Heir Conditoning-Different Challenges

The Author

M Sanmughalingam's Heir Conditioning must be looked in the proper perspective so that we know there is just no comparison between the two generations. There should never be, not even with poetic licence.

Written more as a prose in a poem format, this piece has a child questioning the grandparents about how they could possibly survived without modern comforts and conveniences.

As each era has its new knowledge database, innovations, inventions and discoveries, there is advancement. From the wheel to the motor-car engine and the airplane, there have been tremendous progress for mankind.

For the current era, the telephone, the fax machine and now the wundebar internet has open new vistas into the new uncharted world for man to reach out further and find insights he never knew existed on this earth, not to speak of remote interplanetary travel or the fictitious time machine.

The poet's' limited reference' to age-old inventions,  innovation devices such as the fan, the telephone  and the ubiquitous air-condition is considered dull on all counts by the Generation Y people with their ipod, i-pads and the much sought after tablets. Can they relate with such products or issues?

The questions asked by the child are most mundane. Hardly inspiring. Out of time.

The second stanza where the grandparents tried to explain away to the child about the lack of science and technology during their earlier life-time can also be viewed as possibly begrudging the modern generation.

To accept a  mundane life devoid  of technology comfort is understandable. To blame the younger generation for the ills of modernization is most unfair especially when capitalism and greedy governments rob the land blind for their own aggrandizement and glory. That is sadly replaced.

Anyway for a scholarly work, it has passed muster.

Thefts and Threats-Living in a New Housing Estate

Easy Targets for Asset Rip-offs

The NKRP on Crime Reduction is most rosy on all counts. Yest, everyone knows crime has not abated. In fact, on the contrary. it is on the rise in Malaysia.

Lately, muggings of lady shoppers  in shopping complex car parks has become more rampant. From The Curve to Mid-valley, the dark elements are on a constant move. Almost like living in Gotham City without Batman. There was an abduction at the Curve, a beating up at Mid-Valley  as well as a kidnap at an international school.

A Hollow in the Window

As, usual lies and false statistics are trumpeted out by the authorities. We know better.

One interesting phenomenon is the petty thefts and asset destruction in new housing estates.

Between the time when you officially take the keys to your unit until the time a resident association is formed to look seriously into security, it is anybody's game - a demilitarised Pakmunjong!

I remembered a friend who used to stay in Sri Petaling when it was just built many eons ago. There were not many houses which were occupied then and lalangs grew majestically in that small plot of garden land in each unoccupied house. During one of the evenings after he had  just moved in, a motorcyclist and pillion rider stopped in front of his house and demanded RM50 from him as monthly protection money. Failing which, they showed him a brick which they will throw into his front door glass panel. He paid up pronto, as he did not want no trouble, my friend.

Easy Dough but Dog Days for the Owners

Then we have the petty thieve in connivance with the current foreign guards who will crowbar your casement windows to get in to steal away lightnings, piping fixtures and fans. They are most specific-some will just take away piping; others washing basins and even shower roses.

So, if you intend to buy a house in a new place, do put in your grills and firmly rivet these as well for they can also be fenced off profitably by these petty thieves to greedy middlemen who oftentimes are small-time contractors. Forget about aesthetics in Malaysia, grill every possible entry point.

When things get better, you can remove some of the grills to restore the beauty of the house's design and architecture.

It is also the signs of the times as the economy slows down such crimes moves up. 2H is definitely bad from all the returns of the PLCs on Bursa KL. I think unlisted SME's are faring much worse if they piggy back for business on these listed SMEs.

Do you see Greece, Cyprus and possibly Spain at your door-steps?

Wide-eyed Wondering- Jeannie Kirby

I Wonder, You Wonder, No Wonder!

'I Wonder' by Jeannie Kirby


This is a classic poem almost fit to be a nursery rhyme.


Except for the sixth couplet which hardly rhymes, all the earlier five did.


So, what is this poem all about? What is that sublimal message that Jeannie wanted to convey?


Was it justified ignorance or plain innocence that is central to Jeannie's thoughts when she wrote this poem? 


The poem touches on the elements of nature. The grass, the wind, trees, the moon,the stars, lightning, the rainbow and clouds. Even the birds and their nests were not spared.


The little boy or little girl is the persona.


In first person, that child asked these valid questions that even adults may be stumped for an answer.


