Pornthip- Sincerity Beyond Reproach

Well, if you think she had a bruising session in the Malaysian court giving evidence in the Teoh Beng Hock Inquest, you may have to re-look at your perspective.

From her rebuttal questioning her accreditation and experience, she stood her high moral ground against the relentless low grade provocation of the MACC. She had her day in court.

Conducted in October 2009, the survey found Dr. Pornthip Rojanasunan to be the most trusted individual in all of Thailand while Doctors were the most trusted group.

Most Trusted Individuals: This survey found that out of 80 individuals Thailand's renowned forensic pathologist and director of the Forensic Science Institute, Dr. Pornthip Rojanasunan was ranked as the most trusted individual of the year. She was followed by Phra Ajarn Alongkot Dikkapanyo, the head monk at the famous Buddhist AIDS temple, Wat Phra Baht Nam Phu, Dr. Sumet Tantivechakul, secretary general of the Chaipattana Foundation, Phra Promkunaporn (Prayut Payutto) acclaimed spiritual leader and winner of an UNESCO Prize for Peace Education, and Phanya Nirunkul media tycoon who was the fifth most trusted individual.

The rest of the top ten were film director Prince Chatrichalerm Yukol (6), leading banker Banthoon Lamsam (7), social workers Nuannoi Timkul (8) and Suthasinee Noiin (9), and renowned marine environmentalist Dr. Torn Thamrongnawasawat (10).

People trust those who do good deeds for society: The majority of this survey's top 10 most trusted individuals were people who worked in non-profit organizations and dedicated themselves to helping others. Some of the respondents pointed out that, Dr Pornthip Rojanasunan has worked “dedicatedly and fearlessly to bring justice to our society”.

Other individuals within the top ranks were also highly rated in terms of their dedication to the greater good. For instance, Phra Ajarn Alongkot Dikkapanyo's work of helping those who suffer from AIDS is selfless and admirable, while Dr Sumet has been admired for his service to the King and his commitment to accelerate awareness of His Majesty the King's philosophy of sufficiency economy among general public.

When it comes to trust, politicians are the lowest: According to the survey, politics was seen as the least trusted occupation, followed by Psychic or Astrologer and Insurance Agent. The survey also found that Thai respondents trusted security guards more than they trusted law enforcers. In the most trusted profession ranking, security guards were rated one spot higher than police officers.

So, for politicians and those in the police force,what have you to say?

The Rise and Rise of CIMB

Yes, it is the number two commercial bank in Malaysia in terms of ranking but the gap is getting closer and closer. Watch out, Maybank!

CIMB's share prices spurted up spiritedly yesterday to clinch a gain of 22 sen. This is brought about apparently  by bullish buying on the back of their just reported earnings in its  Indonesian operations.

PT Bank CIMB Niaga Tbk, the Indonesian subsidiary of CIMB Group Holdings Bhd has posted a first-half ended June 30, 2010 with a whopping net profit 1.12 trillion rupiah which is 62% higher than the same period a year ago with net interest income improving 16% and net non-interest income by  7%.

Compared to the first quarter, the bank posted a second quarter net profit that was 15% higher at 605 billion rupiah.

Total loans for the first half grew 26% to 91.76 trillion rupiah driven by investment loans in corporate banking and auto loans in retail banking while total deposits grew by 29% to 106.18 trillion rupiah.

Gross non-performing loans ratio for the bank improved to 2.67% while impairment ratio for the second quarter decreased to 4.3% from the first quarter.

The loan loss coverage ratio increased to 140% in the first quarter compared to a quarter ago with impaired loan loss coverage increasing 293 basis points to 76.5%.

A Bloomberg report also pointed out that parent CIMB Group will target a listing  on the Indonesia Stock Exchange towards year-end or early 2011.

On Aug 4, Indonesia Stock Exchange president director Ito Warsito said the stock exchange might approve the bank’s dual-listing proposal, which could come about after Jakarta makes changes to regulations in the fourth quarter to allow foreign-listed companies to list their shares.

CIMB Group chief executive officer Datuk Seri Nazir Razak had told reporters in early May that the bank had informed the Indonesian authorities of its interest in a dual-listing.

So, there are a lot of news making out there for the bank to create bullish excitement.

Is it too late to take a berth on this counter at the current price of RM7.90?

GenM: Is It Biting More than It Can Chew?

Is  Genting Malaysia Bhd re-branding itself? It looks like it.

Buffeted initially by the frustrating failure in the Star Cruise investment, it got thwarted yet again when it was shut out of the Resort World Singapore deal.

Now, tomorrow at its EGM, GenM will likely buy over Genting UK.

Sure, profits were decent the last few years and it has accumulated a cash pile of some RM5bil for sometime. This cash reserve was not doing anything as the reluctant Genting M Board did not want to reward its minority shareholders by giving out special diviedend or dividend -in-specie.

In early July, news were floating around that that Genting Malaysia may buy over Genting UK from Genting Singapore (GenS).

In knee-jerk fashion, analysts and shareholders kicked up a fuss, with what was seen as a clear-cut related party transaction.This was after the first and second transactions of a similar nature namely the Walker deal and the purchase of Wisma Genting and Oakland Investments from the parent company.

