Portfolio Update

Lets see how is the portfolio perform for month September :

The portfolio rose to 8.89% with the help of maybulk, masteel and ornasteel. Rcecap also contribute abit to the profit. Too bad the property counter did not perform as i expected, but i will still hold on them. Their time will come. When Rcecap is sold, the money will be added into the property counter.

Compare with klse index since 1/3/2007 until now, it has a gain of 14.7%. my portfolio is still under perform the klse index. But since there are still 5 months to go before i close my year 2007 portfolio, lets hope i can beat the index again.

Thanks to Sam

special thanks to Sam for his tips. :)

RCEcap up 10%, :)

Buy in RCEcap

Just buy in RCEcap at 0.87 with 3500 shares., if you do not follow Uncle Sam tips, then wait and see, to see how good it is.

All the property counter pjdev, metrok , and plenitude not performing well, but the metal steel all perform good, wait for 2 months and see, since all the property stocks above will distribute the dividend at the end of years.

today volume is around 78k, which is quite low compare to the peak volume time like 230k. The share price might shoot up to RM1 in the short term if the volume is high enough.

Let' see the performance tomorrow.

A & M

Hmm, above is volume and share price of A & M (the drop of share price is due to share split) today volume is the highest a super shoot up...hmm..whats behind it?

with this volume only up a merely 4.5%? Better take a close monitor.. :)

Plenitude

All counter were up but only Plenitude down.

Not sure why, but take a look on the FA.

Net cash position with 81millions on hand,
2006 2007
Land held for properties development : 98.66 138.64
Property development expenditure ( current ) : 139.67 131.50
Property development expenditure(not current) : 166.28 175.30

I did not see there any changes with the fundamental. With the current property development expenditure still remain the same, i expect them to achieve the same result for the next year. With the cash on hand, they can buy and develop any land anytime. This counter is too cheap with 2.96.

Pjdev and Plenitude are still the favourite. :) . still confidence with malaysia property counter. Government will make it "hot".

Dow up 336 on Fed's big rate cut

The central bank cuts its key rate to 4.75% in a move to prevent a deep housing slump from turning into a recession. Stocks, especially financial stocks, soar in reaction.

The stock market enjoyed one of its biggest days of the year today after the Federal Reserve delighted investors with a larger-than-expected cut in its key interest rate.

The Dow Jones industrials soared nearly 336 points, or 2.5%, to 13,739 -- its biggest point and percentage gains of the year. The point gain was the biggest since Oct. 1, 2002. The Standard & Poor's 500 Index jumped 43 points, or 2.9%, to 1,518, its best percentage gain since Aug. 1, and the Nasdaq Composite Index soared 70 points, or 2.7%, to nearly 2,652.

At the same time, however, consumers won't be happy with energy prices. Crude oil closed at $81.51 a barrel in New York, a record closing price, and was above $82 in after-hours trading this afternoon.

The huge rally came after the Fed cut its federal funds rate from 5.25% to 4.75% in a bid to keep the softening economy from sliding into recession. The federal funds rate is what banks charge each other for overnight loans and is the basis for everything from business loans to credit card charges.

The Fed also cut its discount rate -- the rate it charges member banks and institutions for short-term loans -- from 5.25% to 4.75%.

Stocks shot higher in response within seconds of the Fed's 2:15 p.m. ET announcement.
"The tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally," the Fed's statement on its decision said. "Today's action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time."
Most Fed watchers had expected a smaller cut in the fed funds rate to 5% and 5.5% on the discount rate.

Hmm, the economic at us so bad? What do you think? Let's see how stock market performs today :)

Warren Buffet

There was a one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:

1. He bought his first share at age 11and he now regrets that he started toolate!

2. He bought a small farm at age 14with savings from delivering newspapers.

3. He still lives in the same small 3-bedroom house in mid-town Omaha ,that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

4. He drives his own car everywhere anddoes not have a driver or security people around him.

5. He never travels by private jet,although he owns the world's largest private jet company.

6. His company, Berkshire Hathaway,owns 63 companies.He writes only one letter each year tothe CEOs of these companies, giving them goalsfor the year. He never holds meetingsor calls them on a regular basis.He has given his CEO's only two rules.Rule number

1: do not lose anyof your share holder's money. Rulenumber 2: Do not forget rule number 1.

7. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.