How does one explain to the child about colours and the science of it being so be it in magenta to violet?


Again, we feel the wind but why does it sometimes blow to stir the air around us so violently until gale-force in some instances?

Who taught the birds to built a nest?

The question about the birds building nests without being taught is a very deep question for a child. How does one convincingly explain that it is just as  instinctive just like birds flying to warm southern skies to escape the bitter winters in the cold north? Or just as bears catch  catch salmon trouts that are programmed genetically to swimm  upstream to spawn eggs? No clear answer except to accept as fiat or faith.


Do trees really take a rest? Possibly because the imaginative child could envision that trees could move and just like humans need to take a rest now and then. Perhaps they do walk once in a long-long while like Treebeard in the 'Lord of the Rings' when calamity come their way. If JRR Tolkien can imagine that, why can't we believe this questioning child? 


The shape of the moon being round and not so round at times can be explained these days by planetary science. Not so, in earlier days without Google. That is why we have tales about dogs and hounds eating the moon and the sun and those Chinese people banging on their metal pails and cymbals to frighten away those dastardly canines to get back their adoring and romantic moon.


The stars that comes out only at night and disappears when day dawns. Did someone light them like century old street gaslights and snuff out the flame as morning comes. Another valid question that beggars an answer.


Lightning flashes? Did they come from Mount Olympus and from Zeus's thunderbolt? Can you explain the science of positive charges and negative charges to an inquisitive growing up kid? Is the child ready to understand scientific principles?


Looking for a pot of gold? Then look no further; seek your rainbow after the rain has gone. Tell the child about the wonders of science of light and water. Will she understand this too?


Cottony clouds hanging up high in the sky. So, did someone hang them there or do we need to tells the child about water vapours and condensation?


Then, the last couplet is the coup de grace. Touche!


Did my father have all these answers and yet did not tell me? Why, oh why?


Disquieting for any adult, I am sure.


So, Jeannie pray tell. Are you mocking the adult or throwing thoughts through the perception of an innocent child? Is the child a prodigy?


Where is that middle ground that we must seek for to provide an explanation that soothes both adult and child?


I remembered clearly a scene from the movie, "A Passage to India". 


The Professor met the protagonist in a lake-house in Kashmir. He had a a letter with him to give to that person  coming to meet him. Visibly angry when he found out that the letter was kept by the Professor for such a long time, he demanded an answer. "


And the answer..................." You were not ready for it then, you are ready to receive it now".


In that same vein, the child will get her answers by and by and only when she is ready to digest and learn the facts of nature. 


Otherwise, it will remain a mystery and a marvel until she grows up. 


Remember William Blake's 'Songs of Innocence' and 'Songs of Experience'? 


Joyful innocence and sombre experience. Bitter sweet refrain.

Second Bite of the Cherry

Seeking A Signature that is Cashable

I do not believe in things other than what my five senses tell me.

However, on one fateful day last year, when I took the Commissioner of  Oath examinations at the Palace of Justice in Putrajaya, I felt a 'dark' force at work in that old oil palm plantation that was formerly called Perang Besar or Big War.

After scribbling down my answers on the question sheet, I had to transfer the answers to my answer sheet. You need to give plenty of space on the pages between each question so that you can add  points if you should have any later on.

After jotting drafts points, I started writing  but somehow, my world came to a standstill while the clock ticked on. In fact, strangely, I missed 2 pages of answers and ended up checking on what I did, thinking that there was only 20 questions with many parts to answer for each of them.

It was only after the exam when I talked with other candidates, that I knew there were actually 40 questions.

I had messed up big time!

As there was this big bad spirit that brought failure for me, another good spirit came by and just in the nick of time, I phoned the office of the Registrar of Courts and they told me I had two weeks to appeal and I would just make the time if I did it pronto.

To my relief, yesterday I received a letter requesting me to take the exam for a second time.

This time, I pray that Almighty God will protect me and let me claim my victory.

A second bite of the cherry. I bet it will be sweeter. Amen.

Job Done But Overdue By One Month

New Expertise to be Honed

Perhaps that's the way God planned it for me.


The job came out of the blue. Alex phoned and put me  to the contact.  I caught the opportunity;thought it was a good start as any to migrate away from teaching English which was getting more annoying as I began to lose home tuition students. For one reason or another, they had valid excuses to stop classes. I did not begrudge them.


