side).

Since they pay no fees and therefore bring no income to the regulators, why are they treated better than others?

Effectively, they are granted a free hand to trade, speculate or gamble in the market on a different set of rules of which the odds are better off than the genuine and serious investors.This has made a mockery of the fair and orderly market motto that the regulators often trumpet.

It has been argued that the privilege is given as an inducement for them to trade and thereby create an impression of active and vibrant market condition. The intention is well and good. However, the reality is that it has created extreme disorderliness and volatility to price and volume movement arising from their aggressive speculative nature and coming from a nothing-to-lose mentality due to the zero cost benefit.
Their no value added activities have caused more headaches than positives for the regulators.

Many unusual trading activities were not due to any material development in the company but were due to excessive speculation by these PDTs and IVTs.In addition, regulators have set little limits over their trading activities. It has often been said that the regulators have created an animal they can’t control.
It is like letting loose a high horsepower car on the highway without imposing any speed limit thereby endangering other users.

Many genuine and serious investors have been influenced/lured to trade by the price and volume trend, thinking something materially positive may be developing in the company; only to discover later that it was just speculation caused by these parties hoping to profit from price volatility.
The regulators need to get their act together and treat all investors equally especially when it comes to investing as the money used to invest may be hard earned.

Investors must also be informed and aware that rules of the game may not be the same for everyone and not be overly excited by rise in price and volume as this may just be hot air created out of nothing.

STRICTLY FAIR AND ORDERLY
Kajang

This reader comment was published in TheStar on 13Dec13.
So who is protecting the small fish?

The best business is when they come n give you cash, daily!

Don't you agree? Who owns it, the masses or the chosen few?

Gamuda, which already owns 30% of Kesas, recently obtained the nod to acquire 20% each in the highway concessionaire from Amcorp Properties Bhd (Amprop) and Permodalan Nasional Bhd (PNB), thereby increasing its stake to 70%.

Gamuda has a 45% stake in Lingkaran Trans Kota Holdings Bhd, which owns and operates Lebuhraya Damansara–Puchong; a 52% stake in Sistem Penyuraian Trafik KL Barat Holdings Bhd, which has the SPRINT highway; and a 50% stake in Syarikat Mengurus Air Banjir dan Terowong Sdn Bhd, which operates the SMART Tunnel.

Ekovest is the 70% owner of DUKE via Wira Kristal Sdn Bhd. The owners of Wira Kristal are Tan Sri Lim Kang Hoo and Datuk Haris Onn Hussein. Wira Kristal owns 70% of Nuzen Corp Sdn Bhd, which has a 34-year concession of Duke via its wholly-owned Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd.

Maju Expressway Sdn Bhd (MESB) is the concessionaire of the 26-km Maju Expressway which offers a direct link between Kuala Lumpur and Putrajaya and Cyberjaya. MEX started collecting tolling in 2008 and traffic volume has increased by a compounded annual growth rate (CAGR) of 20%, with average daily traffic at its two toll plazas reaching 100,000 vehicles in 2012. A new 1.7-km Seri Kembangan interchange along the highway is expected to boost MESB's earnings, via a new toll plaza scheduled to be completed by early 2015, and the extension of its concession by up to eight years.

UEM Group Bhd and the Employees Provident Fund had acquired PLUS Expressways for RM23bil in 2010.

Do you know until when is the end of concession period of all toll road in Malaysia? Go figure it out how much you gonna fork it out of your own wallet for the privilege of stuck in jam of certain tolled road.

Bagaimana nak kira premium H waran?

Warrants are good leverage vehicle!

Bagaimana nak kira premium H waran atau C waran? Kiraan ada dibawah! Dah menang sedekah sikit....

H = Put Warrant & C= Call Warrant

Magical Compounding

No wonder Einstein called it the wonder of the world!

To my dear young man, if it is not within your reach  today, do not despair, god is always fair because he made everything in cycles. In a cycle, there is a top point and bottom. If you at the top, wait the bottom will come, there is a bottom within 7 to 15 years. Be prepared to take advantage of it when it comes.

Click on image to enlarge

Credit to the Map Guy for translating this wonderful data into a meaningful picture.

What is the meaning of Barakah?

Oil n gas, hot favourite!
But what are they actually doing and who are playing the short and long game - keep in mind and see the big picture yourself!

 Barakah indeed for the players!

Kejatuhan mendadak saham Dsonic, kenapa?

