Celine Dion In Concert

Celine in concert is an experience. If only, it is the real thing. However, a HD video of the event is second best.

Here, enjoy!

Supermax Corporation -New Target Price

Some More Upside

Fresh after its recent 1:1 bonus issue, Supermax Corporation (Supermax)continues to get market support. Supermax is now trading ten sen down at RM2.09 from the ex-price of RM2.19.

A research house, OSK Research continues to be bullish about the rubber gloves sector,selecting Supermax as its top pick. The potential target price envisaged is RM2.75.

Why Supermax?

OSK likes the company because of its attractive valuation and the fact that it operates in a recession-resilient industry.

While there have been isolated cases of bird flu in Asia currently, health care MNCs are beginning to gradually stock up rubber gloves to avoid buying them at "cut throat" price should a pandemic breaks out.

The risks to its upside potential are the continuing high cost of rubber supported artificially by both the Indonesian and Malaysian governments and the rising ringgit.

Thailand has also meanwhile approved a plan to increase the price of locally-grown natural rubber to THB120 (RM11.84)/kg through the Bank of Agriculture and Agricultural Cooperatives-offering soft loans of THB5bn to local agricultural institutes and another THB10bn soft loan to the Rubber Estate Organization, both at zero per cent interest to help them purchase natural rubber from local rubber farmers.

Intervention was necessary because of poor rubber prices arising from the global economic slowdown; the flooding crisis in Thailand which had temporarily suspended its production of automobiles and parts and the slower automotive growth in China which in turn slowed down its purchase of Thai natural rubber and instead had switched to the cheaper Indonesian rubber.

Sans all these support schemes, the natural forces of demand and supply will determine rubber and latex prices.

Latex price are expected to stay above RM7 in the shorter term.

While the scenario is not great, it remains good for Supermax to continue to perform well.

Betting on BAT

Riding High

Rolling in the Profits

Despite so many anti-smoking campaigns world-wide and exorbitant tax levy, most tobacco company counters continue to go up. Individuals actually find it very hard to own tobacco shares anywhere in the development world. The same is going to happen to Malaysia.

Look at the way British American Tobacco shares are going upwards,it is now very difficult for a retail player to purchase a 1000 shares at today's going price of RM51.50 per share. At best, you would have to cough out RM5,150 for a token 100 units of it.

BAT is certainly a good counter and pays absolutely beautiful dividends. Ask any minority shareholder and he will tell you that the share has been good to him with its bumper dividend pay-out every now and then. I will delve a little bit on BAT's dividend in another posting.

After a lull from the beginning of the year where its shares ranged from just below RM50.00, today is one break-out day. From RM50.30 , it shot passed up to almost touch RM52.00. One lot was done at RM51.98 and another at RM51.90. A dozen lots were contracted at RM51.88 before weak sellers came out from the woodwork to sell the counter down. Before the market ended, massive buying appeared out of nowhere. Some 69,500 shares changed hands during the last hour or so. This is equivalent to 51% of all volume traded.

Price-wise BAT shares have soared today by 2.4%.

Why is BAT flying like crazy?

Is it being bought by institutional buyers from overseas as a proxy to a strengthening ringgit? Or are they bought by local funds, a delayed January effect response?

Maybe another super dividend is in store as BAT has time and again been giving shareholders sweet surprises.

There is also that possibility that a bonus may be given or a share split might be in the offing.

Finishing Strong! at RM51.50

Whatever the reason, BAT is one might good counter to watch and to invest.

Ranking for Frequent Blog Site Visits

By chance, I came across the ranking for this blog.

According to Alexa Traffic Ranking, Journaler0203 ranks in position 7,083,989 in terms of visits.

Alexa Web Information Company conducts web site audits.

The most read were posts related to Commissioner of Oath, local stocks, English, social and economic issues.

Interesting world ranking, don't you think?

Is 1Malaysia in Troubled Waters?

When PM Najib took over the helm of government, he wanted to make his mark amidst the currents of ITC technology,globalisation and the realities of the multi-racial and multi religious Malaysian society.

So, he conceptualised 1Malaysia. But what is in this capsule called 1Malaysia? Najib has to make practical meaning to the citizens from many divides. It cannot be the equivalent to the trade-mark of DAP's Malaysian Malaysia, no matter how alike like peas in a pod, they are.

So, what he has done has been to add bits and pieces to make it relevant.

Somewhere, along the line, the Rukun Negara, the national unifying ethos, had to take a back-seat.

So, a concoction of facets of what 1 Malaysia is and can be made tangible started to take shape.

Like the proverbial Blind Men and the Elephant, every thinking Malaysia tried to put a handle on the nebulous 1 Malaysia concept and how it applied to him in his life and his nation.

Obviously, the people who are optimists, will see the good in Najib's concept while the naysayers will find fault with it with every drop of a cap, hat or songkok.

The 1 Malaysia concept includes everything from 1Menu,1 Kedai Malaysia,PR1M Housing,Br1M(Citizen Grants),1Malaysia Student Grants. 1 Malaysia Book Coupons and more to come.

The more controversial of his 1Malaysia concept had to do with religion. As a 1Malaysia PM, he made it a point to attend cultural and religious festivals as well as to be seen with ICT and youths.