Once I agreed that I could handle the translation job within 10 clear days without any problem, the problems sprouted legs and put me into a spin.


After finding that I had problems with nomenclature, there was no choice but to start liaising with the principals and no longer only through my contact who was awarded the job.


Translation can be one illusive job. I took an additional week to finish the work. The work started on 22rd May and should complete by midnight,1st June. It was not to be. I took another 7 days, slogging through drooping eyelids with my brain utterly dead to translation.  Staring at a sentence and not even making sense tells me that it's time to hit the pillow.


Then,what do you know? Murphy, in a jester suit,  came by to say,"Hello!".


So, my lady contact told me; we had a new version to be translated. The old one that I translated was an interim unauthorized copy.What a waste of effort!


So, it was back to the chopping board with my days and nights on the chopping board. 


Today, 30th June and 29 days late, the project finally ended.


What a relief but it is a feather to my cap as I am about to create a new portfolio of experience and track record in copy-writing and translation.


So, God willing, this year will be set apart for a new course-anew literary adventure of sorts! Amen.

You may be Right but They are so Expensive!

Playing It Safe ONLY for the Moment

For the moment, UBS has this to comment on the state of Bursa KL. In their words, it is "defying gravity".


Characteristics?


An All-time high with KLCI at 1,607 on April 3rd, despite weak external economic climate. That the election may be postponed yet again keeps the market going with stimuli galore. 


Also foreign players seeking safe haven from the financial storm in Europe are getting onto defensive stocks.


So, for the moment, UBS suggest the following stocks for consideration as defensive play only. These include: Berjaya Sports Toto,Genting Malaysia, Sime Darby, Hong Leong Bank, Public Bank, IGB and Axiata.


Except for IGB, Genting Malaysia and BJ Sports Toto which are buyable by the retail layman; Axiata has gone mid-range beyond RM5.00.   As for Sime Darby, it is on the cusp on touching RM10.00. Hong Leong Bank is beyond RM12.50 and Public Bank is in the high eavens almost touching RM14.00.


I am sure there are other stocks worth looking at from BJ Foods, Mesiniaga, YTL Corp to  Tasco.


What say you?

Door gifts and Ugly Bursa KL Companies

It is THE practice of publicity seeking companies on BSKL to give door-gifts its its loyal shareholders as well as to ensure a good feeling turnout at the AGM. It is a measure of their personal success of the Chairman and his management, the corporate image and  a kind of yearly deja vu they savour.

While some companies reward shareholders well, others provide token gifts and those with generous hearts in their bosoms give truly good gifts worthy of their thanksgivign to loyal sahreholders.

In my experience attending AGMs the last three years, let me just look at those that are stingy,thankless and graceless.

Not friendly

First on the list for all times is the so called oil giant. ESSO. Compared to Boustead Petroleum and Shell who give great gifts, ESSO is Sylock personified. It gives nothing except for light refreshment. Do not attend their meeting. Do so, if the new pinoy owners give more than chicken adobo.

Poor Start on Debut

Eversendai- another stingy counter. Making oil and gas money galore from Bahrain to Dubai. Stingy as the Nizam of Hyderabad. No door gift. Keep away!

Sad shareholders attending their AGMs

Next, we have Tasco. They say that Japanese are kind. Not these. Only a drink on the house. Pay for food!
Never let your shadow fall at the doors of the company when they hold their AGM.

Hollow hearts

Then,let us look at this big bank- After consuming EON Bank, it's share moved up to RM12.50. Yes, at their AGM, no morning breakfast or a drop of water-not even for old folks from faraway places. lousy AGM follows by cheapskate nasi lemak. Keep away again from the Kwek company.

Kedukut with a Capital K 

We must not forget KAF. No, 1000 shares-no door gift. You are an investment bank. Tak akan hanya gantung to big boys. Many small retailers can help your bottom line, too.  Imagine 999 shares-tak dpat juga. Mana ada justice! Don't buy their shares as their fortunes are tied to Bursa KL. When Bursa go, they go down further.

We are stingy-lah

Yes, not forget the Red-coloured Airline-Air Asia. Now anyone can fly but if you have 999 shares, no door door gift as well. You are tuned out, so says Tony.

So are we!

Also remember Mulpha International, won't you? No door-gift lah. We also like Tony's airline.

Premier No go!