Sebelum ini kita lihat kejatuhan saham Zhulian dan ini pula berlaku pada saham Dsonic. Harap beri perhatian pada artikel berikut dibawah yang telah disiarkan oleh TheStar dimana komen oleh pakar waran Alan Voon. Hati-hati jika anda melabur dalam "call warrant". Manipulasi yang dibenarkan?......


PETALING JAYA: Shares of Datasonic Group Bhd have steadied, but questions are still being asked about the stock’s spectacular run-up since January this year and its sudden plunge on Friday.
The share correction in Datasonic’s share price came amidst a rare trading caution on the stock issued by Bursa Malaysia on April 2 and days after a call warrant (CW) was issued on the company by an investment bank.
Alan Voon, a warrants specialist, offered his view that it was risky for a third party to issue a call warrant on shares of a company that had gone up 10 times in the last one year.
“If I had to make a general deduction, I would imagine a high risk bet by the issuer on Datasonic if the share prices continued the upward trajectory it had been on,’’ he said.

The issuer would have needed to protect itself, Voon said, either by hedging or coming to some kind of arrangement with those holding large chunks of the shares in the company.
The call warrants on Datasonic caught interest because the company had publicly issued a statement on March 28 to distance itself from the instrument.
In a statement to Bursa Malaysia, Datasonic stated that the company was not involved or responsible for the issuance of the call warrants by an investment bank.
“The board wishes to draw attention to all investors that Datasonic is not liable and takes no responsibility for the call warrants,” it said.
There is a large number of call warrants issued by third party issuers in the market. These call warrants are primarily aimed at short term speculators looking to ride on the company with minimal capital outlay.
AmBank’s call warrants on Datasonic carries a conversion ratio of six-for-one at an exercise price of RM3.72. Datasonic-CW was last traded at 30 sen yesterday, up 0.5 sen from its previous close.
The CW will expire on Jan 12, 2015. Meanwhile, the underlaying Datasonic share price slipped 6 sen, or 1.6% yesterday to close at RM3.58 on a volume of 6.81 million shares.
A total of 30.8 million shares were transacted on Friday, on the day when the stock collapsed by RM1.06, or 22.6% to RM3.64 amid reports that it may attract stricter trading curbs by the exchange.
This was later denied by the company in a brief press statement.
“The volatility is likely to ensue until the last of the warrants is sold.
“Only then will trading volume ebb,” Voon said.
Datasonic’s share price had surged from about RM2 in May 2013 to nearly RM10 in late December.
After its one-for-two bonus issue in July 2013 and a one-into-five share split in December, its share price again continued its upward trajectory.
Its earnings leapt 505% to RM22.81mil in the fourth quarter ended Dec 31, 2013 from RM3.76mil a year ago, bolstered by an improvement in revenue.
Its revenue rose at a slower pace of 73% to RM72.55mil from RM41.96mil. Earnings per share were 3.38 sen compared with 0.56 sen.

Colors of life

Use it to your advantage.....

Most successful dividend investors

Dividend investing is as sexy as watching paint dry on the wall. Defining an entry criteria that selects quality dividend stocks with rising dividends over time and then patiently reinvesting these dividends while sitting on your hands is not exciting. While active traders have a plethora of hedge fund managers on the covers of Forbes magazine there are not many well-publicized successful dividend investors. Even value investing has its own superstars – Ben Graham and Warren Buffett.

I did some research and uncovered several successful dividend investors, whose stories provide reassurance that the traits of successful dividend investing I outlined in a previous post are indeed accurate.

The first investor is Anne Scheiber, who turned a $5,000 investment in 1944 into $22 million by the time of her death at the age of 101 in 1995. Anne Scheiber worked as an IRS auditor for 23 years, never earning more than $3150/year. The one important lesson she learned auditing tax returns was that the surest way to become rich in America is by accumulating stocks. She accumulated stocks in brand name companies she understood and then reinvested dividends for decades. She never sold, in order to avoid paying taxes and commissions. She also never sold even during the 1972-1974 bear market as well as the 1987 market crash because she had high conviction in her stocks picks. She also held a diversified portfolio of almost 100 individual securities in brand names such as Coca-Cola (KO), PepsiCo (PEP), Bristol-Myers (BMY), Schering Plough (acquired by Pfizer in 2009). She read annual reports with the same inquisitive mind she audited tax returns during her tenure at the IRS and also attended annual shareholders meetings. Anne Scheiber did her own research on stocks, and was focusing her attention on strong franchises which have the opportunity to increase earnings and pay higher dividends over time.

