MRCB: Why is EPF Gobbling it up?

 The blogger, Value Investing in KLSE has his take on the above topic.

Not all the reasons he gave are based on actual rock solid facts. They are mere speculation and the product from an over-active mind.

These are its possible reasons cited.

"(a) It is a way for the connected shareholders to cash out so they can use the proceeds to invest in foreign markets which give higher return compared to MRCB. No one will buy up MRCB except for EPF who is remotely controlled by someone.

(b) It is a way for the government to share the country growth with EPF contributors “you and I”. MRCB has high chance to secure government lands in KL. It also means higher dividend yield in the future since EPF is investing more of its fund in equity now rather than bond.

(c) If EPF has successfully acquired MRCB, MRCB can raise funds from EPF, to fund the land price and development of government lands in KL for 10 years. Construction contracts will then be given to connected parties. Government can also use the proceeds from the sale of government lands to pay its debt. And there are various loop holes in construction and development to suck the cash out

(d) Malaysia is running on deficit already and it would be too obvious and unpopular to announce huge development to be funded by government. Hence, using EPF to fund development is the best “not so obvious” way. Whether EPF will benefit from it will remain unknown. But what is certain is that “reaping the money today is less risky than trying to get back the money 5 years later”. Shareholders of MRCB and connected parties understand this principle very clearly.

I don’t know the actual answer but looking at the direction which EPF is heading, I better take out my EPF as soon as possible now."

Well, whatever it was worth, make your decision if you are still holding MRCB shares.

A Gastronomic Delight

It sure was satisfying watching 'Julie and Julia'. Well acted, well paced and well crafted. Never a dull moment and such witty dialogue.

Set in an intervening time period when Julia Childs was in her 40s and the 30th Birthday of Julie Powell, this movie, traces Julia Childs entry into French cooking and the beginning of a blog where Julie challenges herself to complete all the recipes in Julia's book, "Masterpiece of French Cooking" within 365 days.

The story ended well for both protagonists as they got the books printed.

This is one 'cool cat' of a movie. If the field had not be overcrowded at the oscars this year , Stanley Tucci could have won his Academy Award for Best Supporting Actor.

As usual, Meryl Streep was in her element!

MRCB: Going for the Jugular?

The Employees Provident Fund (EPF) has acquired another 24.8 million shares in Malaysian Resources Corp Bhd (MRCB) since last Friday.

In a filing with Bursa Malaysia yesterday, MRCB informed that it bought these shares at  an average of  RM1.479 each.

Last week, the EPF extended a conditional general offer (GO) for the 66.2% of MRCB that it does not own after it triggered the GO following its subscription of 171.47 million MRCB rights shares late last year.

We know the error that triggered the mandatory general offer. They should have been more careful when subscribing for excess shares. Their foolhardiness caused the imbroglio.

So, now that they have fumbled big time, why are they buying more MRCB shares? Moreover they did inform the public that MRCB will not be their flagship for property development.

However, if you look at the counters where they controlled directly such as RHB and MBSB, it looks like the MRCB purchase fits right into this strategic  troika of inter-connected shares that would form the core of the property and property finance holdings of the EPF.


There is also a very strong chance that they will sell the excess MRCB shares after it has accumulated good premium values which obviously it can.

I guess in a way it will help bolster the earnings of EPF in 2010 and onwards.

Wondrous Satellite Shots

Well, it is not often that we get such magnificent shots of some of the wonders of the world or happenings.

Here we have some great shots. The ones to watch for will be the tsunami onslaught on a beachfront in Sri Lanka and Ground Zero of the 9/11 attack on the World Trade Centre.

The others are the Grand Canyon, Ayer's Rock in Australia, the Niagara Falls and the Pyramids at Giza.
Enjoy!

Reviewing the Brutal 'Pool System'

The abuse of the 'pool system'in the Public Services Department(PSD) was highlighted today by PM Najib.

It is true and it was brutally used at least for the last 30 years.

Once used as a transfer station before posts become available for returning officers from courses,it has been systematically abused for umpteen years by superior officers of the PSD for their own purposes.

For those in favour,they stayed at the pool for 'choice' positions to be become vacant before taking over these strategically powerful positions. For the others, it was an administrative Bastille. They forget about you until you retire or quit.

PM Najib Tun Razak said today a comprehensive study will be conducted on the “pool” system in the civil service which is regarded as a device for punitive administrative measures.

The prime minister said that the element of natural justice or the right to be heard and assessed independently must form part of the procedure.

“I hear the whispers and grouses of the civil servants. I know and I care.“Don’t worry or assume that I don’t care or am not attuned although the whispers are soft and indistinct.

For those who have been victimized and left the service,there is nothing much they can do about it.It is hoped that those currently in the pool will be given fair treatment and the right to be heard, to gain promotion or the proper posting that fits their training and aptitude.

The time has come to the PSD head honchos themselves to stop selective persecution of their own service officers!

Nine-A Great Musical

 

One of the more recent Broadway musicals to come to the big screen, Nine tells the story of Guido Contini (Daniel Day-Lewis), a world famous film director as he confronts an epic mid-life crisis with both creative and personal problems. He must balance the many women of his life, including his wife (Marion Cotillard), his mistress (Penelope Cruz), his film star muse (Nicole Kidman), his confidant and costume designer (Judi Dench), an American fashion journalist (Kate Hudson), the whore from his youth (Fergie) and his mother (Sophia Loren).

Melodramatic and dark, it documents the crises that Guido went through to come to terms with his love and his life.

This film is Rob Marshall's latest foray into the world of Hollywood and perhaps his best to date. Based on the Fellini film 8 1/2 (which describes the number of films Guido has directed to date... he co-directed one for the 1/2)... this version simply is magical as it transforms reality into fantasy.

Marshall gives you wonderful choreography and the musical numbers are magical. Weaving the singing and dancing seamlessly is his forte here. His treatment of using black and white versus color and back again are well conceived and executed tastefully.

One great musical movie, I have seen in a long while since Moulin Rouge.   

The Next Hot Product: 3D TV

Following the footsteps of Samsung and Pansonic, Sony Corp will launch 3D televisions in Japan in June 2010. Sparked by renewed interest through  3D movies  movies such as Avatar, Cloudy with a Chance of Meatballs and the forthcoming Toy Story 3, this field is expected to be hot as competitors launched their products as the year pans out.

Electronics makers are now rushing to get flat panel TVs with three-dimensional visual effects to the market.

In February 2010, Samsung Electronics Co Ltd, the world’s No. 1 TV brand, launched 3D TV sales in South Korea and said it would launch globally in March with the aim of selling at least two million 3D TVs this year.

Panasonic Corp will launch its 3D TVs in the United States tomorrow (10 March 2010), and cooperate with top US electronics retailer Best Buy Co in promoting them.

For Sony,they will market the  46-inch screen for 350,000 yen (RM13,175) and a 40-inch model to sell for 290,000 yen. Sony added it planned to launch its 3D TVs overseas around the time of the Japan launch.

It will be an expensive affair as there are not too many movies in 3D currently and so sales of 3D TVs at best will be muted at such high introductory prices.

I do not foresee many buyers in Malaysia. It at all there are buyers, these will basically be status symbol seekers.