Top premier development but good friend of the Nizam as well. Poor hi-tea and no door gifts. "Everything for me me me!" Don't even think of going.

The Malu Bank?

Another joke for a bank. Gives out odd plastic bags at the AGM that you can find better ones at the local pasar malam. Don't go to their AGMS.

Discriminatory Policies?

Poor door gifts can be expected at IOI Corp and MBf. IOI differentiate its shareholders. If you have less than a 1000 shares, you get RM30 voucher;otherwise it is RM50 food voucher. Anyway, siapa mahu pergi makan di Putrajaya?

No wonder nak jual card business

MBf Holdings is engrossed on giving organisers as door gift year after year? Do you need a gift catalogue? Need a consultant?

Sugar Jester?

MSM and Bumi Armada are so lousy-lah. Claim to be international O&G contractors. One gave small sedekah size table sugar and Bumi give Colonel Sanders RM20.00 only. Disproportionate-lah!

Nice logo,lousy door gifts

Cheapened product?

Forgot you are a hospitality stock?

The last two companies I would like to delve on are the two Genting companies and Tradewinds(TWS). These three companies are no longer generous. Gentings have cheapen their door-gifts just like they have cheapen all the drinks at their casinos on the hill. AS Genting is in the hospitality industry, they cannot cut down on servings of Milo and teh-tarik. Mak more money, not cut down on freebies for gamblers and tourists. You have lost goodwill, my buddy. Very difficult to get back. As door-gifts, they have now decided to give Old Town Coffee. No more gratis hotel stay and Holiday cards. Another absolute letdown!

Finally, we have Tradewinds, the former Pernas. Used to give good door gifts but this year, it turned into Stooge and gave a goody bag of less than RM10.00 in value and worse, they do not have enough supply of door gifts for shareholders after having them line up for an hour just to register! Blame Symphony too!


I will touch on the other lousy counters in the next posting so that shareholders need not attend those meeting ever

BJFoods-Selling Down by Weakholders

Food for Thought  

In spite of a call to hold to your horses by AmResearch, some 352 lots got sold at low prices of RM1.22 knocking off 4 sen.

Looks like this seasonal stock needs to gather traction sometime.

I would not look to tomorrow as Friday is always Seller's Day.

Let us watch for a price resistance before commenting further.

Meanwhile, in the next posting, I will review the best bits of the AmResearch paper.

I have just noted that the conversion of each BJFoods warrants comes with a tag of 70 sen. That would mean that one free warrant plus 70 sen will beget you one sweet baby of a  BJFood share.

At today's price of RM1.23, that would work out to a haircut percentage of  56%. Yet another bonanza, don't you think so?

Let us create a simulated situation when one buys  1000  shares of BJFoods.

You will have to pay (exclude charges) RM1,230.

When it goes ex-rights, the price should not go own at all.

If it lekat as they say in Bahasa Malaysia, then the new rights of 800 shares(800 shares for each 1000 shares held cum rights) should trade at current value. This will put you ahead with a gross profit gain of  RM1.23 x 800 =RM984.00. Minusing the rights price of  RM520.00, the net gain to you will be RM464.00. That would mean a return of (464 divided by 520)=89% in a short window from cum to rights.

So, given today's price of RM1.23, this will amount to about 37.7% return.

Each warrant is convertible at 70 sen. A fair discounted conversion price should prove attractive to speculators and short term holders. Expect any price. Even at 10% of conversion price, it will bring you profits of 12 sen per lot of 1000 at current price or RM120.00. So, at 800 warrants, you stand to gain RM96.00 for your warrants.

Let us see whether it will pan out well.

A Funny Thing Happened on the Way to Paradigm Mall GSC

Brand New Disappointment 

We really did not expect the outcome though it did end up well and not to our detriment.

So, there we were rushing to finish our martabab at the Teh Tarik Restaurant. At 5 minutes to 12.40 pm, we were snugly seated in Hall 9 but the show did not go on. We did not get to see Snow White and the Huntsman. 


One of the cinema staff then announced that there will be no show because of a technical hitch and we could get our refund. Obviously, no one was going to take that lying down. So demands were made for complimentary ticket beside the return of our cash.

The manager came in and accede to our request.

So, we got the cash back and the two complimentary tickets.

Snow White will have to wait, I guess.

What a day!

