CHAP AYAM "THE STOCKAHOLIC" RESEARCH (Kuala Lumpur Stock Exchange)

For the sake of gatai tangan.. terbeli MHB..

noreply@blogger.com (Tauke Saham) — Thu, 29 Dec 2011 10:36:30 PST

noreply@blogger.com (Tauke Saham) — Wed, 28 Dec 2011 02:39:49 PST

WE ARE BACK... heh heh

Sime Darby: Audit Of Energy Arm Finds Breach Of Duty,

noreply@blogger.com (Tauke Saham) — Mon, 20 Sep 2010 07:16:09 PDT

Sime Darby Bhd. said Monday that its investigations into losses amounting to MYR1.3 billion at its energy and utilities arm have found "breaches of duties and obligations and inappropriate conduct."

The company didn't provide further details, saying it had been advised by its legal counsel to keep confidential the details of the report and the nature of the proceedings for now.

"The board has resolved to initiate legal proceedings and where appropriate, to lodge reports with the relevant authorities," the world's largest listed plantation firm by acreage said in a stock exchange filing.

In May, the state-controlled firm had asked its then president and chief executive, Ahmad Zubir Murshid, to go on a leave of absence after an internal task force revealed significant losses from cost overruns in several key energy and utility projects, including civil work for the Bakun hydroelectric dam in east Malaysia and a contract for Maersk Oil in Qatar.

The company then appointed a legal firm "to independently conduct follow-through investigations to determine culpability" for the losses at its troubled energy projects.

Accounting firm PricewaterhouseCoopers was also tasked with carrying out forensic audits on the projects in conjunction with the legal review.

An investigation by Malaysia's anti-graft agency is also ongoing, and the general manager of its unit Sime Darby Marine, Zamri Mohamed Ideruswas, was charged with corruption in August. - DOW JONES NEWSWIRE

Axiata & MHC

noreply@blogger.com (Tauke Saham) — Mon, 13 Sep 2010 08:38:21 PDT

Click on image to get better view

Selamat Hari Kemerdekaan

noreply@blogger.com (Tauke Saham) — Mon, 23 Aug 2010 09:51:40 PDT

BAHAWASANYA NEGARA KITA MALAYSIA mendukung cita-cita hendak :

* mencapai perpaduan yang lebih erat di kalangan seluruh masyarakatnya ;
* memelihara satu cara hidup demokratik ;
* mencipta satu masyarakat adil di mana kemakmuran Negara akan dapat dinikmati bersama secara adil dan saksama ;
* menjamin satu cara liberal terhadap tradisi-tradisi kebudayaannya yang kaya dan berbagai corak ; dan
* membina satu masyarakat progresif yang akan menggunakan sains dan teknologi moden.

MAKA KAMI, rakyat Malaysia, berikrar akan menumpukan seluruh tenaga dan usaha kami untuk mencapai cita-cita tersebut berdasarkan atas prinsip-prinsip yang berikut :

* KEPERCAYAAN KEPADA TUHAN
* KESETIAAN KEPADA RAJA DAN NEGARA
* KELUHURAN PERLEMBAGAAN
* KEDAULATAN UNDANG-UNDANG
* KESOPANAN DAN KESUSILAAN

Malaysians use social media to bypass censorship

noreply@blogger.com (Tauke Saham) — Tue, 17 Aug 2010 20:47:47 PDT

by Romen Bose

KUALA LUMPUR, Aug 18, 2010 (AFP) - Malaysia bumps along the bottom of international rankings for press freedom, but the explosion of social media like Twitter and Facebook is revolutionising how journalists work.

Dissenting views, which for decades were screened out of the government-linked mainstream media, are now everywhere, including the blogosphere and mobile SMS messages, making repression extremely difficult.

One veteran reporter with one of the country’s leading newspapers said that for most of his career it was virtually impossible to write about the opposition or any issues deemed off-limits by authorities.

“But today, government MPs are forced to engage and debate their counterparts across the aisle in social media like Twitter and Facebook, allowing us to report on the opposition and avoid much censorship,” he says.

“Where previously we had to accept at face value a minister’s version of events or policies, today their disgruntled aides and opponents are already tweeting or leaking details on Facebook, giving us uncensored access.”

“Although the restrictions and controls are still in place, it’s become much harder to censor what the opposition or rights groups say in the media,” says the journalist who, due to the sensitivity of the issue, declined to be named.

Malaysia was ranked 131st out of 175 countries in the 2009 Reporters Without Borders (RSF) press freedom index, because of its tight controls on print and broadcast media.

The watchdog says Malaysia prevents journalists from properly covering sensitive subjects such as corruption or human rights abuses, using a publishing permit system which allows it to shut down media outlets at will.

After decades of such policies, self-censorship became rife and political leaders hardly even needed to make the much-feared phone call to the news room.

But the seeds of change were sown in 1996 when the government pledged not to censor online content as part of a campaign to promote its information technology sector.

Despite occasional raids, bans and government criticism, the web and online media remain relatively free.

Suddenly Bastardisation became Famous

noreply@blogger.com (Tauke Saham) — Tue, 17 Aug 2010 10:31:41 PDT

How close we are with US. I think we are quite close, if not really really close.. huh!. Before this we heard our Gavenor Dr Zeti said about "NOOORMALISATION" and Chairman of the United States Federal Reserve, Ben Shalom Bernanke also mentioned that word few times.. "Nuurrrmalizationn".

Now Datuk Seri Nazir Razak, mentioned about BASSSTARDDISATION. That came on Aug 17 when he said the NEP was bastardised, it meant exactly that. Instead of giving birth to legitimate offspring, it has given rise to bastards.

ANDDDD guesss what!!!!! US President Barrack Obama also used that word la bro... today the Obama Administration will host a conference on the future of housing finance - Home Ownership: A Bastardization of the American Dream‎. Is it a coincidence???

So after this, don't shy to use the word lor. When u meet friends just said it, "Hi bastard, how r u, long time no see, where hv u been?" or "Bro, hv u been bastardize today?".

Or u can tell tourists - "Dude! Our country is very unique. When all the countries in the world busy thinking about GLOBALISATION, we busy with BASTARDISATION."

Highest Paid Directors

noreply@blogger.com (Tauke Saham) — Tue, 17 Aug 2010 07:03:56 PDT

KUALA LUMPUR – Listed companies paid out higher remuneration to their directors in 2009 compared to 2008.

Malaysian Business in its annual survey of the ‘Highest Paid Directors’ reveals that the top 10 companies in terms of total payouts forked out nearly RM300 million last year. Out of the more than 600 companies surveyed, close to 240 directors drew more than RM1 million in remuneration in 2009 despite the cautious economic environment.

The survey appears in the Aug 16 issue of Malaysian Business.

Not unlike last year, a large part of this increase comes from Genting Bhd, which topped the list with a big payout of RM92.11 million to its board. The company also had the highest remuneration band of RM87.6 million – RM87.65 million for a single director. However, the company did not name who the director was. The top executive listed is its executive chairman chief executive Tan Sri Lim Kok Thay.

Other companies with the highest remuneration bands for a single director were Genting’s subsidiary Genting Malaysia Bhd which paid out RM37.25 million & above to its top executive. These payouts, however, might have been paid to the same person taking into view the possibility of double counting.

In third place is IOI Corporation Bhd, which paid out a remuneration band of RM25 million – RM30 million to its highest-ranking director. However, this is less than the RM41.10 million – RM41.150 million it paid out in 2008. We assume that the recipient was IOI Corp director and founder Tan Sri Lee Shin Cheng.

