DBS 1 for 2 Rights issue

SINGAPORE, 22 December 2008 - DBS Group Holdings Ltd (“DBS”) today announced a rights issue (“Rights Issue”) to raise net proceeds of approximately SGD 4billion on the basis of one new ordinary share (“Rights Share”) for every two existingshares held as at 5.00 p.m. on 31 December 2008.

I have 1 lot of DBS share with the buy in price 9.88.

The right issue reminds me of Standard Chartered Bank (SCB) who has just completed the right issue on Nov 2008.

The announcement was made during 24 Nov 2008, let's look at how is the market responds:

On Nov 24, SCB open at 728, declines to 695, 4.5%, and bounce back to 725, thanks to the strong rally of 10% rise FTSE100 on that day.

On Nov 25, the price shoot up to 840, a 15% rally.

Will DBS share behaves the same way? at closing price 9.37, DBS cannot really claim they are trading at 45% discount, and this remains less attractive to the investors.

The Rights Issue price of SGD 5.42 per share represents approximately 45%discount to the last traded share price of SGD 9.85 on 19 December 2008 andapproximately 35% discount to the theoretical ex-rights share price of SGD 8.37 pershare.

I would love to see whether DBS share price will rally these few days until Friday to prove my guessing ( through analysis ) is correct.

Today Trading

Buy Masteel for 3000 shares @ 1.49.

Trading today

Selling Huaan 2500 shares @ 0.615 today, as i am buying base on rumours, not really aim for long term investment, so i think its time for me to let go the shares.

Today Trading

selling kinsteel for 2000 shares @ 1.21 and 2000 shares @ 1.22

7/10 Trading

Bought another 2 lots of Kinsteel @ 1.32, total 4000 shares of Kinsteel on hand, entitle 1000 shares of Perwaja.

Buy Kinstel Today

Bought 2000 shares Kinstel @ price 1.26, plan to acquire 2000 more shares.

Estimates on Levy impact to Major IPPs.

YTL Power(Power Generation)
Fixed Assets (RMm) 2150.61
EBIT (RMm) 368.309%
EBIT / Fixed Assets Ratio 193.55
Excess of EBIT over 9% EBIT/Fixed Assets 174.7530
windfall profit levy on fixed assets ROA -52.42
Listed Company Net Profits (RMm) 1269.20
Windfall Levy impact as % of Profit** -4.1%

Last week until this week trading

Bought ytlpower @ 1.89 with 900 shares at 28/6/2008 with cost of shares RM1701.

Bought ytlpower-wb @ 0.595 with 5000 shares 30/6/2008 with cost of shares RM1487.5.

Sold Mahsing @ 1.45 with 1500 shares at 30/6/2008.

Current holding stock - ytlpower, ytlpower-wb, huaan, and hunzaproperty.

Plan to accumulate more ytlpower shares and its warrants in future.

Trading on Today

Selling 1000 shares of EPIC @ 1.90.

29/5/2008 Trading and 10/6/2008 Trading

Bought Huaan 2500 shares @ 0.67 at 29/5/2008 and bought EPIC 1000 shares @ 1.96 at 10/6/2008.

Today Invest

Bought another 2 lots of YTLpower @ 2.10.

Latest Invest

5/15:
YTL power 1500 units @ 2.3

5/21:
bought 1000 units @ 1.4 and 500 units @ 1.38 for Mahsing
Bought Hunza Property 1000 units @ 1.81

Bear is coming..

Sam and his gang has disposed some/all of their stocks. With volume achieving lower daily, i agree that the bear is on the way.

I have started to sell Ynhprop , faber ,sunway , mahsing, liondiv between 31 Jan to 10 Feb and currently only keep RCEcap 9000 shares on hand and also sunway 2000 shares on hand.

I will stop blogging after end of Feb as it is time for me to concentrate on my CFA examination.

So far the portfolio commit 10% loss which is around 2.9k.

I believe we still can hunt the cheap stocks when bear is coming.

This 10% loss largely contributed by Sunway shares and this teach me a very good lesson, never forget the golden rules "margin of safety" everytime when you purchase any stocks.

Property stock has been hitting badly like suncity, sunway, brdb.

today Trading

Buy in Faber 1000 shares @ 1.26, buy in LionDiv 1.6 @1000 shares, buy in YnhProp 1000 shares @ 2.63, and finally Mahsing 1.75 @ 1000 shares.

Total 26k cash has been depleted. With remaining 9.2k cash unused, they shall kept for future.