BJFoods-A Fair Value at RM1.45

Berjaya Foods and Berjaya Land looks Good

Berjaya Foods (BJF) went ex-dividend today,sliding a wee bit in the opening bell before strengthening towards the closing seconds of trading today. It ended at RM1.28 for a 6 sen gain. Volume,as usual, was low, which has been the pattern for BJF for quite sometime now except for a volume spike on 11 June and a price spike on 21 June 2012.

Ambank Research today picked BJF as the stock focus today.

Its recommendation: Hold and not let go as it is poised for rapid expansion. However, it foresees a limited upside and pegged the counter at a fair value of RM1.45, based on a 13x PE on CY13F earnings. Since 25 May (97 sen) , BJF has risen 39% to the current price.

Jewel in the Crown

Ambank foresees the earnings trajectory to remain strong with a greater certainty in growth as its expansion spree remains well on track. The impending acquisition of a 50% stake in Starbucks is expected to be completed in August. Starbucks, apparently has achieved growth of 26% in the last six months-the highest in South-east Asia.


Given the strong franchise value, earnings of CAGR of 51% remains robust over FY13F to FY15F.


So, what is in store for shareholders? 


As the rights price is RM0.65 sen per share , if the share price maintains at this level, it means that one will stand to gain 0.63 sen when the exercise is over. Then there is the free warrants to boot. I am not sure of the conversion price as it has not been fixed.

If the Starbucks acquisition  is expected to b completed in August, I guess the rights exercise will take place in July.

Given the short time window of only a month or so, I expect dynamic action on BJF as speculators will come in to shore up prices. As it is a very tightly held counter by both the majority shareholder (Berjaya Group  etal ) and reluctant minority retail shareholders, the technical situation can see the share potentially breaching the RM1.50 level.

The Indonesian Revenue Factor

Then, there is the Kenny Rogers expansion into Indonesia. With the growing affluence in this republic and better purchasing power for restaurant-style fast-foods, it will certainly impact upon the revenue and profit of BJF in the ensuing years to come.


Also for fast food play, with KFC and QSR bidding farewell from Bursar KL, it looks like BJF will be the new leader in pole position way ahead of Old Town Coffee.


For now, let us watch how the counter will move in the near future given the technical shortage of sellers. 

Berjaya Foods-Will it Reward Shareholders?

Food for Thought

Yesterday, the counter could not cling to its gains and slid more than 5.7%. From RM1.38, Berjaya Foods (BJF) lost 8 sen to RM1.30, touching a low of RM1.29. Fortunately, there was no volume. Like an occasional rain in the desert, it will stay ever illusive on low volume trading; this time about 1,450 lots of 100 units each.

I think this is symptomatic of a tightly held counter by possibly a major shareholder or by reluctant minority shareholders who are not desperate to sell. That it has gone down may be indicative of some day traders disposing  to take advantage of the declining trend to get back on the bandwagon at a much lower price. Simple economics and might just work if selling persists.

At 65 sen for a right share,  this current price will fetch a clean 100% profit. So, a good strategy is to dispose a 1,000 unit lot  when it goes ex, collect the  800 rights at RM520, collect the warrants for free and subscribe for excess shares; hopefully they give you.

Today is the last day for the tax exempt dividend of 2.5 sen. So, any purchase price is effectively 2.5 sen cheaper. Fro instance, if you buy at RM1.30; it means it is a purchase of  RM1.275 which can offset a big portion of your overhead charges.

My guesstimate, they will still hold it above RM1.00 until it goes ex, giving you a profit berth of RM0.35 sen. This is a very conservative stand.

Happy speculating but caveat emptor!


PS: BJF declined by another 5 sen today to RM1.25 before ex-dividend day tomorrow.

Telecommunication Sector upgrade?

Revenue Churner with UNIFI

Just when you thought that with the breaching of the 1600 index would spell some sort of selling,more prophets are coming out of the woodwork.


The latest seems to be Kenanga Research  throwing in the gauntlet for the telecommunication sector. 


It is giving an  'overweight' to the sector based on the first quarter profit results ; the dividend yields and also what they have termed,"robust operating cash flow"


“These (factors) will provide the much-needed defensiveness required during the current volatile market,” so said Kenanga  in a note to clients. 

So let us see what Kenanga sees in their crystal gazing exercise.