GenM announced that it was proposing to acquire GenS’s UK casino operations for £340mil (about RM1.67bil). GenS first bought Genting UK in 2006 at £626.91mil (RM3.13bil)

The UK casino operations comprise four companies – Nedby Ltd, Palomino Star Ltd, Palomino World Ltd and Genting International Enterprises (Singapore) Pte Ltd – collectively known as Genting UK.

Gambling in the UK is regulated by the Gambling Commission on behalf of the government’s Department for Culture, Media and Sport under the Gambling Act 2005.

There have been significant updates to UK’s gambling laws, including increasing tax on poker profits from 15% to as high as 50% depending on profitability. There have also been increased rates on all categories of amusement machine licence duty.

These measures are likely to continue to dampen the gaming enviroment in the UK and some analysts are pessimistic because of the challenging operating environment.

There are concerns that Genting Malaysia could be buying Genting UK at a time when the economy is not only weak, but faces a double whammy of the casino industry facing tough legislation.

All eyes and ears will be on Genting Malaysia’s EGM tomorrow to approve the acquisition of  Genting UK from GenS. GenM’s second quarter results to June 30, will be also released on Aug 26. That it will take-over GenUK is a  fait accompli,to say the least.

Genting Malaysia has been doing its legwork. They have been on a roadshow in the last few weeks to meet up with its shareholders and to explain the rationale and potentential of buying into the UK casino operations.

Last week at Genting Singapore’s EGM, the resolution in respect of the sale of UK casino assets to Genting Malaysia passed by shareholders.

It is however interesting to note that over the last two days, Genting Malaysia has bought back a total of 11.2 million shares at an average price of RM3.03. This brings its cumulative treasury shares held at 3.71%.

The group has announced its intention to purchase up to a further 376 million shares (representing 6.4% of share cap) within the next 10 months.

Meanwhile last week, Genting Malaysia Bhd obtained all the necessary approvals and signed the agreement to develop the Aqueduct New York racino.

Genting New York (GenNY) is expected to invest US$1.3bil which consist of US$380mil (RM1.22bil) of licencing fee, US$350mil (RM1.12bil) initial capital expenditure (4,500 video lottery terminals), and US$650mil (RM2.08 bil) to build three hotels of differing standards, shopping, recreation, spa and other resort facilities.

Dubbed Resorts World New York, the proposed three-storey facility will also contain several restaurants, water features, an outdoor terrace connected to the Aqueduct racetrack which will be able to accommodate up to 10,000 people and a 2,200-bay car park.

GenNY aims to complete the entire development within 12 months from the date it obtains formal approval from the state to proceed.

As part of a wider development plan, GenNY is also proposing to build three hotels of differing standards, shopping, recreation, spa and other resort facilities at a total cost of US$650mil (RM2.09bil). That will take the proposed outlay for the entire project to over US$1.3bil.

“If we assume daily win per terminal of US$300 (similar to the more successful Yonkers racino closer to New York city centre), Resorts World New York may contribute RM595mil and RM196mil to Genting Malaysia’s revenue and profit after tax respectively by 2013,” said an analyst from HwangDBS Research.

UOBKayHian reckons that the project is neutral to Genting Malaysia’s revised net asset value but is slightly earnings-accretive over the long term, assuming that the Aqueduct would be eventually given a license to operate table games.

The research house estimates the slot facility could provide a payback period of 5.5 years (on full expansion), while the payback period for the rest of the facilities could be significantly longer.

“Conservatively, Aqueduct could pull in revenue and operating profit of US$468mil and US$84mil respectively when it is fully expanded.

“This accounts for about 14% of Genting Malaysia’s forecasted 2012 operating profit,” said the research house.

The recent spotlight on the entire Genting group has been brought about by GenS's sterling results and the re-rating of casino sector in Singapore. GenS is 52% owned by Genting Bhd.

GenS’s second-quarter results took the investing community by surprise, when it beat analysts and consensus estimates.

For the second quarter ended June 30, GenS posted a net profit of S$396.5mil (RM925.9mil) compared with a net loss of S$50.7mil a year earlier.

Revenue soared to S$979.3mil from S$120.1mil previously. This translated to a profit margin of about 40%.

THe NY Racino is In the Bag!

It is confirmed.

Following a unanimous recommendation from the New York Lottery earlier this month, Governor David A Paterson, senate conference leader John Sampson and assembly speaker Sheldon Silver have all granted their approval to award Genting Malaysia Berhad's wholly-owned subsidiary, Genting New York, the right to develop and operate a video lottery facility at Aqueduct Racetrack.

So, let us see whether Genting can bring in cash into the coffers of Genting M that has been deftly depleted by the marauding Board.

RCE's Better Dividend Fiscal 2009

Yes, after an initial payment of RM10.00 dividend per 1000 shares last year, RCE Bhd has rewarded minority shareholders with a more than 100% increase in its dividend. The dividends to be paid are 9% tax deductible at 25% and an additional  single-tier tax exempt 8.5%.  This works out to RM15.25. The quantum will have to be approved at the AGM on 8 September 2010.

Right now there is bullish buying as some fund managers have suggested that its next target price should be beyond RM1.00. That is some way to go and so do not expect a straight as an arrow movement of RCE's price.

RCE has always been a defensive stock because its main credit business is underpinned by consumer credit to civil servants. Deduction is made at source and so default is not an issue.

RCE also buys doubtful debts from commercial banks and have a good performance in its recovery.

This is a penny stock counter to watch.