8. Bill Gates, the world's richest man met him for the first time only5 years ago. Bill Gates did not think he had anything in common withWarren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

9. Warren Buffet does not carry a cellphone, nor has a computer on his desk.His advice to young people: "Stay away from credit cards and invest inyourself andRemember:

A. Money doesn't create man; it is the man who created money.
B. Live your life as simple as you are.
C. Don't do what others say, just listen to them, but do what you feel good.
D. Don't go for brand name; just wear those things in which u feel comfortable.
E. Don't waste your money on unnecessary things; just spend on those who really are in need.
F. After all it's your life so why give chance to others to rule your life."

Which field is better?

For those who is studying secondary school/plan to change field, what is the best job you can think?

Honestly saying, it is better to study your interest subject.

But which field has highest paid + good bonus?

I can say it would be the best to work for bank, my brother who work in bank for IT support has found out (accidentally) the pay slip of the fresh graduate is around 30k per month.

Gosh, 30k = 65k ringgit per month, that does not include the bonus, better study for finance instead of IT or engineering.

My friend who work for engineer has been calling by his remisier friend to accompany him to buy "sports car". I ask him, whats is the minimum price of the car he can see at the shop, he told me " minimum 180k sgd".

Bank is willing to pay you if you can earn alot of money for company, as you are using money to earn money, not like IT selling service support, or engineer selling knowledge, who is not "directly" contribute to the company.

You will find out all these when you come out work at society.

Volume Shrink : 600,819,600 share done ONLY

Most of my counter go into negative region now...

Except masteel and maybulk which i purchase in very low price,

but i not sure they can survive at the next wave ...

seems like after Wednesday many of us will become long term shareholder :)

Dutch Lady Time

It's Dutch Lady time!

Every one know the Dutch Lady manufacture of sweetened condensed milk, milk powder, dairy products and fruit juice drnks.

Let's take a look how they perform durng this time bull market :

wow, impressive, has been double, or maybe triple if you buy at RM4.

What make it so good? Take a look on below stats:

2003 net earning 15millions

2004 net earning 20millions

2005 net earning 27millions

2006 net earning 43 millions

2007 2Q net earning 43 millions.

Omg, this counter is good. They have been given out the dividend as much as RM1.165 per share since last Q3 2006. This explain why the this counter worth PE 15 for today price RM11.80.

two things contribute to this high PE:

1st. growing earning power.

2nd good dividend.

I cant predict whether they will earn better in next year, but i believe that they cannot sustain giving out dividend in this way, earning 80 sen per share but giving out RM1.165 per share. You can observe that their shareholder equity is decreasing compare to last year. ( Most company will have increasing shareholder equity so that they can use the excess money to invest in their business and keep on growing.).

This share might have chance to go back to RM14 if the foreign investor is coming back..or else, keep it as defensive stock for dividend. (i doubt they can still continue to keep on growing , so as the dividend payout , better sell when observe there are some changes of dividend payout policy or staggering earning )

I prefer Maybulk than Dutchlady for dividend counter. Why? Maybulk paying a good dividend too, and i can see at newspaper they start "selling" transportation counter..Maybulk definitely will rise further..Good luck for Dutch lady shareholder too.

Import Oil??

林冠英：油價上漲敲警鐘馬2011年將成淨石油入口國

（八打靈再也訊）民主行動黨秘書長林冠英表示，新經濟政策、油價上漲與馬來西亞的石油儲備逐漸減少，將會促使馬來西亞在2011年成為淨石油入口國，並破壞未來的經濟增長與繁榮。他發表文告說，首相阿都拉巴達威沒有從油價上漲至每桶80美元負面效應所帶來的挑戰中覺醒，民主行動黨對此表示關注。油價上漲敲響的三重警鐘，即新經濟政策所強調反競爭、反成長及反貿易的另一面，再加上石油儲備量減少，將是馬來西亞政府勢將且還未準備面對的兩大挑戰。“石油收入佔我政府2007年度收入的37.6%。根據財政部最新估計的預算案，我國在2007年年度收入估計是1417億9000萬令吉。其中石油及天然氣就佔了533億1100萬令吉。”他說，石油收入有助於我國緩衝管理不當、浪費公帑及貪污丑聞所帶來的負面衝擊，否則我國的經濟早就癱瘓。當馬來西亞在2011年成為了淨石油入口國，必須提出的質疑是馬來西亞要到哪里尋找數百億令吉的需要來填補國家財務的缺口。

hmm, is this really true?? seems like government will definitely decrease the subsidization of oil price, gosh....next year...after election, they will announce this "good news " maybe..better save more/earn money to invest in other country ^_^

Vietnam vs Malaysia?