So, PM waded into unknown waters when he attended the recent Taipusam religious celebrations on 7 February. The religious authorities have now contraindicated that the PM should not attend such functions as it meant he is sacrifying his Muslim faith.

This would likely be a 'storm in a teacup' if it can be contained. Can he enlist Khir Baharom to do the needful?

Let us see how PM will dismantle this barrage of criticisms against him from the religious quarter; or maybe he can continue being silent,as always.

Flying Dreams: This Time It is for Real

Yes, this is superb New Zealand technology. The Martin Jetpack will make you fly.

Remember the cartoon strip,"Dick Tracy" and how his gang of detectives fly atop streets and buildings to apprehend criminals.

Also recall, the opening scene before the credits of 'Thunderball' when James Bond escaped from the baddies by using a jetpack to fly off to a safe distance to his waiting car driven by a pretty thing.

Yes, reality has come. From the cartoon strip and the film strip, you can really fly once the Martin Jetpack is sold world-wide from military to recreational purposes. That is, after hey have the legal and regulatory framework in place.

The Civil Service Pay Revision: Big Time Fumble!

Fuming Mad!

The question one must ask is: Why did the JPA do what they did? It cannot be mere stupidity since this is not the first such salary revision initiated since the days of Mahathir.

Mahathir saw it fit to have civil service salaries revised from time to time. He did away with the royal commissions when he distastefully showed his abhorrence to particularly the generous Ibrahim Ali report. So, he clamped down any salary revisions that he thought was inequitable.

So, given such a history for revising public service salaries successfully from then on, what went wrong this time around?

To say the government is embarrassed is an understatement. I do not believe the JPA chief is out of touch or thinking only about fattening the wallets of the top apex post holders. Something is indeed amiss.

Let me speculate a little bit. We all love conspiracy theories, don’t we?

My first postulate is that it was directed by the executive. Working backwards with some form of approved budget ceiling and structure in principle, JPA with its sister agencies particularly the Treasury and the PMO started putting in the details. Sadly, the devils were in the details. Whatever they did, there was either too much money to be expended or some segment benefited more than others. As the deadline approached, after informing the political masters of their quandary, they decided to reward only the top echelons of the civil service with the top receiving the lion’s share. RM36,000 and above for 26 Premier post incumbents was just ‘inviting murder’! The minimum pay-rise is RM5,000 for these civil service demigods. That the AG and the Chief secretary should receive basic salaries above RM60,000 monthly was national pillage! Even the Jade Emperor in the high heavens would be seriously distraught. Morality just got thrown out of the window.

Interestingly, the civil service umbrella union, CUEPACS, was not consulted or given the true and complete picture of the new salary scheme. Then, they religiously, pushed the scheme for implementation. Those with fat salary offers, numbering about 2,000-immediately signed the option papers. The others were forced and practically shoved to sign the papers,with little information given. When CUEPACS saw the wide salary disparity in the new scheme between the top and bottom-rung civil servants, they went ballistic!. Imagine only a miserable RM1.70 increase for drivers! I believe all those below the 54 grade got a disproportionate or raw deal. An impasse occurred and it was to be expected. Big time fumble, Mr. Chief Secretary!! Tsk!! Tsk!!

The second postulate is that JPA did a good job by being equitable; using the time- tested policy where those at the bottom rungs were given greater percentage increases while the upper echelons received lower percentages which effectively add more ringgits to their pay-slip. However, I believed, the government could not stomach such a huge salary bill. So, back to the cutting room and as the date-line approached, the JPA committee needs to do magic. So, they conjured a policy recommendation and sought approval from the political masters on their scheme; perhaps telling them that this will help bring Malaysia beyond the middle income trap. A good place to start was the civil service, beginning with the wunderbar 26 Premier posts with Santa Claus salaries! The private sector will surely follow suit,they might have possibly spun. I guess the political masters were convinced somewhat,albeit reluctantly, but were willing to test the waters and await the response from the public servants.

The rest is history. It must have shamed the PM no end that he had to do repair work immediately even before ‘the new car comes out from the show-room”. I think PM is just too gentlemanly as Shakespeare puts it, “too full of the milk of human kindness.” In other countries, heads would have rolled particularly that of the Chief Secretary and the JPA chief.

A 1.4 million vote-bank for the government is at stake. You cannot aggrieve civil servants because they can really put a nail into a political coffin. That also includes the strategic postal votes when army personnel and police are involved. Most people do not forget easily; much less, are forgiving. They will remember the slogan when it impacts upon them. The "Rakyat First, Performance Now" slogan just got brow-beaten!

So, what is the cost of this remedial work? From RM2.6 billion to implement the flawed scheme, an additional RM2 billion (77% increase) is now required to make happy faces in the civil service. The pensioners must also be appeased. So, remember them as well!

Will the revised scheme be really 'satisficing' to the civil servants?

It better be.

If there are still major segments of the civil service that feel left out after this new revision,there could be unseen repercussions and backwash effects when the next General elections take place. So, the earlier a more equitable scheme gets implemented, the better.

Otherwise, holding the General election soon will surely be another tsunami disaster for the BN.

This is one bad call, JPA!