The target price for GLC Telekom Malaysia Bhd is now moved up to RM6.36 (US$2.02) from RM5.65, another 10% while the much sought after third-largest Malaysian mobile phone operator  DiGi.Com Bhd is given a marginal push of 28 sen to RM4.68 from RM4.40. 

Well-Run, No Foreign Exchange Losses

Top mobile operator Maxis is now given a 30 sen price hike to RM6.76 while Axiata is now adjusted upwards to almost RM6.00(RM5.95) from the current RM5.52 price

Silent Climber, Superb Dividend Giver

Target price for Malaysia’s top mobile operator Maxis Bhd was also raised to RM6.76 from RM6.00 while Axiata had its target increased to RM5.95 from RM5.52. 

Growth Stock

What about the effect of YTL Power (Yes! 4G) then, and Time dot Com?

YTL Corp-Pushy and Cheeky

So, what do you know?

It wanted to reward its shareholders. So, it gave RM20.00 for 1000 shares as  dividend and 1 dividend share in specie  for every 15 shares held. To top it, it gave an nice icing equivalent of YTL Power warrants of 1 warrant for every 15 YTL Corp shares held; at a steep discount of a honest-to-goodness 20 sen when YTL Power warrants is currently trading about 52 sen

At the same time, while the Treasury shares are not distributed, it continued amassing some more Treasury shares.

Yesterday it was still in the 8% region and perhaps has another less than 2% before it hits the target allowable 10% before the next AGM.

So the price went up to RM1.12 after a slight dip below RM1.90 went it went ex-dividend.

So, as I wrote in an earlier posting, minority shareholders are praising Francis as a benevolent demigod of sorts. A person who bought 1000 shares at RM1.96 before it went ex-dividend has now got his share dividend in specie, his 2 sen dividend for every 10 sen share, his YTL Power warrants at a cheap 20 sen and now a capital gain as well of  16 sen.

Expect more action on YTLPower as their Yes 4G broadband wifi roll-out gathers traction; and once its capital outlay is returned, it may blast off with the power and water utilities leading the revenue chase.

Nature of engagement: Do not sell any YTL Corp shares for I believe Francis is brewing something  "sweeter than honey", as deftly as he can with that RM14 billion cash hoard of his.

Bamboozled by an Email Hacker

When I received the email from a friend seeking help, I was more compassionate than thinking. What should I do? Who can  help me to assist my friend over there in  a remote country?

This happened on 19 June when I opened by email.

Let me show you the massage.

Hi,


Hpe you get this on time. I made a trip to Madrid, Spain and had my
bag stolen from me with cash and credit cards in it. I've made
contact with my bank but they are not providing a quick solution.
I'm physically ok and fine but I'm urgently in need of some money to
sort my self out of this predicament, I will pay back as soon as I
return.

Kindly let me know if you would be able to help me out so I can
forward you the details required for a wire transfer via the western
union as it is the best option to send money to me. I don't yet have a
local phone (still gathering my bearings and such), so email is
probably the best form of contact for now. I will expect your response
soon


Thanks SAS

And so a gullible me replied like this.


How much do you need. I will ask around to see how many of out friends can help pool some.


The next response from the hacker goes like this.


Thanks  for checking, I need just €950 euros to cover my traveling expenses, I will pay back as soon as I get back home. Let me know how possible this could be so i can send you the western union details.

Then a smarter me put on the verification process like this.

SAS,

Verify this and I will take action to raise the sum among friends:


Who was ECOoi?
Name of your three children.
Name of my children
Name the exminister of H whom I worked for
The name of my sister who worked for the H Division of the T
Name of your church


GB
XXXX

No response thereafter.

I phoned my friend SAS after a friend of mine told be that it could be a scam. SAS then told me someone has hacked into  his email compromising his address book.

What a lesson!

Berjaya Foods-Good Cooking?

News must be around the corner. Also, this must be one cornered stock. So the share goes up on small volume. Let's take today. Berjaya Foods went up 7 sen-more than 5%.

As the rights issue is pegged at 4 shares for every 5 held at 65 sen per share. That means that theoretically for 800 shares you will stand to gain 48 sen. Another bonanza if the matadors and Greek Gods and Titans don't give us any trouble from the Eurozone.

Good cooking so far.

YTL Corp: Is it Magic?

The Malay word for it is lekat. Will the price hold? Will the stock price holds traction?