The survey lists a total of 628 companies with a remuneration band of above RM300,000 as stated in the company’s annual report. Of these, only about 7% of the companies were transparent in stating the exact remuneration of their top executive. Interestingly, several companies with huge losses still rewarded their directors with huge payouts.

The survey also reveals director remuneration from a sectoral perspective and what government-linked companies (GLCs) dish out to their head honchos. It also gives readers a peek into the ACE Market‘s top executive earners.

Malaysian Business, the country’s premier business magazine published by Berita Publishing Sdn Bhd, also features yearly the country’s 40 Richest Malaysians and the MB100 comprising the choicest companies on Bursa Malaysia.

Eastern & Oriental Bhd, E&O-LB

noreply@blogger.com (Tauke Saham) — Fri, 13 Aug 2010 07:30:31 PDT

Technically, E&O well supported at 1.1o - 1.12. Now on the rebound to test the 1.29-1.30 resistance. Same goes to E&O-LB, supported at 1.09, expected to test the 1.19 resistance.

Background: Eastern & Oriental Berhad is a Malaysia-based investment holding Company engaged in the provision of management services to its subsidiaries. The Company has interests in three business activities: hospitality and lifestyle, property development, and property investment. The Company operates in three major business segments: properties, which is engaged in the development and investment in residential and commercial properties; hospitality, which is engaged in the management and operations of hotels and restaurants, and investments and others. The Company's subsidiaries include E&O Property Development Berhad, Dynamic Degree Sdn. Bhd., E&O Developers Sdn. Bhd., E&O Ventures Sdn. Bhd., Eastern & Oriental Hotel Sdn. Bhd. and E&O Leisure Sdn. Bhd. On March 25, 2009, the Company completed the disposal of its entire interest in Puncak Madu Sdn Bhd to Damansara Developments Sdn Bhd, owned through the Company's subsidiaries, Galaxy Prestige Sdn Bhd and Major Liberty Sdn Bhd.

Ramadan uplifting time for stock markets

noreply@blogger.com (Tauke Saham) — Wed, 11 Aug 2010 09:28:02 PDT

Reallyyyyy arghhh... that what they said lahhh...

(Reuters) - Ramadan, the holiest month of the Islamic calendar marked with fasting and prayer, is also an uplifting time for stock markets in predominantly Muslim countries, according to a study by the University of New Hampshire.

Stock markets in Oman, Turkey, Kuwait, United Arab Emirates, Qatar, Pakistan, Jordan, Egypt, Morocco, Tunisia, Malaysia, Bahrain, Indonesia and Saudi Arabia generated average returns of 38 percent during the month of Ramadan over the years 1989 through 2007, according to the report compared with their average 4.3 percent returns the rest of the year.

Ahmad Etebari, a professor of finance at the university in Durham, New Hampshire, who was lead researcher on the study, said he was surprised by the finding.

"Fasting is quite an ordeal during those long summer days in the Middle East," said Etebari, who was born in Iran. "I expected to see the opposite."

Since Ramadan is determined by a lunar calendar, its starting date varies from year to year. Etebari found that the markets he analyzed performed strongly, regardless of the timing of Ramadan.

Etebari concluded that the rally resulted from greater optimism during Ramadan. "This is behavioral," Etebari said. "It stems from psychology."

Observance of Ramadan is expected to start on or about Aug. 11 and finish on or about Sept. 10.

In the Middle East, Dubai's main index and Abu Dhabi's benchmark are both down so far this year, while stocks in Indonesia, an officially secular country that has the world's largest Muslim population, are up about 20 percent.

"The implication of our find for investors is obvious," Etebari said. "Investors seeking fast profits in the Muslim world should try to profit from the fast."

(Reporting by Scott Malone)

Reasons FoolCus Point deferred listing

noreply@blogger.com (Tauke Saham) — Tue, 27 Jul 2010 08:46:39 PDT

Kuala Lumpur, 27th July 2010 - Focus Point Holdings Berhad (“Focus Point” or the “Company”), Malaysia’s largest chain of professional eye care centres, had been notified by the regulatory authorities and its Principal Adviser, OSK Investment Bank Berhad (“OSK”) on the evening of Friday, 23 July 2010 that a letter from an unidentified source had been sent to the authorities on three (3) points of allegations, being:

(i) Some of the Company’s professional eye care centres do not have either a qualified optometrist or optician;

(ii) There are instances at some of the Company’s professional eye care centres whereby contact lenses are prescribed and/or dispensed by personnel who are not qualified to do so.

(iii) As stated in the Company’s Prospectus dated 30 June 2010, there are only 27 units of K-metres keratometers, compared to the number of professional eye care centres operated by the Focus Point group.

The Company had subsequently responded to the allegations on the morning of Monday, 26 July 2010. The following sets out the key points of the Company’s response:

As at the last practicable date of 1 June 2010 as stated in the Company’s Prospectus dated 30 June 2010, all the 144 professional eye care centres of the Focus Point group are adequately serviced by 152 optometrists and opticians.

All sales of contact lenses that require fresh prescriptions are carried out in the presence of a qualified optometrist or optician, who will provide the prescription. Contact lenses will only be prescribed or dispensed in Focus Point professional eye care centres which have either a qualified optician or optometrist.

All the professional eye care centres under the Focus Point group have all the necessary optical equipment required to carry on its operations.

The Board of Directors of the Company (“Board”) believes that the above allegations are adequately refuted and that the allegations were made with malicious intent to derail the Company’s listing plans and damage the Focus Point group’s business operations. In this regard, the Board wishes to assure the public that the group’s business operations are sound and that its fundamentals are intact.

The Company is currently awaiting the deliberations of the regulatory authorities pursuant to its response.

Earlier response

Kuala Lumpur, 27th July 2010 - Focus Point Holdings Berhad (“Focus Point” or the “Company”), the largest chain of professional eye care centres, said in an official statement today:-

1. The Company’s listing date has been deferred pending an announcement.
2. The Company wishes to apologise for any inconvenience caused and expects to provide further details in due course.
3. The Company wishes to inform the members of the public that business is as usual in Focus Point and all its outlets, and the deferment of the listing date has no impact on its business operations.
4. The Company is the largest chain of professional eye care centre in Malaysia with strong fundamentals and solid financial standing (as disclosed in its prospectus dated 30th June 2010).
5. The Company wishes to assure investors that all monies are currently securely held by both the Placement Agent, OSK Investment Bank Berhad, as well as Malaysian Issuing House Sdn. Bhd.

Statement issued by Focus Point Holdings Berhad dated 27th July 2010.

Petronas Prince Court another Sime Darby?

noreply@blogger.com (Tauke Saham) — Sun, 27 Jun 2010 09:19:44 PDT

CEO asked to on leave?

Bung Moktar & Ibrahim Stupidity - BNM Affin Issue

noreply@blogger.com (Tauke Saham) — Tue, 15 Jun 2010 23:46:30 PDT

They gave Bumiputera a bad name bringing up the non issue of BNM rejected Affin proposal to take over EON Capital. Whart wrong with u guys? Do the background check la. I'm Bumi also, don't has any problem with BNM approaches.

Bank Negara Malaysia is reponsible for the stability and soundness of the financial system as a whole. Individual financial institutions are expected to operate with strong financial conditions, management capabilities and corporate governance.

This objective is paramount in the Central Bank's conduct of its regulatory and supervisory functions.