越南股市大旺居亚洲之首 不可低估的亚洲第五虎

都说中国的股市疯狂，但实际上，2006年位于亚洲国家股指涨幅之首的是越南，越南经济的巨大潜力被严重低估了　　国际先驱导报驻越南记者黄海敏，实习记者王晓洁发自河内、

北京 费先生是在河内工作多年的中国人，对越南近年来的经济腾飞非常感慨：“2000年的时候，一个外企白领拿到100美元的月薪就很不错了，可现在一个月挣两三百都不希罕。 　　虽然物价也涨了，但人们生活水平的提高却是铁打的事实。费先生说：“河内的大超市比比皆是，一到节假日就挤满了人，他们往购物车上扔东西的架势一点不亚于中国的城市居民。”　　

河内大街上的高档车也越来越多。“以前大街上70％的车都是摩托车，现在40％都是汽车，而且大都是丰田、奔驰等高档车。”费先生坦言，中国人严重低估了越南经济的发展。　　

最熟悉的陌生人　　

“我说我在越南定居了，朋友们都以为我疯了。”江西人彭子豪于两年前来到越南做餐饮生意，逐渐喜欢上了这个地方，还娶了越南妻子。“其实越南并没有中国人想的那么穷，我妻子是越南农村人，他们生活得比中国农民舒服得多。”　　越南究竟有多好？下面这组数字也许有助于国人对越南建立一个客观的认识：去年越南的GDP增速为8.2%，仅次于中国；越南人的识字率达到95%以上，高于中国；越南的幸福指数也比中国高出18个位次，2006年排名全球第12，位列亚洲第一。越南还有许多不为人知的发展优势，比如国民心态平和，社会安宁；工人富有纪律且团结；欺诈、盗窃现象较少，在越南几乎看不到防盗门、防盗窗以及汽车摩托车报警器。越南领导班子在经济、政治改革中的行动力也令世界对其刮目相看——为了治理党内腐败，越南政府专门委托瑞典国际发展合作局进行了一项为期三年的研究，耗资高达70万美金。　　

最有潜力的世界工厂　
　
彭子豪感到最近生意越来越好做了。现在，他专门为胡志明的开发区配送工作餐。“这里新厂特别多，我们都忙不过来了！”　　

如今，走出了亚洲金融危机阴影，越南经济步入了高速发展的轨道，跨国公司都十分看好越南这只“潜力股”。去年，英特尔斥资13亿美金进入胡志明高科技开发区；今年，台湾鸿海集团更以50亿美元的投资在越南建立了自己的生产园区。光是今年1月净流入外资就超过了10亿美元，达到了去年外资总额的1/8，照这样的速度，越南全年外资规模将达到GDP的1/5。　　

对越投资的国家和地区中，亚洲占多数，它们也正在酝酿从中国大陆转移一部分资金到越南，分散投资风险。根据日本贸易振兴机构的最新调查，75%的在越投资日企都认为越南是今后10年东南亚的最佳投资地点，并计划将部分投资移出中国。目前，中国不少沿海城市都开始“挑商选资”，

投资成本逐年增加，而在越投资不仅门槛低，劳动力成本也只有中国的50%～70%。　　紧邻东盟十国广阔的市场空间，坐拥热带国土的丰厚自然资源，越南作为“最有潜力的世界工厂”已颇具雏形。最近安邦咨询发布报告指出，在吸引外资上，越南可能成为中国的重要竞争对手。　　

最具投资成长价值的亚洲国家　　

都说中国的股市疯狂，但在去年，越南以145％的股指涨幅位于亚洲国家之首。不少人都这样描绘越南的股市：“人傻、钱多、速来”。瑞士信贷亚洲区首席经济分析师陶冬则撰文分析：“投资越南的人并不傻，但是不要抱着短炒的心态”。　　

自越南在七年前设立股市起，资本市场便以惊人的速度发展。据安邦咨询发布的消息，当越南首家证券交易中心在2000年成立时，只有两种上市股票，市场规模仅1730万美元。但截至今年6月，越南股市总市值已经达到371万亿越南盾（约合238亿美元），共有190家上市公司。外国投资者都十分看好“亚洲第五虎”的发展前景，近来外资净买入越南股票的金额已经超过净买入台湾股票的金额，尽管越南股市市值不到台湾股市的3%。安邦咨询在报告中明确指出：“越南已经成为亚洲地区极具投资成长价值的国家之一。”


A lauzy investor to invest in Vietnam and the greatest investor invest in Malaysia, who will win? i think maybe Vietnam investor, is not because he is lucky, just the condition there make him become the winner.

klse volume shrink??

