Tuesday, July 31, 2012

General election and stocks....

Well with the country's 13th general election looming many good counters are suffering the election "overhang" which is putting many counters at a stop for fearing a change in government could affect them.
Counters like DRBHCOM, which is so big and even if BN losses it has probably gotten everything it needs and could survived comfortably over the next few years assuming it continue to manage the entire business entity prudently. CIMB on the other hand also realize the danger of losing the indirect favour from investors and customers should BN lost in the coming election and have since ventured more overseas and have balanced its portfolio and revenue contribution areas. In short, I think these 2 big companies are going to do just fine.
On the other hand, rumour on MBSB being a take over target by RHB has been in the circulation high and low for a while now... has the time come for it to materialize or EPF wants to wait until after election? bottomline is these people don't understand branding and neither do they understand time equals money.
In short, if the objective is there and the purpose is clear that is to enlarge the entire banking group, why wait? also there is no point in having MBSB building its own brand and instead, they should just do a GO and merge the company into RHB or take it private and after some restructuring relist it later to make big bucks. I think MBSB has lots of potential with its dominance in public sector and its network among the civil servants. If only they have vision and guts, things would have been done a lot faster and business would have been much better for its shareholders. That's why ringgit is so low compared to even Singapore dollar.
in a globalized world, malaysian only stand to lose out on the value of their time(spent) as they work 35-45 years earn a decent living and forced to pay for ridiculous car price with ttheir mediocre pay even for graduates. Singporeans only have to work about 20 years to equal the value of what Malaysians earn in a whole lifetime with today's exchange rates.

Of course you can argue the quality is not there for the recent years of graduates but hey, that not a reason to justify the low salary. The main issue is with the education system and the race based policy that stunt Malaysia's progress because after 55 years, the race is still the majority of the poor in the country. If the policy is working, by now we would have zero poverty for that group but the fact that the country's earning gap between the rich and poor gets wider it just proved that the policy is flawed so bad that it needs total revamp.

Also what the fuck is bonus for raya? what about other celebration like Christmas, Deepavali, Chinese New Year, etc... are they not citizen of Malaysia? oh, I get it, majority of the civil servants celebrate Raya. Excuse me, who paid the most taxes? its not the people's fault 99% of the civil sector is domninated by one race.... its the government. they had wanted it that way to stay in power and continue the race based policy.

Everyone that is born in that country is citizen by birth right and that's a given. Why the need to divide into UMNO/MCA/MIC etc... why can't we rule like the US, democrates and republicans easy... both fights for Amaericans regardless of race? ONE word, CORRUPTION. Yes, its alive and very alive in Malaysia because else, why 55 years?

Tuesday, July 24, 2012

Malaysia today...

You know what, after 50 years I think we've something to be proud of but many more things to be concern of...

Some of the low lights in Malaysia and for all who are born in this country.
1) Crime rate rocketing and police is perceive as not responsive and not proactive neither are they serious in helping civilians during the crime.
2) Country debt is all time high
3) Scandalous projects given to crony companies - all time high and all time high in amount...
4) Cost of living is sky high - at least hawker food in Penang is still manageable but quality have shrunk...
5) % of home ownership is shrinking.. 90% of the graduates today cannot buy a house...even after working for 5 years...
6) Car price is highest in the world if compared to earning per capita.
7) National infrastructure and transportation system is in a mess. its like if you don't have private vehicle, its going to be very painful and frustrating to go to work for majority of the people
8) Tax is so high that its equal to develop countries that provided medicare and lots more benefits to all its citizen and not just a particular group.
9) Education system is going backwards by 10 years... force the usage of bahasa for all students... thanks to short sighted evil unscrupulous leader with no conscience who implemented the evil scheme.
10) Oppression of civilians in a subtle manner, by taking away their rights to choose (education), to speak (freedom of speech), to retire (retirement age pushout so does the EPF withdrawal), right to protest peacefully (freedom of expression) and lastly freedom of will (you can vote but it doesn't matter as the results will likely be the same).

So what has the BN government do for us, Malaysians of all race, age, and gender? Nothing.... look at the city planning and development roadmaps(not sure they even have one)...

So what is BN doing? handling cash through the B1M program just to give temporary please the poor folks in kampung. That's what happen when you have illiterate school dropouts leading majority of the ministries in the government... what a shame. instead of teaching its people to fish, they give fish to advocate perpetual reliance on BN.

Wednesday, May 30, 2012

Hilariously nice one... another good piece of Russell.

Is KLCI still worth trading time..??

Well, there are many reasons why I have not been blogging of late.. busy with life, family, work, thinking of the many assets of the country being sold to only a selected few individual(s) with high network cable all the way to the top along with the antics of the government in choosing not to disclose the MAS settlement with Mr.Tajuddin. Well, if the government is doing what its elected to do that is safe guarding the interest of the country and its people's development and money, it should by all means disclose to prove the public perception wrong.

Having said that, its becoming obvious that the current government does not care what foreign investors think of Malaysian government and which perfectly justify why many fund managers refuse to invest in KLCI especially when the entire equity market is controlled by EPF, Khazanah and PNB which indirectly or directly controlled by the ruling government be it willingly or unwillingly. Therefore the question of should we still invest in KLCI arises and I think to some extend, its probably still make sense to trade the market but never to long them as its going to be a disaster once the oil dries up.

Anyway, with huge debts and uncontrolled spending in the GLCs and public sector couple with the leakages and were left unaddressed although the PAC has reveal all the serious problems of accounting and spending recorded.

In short, for the next 1-3 years probably the KLCI is still worth trading or punting if you're a season trader.... else forget it and move on to other more natural market with better liquidity and market force... for goodness sake even indonesian market is better then KLCI. I hate to say this but its a fact.

In short, the only sector worth looking at right now it perhaps financials and at most plantation.... sad but true.

Wednesday, February 29, 2012

Is E&O a good trading?...

Well, the lawsuit from the minority shareholder with respect to the stake sales of the 3 largest individual shareholders to Sime Darby is going to gain traction... :)
You know what, its a no brainer that the stake sale in my opinion is fishy in nature because it involves the CEO of E&O and the price is like way beyond all time high annd perhaps a level that all the minority shareholders will never ever get from their investment in E&O.
Its simple... its a political move by Sime Darby.... again I think its BN's way of wanting to get a hold of the assets that E&O has in Penang island ....primarily the large landbank it holds.
Its also a deal that pissed off ECM Libra who is left in the high and dry since there is no GO by Sime.
The minority shareholders are marginalized and by right, people should be dumping the shares because knowing if Sime can unlock more values, why the CEO himself sold his shares? and knowing that the CEO sold his shares at such a high price to a government linked company says alot about the deal.
If in anyway, somehow the lawsuit turnout to be in favour of the minority share holders, it might bump up the share price of E&O. March is coming... a good trading buy in my opinion but there are risk because the deal apparently is backed by BN hence remember its a trading buy. Just riding the news...

By the way, MBSB is charging nicely... deal coming through? :)