It was understood, In the context of Affin-Eon Capital, any merged entity is expected to have the necessary financial and operational capabilities to meet the more challenging and competitive financial landscape. Furthermore, the merged entity should also lead to a more strengthened and resilient entity, having the necessary resources, talents and solid focus as well as business directions.

It was understood also, Bank Negara Malaysia has communicated to Affin Holdings Berhad explaining,among others in the following manner ...Affin Holdings dan pemegang-pemegang sahamnya perlu akui yang cadangan pengambilalihan di atas akan menambahkan beban kewangan masing-masin dan ini akan mengehadkan keupayaan untuk menyuntik modal yang diperlukan oleh entiti gabungan di masa hadapan bagi menghadapi persekitaran operasi yang lebih kompetitif dan standard pengawalan modal antarabangsa yang lebih mencabar.

The various perceptions that the Central Bank has not provided the basis for its decision is therefore not correct. In this matter, Affin Holdings Berhad could have been transparent..

Bung go play with ur wife la & Brahim just concentrate on NEM la. Jgn kacau2 stock market and banking.

Proton-VW Collaboration Called Off

noreply@blogger.com (Tauke Saham) — Sun, 06 Jun 2010 10:34:34 PDT

News Release by Proton:
Subang Jaya, 6 June 2010 – As one of the largest OEM in the industry, Volkswagen would be an interesting collaboration partner for PROTON. Nevertheless, during preliminary talks between the parties, Volkswagen confirmed that it currently has other priorities and that a potential collaboration with PROTON could not be pursued.

THE TRUE STORY OF SIME DARBY

noreply@blogger.com (Tauke Saham) — Wed, 26 May 2010 23:16:25 PDT

Sent to us by Dr Mubarak Chan Chin Cheung
Sime Darby Berhad Director 1974 to 1992

Poor Datuk Seri Ahmad Zubir Murshid, I sympathise with his present predicament. He was not the first executive of Sime to be mired in circumstances which went beyond his control - the force of historical circumstances which dated back to November 1976.

All these began on 2 January 1972 when I proposed to a high Government official that Malaysia would be well-placed to have a conglomerate of its own at the inception of the New Economic Policy conceptualised by the team led by the Father of Development, Tun Abdul Razak, a statesman. At that point, I had not the faintest idea what it was all about.

All I knew was that my Malay contemporaries were very keen to do business. They grew up with me in the environs of higher education in the United Kingdom in the 1950s. We were all fired up with the things we could do in a socio-economic way.

Eventually, we all returned and I by force of circumstances became a planter. Then, I could see my Malay friends were quite poor compared with myself. Also, I realized the British dominated the banking, the plantation and tin mining sectors because the biggest rubber estate owned by a Chinese then, was only 7,000 acres and the non-Malays from the urban areas did all the menial business and the hard and unrewarding work at the leading edge of the early ‘independent’ Malaysian economy.

The change came with the NEP which promised to give all Malaysians a new beginning.
I thought without a huge business entity controlled by the Malays with the co-operation of the non-Malays, we, the Malaysians, would be mired in unhealthy competition socio-economically amongst ourselves which would lead to self-destruction because 70 percent of the Malaysian economy at that point was still controlled by the British, not the Chinese.

We would be getting at each other’s throats for third class assets. Without Sime Darby which eventually became the flagship of the Permodalan Nasional Berhad, non-Malay billionaires, some of them foreigners, would not be created during the NEP period.

Hence, I proposed that a Malaysian owned and managed conglomerate should be established or acquired. By chance in October 1973, Sime Darby was involved in its first scandal concerning its chief excecutive and Pernas Securities moved in with the tacit support of the Minister of Finance and the Prime Minister who both had this great foresight to do what was best for Malaysia on free market terms. This was their finest hour to agree to take-over a British conglomerate at fair market prices. Arising from this proposal, Tan Sri Taib Andak, the Chairman of Maybank and myself were appointed as non-executive directors of London-based Sime Darby PLC in October 1974.

But, at that time, there was not much money available for the Bumiputras. Without informing anyone, I managed to garner the support of important investors residing in a neighbouring country who entered the fray and helped us to win against all odds by November 1976. During this period the British were at their weakest being beset with political turmoil, by the weak pound and a dis-interested City in ex-colonial assets. Malaysian control was achieved with a few million ringgits, about RM 23 Million.

Unfortunately, at the crucial moment, our Prime Minister, Tun Abdul Razak passed away. Then, my view was who pays the piper calls the tune. In other words, Malaysians should be put immediately in place to steer this great ship with a purpose what some national sovereign funds only set out to do in the 21st century. But from this point onwards, no one asked me for my views and this was the theme of the executive management to the day I was asked to resign 18 years later by the executives who benefited from my concept. It was all fine and dandy if there were no financial mishaps.

The executive management reigned supreme over the Board to this day. This anomaly must now be rectified in the interests of the shareholders. This is not ethical and more.

The management was not Malaysianised until 1982. By 1982, the best assets of Sime were sold in haste e.g.
1. the beverages firm Shaw Wallace of India, an Indian monopoly, with the valuable Assam frontier tea-estates. It is believed the son of the purchaser became a billionaire of India and owns the Kingfisher Airline.

2. the two Orchard Towers, Singapore which are still standing even though the management urgently advised with photos that these would collapsed any moment
and had to be sold back to the contractor for S$ 23 Million quickly.

3. the Amoy Canning land in Hong Kong which Sime tried to auction off but failed due to the fact that only the Hong Kong Government auction-off lands to balance its books. Eventually, a joint venture was formed with a member of the property syndicate operating there. This property became the MRT terminus !

And only the 200,000 acres of plantation remained. Lastly, Wisma Sime Darby does not belong to Sime because the company had no money at its completion in early 1980s as the Board was told.

In 1981, a foreign business paper reported that I was instrumental in helping the sale of Benta Berhad to a well-known gentleman. Unfortunately, I took legal steps too late to clear my name. The famous Singaporean lady lawyer told me that I was a non-starter.

In 1982, as a Director of Consolidated Plantations Berhad I proposed that Sime should enter the China palm oil market. But only a small palm oil refinery was established at Port Said, Egypt. In fact, in 1972, at another institution I was urging my colleagues to take note that eventually, palm oil would overtake petroleum in the years ahead for Malaysia. By the early 1990s, all the vital port facilities in China were controlled by other Malaysian palm oil producers but not Sime.

We went west instead of east. And sometimes, Sime’s physical stock of palm oil was sold to traders who were caught short.

In 1990, I heard in the market place and from friends who gave me a quizzical look that the well-known gentleman who purchased Benta in 1982, acquired a parcel of plantation land from Consolidated Plantations known as Bukit Berutong for RM 4 Million.

I asked the executives in charge why this sale was not presented to the Board for approval and was told that since the sale was so minuscule, less than 2 percent of the total assets of the Company, there was no necessity to do so. From the gentleman, this property was warehoused in a public-listed company and finally sold at the top price of RM 88 Million.

Ironically, the Edge expose’ of Sime dated May 17 2010 also carried the story of the disgraceful state of affairs at Bukit Berutong. I also asked the executives why the valuable property was not sold to Sime-UEP. There was no answer.

In 1992, I was requested to sign a Board resolution authorizing the purchase of an oil palm estate in Sabah which no one wanted for many years, for a sum of RM 32 Million. This money was used to purchase the Sabah Shipyard for RM 22 Million. I refused to sign because as I was knowledgeable about the plantation industry and was aware that this plantation was hawked around for much less for many years previously.
I was asked to resign the following day by the executives. In 1974, the late Tun Abdul Razak and Tengku Razaleigh supported me not Tun Tan Siew Sin who had died in 1989.