Volume is less than 1 billions today, hmm...if the volume going down further more then prepare for a long battle!

maybe FED will announce good news at this month, pjdev is going down..seems cheap.. :)

wait for the confirmation of the date for dividend paid..he definitely will go up to RM1...

Single-tier tax system Good?

Check out from here:

From BizWeek:

Another move that may not go down so well with some is the introduction of the single-tier tax system on profits and dividends, as this would be disadvantageous to those who are in the below 26% tax bracket as well as to those who currently do not pay any income taxes, such as the pensioners and retirees.

This is because this category of taxpayers would effectively have to pay the difference between their current tax rates and the corporate tax rate of 26% from next year onwards. Presently, such individuals are able to claim for refunds from the Inland Revenue Board.

Take, for example, a person who receives a total of RM1,000 in gross dividends in 2008 from his investments but is currently only in the 20% marginal tax rate band. The net dividend that he receives would be RM740 (RM1,000 – RM260, the latter being the 26% corporate tax). Under the present system, he would be able to claim a refund of RM60 (RM260 – RM200) but under the proposed single-tier tax system, he would not be entitled to any refunds.

Comment : omg, i suppose can claimed the refund if i am under 26 marginal tax rate band, but now no more. Thanks government.

Maybe it times to consider invest in other country..

Why buy Maybulk?

Check below website:

http://www.dryships.com/index.cfm?get=report

Baltic Dry Index (BDI) +140 8410

omg, it add another 140 to 8410 index.

If you do not buy maybulk, then surely you will lose the chance to earn money.

They are paying good dividend, under kuok rich family management and finally, the BDI is going up, up, up..

Bear Coming??

Quote From Bloomberg :

U.S. stocks tumbled after the first monthly decline in jobs since 2003 magnified the threat of a recession, sending the Dow Jones Industrial Average down 250 points and wiping out this week's gains.

Payrolls shrunk by 4,000 jobs last month, compared with a 100,000 gain expected by economists in a Bloomberg survey.

Hmm, is that us economic that bad?? some say the subprime issue is been magnified, some say is small problem, some say...

who to trust? we might need some time to determine whether bear market is coming or not..but i confirm one things, malaysia economic seems ok :)

Pjdev and Melewar.

Seems like people is expecting Malaysia budgetary is benefiting property counter.

my pjdev up 5% today ( as i said, we have big tauke behind this counter) and melewar shoot up 12% within these 2 days.

While metrok go up to 1.68 (3%) with the warrant up 25% today. ( who is so generous to pay such high price?)

Metal stock is still undervalued, let's hope government will announce some good news for them.

Maybulk 8sen dividend ex date is on coming 10-9. This counter is still under valued. Might reach to 4.50 soon if Us did not make much trouble for us. :)

Portfolio update

well, lets compare my portfolio with the klse index.

since this portfolio is started at 1/3/2007 until 28/2/2008, so i wll compare with the index within this period.

At 1/3/2007, index is 1,164.68, at 6/9/2007, 1298.85, so total return is which is 11.5%.
While my portfolio return is a merely 7.21%, which is under performed the market by 4.29%.

The main reason is i make too much lose during the period 1/3/2007 until 1/7/2007 .

Another reason is i added in 5k-6k within these few months has diluted my investment return percentage.

I hope i can achieve at least 20% for this 2007 year and outperform the klse index. we shall see.

Plenitude on hand

manage to get Plenitude on 3.02 4 lot, = 1.2k.

:)

if market crash how? no cash at hand, nvm..all are good counter with low PE.

(Average lower than 10 ).

which is good enough for me :)

Buy in Pjdev

Just bought 3000 shares of Pjdev at 0.925.