Today, 14 June 2012, YTL Corp went ex-all, to the chagrin of all its shareholders.

As the counter started trading there were lots done below the RM1.89 ex- theoretical price. Most were done at a loss of 2 sen at RM1.87. Slowly, buyers came out to square of the price at RM1.89 with some heavy volume trade of tranches of 1,000 and 2,000 lots. As the morning session drew to a close, buying were mostly done by retailers. The counter clinched 4 sen to RM1.93 at the 12.30 noon-day close. Will it stay at this price or will power buying in the next few days propel it to higher prices?

I do not believe that YTL Corp  is conducting Treasury buys as yet.

A person who buys a 1000 shares at RM1.96 just before it went ex-dividend of 2 sen per share (RM20.00), would have paid circa  RM1,990 for that transaction. With the proposed payment of the RM20.00 dividend, his share purchase price will be lowered now to RM1.97 per share.

Factoring in his gains of 66 dividend share at RM1.93, this will come to a profit of RM127.38.

Seen in another perspective,this profit of RM127 will help further reduced his purchase price by  another 12 sen or effectively at a lower purchase price of  RM1.84.

Then, there is the 66 YTL-Power warrants to be issued at only 20 sen. At the current price of 43 sen, that means he would have made a further gross profit of  RM15.18 after subscribing for it. After deducting  RM10.00 for government stamp duty, his net profit will be RM5.18 sen.

There is again, the opportunity for him to buy excess shares if he is daring enough.

Assuming there is mass selling by the YTL Corp shareholders of the distributed warrants and it goes down by 30 percent (13 sen), the warrant  could still be sold at 30 sen to reap at least 10 sen gross profit or about RM100.00 per 1,000 shares which can be considered great as it reflects a return of 10% on such a short duration!

I expect YTL Power shares to move upward as more than 75% of YTL Corp's revenue comes for the overseas utilities in UK and Singapore.

Moreover, Francis Yeoh, with a thumping war chest of RM14 billion, is definitely looking out for bargains given the background of the current fall-out of the Eurozone which now includes Spain and Cyprus! Assets can now be purchased at really fair prices! So, Francis is looking high and low  for low, low prices!

Do not be surprised to see YTL Corp, YTL Power and the YTL Power warrants going up soon.

So, the backdoor way to amassing YTL Power stocks will strategically be through YTL Warrants.The exercise price is RM1.21.

The current price of YTL Power is RM1.64.

Theoretically the conversion into YTL Power  will involved cash of RM1,210 and twenty dollars of warrant or altogether an outlay of RM1,230.

This means that given today's price of RM1.64, there is a further discount of RM410.00 if the warrants are converted.

So, what should be the strategy now?

For me, buy YTL Power and YTL Power warrants!

PS:

At the end of the day, there was a barrage of sellers selling it down to RM1.86 again. It ended up at RM1.91 for a two sen gain though there were only buyers at RM1.87;indicating possible Treasury buy in to support the price for some reason only 'those people' knew.

Anyway, let us see whether there is improved traction tomorrow which is a freaky Friday for stocks.

Translation: Be Smart!

Yes, be smart. Don't do what I did.


Cari pasal.

I thought I was a wonder kid.

When I was offered an Annual Report of 172 pages to translate from Bahasa Malaysia to English , what did I do? My response?

"Boleh," I replied.

"Can-ah, do in ten days?"

"Can,can!"

Then when I got your teeth into it, I found it was more than I could chew!

Cough, cough; choke,choke...............

It was not the many pages, my friend.

Literal direct translation without  any need for referencing and looking for the equivalents in nomenclature would have made this translation assignment a breeze.

But I think I got the short end of the stick.

This was an official document of  a government agency with all those weird sounding names of committees, panels, programmes, activities  and minutes too  et al  and just cross referencing using a dictionary or Google and internet search can wear one down.

Sheer murder!

Then there is that need to ensure uniformity of terminology which you can only do so at the end of the project.

Thus far it has been a hassle and I am pretty sure that 'sepuluh hari tak jadi-lah" and with bowl in hand, I will have to beg for an extension.

Poor me. Having backache now from seating and slumping  in front of the keyboard for too long.

So, if you intend to get into translation, be smart. Know what you are in for.

Make sure that you ask for a longer time and make your agreement flexible enough to accommodate that.!

Lastly, ask for more money!