It would be saying every one is in fear to sell their shares, even Sunway has going way down to 1.47, making it one of the worst performer in share market.

Let's see how US perform tonight.

Counters

klse record highest Index at 11 Jan, which is 1,516.22, and until today 1408.60, after 6 trading days, it has lose 7%.

Here is some counter listed for comparison with the klse index:
On 11 JAn Today Percentage change
Rcecap 0.89 0.8 -10.11%
Sunway 1.97 1.64 - 16.75%
PetraEnergy 3.42 3.28 - 4%
LionDiv 2.06 1.70 -17.5%
HiapTek 2.06 1.81 -12.4%
Mahsing 2.11 1.88 -10.9%
Melati 1.65 1.50 -9%
Metrok 1.42 1.36 -4.23%
Plenitude 2.70 2.33 -13.7%
kinsteel 1.58 1.38 -12.66%
Ynhprop 2.82 2.8 -0.71%
Maybulk 4.4 3.74 -15%
Publicbank 11.1 11 - 0.9%
Tebrau 1.32 1.09 -17.42%
Faber 1.52 1.32 -13.6%

Wow, ONly Ynhprop with good news (selling enbloc building) and Public bank ( with good result and dividend policy) managed to hold this storm.

Portfolio reviewing

Currently i have Rcecap , sunway, faber, liondiv and ynhprop as my 5 counters.

I plan to dispose YNHPROP despite this counter has been hold firmly during the recent correction (or crash?)

With maximum 5 counters i plan to hold, i plan to get one more counter, Currently cash at malaysia market is around 6.8k while share is around 20.4k.

i still have another 9.2k on hand at Singapore share market which remain unused. With total 16k cash, the ratio is stood almost at share:cash 60:40, which i feel comfortable.

The biggest loser shares in my portfolio was Sunway, which now losing 15% capital, and follow by rcecap 9%.

I have no worry on them ( Except market crash?) as they are good fundamental counters.

Today Trading: Catching the falling knife?

This was one of the worst share market day for all investor/speculator as most of the market drop around 2%(Malaysia) to 5% (Singapore/China/Hong Kong ) and India 7%.

Despite the falling market, i still buy in some counter, Rcecap 2000 shares @ 0.825 and Rcecap 1000 shares @ 0.805, i also bought in lionDiv 1000 shares @ 1.73.

There are still more room to fall for klse compare to other share market. Beware, dont buy too much!! the falling knife is pain!

Today Trading

Sell Ynhproperty 1000 shares at 2.84 , buy back ynhproperty 500 shares at 2.75.

Buy Sunway 1.70 at 1000 shares and buy Faber 1.36 at 1500 shares.

Faber was one of the election-theme related counter. While sunway just seems cheap for me so i bought some.

Rcecap price seems as reasonable for me. I am planning to buy some Rcecap shares.

Current cash stood at around 11k.

While shares around 15k.

There are another 9.2k spare cash which still parking at Singapore market.

Today trading

Sold Brdb 1000 share @ 3, sold Petra Energy 2000 shares @ 3.32,
and buy YnhProperty 1000 shares @ 2.66.

Notice that someone is accumulating Petra energy share, it was bought back until 3.36. and also, Ynhproperty has been oversold at this moment, with good news announcing, this share drop as high as 8%, that why i has accumulate some too.

Not plan to accumulate at one go, but steady and slowly, today much loss occured due to the transaction cost as the selling price is the same as buying price.

Seems this few days will be US those big bank quarter report announcement, i would rather keep many cash and wait. But for sure, with US lowering interest rate at the end of the month, the market will rebounce soon. Pick the share that rebounce back faster.

Wednesday Trading

Sold Airasia at 1.55 after the management admit they have been speculating in the hedging activities and commit losses.

buy in at 1.63 and cut loss at 1.55.

Today trading

Sold Melati 1000 shares @ 1.64. Expected to raise more cash for coming bull run before elections.

Has been notice Singapore shares this morning and find out alot of stocks have been selling cheap like Cosco, CSC, and Ezra.

This week will be US financial week.

Citigroup (C, news, msgs) and Intel (INTC, news, msgs) on Tuesday.

JPMorgan Chase (JPM, news, msgs) and Wells Fargo (WFC, news, msgs) on Wednesday.

Merrill Lynch (MER, news, msgs), IBM Corp. (IBM, news, msgs) and
Washington Mutual (WM, news, msgs) on Thursday.