In her later years she reinvested her dividends into tax free municipal bonds, which is why her portfolio had a 30% allocation to fixed income at the time of her death. At the time of her death, her portfolio was throwing off $750,000 in dividend and interest income annually. She donated her whole fortune to Yeshiva University, even though she never attended it herself.

The second investor is Grace Groner, who turned a small $180 investment in 1935 into $7 million by the time of her death in 2010. Ms Groner, who worked as a secretary at Abbott Laboratories for 43 years invested $180 in 3 shares of Abbott Laboratories (ABT) in 1935. She then simply reinvested the dividends for the next 75 years. She never sold, but just held on to her shares.

She was frugal, having grown up in the depression era, and was the classical millionaire next door type of person who was not interested in keeping up with the Joneses. Grace Groner left her entire fortune to her Alma Mater. Her $7 million donation is generating approximately $250,000 in annual dividend income.

The reason why dividend investors are not highly publicized is because dividend investing is not sexy enough to be featured in the financial mainstream media. In addition to that, it is not profitable for Wall Street to sell you into the idea that ordinary investors can invest on their own. Compare this to mutual funds, annuities and other products which generate billions in commissions for Wall Street, despite the fact that they might not be in the best interest of small investors.

The third dividend investor is Warren Buffett, the Oracle of Omaha himself. In a previous article I have outlined the reasoning behind my belief that Buffett is a closet dividend investor. He explicitly noted in his 2009 letter that "the best businesses by far for owners continue to be those that have high returns on capital and that require little incremental investment to grow". His investment in See's Candy is the best example of that.

Some of Buffett's best companies/stock that he has owned such as Geico, Coca Cola , See's Candy are exactly the types of investments mentioned above. He has mentioned that at Berkshire he tries to stick with businesses whose profit picture for decades to come seems reasonably predictable. Per Buffett the best businesses by far for owners continue to be those that have high returns on capital and that require little incremental investment to grow. In addition, his 2011 letter discussed his dividend income from all of Berkshire Hathaway investments, including his prediction that Coca Cola dividends will keep on increasing, based on the pattern of historical dividend increases.

In this article I outlined three dividend investors, who managed to turn small investments into cash machines that generated large amounts of dividends. They were able to accomplish this through identifying quality dividend growth companies at attractive valuations, patiently reinvesting distributions and in two out of three cases maintaining a diversified portfolio of stocks. These are the lessons that all investors could profit from.

Taken from: http://www.dividendgrowthinvestor.com/2012/06/most-successful-dividend-investors-of.html

bursa-dividend.blogspot.com

Saham amanah terbaik untuk pelabur KWSP

Rekod unit saham amanah yang telah menunjukkan prestasi terbaik antara 2009 sehingga 2013. Pastikan anda tidak terlepas pandang mereka-mereka ini sekiranya pulangan yang terbaik adalah matlamat pelaburan anda. Biar dalam KWSP pon boleh juga, pulangan 5-6% je setahun. 

Mengikut "Rule of 72" jika pulangan purata ialah 20%, pelaburan anda akan berganda setiap 3.6 tahun!

Rule of 72: Gandaan pelaburan(tahun) = 72/peratus pulangan tahunan

Terbaik pada tahun 2013

Cars and its value

Surely this picture worth a thousand words. I'm not surprise to see the top two model because I personally knew a team member who was developing the model!

Cars - a negative equity assets, yet loved by many!

RIP Industries - 2

Yeah, we are too big to fail....

Are you into yearly prediction?

Go to 2014 prediction!

I want to plant a tree......

The next new millionaire are the farmers....

Go figure it out!

Apa terjadi pada saham Zhulian pada 23 Januari 2014

Saham Zhulian jatuh 101 sen dalam sehari pada 23 Januari 2014? Kenapa?