Thereafter, the Sandestin Golf Resort, Florida was purchased for US$ 72 Million and it was reported in the press that the purpose was to train Malaysians to manage hotels even though the MARA college was already founded in the 1960s, After the crash of 1997, Sime announced that the resort was sold for the same sum in ringgits arising from a depreciated ringgit. The loss in US dollars was not announced.
A bankrupt British refrigerator company was purchased and an attempt was made to revive it in the Philippines. I believe it was written off together with an investment in Mindanao.

And then came the cataclysmic events of 1996.
In the early 1990s, I traveled across the Atlantic by Serendipity Air and sat next to a German gentleman who claimed to be the head honcho of the family business of Hitler’s chief spy. I asked him why he did not travel by Lufthansa. He told me that for every US $100,000 he spent with this airline, he got a kick-back of US $30,000. His comment struck a bell in my mind as I noticed that someone was always encouraging the top executives to fly by Serendipity Air. And Sime through its benevolence followed the executives of the travel division overseas where it has become a favourite watering place for privileged Malaysians connected with Sime.

I heard they are doing great things via Hong Kong and other parts of Australia without fanfare. It is a small world ! Sime Darby was unfortunately caught by the historical circumstances which surrounded its early promise at the beginning. From November 1976, to the present, its leadership was provided by the executive management which enjoyed its magnificent perks.

It takes a company to develop its own culture over a period of at least 10 years. Sometimes, this did not succeed as in Sime. Apart from its beautiful advertisements, Sime’s real core business is in its plantations with attempts at financial engineering from one company to another to create profits. Thus, Consolidated Plantations was hollowed out and had to be sold as a shell for whatever the reason !

Any analysis of Sime will show it did not do anything since 1976 but was embroiled in scandals of seismic proportions after 1992 !

The real substantial shareholders had no say. Because of this, once anything goes wrong in Sime, it goes very wrong. It pays to have a look at divisions where it is difficult to control usage, buying and selling or overseas. The travel business is one of the most difficult to manage and control because it is a cash business in which Sime should keep clear and has no reason to sully its reputation.

The real purpose and the contribution Sime could make to the corporate life of Malaysia are that it could have acquired worthwhile international companies overseas during the 1970s and 1980s. It was alleged that 10 percent of Harrisons Crosfield was available for Sime to control this conglomerate world-wide which would have provided valuable expertise in engineering and other fields for training and transfer. But somehow, we ended up owning the Golden Chersonese estates in Kelantan for a similar price. The lucky person who was involved, retired to the Scottish Highlands to shoot pheasants.

In my wildest dreams, I did not expect Sime to undertake directly such stupendous engineering works and before this, owned a commercial bank which went bankrupt.
As a born optimist, I say Sime Darby is still the valuable company which the late Tun Abdul Razak and Tengku Razaleigh envisioned it to be – a major flag bearer of Malaysia overseas. It must undertake to do the right business tasks with the right business personnal eg. round pegs for round holes, square pegs for square holes.
The business focus of the company has to be reviewed in line with the socio-economic environment at its base and its colourful historical past, nothwithstanding the vital and living world in which we do business to make money. To take a quantum step in catching up, Sime has to co-operate with others or own specialist companies without losing sight it has to contribute to the up-lift of all Malaysians in terms of transfer of knowledge, jobs and a reasonable return to its shareholders in a business like manner with transparency. It definitely should not compete with local business entities as far as possible eg. property development, motorcars, travel, vegetable gardens, etc. This was not my vision at all times from 1972. Sime has better businesses to do overseas.. And greenfield projects should be avoided because many shareholders are Trusts. Decisions should not even reach the risk management stage as information is readily available in today’s world.

By this normal approach, Sime Darby will be recognized world-wide unlike now, a bull-frog in a small pond which only has a feel-good feeling by its wonderful advertisements expounding maybe non-existent overseas businesses which should all be closed down !

In passing, the chief executive of another conglomerate rang me up and said, ‘ Doc, I think we should buy a yacht to entertain our principals,’ I replied, ‘ Sorry, Tommy, I am not into yachts for self-entertainment But if the other Directors agree, I have no objections.’ I did not hear from him again.

Not too long afterwards, I was standing by the Star Ferry, Hong Kong, one winter in the early 1990s. A huge yacht berthed beside me. Two young expatriate families disembarked with an Indian butler and matron in attendance. At the aft, below a huge Hong Kong flag, I saw the words ‘Sime Darby’. I did not know Sime had a yacht. Later, I asked the management why we have a yacht in Hong Kong and I was told this was one way to make the expatriate staff happy. The question logically arose in my mind what did the management do to make the Directors and the shareholders happy ! In the 1980s, it was alleged that the governor of Hainan Island and two local Hong
Kong employees went to jail for illegal business activities.

It is never too late for Sime Darby to do serious business to support, contribute and work within the policies of our Perdana Menteri Y.A.B. Dato Seri Najib Tun Abdul Razak and his 1Malaysia Concept for the good of the country and the company’s shareholders. It can be done if Sime is focused on its responsibilities to the Nation and its shareholders.

Vincent Tan make money out of thin air?

noreply@blogger.com (Tauke Saham) — Wed, 12 May 2010 10:07:34 PDT

Yup, seems like Uncle Tan did it again... make money out of thin air like always.
His private company Ascot got the football gambling license, then he sell it to Berjaya's shareholders.

Here's da news:
BCorp To Acquire 70 Per Cent Stake In Ascot Sports For RM525.0 Million Cash

KUALA LUMPUR, May 12 (Bernama) -- Berjaya Corp Bhd (BCorp) is set to acquire the 70 per cent majority stake in Malaysia's first legalised sports betting operation, Ascot Sports Sdn Bhd, for RM525.0 million in cash.

The company has entered into a conditional sale and purchase agreement with Tan Sri Vincent Tan Chee Yioun, a major shareholder of BCorp for the 56.0 million shares in Ascot Sports.

Tan owned 70 per cent of Ascot with the balance held by his son, Datuk Robin Tan Yeong Ching, BCorp said in a filing to Bursa Malaysia Wednesday.

To underscore the value of Ascot Sports, Tan has agreed to guarantee that the company will make cumulative profit after tax of at least RM375.0 million for the first three years of operations.

To back this profit guarantee, Tan has offered to deposit RM81.25 million worth of listed securities and Berjaya Corp will withhold RM125.0 million cash from the total consideratiom of RM525.0 million, which will be released annually upon achievement of profits proportionate to the guarantee.

Hence, the initial consideration will be RM400.0 million.

BCorp is also proposing to undertake a renounceable rights issue up to RM614,455,933 nominal value of Irredeemable Convertible Unsecured Loan Stocks (ICULS) on the basis of one RM1.00 nominal value of ICULS for every eight BCorp shares held on an entitlement date to be determined later.

The proposed rights issue is to part finance the proposed acquisition and/or for working capital requirements and bank borrowings.

A portion of the funds raised will be used to pay the initial consideration of RM400.0 million with the remaining to be deployed for working capital of the group.

Tan has undertaken to subscribe to his and his private companies' entitlements in full which would amount to at least RM400.0 million and Tan will not net in any cash as he will reinvest the entire initial consideration to be received to honour his rights issue obligations.

Ascot Sports has a paid-up share capital of RM80.0 million comprising shares of RM1.00 each and based on the sale price, the price per share is RM9.375.