General Electric (GE, news, msgs) on Friday.

Good luck for this week. Seems like roller coaster is initiating.

"Politic Theme" Counter

As we know that before the election commence (Rumours saying this coming March), the government link counter will be going up.

Here are some reference of "Politic Theme" Counter:

MRCB,UEMWRLD, UEMBLDR, FABER, TIMECOM, NSTP, UTUSAN, EPIC, UBG, AZRB, SCOMI, KUB,, KENCANA, PECD, MMC, SIME, ECMLIBRA, RCECAP, BSTEAD , MBSB, CMSB , RHBCAP ,TAANN , HSL,
BIPORT, HUBLINE, WEIDA ,NAIM.

Sunway Incorporated Berhad

Talking about Sunway, i believe everyone staying at Malaysia should know about this company.

Sunway was a good company but after they build the SILK highway they have been suffering lost of money.

But at the end of year 2007 years, they managed to dispose the SILK highway by cash payment of RM50 million and the relinquishing of all of its economic rights to its 36% equity stake in SunInfra.

Through this, they can finally focus on their property and construction development.

Latest Q1 2008 result shows that they earn 5 sen eps, expecting they maintain the same result, it would be 20 sen eps, with current price RM1.95, the PE is stood at 10, which is ridiculous for such a reputable company. Sunway is expanding fast to Middle east country, and also China and Singapore. PE10 for Sunway is definitely a steal.

With current bull run which do not benefit Sunway, it would be good chance to snap this counter.

Friday Trading

Bought in Sunway for 3000 shares @ 1.95

Property Theme!!

Finally, the property theme has come, after the IDR theme related counter like UEMworld , ekovest all shoot up, now some other counters has start moving like Mahsing (up almost 10%) and Ynhproperty (almost 8%).

I am aiming at Sunway counter as this share has not seems any movement since the bull start running. By able to dispose highway concession business SILK, i believe it is time to buy in.

Surely, i am not sure how far this bull can run, but selling airasia to buy into Sunway would be a good choice since the property theme is starting to run.

today Trading

managed to bought another 2000 shares of RCEcap @ 0.895, bought BRDB 1000 shares @ 3.0.

Wrong decision on airasia?

Yes, i have bought in Airasia due to the good outlook and fast expand of Airasia.

Some people saying that high fuel price pushing more people to the Low Cost Carrier. But, we cannot deny that Airasia margin has been pressured to the oil price increase.

Currently theme play has spread to the IDR link counter. I will sold with the minimize loss and invest in property counters.

Last Year Investment Result

Last year was doing very bad, with the result 12.89% compare to index 24%. ( from 1/3/2007 until 31/12/2007). Earning total RM3067.

Few mistakes i made were investing into manufacturing sector related counters like Uchitec, Notion , Lngres and Ogawa. ( this was the fewest counters perform the worst during the so call middle bull market )

The biggest gain was on maybulk.

Learning from Sam (samgang.blogspot.com) , this has improved my investment skills alot compare to previous 2 years newbie life, from the very first capital 1k, until now 32k.

The late capital that comes after June has lead to the drop of the capital as most of the profits were made during the first half year. If no capital / loss has been made, the late coming capital will sure cause the average gain going down further.

But still, this is the part that really testing your investment skill, you are not only need to beat the market index, but also to maximize your profit with the adding capital diluting your result. And also, the market index has been adjusted higher with our giant share "Sime" joining the index.

The 2007 Portfolio is last from Feb until Dec 2007 as this make me easier for calculation and also to prepare for my Singapore 4k new capital. With the capital at Malaysia 24k, total investment would be 32.6k rnggit.

The first weeks of my trading has bring me 7.29% return (compare with klse index 3.77%), with Kinsteel, ECMlibra and Penergy helping me, lets hope the RCEcap would help me too.

With cash stood firm at 8.6k, other 16k is in share. I still have another unused 4k sg dollar cash parking at Singapore market, i can transfer them back anytime if i think Malaysia is performing better in future. ( Palm oil + Petrol oil effect? )

Let's pray for better return this year for everyone. Special thanks to Sam for teaching us how to fish. I highly recommend everyone going to his blog samgang.blogspot.com for more readings.

Today Trading

Bought in RCEcap 1000 shares @ 0.86 and 1000 shares @ 0.885.

This share has more volume after the news of Goldman Sachs has bought in some share of Rcecap come out.