5131CA    ZHULIAN-CA    ZHULIAN-CA:CW ZHULIAN CORP(C)
Listing Information & Profile for Structured Warrants
Instrument Type : Structured Warrants
Type of Structured Warrants : Call Warrants
Description : European Style Non-Collateralised Cash-Settled
Underlying Stock : Zhulian Corporation Berhad
Issuer : CIMB Bank Berhad
Stock Code : 5131CA
Stock Short Name : ZHULIAN-CA
ISIN Code: MYL5131CAO14
Board : Structured Warrants
Sector : CONSUMER PRODUCTS

5131CA    ZHULIAN-CA    ZHULIAN-CA:CW ZHULIAN CORP(C)
Expiry/Maturity of the securities
Type of Securities : Structured Warrants
Type of Structured Warrants : Call Warrants
Type of Expiry : Expiry/Maturity of the securities
Exercise/ Strike/ Conversion Price : MYR 3.0000
Exercise/ Conversion Ratio : 2 : 1
Settlement Type/ Convertible into : Cash
Last Date & Time for Trading : 27/01/2014 05:00 PM
Date & Time of Suspension : 28/01/2014 09:00 AM
Last Date & Time for Transfer into Depositor's CDS a/c : 30/01/2014 04:00 PM
Date & Time of Expiry : 30/01/2014 05:00 PM
Date & Time of Delisting : 04/02/2014 09:00 AM
Remarks : You are advised to read the full announcement at http://www.bursamalaysia.com.

ZHULIAN ada dua call waran, ZHULIAN-CA dan ZHULIAN-CB.

ZHULIAN-CA akan tamat tempoh pada matang pada 30 Jan 2014 dan penyelesaian tunai adalah secara 2 CA + RM3 dan 27 Jan 2014 adalah hari terakhir dagangan saham yang berjumlah 50 juta unit ini.

Jika harga ZHULIAN(ibu) ialah RM4.60, penyelesaian untuk ZHULIAN-CA adalah (RM4.6 - RM3) / 2 = 80sen.

Jadi untuk 50 juta unit ZHULIAN-CA, pengeluar perlu membayar
RM0.8 X 50,000,000 = RM40,000,000 (RM40juta) kepada pemegang unit ZHULIAN-CA.

Hari ini ZHULIAN ditutup RM3.60, jadi (RM3.6 - RM3) / 2 = 30sen, dan untuk 50 juta unit ZHULIAN-CA, pengeluar akan membayar RM0.30 X 50,000,000 = RM15, 000,000 (RM15juta) kepada pemegang saham ZHULIAN-CA. (*andaian mudah - rujuk link contoh kiraan dibawah)

Keadaan ini membuatkan pengeluar hanya perlu keluarkan RM15 juta sahaja, jimat 25juta (40 - 15)

Jumlah dagangan ZHULIAN ialah 12,551,800 unit dan adakah ZHULIAN adalah saham yang dikategori dalam list "regulated short selling (RSS)", yakni saham-saham yang boleh dijual tanpa memiliki saham tersebut? Lihat DISINI.

Maklumat lanjut mengenai SBLCLA (Bursa Securities Borrowing and Lending - Central Lending Agency) DISINI.

Jika semua ini adalah jualan pengeluar, dan semua yang dijual pada purata (RM4.00) kerana harga jatuh dari RM4.61 dan ditutup pada RM3.60, katakan keuntungan dalam RM0.60 sesaham.
RM4.61 - RM3.6 = RM1.01 (jumlah kejatuhan harga penuh)

Jika andaian purata keuntungan ialah RM0.60,
RM0.60 X 12,551,800 = RM7,531,080 (keuntungan dijana melalui ZHULIAN)

Akhirnya dari RM15juta - RM7.53juta = RM7.46juta

Jika ditakdirkan semua adalah jualan mereka, RM1.01 x 12,551,800 = RM12.67juta, anggaran kerugian akhir hanya RM2.33 juta sahaja (kiraan tidak mengambil kira pendapatan permulaan 50juta unit x RM0.15 = RM7.5juta semasa terbitan unit).

Rata-rata hampir kesemua saham-saham yang berada dalam "regulated short selling" mempunyai call atau put warrant yang dikeluarkan oleh investment bank. Kalau x percaya, ambil list tu dan periksa sendiri.

Mana volume - kenapa tiada yg menjual?

Jadi awasi, ini mungkin bukan kali terakhir pekara sebegini boleh berlaku & coolnya pemegang unit ZHULIAN-CA.....no matter what they will win, jap je lagi!

Tak masuk akal, teruskan kajian - selamat menemui hypothesis yang lebih masuk akal kerana ZHULIAN-CA akan jadi sejarah muzium! Ingatan untuk tidak dimakan jerung.



Rujukan lanjut
1. Contoh pengiraan penyelesaian call waran
2. SBL

Boom - bust clock

where are we now?

lets go surfing....

Born to be branded

Gen Y n Z - they are targetting you!