Ascot has been re-issued the sports betting license by the Finance Ministry which was first issued in 1987.

Ascot Sports has the first-right-of-refusal in the event the government decides to allow sports betting which it has now in view of the rampant illegal book making activities being conducted.

-- BERNAMA

Greek Debt Crisis Turns Deadly

noreply@blogger.com (Tauke Saham) — Fri, 07 May 2010 11:34:38 PDT

So what’s provoking the madness?

It’s the stiff austerity measures the rest of the European Union and the International Monetary Fund want Greece to enact. Officials are forcing Greece to slash public sector wages, freeze pensions and boost taxes before they’ll start disbursing the $143 billion in bailout money.

But Greek citizens are sick of bearing the brunt of the pain. They don’t want to see their wages, salaries, and standard of living collapse. And they’re stark raving mad, especially because the measures are being crammed down their throats at a time when unemployment is already running at a six-year high of 11.3 percent.

Borrow and Spend Madness Sparks a Greek Tragedy

I hate to see things come to this. At the same time, I believe there is a serious (and potentially valuable) lesson coming out of this mess — one that I hope governments elsewhere will learn!

You see, this terrible Greek tragedy stems from a simple fact: The country lived way beyond its means for far too long! Politicians borrowed and spent like mad, assuming the day of reckoning would never come.

Then on September 24, 2009, creditors decided they’d had enough. I don’t know why it was that day. I don’t think anyone does now — and I doubt anyone ever will. But that’s when Greek debt prices started declining and Greek bond yields started rising.

That was when creditors decided to FORCE the government to get its fiscal house in order. They didn’t do so with guns. They didn’t do so with bombs. They did so by picking up the phone and uttering a four letter word: “Sell.”

That simple move set in motion a process that eventually drove interest rates sky-high. And that has now turned a simmering economic problem into a major political and social crisis.

So what’s the lesson?

Don’t Wait for Disaster to Strike — Head It Off While You Still Can!

If Greece had tried to get its house in order BEFORE interest rates surged, it probably would have avoided the disaster unfolding before our eyes. If Greek officials had demonstrated a little foresight — a little proactive thinking and policymaking —they could have prevented a huge tragedy.

But instead, they chose the easy way out. And now they’re paying a huge price.

What I hope — in my heart of hearts — is that policymakers in Lisbon … Madrid … London … and most importantly, Washington, are listening. I hope they’re all sitting in front of their televisions and watching the chaos in Greece. I hope they’re going to learn their lesson and take PROACTIVE action to get their own fiscal houses in order.

What I fear is that they won’t.

Heck, not a day goes by without some television anchor or government official saying something like: “Look at the 10-year Treasury Note yield. If investors were worried about our debts or our deficits, they wouldn’t be buying our bonds at these low rates.”

But you know what?

They were saying the same thing in Athens … right up until September 24, 2009.

Until next time,

SPEECH TUN DR MAHATHIR AT 7TH IFSB SUMMIT

noreply@blogger.com (Tauke Saham) — Tue, 04 May 2010 02:06:08 PDT

SPEECH BY
TUN DR MAHATHIR BIN MOHAMAD
AT THE 7TH ISLAMIC FINANCIAL SERVICES BOARD SUMMIT
IN MANAMA, BAHRAIN,

3 MAY 2010

ISLAMIC FINANCE – NEW HOPE FOR THE FUTURE
OF THE MUSLIM WORLD

Firstly I would like to thank this conference of the Islamic Financial Services Board Summit for the invitation to speak on “Islamic Finance - New Hope for the Future of the Muslim World.”

Before proceeding I would like to point out that I am neither a financial man nor even an economist. So please forgive me if what I say is unconventional or I suggest something that you are already doing.

We all know that finance plays a big role in the creation of wealth in human society. Financing enables businesses to grow and wealth to be multiplied in the process. Where finance is not available even the countries with rich natural resources can remain poor.

In the distant past financing was undertaken by money-lenders. But their capacity was limited because they dealt mostly in cash in the form of coins of precious metals. There were other constraints which prevented the money-lenders from making available enough money to finance big transactions.

It was a money lender, Mayer Amschel Bauer who founded the House of Rothschild in mid-eighteenth century, which started the modern banking industry. This was followed by the adoption of fiat money, initially by the banks issuing banknotes. With this development it became possible for very large amounts of money to be issued by banks and made available for the financing of wars in Europe and big business transactions.

When banks were allowed to issue banknotes, they could create more money than the cash and assets they held. Governments apparently did not control the amount of banknotes issued. In fact Governments actually borrowed this money. Businesses too benefited as they could finance all their transactions through big loans, practically unlimited, by the banks. In some countries the banks still issue currency notes but mostly Governments now issue currency notes.

The result was the rapid economic growth of the European countries. Their people become more and more prosperous as money rather than landed assets became the basis of wealth.

To facilitate financing further the banks invented cheques. Any amount of money can be written on the cheques and they can be used for payments without need for banknotes or currency notes. With this, all kinds of transactions including international trade was increased further. The economic strength of the countries with banking facilities grew and along with it their military strength.

It seems to have taken a long time for the Muslims and their countries to appreciate the role of banks in wealth creation. This must be because of the injunction against usury which prevented the Muslims from simply adopting the Western banking system. Nevertheless as their dealings with the Western countries grew they were forced to use the usury-based banks of the west. In fact many Muslim countries decided to set up their own usury-based banks despite the injunctions of Islam.

To assuage their conscience some Muslims decided to forego the interest earned from their use of the Western banks. This actually means that they were increasing the profits and helping the growth of the usury-based banking.

Almost 300 years passed before the Muslims could think of setting up banks which conforms to Islamic teachings on rejection of interest. By this time the people who invented and utilised the interest-based banking system had drawn far ahead of the Muslim countries in terms of wealth, economic development and military power.

Now that we, the Muslims, have our own banking system can we use it to prosper our country the way the European countries had? Can we catch up with their development? True our banking system is constrained by the injunction against interest. But still the system can provide funds for more and bigger wealth-creating businesses and other economic activities.

It is to be admitted however that despite the availability of Islamic finance and banking the Muslim world has not shown the kind of progress the western countries have. In fact till today the Muslims have not produced even a single country which can be classified as developed. Why is this so?

The Islamic finance system has in fact grown tremendously. The figures show this. Total Islamic assets worldwide have exceeded US$1 trillion. Islamic assets under management by Islamic banks and conventional banks offering Islamic banking services are reported to exceed US$500 billion. Islamic mutual funds are estimated to exceed US$300 billion, while Takaful or Shariah-compliant insurances are estimated to be in excess of US$5 billion. Overall growth rate of Islamic finance is about 15% - 29% per annum. But Islamic finance is still very tiny compared with the conventional Western usury-based systems. This is even more remarkable considering that so many Muslim countries have become extremely rich from the proceeds of the sale of their huge reserves of petroleum. Can we say that it is the prohibition of usury which is stifling the growth of Islamic finance and the prosperity and development in the Muslim world? I don’t think anyone can blame the teachings of Islam.

It has become clear that despite the availability of Islamic financial institutions, including banks, the Muslims seem not to have utilised them fully. The reason is perhaps lack of knowledge in the management of wealth for growth. But it may be due to lack of will also.