Cash left only 1k something.

Maybe for plenitude at 3.02.

:)

How cheap is Masteel?

with 2 Quarter now, they have eps 15.64, with another two quarter with similar result (which is a very conservative assumption!), let say 30sen,

At price 1.34, the pe = 4.7, omg!! you say cheap or not? if they did better than current one, you will see the cheapest profitable metal stock.

Not convincing? then look at below statesment :

1.Construction Industry Recovery
The construction sector is projected to turn around in 2007 to register a growth of 3%, against a contractionof 0.5% in 2006.Under the Ninth Malaysia Plan, the Government has allocated up to RM10 billion for the development ofSouthern Corridor in the State of Johor, which includes the development of a special economic zone knownas the Iskandar Development Region. The implementation of the plan, which will start in 2007, is expected toboost the local construction industry.The steel industry is looking to benefit from the positive growth and re-bound of the construction industry.

2.Export Potentials
Singapore’s highly profiled casino/resorts mega-project development plan will also augur well for Malaysia’s steelindustry due to our proximity to the island city.

3.Foreign Exchange
The strengthening of the Malaysian Ringgit against the US Dollar will reduce the cost of imported materialsnecessary for our manufacturing process, thereby benefiting our overall cost of production.

Decide whether to buy or not, think..

Portfolio Update

Portfolio update:
sell litrak at 3.80 with 500 shares.. get 2k cash.

manage to get masteel on thursday. 1 lot. By having 4k cash on hand, they should be use for future purchase.


Now the portfolio looks as above, property stock is only take out 12% of total portfolio, which is very low. I intends to add pjdev and plenitude into my portfolio, and make the propery counter become 40% or more.

melewar should be sold to swap to property counter. :) try to get some during monday.

Pjdev and Plenitude

Many counters like ireka, paramon, pjdev and plenitude property counter record very impressive result ( too bad metrok did not).

Among these counter, i most like the counter pjdev and plenitude.

lets take a look on plenitude quarter report:

revenue for 2007 compare to 2006 is 238millions compare to 221millions, basic earning is 41sen ps compare to 38.8 sen ps, which is 8% improvement.

at current price RM3.02, the PE is 7.36. Which is ridiculous low. :).

This is commented in quarter report:
The Group achieved a profit after tax of RM56.5 million on the back of revenue of RM238.2 million for the current year-to-date under review. This performance was mainly attributable to progressive profit recognised on properties sold, completed and handed over in respect of Taman Desa Tebrau in Johor, Taman Putra Prima in Selangor, Bandar Perdana in Kedah, The Residences and Changkat View in Sri Hartamas, Kuala Lumpur. Apart from the profit contributed from property development projects, Tanjung Bungah Beach Hotel in Penang has also contributed 2% to the Group’s net profit.

With long term borrowng stood at 11m, cash on hand 81 millions, (wow, a debt free company!) ,

Land Held for future Development
138,641

Property Development Projects - non current portion
175,305

Property Development Projects - current portion
131,508

All is very good!!! they have many lands , many future project and current project working, a pe lower than 8 is too low!! this company is undervalue.

Will buy in for 3.02 if possible monday

For pjdev,

revenue for 2007 compare to 2006 is 549.358millions compare to 487.82millions, basic earning is 9.29sen ps compare to 6.29 sen ps, which is improvement 49%.

pricing for now is 0.92, which is Pe around 10.

This is commented in quarter report:
The Board projects a better financial year ahead. With the on going projects receiving encouraging response coupled with new launches, the Property Division is expected to record higher earnings. Cable manufacturing business continues to show good performance. With the vigorous implementation of the 9th Malaysian Plan, we believe that the demand for power cables will continue to be strong and the cable business will perform satisfactorily. Our Hotel and Leisure division will also benefit from the government’s current promotional activities to attract foreign visitors to our country, and as such, the performance of this division will continue to improve.

seems like management has the confidence to achieve better result, with 5 sen dividen going to be declared , at price 0.92, dividend is around 4%. which is very good

How to know they have more project to reep more profit?

Current Property Development Costs is 261m vs 169m (previous year), i believe there is more to offer from pjdev.

some more, there is some one want to push the price going up (a very big boss!)

These 3 counters will be my main composition of property counter.

metrok will be benefited from the government new policy ( as rumous going :) , so i will keep it.

Good luck !