It might be a normal buy in or either there are some good news. (that we do not know?)

As predicted, the IDR theme play has started after the oil theme play and steel theme play. What's are the IDR link counters that have not move? tebrau up 10%, Uemworld up 7.7%, ekovest 3.33%, while plenitude and mahsing is still lying there dead. These two counters are among the counters that has the strongest fundamental especially Plenitude worth a look. As they have land around the area of IDR, if these theme play continue Plenitude sure will benefit. PE around 7 with strong track record of earning, and in oversold region, i believe a 10% earn from this counter would not be a problem. But BRDR is worth a look, more good news come out but this shares has been staying flat? i will go into this stocks tonight.

My Penergy has started to move after bought at low 3.32, today come into 3.54, This share has been push towards 3.54 at the end of day which is 6.6% gain. Might monitor for few more days on the volume.

12 projects in IDR this yearTuesday January 1, 2008TheStarJOHOR BARU:

Twelve mega projects totalling billions of ringgit are expected to kick off this year under the Iskandar Development Region (IDR), said Johor Mentri Besar Datuk Abdul Ghani Othman.

Among the projects scheduled for implementation are:

- The RM4.2bil Node 1 project in Nusajaya;

- RM1bil Eastern Dispersal Link (EDL);

- The 15km, RM1bil coastal highway linking Johor Baru with Nusajaya;

- RM900mil clean up of Sungai Skudai, Segget and Tebrau; and,

- RM500mil MSC Cyber City project in Kulai.

“The new state administrative centre in Nusajaya, worth RM1.2bil, is also expected to start operations by March,” he told reporters at a press conference to deliver his New Year message.According to him, among the projects implemented in 2007 were the launch of the RM1.5bil Puteri Harbour and the RM7.8bil Tanjung Bin power plant.

The IDR project was launched in November 2006, but it has taken over a year for the details, including the support and incentive packages for investors, to be finalised.

Abdul Ghani dismissed concerns that a possible recession in the United States would negatively impact development projects in the region, saying that smaller countries would enjoy high growth rates.

“Besides the United States and Europe, everybody is optimistic about economic growth and we expect the world rate of growth to go beyond 6%, even in Africa,” he said.

He was confident the IDR would continue to attract large foreign and local investments in 2008.

He added that projects funded by West Asian investors would be situated in Node 1, about 30km from Johor Baru after the Second Link.The Abu Dhabi-based main developer, Alder Properties, will invest US$520mil (RM1.7bil) to develop a leisure zone, while Al-Nibras 2 Ltd, a subsidiary of Kuwait Finance House, will invest US$330mil (RM1.08bil) to develop the culture cluster.

In addition, Abu Dhabi’s Millinium Development Company will invest US$325mil (RM1.07bil) for the development of the international financial zone

Meanwhile, the state hopes to be almost squatter free by 2013 through a RM583mil relocation programme that will house around 8,000 squatters presently living within the IDR.

An estimated 2,932 people whose settlements had to make way for the construction of the EDL would be given alternative housing.

Abdul Ghani said RM300mil would be spent to relocate 2,700 squatters from Skudai Kiri and its neighbouring areas to flats near Sungai Melana, behind the Kipmart in Tampoi

Another 2,450 squatters from Lumba Kuda and Bukit Chagar are expected to get the keys to their homes in Seri Stulang and Pasir Pelangi soon.

Wow, not bad, theme play for those IDR link counter again?

Friday Trading

Manage to sold ECMlibra 3800shares @ 0.925.

Volume has been slow down so just sold all.

I am still looking for other stocks ( Metal theme, Palm oil, what's next? Property theme?, or Iskandar theme? )

Will looks into buy Ynhproperty on Monday if the price is cheap enough. Sunway seems like not a bad choice as they manage to dispose the Infra Highway finally.

Today Trading

Sold Kinsteel at 1500 shares @ 1.51 and another 1400shares @ 1.53. This share has shoot up 17% which is out of my expected in fact.

But i believe there are still other small metal counter to catch up.

up 17% per day is somethings ridiculous as the news ( See previous post) does not mean that they worth 20 or 30% more for the counter. ( we have not see the earning yet). i think this is a metal theme play which wont last long. ( 2 weeks to stable down?)

Buy low and sell high for contra gain is the correct way. I will post out the next metal counter i would go in for contra gain later.

Sold another 2000 shares of ECMlibra @ 0.96, i plan to sold price at 0.97 tomorrow the remaining shares i hold.