The very rich Muslim countries have shown an unwillingness to invest their money in a way that could improve the situation in the Muslim world. For many all that had been done is to buy bonds, which apart from being un-Islamic as the earnings are through interests, give only minute returns. Investing in this way denies the investor any say in the management of the money. In fact as pointed out earlier the funds so invested can be used by the borrowers for things totally forbidden by Islam. The funds could actually be earning interest for the borrower. It is bad enough to invest in interest-bearing bonds, but it is worse when the money lent through bonds go towards financing loans which bear interest. Of course there can be other uses for the money such as investment in non-shariah compliant businesses and for the production of weapons to be used against Muslims.

If the availability of Islamic finance is to help create a better future for the Muslim world then the financial institutions themselves must come up and aggressively promote Islamic compatible ways of investing the great wealth of the Muslims. This the Islamic financial institutions can do by identifying secure investment opportunities which give a fair return but transgress no Islamic injunctions. They can advice on these but they can also set up investment arms and trust funds.

While the investments should be shariah compliant, it need not be confined to businesses owned or operated by Muslims. There are hundreds of thousands of businesses operated in the non-Muslim world which are compatible with the tenets of Islam. Choosing the best with good yield may not be easy. But Islamic financial institutions must be prepared to expand money on investigating and rating the businesses. The actual investors themselves would not be able to do this.

Islamic banks have not shown aggressiveness in promoting their services. Certainly they have not gone all out to gain access to the money owned by the very rich Muslim countries. Perhaps there are religious constraints but if they are keen enough ways can be found to attract the billions and trillions of dollars belonging to the rich countries. After all the Muslim financial experts have found ways to provide banking and financial services and products which comply with Islamic ethics and laws. What is needed is for the products to be aggressively promoted in the Muslim world.

It is noted that there is not a single Muslim country which is fully industrialised. The wealthy nations of the world are without exception the industrialised nations. Some of these have no natural resources to support industrialisation. But they make up by having the most valuable resources of all. They have people who are intelligent, knowledgeable and skilled in the development of industries. They have management skills especially capital management. And they are backed by their banking systems.

If indeed we want to see a better future for the Muslim world we need to industrialise. In this the Islamic financial institutions, like their counterpart in the non-Muslim countries, have again a major role to play. Islamic banks and institutions must have on their staff people qualified not just in financial management but in the technology and intricacies of setting up and managing numerous industries which can create wealth and employment.

Assuming that the Islamic banks have these expertise they can help with the industrialisation of Muslim countries through the promotion of selected industries and businesses and through introducing innovative ways of financing the enterprises.

Together with the Government the Islamic financial institutions can help with the education of the people to man the new industries. Scholarships and loans can be given by the Islamic banks designed to produce the necessary manpower.

Perhaps these would put too much burden on the Islamic banks. But it is not so long ago when the western banks concentrated exclusively on the business of lending money. They employed staff which were trained only in this field. Today their banks employ economists who study the trends in the country and the world’s economy, who hold seminars on economic subjects and publish academic papers. There is no doubt that the banks have benefited from having economists on their staff to tell them what to expect in the near and distant future.

The role of banks in the industrialisation of the developed countries of Europe and East Asia cannot be understated. There is no reason why Muslim banks and financial institutions cannot play the same role. In fact considering the lack of knowledge and initiative in this area among Muslims generally and Muslim investors specifically, the Islamic bank must play an even bigger and more aggressive role than the conventional banks. While they can make use of foreign consultants and experts, they must quickly develop their own expertise so that they can judiciously evaluate the advice they have been given by consultants. It must be stressed that the future of the Muslim World will depend much on its ability to industrialise firstly in basic industries but also to keep up with the new industries of Information Technology and Knowledge Age.

We see a trend today for Islamic banks and Institutions to match the products of Western banking with their own, while keeping them compatible with the teachings of Islam. This is as it should be. But we have seen lately how the financial products available in the Western banking system have been so abused as to cause the great financial crisis that we are experiencing today.

We may congratulate ourselves that by and large the collapse of the Western system has not affected the Islamic financial system much. But before we do so and before we talk of the Islamic system replacing Western banking, it is necessary for us to understand why their systems collapse.

There have been many changes and many new financial products introduced by Western bankers and market players which lend themselves to easy abuse. In fact the original Western banking system itself is not immune to abuses.

We know that Western banks can lend more than the assets they possess in terms of their capital or the deposits they hold. When Governments decide to abdicate their role as the regulators and overseers of banking practices and the enforcement of banking laws; leaving these roles to the market and market forces, the way was opened for imprudent practices. Bank lending exceeded the assets held by them by very many times. Leveraging can be as much as thirty times the invested capital. While this can increase the yield, it can also increase greatly the losses when the investments fail. The losses would be as many times as the amount borrowed. There is no way for the investor to meet margin calls,

Accounting practice makes it appear that the money lent goes into the books of the banks as assets. The more the amount lent the bigger will apparently be the assets of the bank.

With this the banks went all out to lend money without considering the ability of the borrowers to repay. To ensure that the loans do not go bad, they were bundled and sold to insurance companies and secondary mortgage companies.

As we now know the majority of the housing loans became non-performing and neither the insurance companies nor the mortgage companies were able to cover the losses. And so we see the sub-prime crisis which lead to banking failures. Since the banks also finance hedge funds and the derivatives, their failures and the accompanying collapse of the market turned all these financial products sour. The result is the collapse of the whole financial system.

I am speaking from the layman’s point of view. I am not a banker or a financier. But this is how I see the present crises and the abuses of the financial, monetary and banking systems.

There is obviously a need for the Western banking, financial and monetary systems to be reviewed and changes made to prevent recurrence of the abuses. There is a need for the Governments to come back and oversee as well as regulate the activities in the financial markets. Unfortunately we see a reluctance to do this. Perhaps it is because much money can be made in the financial market through the abuses.

But for the Islamic financial and banking systems it would be good if they don’t try to match every product of the Western banking system. There is no doubt that the Western financial market had created much wealth. Many investors have become millionaires and billionaires investing or speculating on the financial market before the crisis. But their wealth had been acquired not through real business but through gambling. Speculating is no different from gambling. If the speculator wins, only he would benefit. There would be no spin-offs in terms of jobs or supporting businesses. Yet as we can see when the speculators fail they dragged down the whole society and the other businesses. In the present case the whole world has been forced to face a financial crisis of unimaginable proportions. What is more, it is the people who have to bail out with public funds.

The Islamic banking and financial system should not follow in the footsteps of the Western financial system in terms of Islamic financial market products. Admittedly it is not the Western system which has gone wrong. It is the abuses perpetrated by the market players, the speculators and the gamblers who have done this.

We cannot ensure there are no rogues in the Islamic financial market or in the Islamic world. We hope that Islamic injunctions will restrain them. But we cannot be sure. Greed assails us all. When opportunities appear for making quick money the rogues would not be deterred by mere religious prohibition.

The banking and financial system in the Muslim world must be regulated and must remain under Government supervision even if this stifles the performance and the role of the banks in ensuring a better future for the Muslim World. This is because whatever contribution the abuses may seem to make for the Muslim World, it will be nothing compared to the disaster that would follow when the bubble bursts.

If I may repeat many Muslim countries are extremely rich. But we also know that many Muslim countries and Muslim people are extremely poor. We should really be able to spread the wealth to the poor not just through charity but also through investments. But unfortunately the capacity of Muslims to invest is quite limited. They are short on industrial expertise, particularly manufacturing. When they invest it is often only in property development. These cannot create jobs and the spin-offs are quite limited. Their added value is really artificial, being dependent on speculative demands.

The banks should be able to advise their clients on the fragility of such markets. Unfortunately they appear not to have done this.

It is the same with the stock markets in Muslim countries. They go through the cycle of booms and busts frequently, apparently without the investors learning anything.

The growth of industrial capacity in some Muslim countries is almost entirely due to investment from foreign non-Muslims. Where Muslims invest in the industries of developed countries, they seldom take part in management. In fact even in businesses belonging to Muslims in Muslim countries, they are likely to be run by foreigners, usually from Europe.

The very rich Muslims and Muslim countries appear not to value their wealth or to care about the management of wealth. This has been taken advantage of by others. We may have unlimited sources of wealth but we can never assume that the resources will always yield wealth forever.

We see in the West great businesses which fail because they failed to see the changes taking place around them. The great automotive giants are a case in point. Not so long ago General Motors topped the list of Fortune 500 companies in the world. Today it is bankrupt.

Rubber used to be the cash cow for Malaysia. But then came synthetic and the bottom fell out of the rubber market. It is entirely possible that one day the same would happen to the oil market. When it does the impact would not be so serious if there are other industries to cushion the effect. Unfortunately there aren’t.

What is the role of the banks in all this? Banks should be able to foresee this and to advise countries on diversification as well as develop models to deal with various eventualities. It is in the interest of the banks to do so. The collapse of the economy for whatever reason will certainly result in the collapse of the banks if not the whole financial system.

There is a grave need to develop capacities in as many fields as possible in this Muslim World. Depending on others to extract and market our resources is dangerous. The Muslim economy are of course a part of the world’s economy but whether the Muslims get their fair share of the wealth of their countries depends on their ability to extract it themselves.

The Islamic banks and financial institutions can help in raising awareness of the dangers of being dependent on others. It is very comfortable to let others do our work when we are rich. But in the process we will not acquire the skills to sustain our wealth when a crisis hits us.

Islamic finance in itself will not ensure a better future for the Muslim World. But it will certainly help if the Muslims learn how to use these institutions to manage the wealth of the Muslim, to aggressively promote the services they can offer, to have a sense of responsibility for strengthening the Muslim community and to make the Government of Muslim countries aware of the potential contribution of banking and other financial institutions.

It is only if the Islamic Financial institutions are aware of the full extent of the role they can play and they are willing to look beyond merely making money available to those who need it, will they be able to represent hope for a better future for the Muslim World.

KLCI will break 1,350, highest since March 08

noreply@blogger.com (Tauke Saham) — Mon, 03 May 2010 10:24:34 PDT

Just wanna says it before it appears in the newspaper tomorrow heh heh heh.
Of course la, becoz Dow shoot above 11,ooo already tonight. KLCI only 4 pts more why cannot kawtim? u see tomoro. Cabortttt...... sori argghhhh

Paramount is mounting kabushhh

noreply@blogger.com (Tauke Saham) — Mon, 26 Apr 2010 11:25:14 PDT

Paramon broke the 3.60 major resistance to close at 3.76, the highest level since 1998 i think. However, i think it will pullback to 3.65-3.70 before resuming the upward trend to 5.00. Don't know much abot this companies, except this song: -

There ain't no mountain high enough
Ain't no valley low enough
Ain't no river wide enough
To keep me from getting to you
Remember the day
I set you free
I told you
You could always count on me
From that day on I made a vow
I'll be there when you want me
Some way,some how
'Cause baby,
There ain't no mountain high enough
Ain't no valley low enough
Ain't no river wide enough
To keep me from getting to you
No wind, no rain
My love is alive
Way down in my heart
Although we are miles apart
If you ever need a helping hand
I'll be there on the double
As fast as I can
Don't you know that
There ain't no mountain high enough
Ain't no valley low enough
Ain't no river wide enough
To keep me from getting to you
Don't you know that
There ain't no mountain high enough
Ain't no valley low enough
Ain't no river wide enough

Amresearch wins GDP highest prediction

noreply@blogger.com (Tauke Saham) — Sat, 24 Apr 2010 10:38:40 PDT

Friend o mind, Mr Manokaran Mottain, Amresearch's economist goshhh came out as the most bullish econ predictor, here is what he said:
Go Manu! Go Manu! Go Manu! Yeeeehaaaaa!

Real GDP to post 8% this year - strongest since 1996

Malaysian economy may have probably expanded at a more rapid pace in 1Q10 – at 9.8% YoY, highest in a decade - with private sector spending by households as well as exports leading the way.
Strengthening domestic and external conditions led us to upgrade Malaysia’s economic growth to 8% in 2010 – broadbased recovery expected - versus Bank Negara’s forecast of 4.5%-5.5% and World Bank’s 5.7%.
The 6-month smoothed growth rate of the Leading Index stands at 5.2% - suggests favourable economic conditions ahead.
With prospects of a disappointing global upswing getting dimmer, real GDP will be sustained at around 6% in 2011.
Growth drivers in 2010: Manufacturing sector (+12.3%), led by E&E sector, which represent more than 9% of GDP.
Services sector to grow 7.1%, contributing at least 4.1ppts to GDP – led by stronger demand arising from positive wealth effect from the financial markets, stable employment conditions and rising income levels .
Private consumption is expected to rise on back of improvements in the labour market, disposable incomes and consumer confidence. We forecast 4.5% growth this year, against 0.8% in 2009.
Exports and imports to post double-digit growths of 15% and 16% in 2010 - higher current account surplus of RM125bil or 20% of GDP.
Headline inflation is expected to rise 2.5%, in tandem with improving economic conditions and possible adjustments to prices.
Given the assumption of stronger economic momentum and higher inflation rates, we reckon year-end target for OPR will be at 3% now – still below neutral levels - it will not choke the recovery process.
In this regard, we see the Ringgit at RM3.10 per US dollar by year-end, moving towards its new fair-value, since the tradeweighted index is also a function of GDP and OPR.

OSK! OSK! OSK!

noreply@blogger.com (Tauke Saham) — Thu, 22 Apr 2010 09:33:13 PDT

My ayam's indicator called buy on OSK Holdings Bhd. It seems like OSK the 1.54 resistance has broken. Next resistance level would be 1.63 and 1.88. Support level 1.40. Don't ask me abot da funda mantal. OSK seems like some sort of a hot water flask's brandname, isn't it. Wondering why OSK Research do not make a "Buy" call on OSK Holdings. So u better wait for OSK Research do that lar.

Scomi Group in da haus

noreply@blogger.com (Tauke Saham) — Wed, 21 Apr 2010 11:24:16 PDT

Scomi Group is on the rise on volume above average again. Which suggested, potentially to test the 55 sen resistance. If that level breached, next resistance is 60 sen. Support level is 46.5 sen. On funda mantal side, ha ha do i care, yup, some people said, you also must considered its funda mantal. Well ok, ha ha, this was what Amresearch said:

We are upgrading Scomi Group Bhd (Scomi) from HOLD to BUY with higher fair value of RM0.76/share (from RM0.48/share) based on a PE multiple of 12x - in-line with
peers average.

• First, our upgrade - after our visit to the company - is premised on our revision in earnings by 4% - 27% to RM71mil - RM96mil for FY10F-FY12F. This is underpinned
by: (1) Stronger revenue growth assumption - from 1% to 6% to 10% - for its oilfield services unit; and (2) Higher margin assumption for its maiden monorail business to
10% from 6% previously.
• Second, Scomi is currently trading towards the lower end of its PE band at a multiple 8x. It is no surprise that the market is assigning such valuations given its persistent
poor earnings deliverance.
• Having said that, we believe revenue from drilling fluids and drilling waste management should pick up in tandem with the rejuvenation in global E&P spending - underpinned by rising oil prices and an improved credit market. To highlight our point, global rig counts have
shown improvements.
• Expectation for Scomi is muted given its poor track record in earnings deliverance, but it could surprise on the upside especially with the stronger macro outlook. But group needs to start performing to deserve higher valuations.
• Another re-rating catalyst would be forthcoming for Scomi, if it were successful in securing new monorail jobs. The group is currently bidding for monorail jobs worth circa
US$11bil - at an average of US$35mil-US$40mil/km - including jobs in Brazil, India, Saudi Arabia and Nigeria.
• First phase awards for monorail work in Brazil (24km) – valued at US$2bil - should be announced within the next few weeks. We remain sceptical that Scomi would able to clinch this job with heavyweights like Bombardier also shortlisted.
• But Scomi is confident of securing at least a few more monorail projects - such as in India. It has guided for equal contribution from its O&G and transport units in FY2011F. Given its presence in India, we think Scomi has a better chance of being awarded contracts for extensions jobs in Mumbai and possibly Bangalore (total 65km).
• There is also a possibility of Scomi being involved in the expansion to the KL monorail system and signalling works for the Putra and LRT systems - worth close to RM1bil.

General Corporation Bhd

noreply@blogger.com (Tauke Saham) — Mon, 19 Apr 2010 10:27:31 PDT

GCORP today broke the resistance 1.43 on increasing volume to close at 1.47. Next resistance would be 2.00. Buy on the pullback. Background which I actually don't care - GCORP was incorporated on 29 May 1969 under the name General Ceramic Sendirian Berhad. In January 1971, the Company was listed on the then Main Board of the Kuala Lumpur Stock Exchange in 1981.From incorporation in 1969 to 1981, GCORP was a manufacturer of ceramic wall tiles. In the 1980s, GCORP went through a diversification programme with the acquisition of property development, construction and motorcycle tyres manufacturing companies. In 1991, to complement its property development and construction businesses, GCORP acquired a quarry in Masai, Johore. The manufacturing of motorcycles tyres and tubes were however, discontinued in 2005 and currently these products are imported from the Asean countries for distribution in Malaysia under the Fung Keong brand. In 1990, GCORP acquired Low Keng Huat (Singapore) Limited (LKHS). LKHS was listed on the Main Board of the Singapore Stock Exchange in 1992 and is currently 52% owned by GCB. In LKHS, the GCB Group has ventured into property development, construction, hotel/restaurant ownership/management in Singapore, Australia and Vietnam. The principal businesses of the GCORP thus comprise investment holding, property development, property investment, construction, trading, quarry and hotels operating in Malaysia, Singapore, Australian and Vietnam.

Primus statement on EON CAPITAL

noreply@blogger.com (Tauke Saham) — Sun, 18 Apr 2010 10:35:24 PDT

Primus Pacific Partners (“Primus”) today issued the following statement in relation to its position as a long-term and fully committed shareholder of EON Capital Berhad (“EON Capital”). Primus also wants to express its appreciation to and voice its whole-hearted support for the management team and staff of EON Capital who have and will continue to lead the bank through a highly successful landmark transformation project over a challenging period. In addition, Primus expresses its belief that a great future lies ahead for the EON Capital franchise, as the carefully considered investments that have been made over the last two years are yielding very strong results.

“We are a proud and fully committed shareholder of EON Capital. We have been honored to work shoulder to shoulder with the respected management team of EON Capital, who over the last two years have led one of the most successful transformations in the Malaysian banking industry, resulting in:
• Growing, high-quality earnings - 155% increase in net profits during 2009
• A clean and well capitalized balance sheet
• Capital strength to grow lending business and provide value- added products and services

EON Capital is today among the most innovative banks in Malaysia with a strong brand and extensive branch distribution network. The management team is supported by the 6,000 highly motivated and well-trained professionals.

While EON Capital has laid a strong foundation for the future, as experienced international investors in the financial services industry, we understand the drive towards consolidation. It is in the long-term interest of the Malaysian banking industry to build and develop larger and stronger domestic banks. We support smart combinations of complementary organizations that result in a balanced franchise that provides ongoing long term benefits to all stakeholders. If such a partnership opportunity presents itself, tremendous value can be unlocked by a focus on growing the business, not cutting costs, by creating market leading positions, and continuing to leverage on the experience, strength and resources of shareholders, management teams and staff of both organizations. As experienced international investors, we strongly believe that we can contribute and play an important ongoing active role in such a process.

As far back as our approval to commence negotiations on the acquisition of our shareholding in EON Capital in July 2007, we indicated our long-term commitment to the Malaysian banking industry and our desire to make a valuable contribution to EON Capital and its businesses. Today, we remain as committed to EON Capital as we were three years ago. We have always stood ready to provide the necessary resources and technical expertise to EON Capital in whatever form is required and have always indicated our financial strength and capabilities in this regard to all stakeholders of EON Capital.

We are long-term investors, seeking to create long-term value for all stakeholders through improvements in operations, corporate governance and long-term financial performance. We are shareholders in highly successful financial services organizations across Asia, including New China Life Insurance Co. Ltd., the fourth largest life insurance company in the People’s Republic of China, and we have continued to contribute capital and resources to our investment companies throughout the challenging conditions of the global financial crisis over the past two years. Primus has not sold and is not planning to sell any of its shareholdings in any of its investment companies, as we believe all of our companies are well positioned to take advantage of the long-term economic growth prospects in the Asia Pacific region.

We believe this is especially true for EON Capital, given the strength of the Malaysian economic recovery, the health of the financial services industry and the strong platform that we have created, which, together with its strong capital base, provides excellent opportunities to continue to grow our business.

We are privileged to be supported by deep-pocketed investors, some of whom rank among the most prominent and reputable institutions in the world, including the Qatar Investment Authority, the largest and highest level investment company in Qatar; the Kuwait Investment Authority, the largest and most prestigious investment company in Kuwait; and the Tsai Family, the controlling shareholders of Fubon Financial, one of the largest financial services conglomerates in Asia.

Primus is on track with its long-term objective of building a global financial services holding company, with investments around the globe in leading banking, insurance, brokerage, advisory and wealth management businesses. The global financial services holding company will make long-term investments and have unparalleled capital strength.

Primus Financial Holdings' recent agreement to acquire AIG’s life insurance business in Taiwan for US$2.15 billion in October 2009 is a demonstration of the height and depth of Primus’ goal. The agreement involved the acquisition of one of the largest life insurance companies in Taiwan with assets exceeding US$46 billion and close to 8 million customers. In April 2010, Primus Financial Holdings also announced an agreement to acquire Chapdelaine & Co., a leading US-based brokerage business, which will serve as a springboard for global growth aspirations. Similarly strategic investments are expected to be announced in the near future.

As we continue to broaden our family of investment companies, our commitment to EON Capital remains strong. We look forward to continue our full support of EON Capital, its management team and its employees.”

About Primus Pacific Partners:
Primus Pacific Partners is the largest principal investment firm in the Asia-Pacific region with a singular focus on making investments into financial services companies. Primus Pacific is based in Hong Kong and focuses primarily on Greater China (the People’s Republic of China, Hong Kong, Taiwan), Malaysia and Thailand. Primus Pacific, the first of its kind with such particular industry and geographic focus, is a highly experienced active investor with a long-term commitment to helping build and expand market leading financial services franchises.